Sara - 

Can you please help Jane in putting credit language into the confirmation of 
a Japanese deal?  I have provided a worksheet with credit provisions that 
would normally go into a master or an omnibus confirmation.  In this case, it 
will be an omnibus.

Please let me know if I can do anything from here.

John




Jane McBride@ENRON
11/27/2000 05:11 PM
To: John Suttle/HOU/ECT@ECT
cc: Alan Aronowitz/HOU/ECT@ECT, Mark Evans/Legal/LON/ECT@ECT 
Subject: Re: credit for Nippon Chemi-con  


Hi John,

Thanks for this, just wondering though, how do you usually get from this sort 
of table to the actual provisions to include in the contract.  Alan, Mark, is 
there any easy way to do this?

Thanks.

Jane 




	John Suttle@ECT
	2000/11/28 07:05
		 
		 To: Morten E Pettersen/AP/Enron@Enron
		 cc: Jane McBride/AP/Enron@Enron, Joseph P Hirl/AP/ENRON@ENRON
		 Subject: credit for Nippon Chemi-con

Morten Erik - 

I recommend the credit terms provided in the attached document to be included 
in the Nippon Chemi-con contract.  These are industry standard terms for a 
counterparty with credentials such as Nippon-Chemi-con, and these industry 
standards are what will enable Enron to syndicate the credit risk if we 
decide to do so in the future.  

After my discussion with Jonathan last week, I think it is clear that Credit 
is on the same page with your team in that we recognize the importance of 
getting this first deal booked.  I think that in proposing the terms of your 
transaction to the counterparty though, Enron can begin educating the market 
as to the nature of the credit risk imbedded in the deal structure, and in 
doing so, begin setting the same standards we have in our other portfolios.  
The attached credit terms are not set in stone, but I think they are a good 
place to start.  I will make myself available to you and the counterparty to 
discuss the credit terms, and we will be very willing to negotiate the terms 
in good faith.  

My point is simply that we should not enter into any of these transactions 
without fully discussing the credit implications with the counterparty.
 
Please feel free to call me or write if you have any questions or concerns.

John  
x30906