----- Forwarded by Sara Shackleton/HOU/ECT on 10/02/2000 09:07 AM -----

	"Susan Hopkinson" <susan.hopkinson@lovells.com>
	09/12/2000 04:31 AM
		 
		 To: <Sara.Shackleton@enron.com>
		 cc: 
		 Subject: Re: ISDA Master Agreement between Enron North America Corp. and 
SociieteIndustrielle de Transports Automobile S.A.


CONFIDENTIALITY This e-mail and any attachments are confidential
and may also be privileged. If you are not the named recipient,
please notify the sender immediately and do not disclose the
contents to another person, use it for any purpose, or store
or copy the information in any medium.
----------------------------------------------------------------

Sharon Lewis asked me to contact you about this.  Our client has instructed 
us that it is SITA which will enter into the ISDA master agreement.  SITA as 
the main company must have a better credit than the company that you 
identified.

We cannot agree to a credit support document.

We suggest that you evaluate the credit of SITA and then get back to us.

Kind regards
Susan

>>> <Sara.Shackleton@enron.com> 9/11/2000 20:28:17 >>>
Sharon:  Thanks for your fax and markup of the Schedule dated Sept. 6.
There is a major issue which we need to discuss and that is the
counterparty identity itself.  It appears that you have identified a
DIFFERENT party to the agreement, namely, a limited liability company named
"SITA", which is not the entity which we originally proposed,.  This does
not appear to be the credit which we evaluated.

Also, we insist upon a Credit Support Annex.  As you know, the agreement
contemplates multiple transactions and the posting of collateral is a major
issue, particularly for long-dated pulp deals.

Can you call me tomorrow?  We need to address the major issues upfront.
You can reach me at 713-853-5620.  Thank you.  Sara




----------------------------------------------------------------
Lovells (the merged firm of Lovell White Durrant and
Boesebeck Droste, practising as Lovells Boesebeck Droste in
some jurisdictions) is an international law firm.

In the event of any technical difficulty with this email, please contact
the sender or the London Technology Department on +44 (0) 20 7296 2000.