FYI this is what Joe Hillings was asking for.
---------------------- Forwarded by Ricardo Charvel/NA/Enron on 02/18/2000 
01:43 PM ---------------------------


Ricardo Charvel
02/18/2000 01:43 PM
To: Joe Hillings/Corp/Enron@ENRON
cc:  
Subject: Re: Mexico-Secretary Richardson Is Leaving For A Mexico Meeting With 
Minister Tellez Today-Need Talking Points ASAP  

Joe,

I am sorry I missed your call.  Max and I had a conference call with Chris 
Long on Monday in which we touched upon some of these points but I think that 
it is important for us to insist in the following:

1 Regulate the pricing of infrastructure and services for true 
undiscriminated open access. To enhance the possibility of having a 
competitive natural gas markets through importing gas in northern Mexico it 
is necessary to set a regulated price for the use of infrastructure which is 
in hands of a monopoly or where there is no alternative..  Currently Pemex is 
able to offer discounts in infrastructure (transport) and other services in a 
way which effectively creates barriers of entry to any competitor even in the 
marketing segment of the business.

2. Promote complete unbundling between Pemex affiliates in the gas business. 
There has to be a true unbundling between Pemex Production (PEP) and Pemex 
transport and marketing (PGPB).  Currently anyone that wants to buy gas has 
to do so from the PEMEX marketer/transporter (PGPB) instead of being able to 
buy gas from the producer, pay for the transport etc.  in a transparent way 
and within real competitive circumstances.

3. Revise the 1996 natural gas pricing directive.  In this pricing formula 
Pemex  fixed a differential that is subtracted from the Tetco-Valero Price.  
This differential changes according with the conditions of the market.  The 
conditions of the market have changed since 1996 making this fixed 
differential a true barrier of entry for competition.  The differential 
should be included as a variable that is subject to real market conditions.


In conclusion we could say that despite apparent changes in the natural gas 
industry in Mexico, the truth is that there are many aspects within the way 
in which Pemex operates that can be changed that would allow for true 
competition.  There is still a lot of work to do in these matters.  We work 
closely with the Mexican regulators in relation to these matters.


Best,

Ricardo Charvel
Director of Strategy
011-525-258-9933


P.S. Maybe Secretary Richardson could retake the subject o Hedging Mexican 
oil by Enron and others in order to guarantee Mexico a stream of income that 
otherwise might not be there if prices fall.