Why don't I start sending you a brief e-mail every Friday summarizing
activities in the case for that week and what is coming up soon.  Nothing
fancy or time consuming, just a brief update

For example:

Today:

          (1) The court in California (a) ruled that Natwest does not have to
disclose tapes of conversations with Cravath in October of 1998, even about
March 1998 disclosures, and even though Natwest is asserting an advice of
counsel defense with respect to the March disclosures and (b) deferred ruling
whether Natwest must disclose conversations with Cravath in March 1998
concerning disclosure issues relating to the C Tranche.  (I want to find out
what this is about; maybe Enron would be interested in such information.)

          (2)  Defendants had a conference call to discuss an effort by
Natwest to postpone the trial in California until September.  I don't think
Natwest has much chance to succeed, but they are going ahead.  I am not
planning for  ECT Securities to take a position.

          (3)  We served unsigned copies of Gerry McGrath's report, after
removing a big section discussing Hellmold's report in light of Tom Hatch's
statement to me that Hellmold would not be opining on anything specific to ECT
Securities.

Later this week:

        Hellmold's deposition is scheduled for this Thursday and Friday in NY.
 I plan to attend and will pin him down about whatever he has to say, or not
say, about ECT Securities.


Do you have time tomorrow for us to call Kathy about Ponti Singh's depo (and
also her remark on the street to Brian that McDonald is going to blame Enron
for something concerning related party transactions?



Steve Howard
Alschuler Grossman Stein & Kahan LLP
phone: 310-407-7613
fax: 310-552-6077
cell:  213-716-0536
e-mail:  showard@agsk.com
                                                                              
                                                                              
                                                                              
                                                                              
                                                                              
                                                                              
                                                                              
                                                                              
                                                                              
                                                                              
                                                                              
                                                                              
                                                                              
                                                                              
                                                                              
                                                                              
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