Defendant/Appellant Anyang Iron & Steel Co., Ltd. engaged Plaintiff/Respondent to arrange for carriage of a cargo of steel from Lianyungang to Beirut, Lebanon. Plaintiff/Respondent chartered a ship for that purpose. Before loading of the cargo in Lianyungang, Plaintiff/Respondent engaged a surveyor to survey the goods. The surveyor’s report described rusting and scratching on the cargo and recommended that the Bill of Lading should be claused accordingly. Defendant/Appellant asked Plaintiff/Respondent to issue a clean Bill of Lading in return for a Letter of Guarantee, by which Defendant/Appellant undertook to indemnify Plaintiff/Respondent for any consequences of issuing a clean bill.