yours?
---------------------- Forwarded by Mark A Taylor/EFS/EES on 11/02/2000 03:44 
PM ---------------------------

Michael Guerriero@ENRON
11/02/2000 03:25 PM


To: Lynn Aven/NA/Enron@Enron, Mark A Taylor/EFS/EES@EES
cc:  
Subject: ADA Findings

To keep you briefed. The local Derivatives company may be easier than we 
thought.

MFG 
---------------------- Forwarded by Michael Guerriero/SA/Enron on 11/02/2000 
05:28 PM ---------------------------


Bernardo Andrews
11/02/2000 04:23 PM
To: Michael Guerriero/SA/Enron@Enron, Andrea Calo/SA/Enron@Enron, Jeff 
Kabel/SA/Enron@Enron
cc:  

Subject: ADA Findings

I have met with Gustavo Mengui, one of the most active representatives of ADA 
today.

My findings are the following:

ADA is very active and taking a leading role on the NETTING ISSUE. Good news 
is that they consider that they will be able to pass a law that redifines 
netting on the bankrupcy law by year end. They assume that they will have 
"media sanci?n" before mid December. Media sanci?n is basically having 
approval by one of the chambers (Diputados) and a strong support to going to 
the Senators Chamber shortly after. We will receive the law project today. 
The law project was designed by Hector Alegria. Gustavo assumes that they 
will be available to talking with our legal team upon request.
They have received from the Central Bank a request to propose all necessary 
changes in the regulations so as to have the (interest rate mainly) 
derivatives market going asap. This shows a fertile ground on this 
institution for our future conversations. 
On the CNV's side, he stated that the porject of law (on netting) was 
actively supported by this body. ACtually, he commented that CNV officials 
were active speakers when this matter was treated in the commission session 
at Congress.
ADA is working with PWC on the tax issues. ADA and PWC are preparing to 
present the government officials their proposal for the Ingresos Brutos 
treatment of derivatives in the City of Buenos Aires (makes me think that we 
have been talking to the right guys these last days).
Gustavo was crystal clear that, although they have been supported and funded 
by banks, they are a Foundation and they are open to working with Enron. He 
insisted that he does not expect conflict of interest to arise and that the 
energy sector is strategical for them, specially considering the recent 
evolution in financial energy trading.
There will be some issues regarding the support ADA will give to the Rofex 
effort of creating an energy market. The OTC versus the formal exchange issue 
is to be addressed.

ADA is willing to work with us on the future and we might have to do some 
follow up meetings to get this type of news earlier.
My personal opinion is that we might like to go ahead with our conversations 
with regulators and officials but I doubt whether we should go with ADA or 
not. There are various pros and cons.

Lets talk for 5 minutes,

Bernardo