Carol,

I've been working with Jaime Williams and our outside tax advisors to 
determine the Mexican tax consequences applicable to those products that 
Jaime has informed me will be offered to Mexican counterparties through 
EnronOnLine and, potentially, a separate ENA Mexican entity.  I should be 
able to provide the results by Friday or Monday.  Please contact me at ext. 
35777 if you'd like to discuss in the meantime.

Best regards,

Jeff


   Carol St Clair                06/20/2000 11:15 AM

To: Jeff Blumenthal/HOU/ECT@ECT
cc: Mark Taylor/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT 
Subject: Online Issues - Mexico

Jeff:
As I think you are aware, the Meixco and online group want to implement 
online trading for Mexican counterparties.  Are there any tax issues taht we 
should be aware of?  If we conduct online trades using ENA and telephone 
trades with an Enron Mexican entity, will the exercise of setoff rights 
create any tax issues?   My understanding is that the Enron counterparty will 
be ENA.
Carol