Attached is the position statement that ECT sent to Mitsubishi today.  Matt, 
if you haven't done so already, please consider giving Joe Hirl a call re 
this and/or a copy of what we sent, assuming that neither you nor David see a 
strategic downside to doing so.  Many thanks.(Deborah, please print out and 
file.)

     Britt
----- Forwarded by Britt Davis/Corp/Enron on 08/07/2000 08:09 AM -----

	Eric Tan@ECT
	08/07/2000 03:43 AM
		 
		 To: Matthias Lee/SIN/ECT@ECT
		 cc: "Clifford Bennett" <minton@singnet.com.sg>, Richard 
Slovenski/SIN/ECT@ECT, Angeline Poon/SIN/ECT@ECT, Victor 
Santos/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John Chismar/SIN/ECT@ECT, Carol 
Chew/SIN/ECT@ECT, ngregson@wfw.com, Michael J Gasper/HOU/ECT@ECT, John H 
Harrison/HOU/ECT@ECT, James P Studdert/HOU/ECT@ECT, Alan 
Aronowitz/HOU/ECT@ECT, Michael Philips/HOU/ECT@ECT, Michael A 
Robison/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT, Graham Cane/LON/ECT@ECT, 
Wietze Dingeldein/LON/ECT@ECT, Britt Davis/Corp/Enron@ENRON, 
David.best@clyde.co.uk, Paul Henking/HOU/ECT@ECT, Li Yin Lim/SIN/ECT@ECT
		 Subject: Pacific Virgo - Freight/Demurrage

For your info - the message been sent to the Owners via the shipbrokers.  
Will be sending via fax as well.



---------------------- Forwarded by Eric Tan/SIN/ECT on 07/08/2000 16:42 
---------------------------


Eric Tan
07/08/2000 16:40
To: tankers@ssysin.com.sg
cc:  
Subject: Pacific Virgo - Freight/Demurrage

To:    SSY, Singapore
 Attn:  John Dwane / Chris Twiss / Leo / Helen Cheo

Please convey to Owners of Pacific Virgo as follows:


As owners are aware, Enron has suffered considerable loss and damage arising
from the contamination of condensate loaded in good order and condition but
delivered contaminated.

It is clear that Mitsubishi, as time chartered owners, would not be now 
claiming
freight or demurrage but for the contamination. There can be no argument about
this.  Since Enron is holding Mitsubishi fully liable for the contamination
according to the terms and conditions of the relevant charterparty, Enron 
takes
the view that it does not have a liability to pay either the freight or
demurrage.  Should Mitsubishi disagree, Enron suggests that all disputes are
referred to arbitration pursuant to the relevant clause of C/P.  Enron will
almost certainly be commencing arbitration once the joint analysis results are
known in order to recover their losses which have not yet been fully 
quantified.
We respectfully suggest that Mitsubishi reviews its entitlement to freight and
demurrage after the joint testing.

Please acknowledge.

Enron, Singapore