Rosie -- please check Ken's calendar.  This would be a great one to do if we 
can squeeze it in.

Nick -- congrats on what looks like a great new opportunity to make 
progress.  I am in all week and would love to talk to you and Joe.  If we 
can't otherwise make schedules work, call me at home after hours Houston time 
(713-621-6550).




Nicholas O'Day
08/27/2000 10:49 PM
To: Steven J Kean/NA/Enron@Enron
cc:  

Subject: Ken Lay meeting with Japanese Prime Minister


---------------------- Forwarded by Nicholas O'Day/AP/Enron on 08/28/2000 
12:48 PM ---------------------------


Nicholas O'Day
08/28/2000 12:28 PM
To: Steven J Kean/HOU/EES@EES
cc: Joseph P Hirl/AP/ENRON 

Subject: Ken Lay meeting with Japanese Prime Minister

Steve,

Over the last month the Japanese regulators and Government have come to the 
realization that the electricity deregulation initiatives implemented in 
March of this year have not stimulated competition in the manner in which 
they had expected. MITI and the Government are currently examining why the 
initiatives implemented in March are falling short of expectations and 
looking to move the 2003 review forward to next year. There are currently two 
multi party committees looking at the energy sector. The ruling Liberal 
Democratic Party also has one committee looking at energy. In addition, MITI 
is in the process of forming a new advisory group comprising academics to 
consider the next stage of deregulation. 

As you are aware, we have been working the regulatory aspects through MITI 
and the US Government for some time now with a degree of success - in fact, 
the majority of our 12 month goals have been achieved. Recently, with the 
addition of Kimura, we have increased our level of contact with senior 
political figures in Japan.

Both MITI and the USG continue to seek Enron's views on issues relating to 
the current deregulation process and the way Enron wants to see electricity 
deregulation. We have recently addressed the parliamentary Deregulation 
Committee which reports to the Prime Minister and regularly provide 
educational presentations to MITI on issues relevant to deregulation. 
Further, senior political figures are now recognizing that Enron can assist 
in the deregulation process in a positive way.

What we appear to have in Japan in the electricity sector is a reasonably 
clean slate and the opportunity to have a major say in how things should be 
structured in the future.

Ken Lay's links with the Republican Presidential campaign has received media 
attention in Japan and it is believed in Government circles here that he will 
receive a cabinet position if Gov. Bush is elected. As a result, Mr Lay 
currently carries a great deal of weight in senior Government circles in 
Japan. In the period prior to the Presidential election, we have an ideal 
opportunity to get our message across at the highest levels of the Japanese 
Government through Mr Lay.

A meeting between Mr Lay and Prime Minister and other senior Government 
members would significantly increase Enron's profile in Japan and assist in 
conveying our vision for the next phase of deregulation.

If Mr Lay were to visit Japan, possibly in late October or early November, we 
would also look at coordinating the Tokyo office opening with the visit and 
arrange a number of high level commercial meetings. Prime Minister Mori and 
the US Ambassador have already expressed an interest in attending the office 
opening. 

Both Joe Hirl and I would like to speak with you further about the above. 
When would be a convenient time?

kind regards