Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com
----- Forwarded by Carol St Clair/HOU/ECT on 07/11/2000 05:44 PM -----

	Jeff Blumenthal
	07/11/2000 05:42 PM
		
		 To: Carol St Clair/HOU/ECT@ECT
		 cc: 
		 Subject: Re: questionnaire on Internet trading on commodities.DOC

Carol,

I've reviewed the attached questionnaire and have the following comments:

1.  Section 5. --  I am not aware of any restrictions on the ability of a 
non-Mexican entity to offer financial derivatives to Mexican counterparties 
where such countparties are "vetted" before trading commences.  It seems 
that, for so long as derivatives are not offered to the public at-large, then 
such an offerings can be made.

2.  Section 9(c) -- A withholding tax, as well as value-added tax, will apply 
to payments made by a Mexican counterparty to a non-Mexican entity pursuant 
to certain financial derivative transactions.  In addition, a non-Mexican 
entity making payment to a Mexican counterparty will be required to pay 
Mexican value-added tax pursuant to those certain transactions.  (Please 
refer to the e-mail that I sent yesterday, which indicates that payments 
pursuant to those 16 financial derivative transaction descriptions provided 
to me by Jaime Williams will not be subject to any Mexican withholding or VAT 
tax since they fall outside of the regime that would otherwise subject such 
payments to Mexican tax.)  I have been working extensively with Mexican tax 
counsel on these issues, so please consider Rich, Heather y Mueller's "No" 
response as relevant only to a tax applicable to transactions conducted 
through the internet (and not with respect to the underlying transaction).

Please call me at ext. 35777 with any questions.

Best regards.



   Carol St Clair                07/11/2000 09:53 AM

To: Jeff Blumenthal/HOU/ECT@ECT
cc:  
Subject: questionnaire on Internet trading on commodities.DOC

Jeff:
FYI.  Let me know if you have any thoughts on this.  Mark and I hope to talk 
with Pablo sometime tomorrow.
Carol


----- Forwarded by Carol St Clair/HOU/ECT on 07/11/2000 09:52 AM -----

	"Pablo Perezalonso" <pperezalonso@rhm.com.mx>
	07/07/2000 08:52 PM
		 
		 To: carol.St.Clair@enron.com
		 cc: 
		 Subject: questionnaire on Internet trading on commodities.DOC


  Attached please find an initial draft of the questionaire. We are still 
working on it and we will send a revised draft next week.

Regards

Pablo Perezalonso Egu?a
Ritch, Heather y Mueller, S.C.
pperezalonso@rhm.com.mx
tel: (52) 5-2076533

 - questionnaire on Internet trading on commodities.DOC