Steve,

The Secretary of Energy Ernesto Martens used to be the CEO of VITRO, our 
client in for the Monterrey Project.  He was a board member until the day of 
his appointment.  He knows Enron well.  He used to be the President and CEO 
of CINTRA the holding company for Mexicana and Aeromexico airlines.  When I 
worked at McKinsey I was engaged in projects with CINTRA for two years.  
Martens has a reputation of being a good and tough manager.  He delivers.
On the other hand he also has a reputation of being stubborn and not a good 
negotiator.  We still have to convince him of the proposed electric sector 
reorganization.

The good news is that Fox used many of the phrases that we wrote in the 
documents for the transition team.  Apparently he is following the script.  
When he talks about no privatization he limits it by saying: there will be no 
sell out of CFE's current assets and by ensuring that the sector will be open 
to competition.

Dionisio P,rez- Jacome was appointed President of the FERC.  He is a 
classmate of Steffes from the Kennedy School and a good friend of mine.

All of the team supporting him is Luis Tellez's team. The undersecretaries, 
the president of the CRE (FERC) the directors of CFE and LFC.  The only new 
face is the Director of PEMEX who used to be the President and CEO of DuPont 
in Mexico.  Ra?l Muoz was very helpful in promoting electric deregulation.  
About a year ago he organizad a trip to Altamira in the state of Tamaulipas 
in which he invited members of Congress to visit the DuPont and the BASF 
plants there so they could see the size of the investments and what was at 
risk if deregulation did not take place.  Jaime Alatorre and I were the only 
non Congress, non-DuPont or BASF people invited.  He and Alatorre are very 
very good friends.  I spent some time with him yesterday at a conference in 
which I presented a document on energy and economic development and he 
invited me to his office to discuss competition in natural gas.

CFE and LFC have the same directors which may  make change more difficult  
btu it is inevitable.

Best,

Ricardo



	Steven J Kean
	12/04/2000 04:11 PM
		 
		 To: Ricardo Charvel/NA/Enron@Enron
		 cc: 
		 Subject: Energy Analysis

How are the appointments turning out from your perspective?
----- Forwarded by Steven J Kean/NA/Enron on 12/04/2000 04:11 PM -----

	"Nike Papadopoulos" <nikep@edelmanmexico.com.mx>
	12/04/2000 11:22 AM
	Please respond to nikep
		 
		 To: <max.yzaguirre@enron.com>, <skean@enron.com>, <rshapiro@enron.com>, 
<eric.thode@enron.com>, <jaime.alatorre@enron.com>, 
<Ricardo.Charvel@enron.com>, <jaime.williams@enron.com>, <sirvin@enron.com>, 
<msabine@enron.com>, <agustin.perez@enron.com>
		 cc: <aventura@edelmanmexico.com.mx>
		 Subject: Energy Analysis



Attached you will find last week's energy analysis which includes
information about Vicente Fox's Energy team.

Thank you.

 - 24Nov-3Dec.DOC