Per your e-mail, please find enclosed responses to the Open Observations 
having missed Target date.  This is an update to clarify the outstanding 
issues which may have been outstanding on the Doorstep Database:-

London Phase I



The Authorised Trader Listing was released, with processes for updating, on 1 
Sep 2000.  Issue now closed.

London Phase II


No formalised process is in place for monitoring the receipt and execution of 
confirmations for Pulp & Paper trades
	Formalise procedures to ensure confirmation execution status is monitored on 
a regular basis and that execution rates meet Enron operating standards	June 30
		August 31


The confirmation process for Pulp & Paper trades is slowed by the Credit 
review process being performed by Houston- Credit	Move credit review 
responsibilities to London-Credit for European Pulp &Paper.	August 31


No automated process exists to ensure Pulp & Paper Settlements is aware of 
all transaction settlement dates.	Enhance functionality of SIFT to provide 
Settlements with timely, automated notification of settlement dates	August 31


No established procedure in place to provide evidence of Legal and Credit 
review of applicable terms and conditions for Pulp & Paper transactions	Formalise Legal 
and Credit review and sign-off procedures for applicable Pulp & Paper trades 
and define those trades which Legal and Credit are required to review.	July 31
		August 31

The above points have been noted and considered.  However these points are 
forward looking and at present as there are no trades being executed within 
Europe for Pulp and Paper transactions there has been no requirement for this 
information.  Going forward taccountability for these actions rests with  
Cindy Horn and systems /procedurtes will be in place prior to completion of 
trades within the Pulp and Paper function.  Therefore all points are closed. 

No List of authorised traders for Weather, Pulp &Paper, Coal and Credit
	Formalise procedures to create and update authorised trader listing to ensure 
trades are conducted by authorised personnel and that FSA audit requirements 
are satisfied.	July 31
		August 31.....

The Authorised Trader Listing was released, with processes for updating, on 1 
Sep 2000.  Issue now closed.

Lack of Master Agreements in place for a significant number of 
counterparties.  Furthermore, the majority of trades are documented on 
counterparty paper or broker confirmations.
	Continue Commercial and Legal efforts to execute Master Agreements with 
targeted counterparties. 
	
	
	 Develop a process to ensure Commercial, Legal and RAC review progress on a 
regular basis.
	
		Ongoing.....
		
		
		
		
		July 31

The elimination fo the backlog of  Master Agreements is ongoing.  The 
progress is analysed and reported within London.  Hence point closed.

No formal policies and procedures are in place for hedging and monitoring FX 
exposures across the company; consequently not all exposures are effectively 
managed by the FX trading desk.
	Develop a method to track and monitor FX exposure both at an individual book 
level and at Enron consolidated level. Formalise Enron policies and 
procedures concerning FX hedging strategy.	July 31
		August 31......

Arthur Andersen are currently completing a review of the FX exposures, the 
first stage of two has now been completed.  Once the whole review is complete 
Enron Europe will work on the recommendations to ensure effective management 
of exposures via the FX trading desk.

Deal information incomplete on deal tickets	Require traders to provide complete deal 
information on deal tickets to ensure downstream information requirements are 
met.	Immediately

Ensured, now all deal tickets are fully completed and stored electronically.  
Issue now closed.

Oslo


Not all full requirement contracts and NPTA agreements are translated into 
certified English versions	Obtain certified English translations for all full 
requirement contracts and NPTA agreements
	
	Confirms did not need to be translated when Norwegian speaker supervised 
London documentation function	Recruit Norwegian speaking staff
		
Yumi Joy Takei  (Norwegian Speaker) has been employed.  Not all confirmations 
are recorded in English as Yumi has sufficient language skills to interpret 
where necessary.  Issue now closed.

Singapore


Based on discussions in Singapore, the Korean trader appears to be executing 
trades in Korea even though these transactions are confirmed via the 
Singapore office.  Also, the Korean trader has employed a Korean logistics 
employee	-	Visit office and confirm roles and responsibilities
		
		
		Install technology so that all incoming and outgoing faxes are concurrently 
received in Singapore
		
		Monitor these faxes

The roles and responsibilities of the Korean office were completed by Tim 
Poullain-Petterson and Tiong Hok Lim during their visit of the week 
commencing 10th July.

Per Tiong Hok Lims e-mail of 11th August the fax system has now been 
installed and will be monitored on a regular basis.  Item now closed.

If anybody has queries or comments on any of the above points could you 
please contact me immediately.

Kind regards

D