Bob:  Now there's the real reason!  If there are two new softs entities, then 
ENA and ECTRIC lose the netting benefits.  The tax issues are transparent 
(it's like the two credit derivative entities).  Who is involved from 
credit?  We need to discuss the structures with them because credit may be 
concerned about the loss of netting privileges.

Also, we need to verify that US entity softs trades will be USD based and the 
European softs entity will settle in Euro or GBP.  It seems obvious but a US 
entity could routinely settle in a currency other than USD.  SS

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 02/21/2001 08:27 AM -----

	Trena McFarland@ENRON
	02/21/2001 08:11 AM
		
		 To: Robert Bruce/NA/Enron@Enron
		 cc: Jonathan Marsh/EU/Enron@Enron, sara.shackleton@enron.com
		 Subject: Re:

Bob

Just so you have the answers.


Products will be settled in the currency they are traded in....that is USD, 
Euro or GBP
We would intend the new Enron softs entity to be a US entity and that the UK 
trading would be done through the arranger....EEFT.


I am presently looking at another structure, that if it can be done 
technically then I will go for that.

Lets discuss when you are out of your meeting.


Trena
212 702 3945