---------------------- Forwarded by Justin Timothy/ENRON_DEVELOPMENT on 
21/11/2000 05:41 PM ---------------------------


Justin Timothy
21/11/2000 05:35 PM
To: Robert B Cass@ECT
cc: Melba Lozano@ECT, Mark Tawney@ECT, Raymond 
Yeow/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David 
Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Christian 
Werner/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David Forster@ECT, Stephen H 
Douglas@ECT, Dale Neuner@ECT 

Subject: Hong Kong Weather

G'day Rob,

It has been decided, after discussions between Paul Quilkey (Enron Aust. 
CEO), Raymond Yeow (head trader), Christian Werner (EAF meteorologist) & Mark 
Tawney (head of weather desk - Houston)  that Hong Kong weather, as listed on 
EOL with Enron Aust. as the Enron entity, is to be listed on EOL with Enron 
North America as the Enron entity & traded out of Houston in much the same 
way as Japan & Australian weather is currently traded out of Houston.

The issues that we encountered when setting up HK wthr with ourselves as the 
Enron entity & that may affect putting the new product on the web at your end 
are as follows:

GTCs - After speaking with Dale & Dave Forster and being informed of the 
capacity issues currently affecting the EOL database it was decided that we 
would create a more generic GTC for Australian weather which allowed us to 
annexe the Hong Kong weather products under the one GTC. We therefore did not 
have to create a new product type as the HK products now fall under the Aust. 
weather product types. You may need to do the same at your end.

Legal - We received tax advice from PWC with respect to how we in Australia 
are affected by HK tax laws. I will forward the email from Heidi Mason 
dealing with this FYI.

The HK Password Application that was previously on the web has now been 
removed due to concerns that we may be seen by HK regulators to be directly 
targeting HK investors with the aim of getting them to "invest" in our 
products, which may have undesirable legal implications. Again, I will 
forward the email from David Forster.

Data - will be exactly the same as what currently appears for HK weather 
currently on the web, with the exception that the Enron entity will be ENA 
rather than EAF. Note, the products are currently offered in USD with the the 
Pay Unit as 500 USD & the Maximum Payout Limit is 50000 USD. This may differ 
for ENA HK weather.

Credit - Existing counterparties will need to be reviewed & OK'd to trade HK 
weather in USD.

Please give me a call if you have any questions.

Cheers

Justin
PCG Sydney