Ken said "Tim - I hope this works out".

Rosie


From: Tim DeSpain@ECT on 04/20/2001 02:49 PM
To: Kenneth Lay/Corp/Enron@ENRON, Jeff Skilling/Corp/Enron@ENRON
cc: Andrew S Fastow/Enron@EnronXGate 
Subject: Gerald Smith

Over the past few months, Enron Global Finance has been evaluating various 
opportunities where Enron and Smith Graham & Company may be able to work 
together.  Unfortunately, the process was slowed when our primary contact at 
Smith Graham, Gabriel Hayes, left the firm earlier this year.  We have since 
reestablished discussions and the Global Finance Group is preparing a 
proposal that a portion (about $30 million) of the Enron Cash Balance Plan 
portfolio be dedicated to an emerging managers portfolio.  One-third of this 
money ($10 million) would be invested in bonds, which could be placed with 
Smith Graham, as the fixed-income manager .  (Total Plan assets are about 
$235 million.)

The proposal will be submitted to the Plan Administrative Committee at its 
quarterly meeting on May 3rd.  The proposal should be well received as the 
Committiee has previously requested that  we optimize our existing allocation 
to minority money managers.  Gerald Smith has been advised that Enron is 
looking at ways to allocate money to the firm, and that a decision should be 
reached sometime in May.  We have not communicated the specific details of 
our intentions as of yet pending the outcome of the May 3rd meeting.

I am available for further discussion at your convenience.

Regards,
Tim DeSpain
(x31770)