Lace Pattern Sweater with Short Sleeves

How to knit the Lace Pattern Sweater with Short Sleeves:
Sizes: US 4/6, UK 8/10 (US 8/10, UK 12/14)
Materials:
450 (500) g yarn (55% cotton, 45% polyacrylic, 98 yds/1.76 oz); size US 7 knitting needles and circular knitting needles.

Seed Stitch: alternate 1 knit stitch, 1 purl stitch, offset the pattern in every row.
Stockinette Stitch: right-side rows - knit stitches, wrong-side rows - purl stitches.
Garter Stitch: knit all stitches on right-side and wrong-side rows.
Vertical Panel: work with a multiple of 7 + 4 + 2 edge stitches.
Work according to chart 1, which shows only right-side rows.
On wrong-side rows, work the stitches as they appear, purl the yarn overs.
Begin with 1 edge stitch, repeat the pattern throughout, end with stitches after the pattern repeat and 1 edge stitch.
Repeat rows 1-8 throughout.
Lace Pattern: work with a multiple of 8 + 1 + 2 edge stitches.
Work according to chart 2, which shows only right-side rows.
On wrong-side rows, work the stitches as they appear, purl the yarn overs.
Begin with 1 edge stitch and stitches before the pattern repeat, repeat the pattern throughout, end with stitches after the pattern repeat and 1 edge stitch.
Work rows 1-16 once.

Pattern Sequence 1: 70 (78) rows Vertical Panel, 2 rows Stockinette Stitch, 2 rows Garter Stitch, increasing 1 (3) stitches in the 1st row, 16 rows Lace Pattern, 2 rows Garter Stitch, 2 rows Stockinette Stitch, decreasing 1 (3) stitches in the 1st row, 26 (34) rows Vertical Panel = 120 (136) rows total.
Pattern Sequence 2: 36 rows Vertical Panel, 2 rows Stockinette Stitch, 2 rows Garter Stitch, 16 rows Lace Pattern, 2 rows Garter Stitch, 16 rows Lace Pattern, 2 rows Garter Stitch, 10 (16) rows Lace Pattern, and for size US 8/10, UK 12/14 additionally 2 rows Garter Stitch = 86 (94) rows total.

Gauge: 21 stitches and 27 rows = 4 x 4 in. / 10 x 10 cm.

Back:
Cast on 82 (96) stitches and for the edging with side slits work the outer 3 stitches at both sides in Seed Stitch, work the center 74 (88) stitches in pattern sequence.
After 8½ in. / 21.5 cm = 58 rows (9¾ in. / 24.5 cm = 66 rows) from the cast-on, incorporate the 3 edging stitches into the Vertical Panel at both sides.
For the raglan shaping after 12 in. / 30.5 cm = 82 rows (13¼ in. / 33.5 cm = 90 rows) from the cast-on bind off 3 stitches once at both sides, then bind off 1 stitch 18 (22) times in every 2nd row.
After 17½ in. / 44.5 cm = 120 rows (20 in. / 50.5 cm = 136 rows) from the cast-on bind off the remaining 40 (46) stitches.
Front:
Work as for the Back, but with shorter raglan lines and neck shaping.
For this, after the 1st raglan decrease bind off 1 stitch 13 (17) times in every 2nd row.
At the same time for the neckline after 14½ in. / 37 cm = 100 rows (17 in. / 43 cm = 116 rows) from the cast-on bind off the center 38 (44) stitches and finish both sides separately.
For the neckline shaping bind off 2 stitches 3 times in every 2nd row at the inner edge.
After 15¾ in. / 40 cm = 108 rows (18 in. / 46 cm = 124 rows) from the cast-on finish the work.
Left Sleeve:
For the shoulder slit the sleeves are worked in 2 parts.
For the right sleeve cast on 24 (26) stitches and work as follows: 1 edge stitch, 19 (21) stitches in Pattern Sequence 2, beginning the Vertical Panel with the last stitch (last 3 stitches) of the pattern repeat, 3 stitches Seed Stitch, 1 edge stitch.
For the sleeve shaping from the cast-on edge increase 1 stitch 7 times in every 6th row at the right edge according to pattern = 31 (33) stitches.
For the raglan shaping after 7 in. / 18 cm = 48 rows from the cast-on bind off 3 stitches once at the right edge, then bind off 1 stitch 18 (22) times in every 2nd row.
At the same time for the neckline shaping after 12 in. / 30.5 cm = 82 rows (13¼ in. / 33.5 cm = 90 rows) bind off 4 stitches once at the left edge and after 12½ in. / 32 cm = 86 rows (13¾ in. / 35 cm = 94 rows) from the cast-on the remaining 6 (4) stitches.
At the same time work the left sleeve, but with a shorter raglan line.
For this at the left edge bind off 3 stitches once and then 1 stitch 13 (17) times in every 2nd row, then for the neckline shaping bind off 4 (3) stitches once and in every 2nd row bind off 3 stitches twice and 5 (4) stitches once.
After 12 in. / 30.5 cm = 82 rows (13¼ in. / 33.5 cm = 90 rows) from the cast-on finish the work.
Right Sleeve:
Work both sleeve parts as mirror images.
Finishing:
Join the raglan seams.
Join the side and sleeve seams, sewing the seams only at selected points with a distance of 2⅜ in. / 6 cm in the Seed Stitch edging sections.
Using circular needles pick up 136 (144) stitches along the neckline and work in Seed Stitch, working 2 stitches together according to pattern at the raglan seams in the 1st and 3rd rounds.
After the 4th round bind off the remaining 128 (136) stitches according to pattern.