1 The applicant seeks the entry of judgment against the respondent of an amount calculated in accordance with an award made in favour of the applicant against the respondent by the Mianyang Arbitration Commission (the Commission) in the Peoples Republic of China on 5 March 2003. The award arises out of an exclusive Sales Agreement made on 21 April 1998 between the applicant and the respondent (the Sales Agreement). By the Sales Agreement, the respondent agreed to sell the applicant’s products in Australia and New Zealand. The respondent agreed to purchase exclusively from the applicant and the applicant agreed to sell exclusively to the respondent. The Sales Agreement provided for payment of the price for goods sold and delivered by the applicant to the respondent by a letter of credit.

2 Clause 14 of the Sales Agreement provided that all disputes arising in connection with the Sales Agreement were to be settled amicably through negotiation. It also provided that, in case no settlement could be reached, the case under dispute was to be submitted for arbitration to an arbitration body where the dispute arose in accordance with that body’s rules and procedures for arbitration. The decision of the arbitration was to be accepted as final and binding upon both parties.