Hoff Research & Development Laboratories, Inc. v. Philippine National Bank and Philippine National Bank, New York Agency

ANDERSON, Circuit Judge:

In 1961 the Clep Cement Corp., of Manila, Philippines, hired appellant, Hoff Research & Development Laboratories, Inc., an Ohio corporation, as a contractor for the construction of a cement plant in the Philippines. Hoff Research undertook to arrange the purchase of machinery and equipment in the United States and to supervise construction of the plant. Clep secured financing for the project from the appellee, Philippine National Bank.

On September 5, 1961, the Philippine bank opened two irrevocable letters of credit in favor of Hoff Research in the sums of $553,000 and…