FYI.
----- Forwarded by Alan Aronowitz/HOU/ECT on 09/25/2000 05:49 PM -----

	Susan Musch@ENRON_DEVELOPMENT
	09/24/2000 08:40 PM
		
		 To: Paul.TYO.Davis@BakerNet.com, Edwin.T.Whatley@BAKERNET.com
		 cc: jane.mcbride@enron.com, john.viverito@enron.com, 
Jeremy.Pitts@bakernet.com(eMail), Alan Aronowitz@ECT
		 Subject: Re: Trader

Paul and Ed,

I want to confirm my understanding of your advice from last week (attached 
below).  I think you're advising consistent with what Ed had advised back in 
June, but I'm not totally sure.  That is, it would be best to have 
back-to-back trades between Enron Japan ("EJ") and Enron North America 
("ENA").  Under this scenario, DD would be an EJ employee who would enter 
into the trades for EJ as principal.  Then, EJ would enter into mirror trades 
with ENA.  The issue, as I understand it, under this scenario is that the NTA 
could assert transfer pricing issues if the trades between EJ and ENA weren't 
at arms' length.  Would you please confirm that this is your conclusion on 
how the trades should be structured?

 I am trying to get this structure resolved by Monday night (Houston time) so 
I would appreciate your thoughts in an e-mail during your Monday.

Best regards,
Susan




Paul.TYO.Davis@BakerNet.com on 09/21/2000 04:58:44 AM
To: Susan.Musch@enron.com
cc: jane.mcbride@enron.com, john.viverito@enron.com, 
Jeremy.Pitts@BAKERNET.com, Edwin.T.Whatley@BAKERNET.com 

Subject: Trader


Dear Susan

Jane and John asked us to send you the attached notes on a discussion we had
today concerning ENA's financial trader in Tokyo.  You may also wish to refer 
to
Ed's original June 23 advice on the subject.

We look forward to assisting with the structuring of the arrangements in due
course.

Regards

Paul Davis
 <<Memo 00.09.21.doc>>
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