FYI.
---------------------- Forwarded by Alan Aronowitz/HOU/ECT on 09/28/99 08:59 
AM ---------------------------


Matthias Lee
09/28/99 03:22 AM
To: Alan Aronowitz/HOU/ECT@ECT
cc: Anita Fam/SIN/ECT@ECT, Angeline Poon/SIN/ECT@ECT 
Subject: MT Pacific Valour

Alan

I spoke with John Nolan. 

I gave John a summary of our legal position as advised by Watson Farley & 
Williams. I also asked that he consider the potentially high cost of 
commencing arbitration proceedings in London (including legal fees and flying 
witnesses from Singapore to London).

John expressed a wish to commence proceedings against Hyundai. His analysis 
is that since Hyundai would exeprience the same high cost of arbitration and 
given the fact that they are Koreans (by that I presume he meant they are not 
inclined to be contentious), it may be worthwhile to pursue Hyundai in 
addition to the vessel owners.

As for the legal advice of a weak case against Hyundai, he remains 
unconvinced. John informs that he had been advised some time ago by legal in 
Houston that he as seller was not able to withdraw supply until he had given 
every opportunity to the buyer to perform. I do not know the facts of that 
case and was not able to comment. John would like to speak with you on the 
matter when he returns to Houston.

Meanwhile, I will be forwarding the legal opinions to John for his 
consideration. He  is presently leaving Vienna for Munich and does not have 
e-mail or fax facilities.  He will be contacting Russell from Munich to let 
me have his fax  number there.

Regards

Matt