We had concluded early on in our due diligence in Brazil that financial 
transactions should be conducted offshore by both the Brazilian entity and 
Enron.  However, we have not conducted any due diligence on Panama to 
determine if Panamanian counterparties can enter into derivative transactions 
with ENA.  Are there any other offshore subsidiaries in any other 
jurisdictions that could be used for this trade?

Is this due diligence something that you want to move forward on or is the 
deal still in the early stages?  I would guess that the due diligence could 
cost around $15,000 to $25,000 and could take from one to two weeks to 
complete and there would be no guarantee that financial transactions would be 
allowed.

Randy, do you know of any counsel in Panama that Enron has worked with in the 
past?  

Regards,
Brent



	Sara Shackleton@ECT
	11/29/2000 03:53 PM
		 
		 To: Brent Hendry/NA/Enron@Enron
		 cc: D'Arcy Carroll/SA/Enron@Enron
		 Subject: Financial Swap - Aracruz

per my voice mail
----- Forwarded by Sara Shackleton/HOU/ECT on 11/29/2000 03:52 PM -----

	D'Arcy Carroll@ENRON
	11/29/2000 04:32 PM
		 
		 To: Randy Young/ENRON_DEVELOPMENT@ECT
		 cc: Sara Shackleton@ECT
		 Subject: Financial Swap - Aracruz


Randy/Sara,  

Please confirm if Enron can or cannot execute a financial swap with Aracruz 
Brazil.

Alternatively, we need input on Enron's ability to execute a financial swap 
for pulp with Aracruz's off-shore, Panamanian  subsidiary. 

We are trying to prep for a discussion scheduled for tomorrow, Thursday 
afternoon, Sao Paulo time (4 hours ahead of Houston). 

Thanks your help.