Justin:

I agree with the comments of both Alan and Mark regarding this issue.  In 
particular, it would seem to be important to act on Mark's comments regarding 
the impact of the FCM status of  Enron Trade Services, Inc.

Jeff



	Justin Boyd
	10/16/2000 05:22 AM
		 
		 To: Alan Aronowitz/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Mark 
Taylor/HOU/ECT@ECT
		 cc: Janine Juggins/LON/ECT@ECT
		 Subject: Enron Metals

Gentlemen, 

I met with Craig Young (MG US) last week, who is keen to progress metals 
business with large US corporates (e.g. Anheuser Busch), on the following 
basis:

o Assume ENA and US Corporate are existing parties to ISDA/Credit Support 
Documents (the "Master").

o ENA and US Corporate would agree to expand range of OTC products to include 
OTC metal derivatives under the Master.  The principals to the metals trades 
would therefore be the US Corporate and ENA.  These trades would however be 
"arranged" by MG London Inc. (an FCM) as "arranger" in the US for ENA.

o Enron Metals Limited (EML) from London would agree to provide metals prices 
to ENA and/or MG London Inc. in the US, and in return receive a commission 
from MG London Inc.

o ENA would back-to-back OTC metals derivatives with EML via an intra-group 
ISDA Master.

Look forward to your views.

Thanks.
Justin