Hi Cliff,
Attached is a memo from Doak Bishop analyzing Enron's claims under our 
political risk insurance for expropriation of TGS resulting from the stamp 
tax.  We are asserting in our suit against Argentina, that the tax assessment 
is an expropriation prior to payment because it affects our equity in the 
company.  In other words, any attempt to dispose of the asset would require 
disclosure of this massive assessment which significantly impairs the value.  
Doak and I met with our expert in international law, Professor Michael 
Reisman of Yale who believes and will testify that this is a valid claim.  
Therefore under the policy, we arguably have an immediate claim for 
expropriation against OPIC, even though we haven't paid any money. To avoid 
waiving any claims, we will prepare a letter to OPIC requesting a tolling 
agreement, so we do not have to file a claim or arbitration against it within 
the period required under the policy, pending resolution of the matter.  
Given the nature of our call with them this morning, I'm sure they will 
cooperate.

I will arrange a call with Guido Tawil, our local counsel in Argentina to 
review the PPI issue, and we will analyze the commercial policy to see if we 
can find any coverage there.
Kind regards,
Michelle

 


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