I fully agree with the comments that you have made in your email namely these paintings were certainly fragile before transit and indeed this is specifically mentioned on the pre-shipment Condition Reports. However, we are advised that fragments of paint were found in the packing materials when the paintings were unpacked on arrival in Shanghai. We think it reasonable to state therefore that the transit caused additional damage and to a degree this may have been inevitable given the paintings fragile nature. Nonetheless the restoration costs have been quoted at very reasonable rates further the restorer’s transportation and Hotel charges are also very reasonable. As discussed our proposal would be to agree settlement albeit on a Without Prejudice basis in the claim amounts indicated in our recent Report. We would also suggest that this claim be agreed in advance of the restoration work taking place so that we will get a full discharge and this will assist to avoid a diminution claim arising later.