PRIVILEGED AND CONFIDENTIAL:  ATTORNEY-CLIENT COMMUNICATION, ATTORNEY WORK 
PRODUCT

 Attached for your review and approval is a proposed response to Mitsubishi's 
recently-received position in this matter (which is basically that we need to 
pay the freight and demurrage immediately--no surprise).  Matt, David Best 
and I recommend that it be sent to Mitsubishi and ask for the necessary 
authority to do so.  I await your response.

        Britt


----- Forwarded by Britt Davis/Corp/Enron on 08/18/2000 08:14 AM -----

	Matthias Lee@ECT
	08/17/2000 08:19 PM
		
		 To: Britt Davis/Corp/Enron@ENRON
		 cc: Deborah Shahmoradi/NA/Enron@Enron, Brenda McAfee/Corp/Enron@ENRON, 
Angeline Poon/SIN/ECT@ECT, Matthias Lee/SIN/ECT@ECT
		 Subject: Re: PACIFIC VIRGO

Britt

I agree with David's draft (save that "Batangas" is misspelt).

Thanks, and I look forward to getting your "go ahead".

Regards
Matt


From: Britt Davis@ENRON on 08/17/2000 09:41 PM
To: Matthias Lee/SIN/ECT@ECT
cc: Deborah Shahmoradi/NA/Enron@Enron, Brenda McAfee/Corp/Enron@ENRON 

Subject: PACIFIC VIRGO

PRIVILEGED AND CONFIDENTIAL:  ATTORNEY-CLIENT COMMUNICATION, ATTORNEY WORK 
PRODUCT

Matt, would you let me know if this meets with your approval?  Once you 
advise that it does, I will pass it around for the necessary authority here 
in Houston.
Thanks.  Britt

----- Forwarded by Britt Davis/Corp/Enron on 08/17/2000 08:33 AM -----

	Julie.Bertschin@clyde.co.uk
	08/17/2000 08:13 AM
		 
		 To: Matthias.Lee@enron.com
		 cc: Britt.Davis@enron.com, ngregson@wfw.com
		 Subject: PACIFIC VIRGO




Suggest the following:

"We wish to respond to your fax messages of 11th August with regard to your
claims for freight and demurrage.

We note you have elected to refer both claims to arbitration.  Please note 
that
we have earlier elected for arbitration also in respect of our claims.

We repeat our earlier message of 7th August that you review your entitlement 
to
freight and demurrage after the joint testing of samples currently being
assembled in Singapore.  We shall also be reviewing our claim after the joint
testing.  Please note that we have already paid freight for the voyage to
Betangus in keeping with the intention we expressed to you in our fax of 13th
July which we note you attached to your recent demand.  This was paid as a
gesture of goodwill despite the evidence of contamination at the time.  We 
take
the view that it is reasonable to hold back any further payments and review 
your
claims when the joint analysis results are known to all interested parties.

On the subject of the joint analysis, kindly confirm the name of your 
technical
representative who will be attending at the laboratory of SGS Singapore when 
the
analysis is likely to take place.  Our technical representatives are 
preparing a
test programme and this will be sent to your appointed representative with an
invitation to agree".

I have put in the last paragraph assuming Mitsubishi has not nominated anyone
yet.

Regards


David Best
Clyde & Co

PLEASE RESPOND TO : david.best@clyde.co.uk


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