3. In the raw materials business where long term relationships exist, you should recognize that the custom of the trade is for the buyer or the seller to accommodate the other party when the other party is faced with difficulties of a temporary nature, regardless of the legal contract provisions. In iron ore it is obvious that the Japanese steel mills find themselves overcommitted, at least for the current year. Two years ago Japanese long-term planning called for increasing steel production from 90 million tons to 160 million tons by 197 5. The mills moved to line up their supplies accordingly and in iron ore they encountered no difficulties. But in 1971 for the first time in many years Japanese steel output failed to increase and indeed declined by 5. 2% to 88. 5 million metric tons. The 1975 target has been revised downward to 130 million tons and the more pessimistic Japanese mills think even this figure is on the high side. To adjust to the current realities the Japanese are approaching their iron ore suppliers with requests for cut-backs and postponements for the Japanese fiscal year starting April 1, 1972. The mills have stopped spot purchases of ore they formerly required over and above the quantities supplied under long-term contracts. Where they have annual options, they are now taking the minimum quantity rather than the maximum. They have gone still further and requested deferred deliveries below the minimum contract quantities. As a result both Goldsworthy and Marcona deliveries in Utah's fiscal years of 1972 and 1973 will be affected downward. Negotiations are still in progress at Goldsworthy but Utah's net share amounted to 2. 183 million tons in 1971 and could drop to 2. 132 million tons in 1972 against an anticipated 2. 287 million tons. Marc has numerous contracts with varying terms but they are estimating a decline of