thanks.  these are great updates....

Jeff




Robert Johnston
10/27/2000 03:32 PM
To: Jeffrey A Shankman/HOU/ECT@ECT
cc:  
Subject: EURO

The French are pushing for the $10B conversion because they view it as a 
"free intervention."  If the Iraqis converted the account all at once, it 
would be 2X bigger than the September G7 intervention.  Not clear yet if they 
will do a conversion of the account, or if they will just do oil contracts 
going forward in euros.

RJ
---------------------- Forwarded by Robert Johnston/HOU/ECT on 10/27/2000 
03:23 PM ---------------------------


Robert Johnston
10/27/2000 10:07 AM
To: Gary Hickerson/HOU/ECT@ECT
cc: Shane Dallmann/LON/ECT@ECT, Trena McFarland/NA/Enron@Enron, William 
Stuart/HOU/ECT@ECT, Steve Jacobellis/NA/Enron@Enron, Aaron 
Armstrong/LON/ECT@ECT, Jurgen Hess/LON/ECT@ECT, Martina Angelova/LON/ECT@ECT, 
Pushkar Shahi/HOU/ECT@ECT, Darren Delage/AP/Enron@Enron 
Subject: PLEASE READ- EURO

We continue to monitor the oil/Euro on two fronts.  With respect to Iraq, the 
US has dropped its opposition to allowing Baghdad to receive its oil revenues 
from the UN oil-for-food program in euros rather than dollars.  This means 
that the estimated 10 billion $US in Iraq's BNP account could be converted to 
euros in the next 30 days, perhaps all at once.  We are looking into the 
exact timing and process for this conversion.

Per our report on Wednesday about Welteke lobbying the Saudis to convert 
their oil trading to euros, we await further information  We will keep you 
posted as new information comes in.

RJ