Can we schedule a conference call?  Sara
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 01/25/2000 
08:40 AM ---------------------------


Jeff Kabel@ENRON_DEVELOPMENT
01/25/2000 06:40 AM
To: Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: John J Shoobridge/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Michael 
Guerriero/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andrea 
Calo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gabriela 
Aguilar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Julian 
Poole/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mark Taylor@ECT, Sara 
Shackleton@ENRON_DEVELOPMENT, Rodolfo 
Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Federico 
Cerisoli/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 
Subject: Re: ISDA Enron Europe  

I suggest we all get into a room and discuss this.  I agree with John that we 
need to start tailoring our documents to the local market but as Brent says 
within the confines of what is legally acceptable.  Instead of just using 
Europe as an example and then rebutting with "this is Enron Policy" let's 
analyze the issue in detail.  Though we are the only players now, this will 
not last for long as the Brazilian/Argentine economies recover.

I do not understand why we have to work in English.

jf



Brent Hendry
01/24/2000 09:22 AM
To: John J Shoobridge/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Michael Guerriero/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andrea 
Calo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeff 
Kabel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gabriela 
Aguilar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Julian 
Poole/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mark Taylor@ECT, Sara 
Shackleton@ENRON_DEVELOPMENT, Rodolfo 
Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Federico 
Cerisoli/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 

Subject: Re: ISDA Enron Europe  

John, I would be very interested to see what the local derivatives market is 
developing.  My guess is that the document is probably being prepared for 
transactions between two Argentine companies.  If this is the case I would 
also like to know what is being done on the tax side by the association to 
fix the tax problems caused by doing swaps in Argentina.  If the Argentine 
Association of Derivatives has a draft we would like to study it.  Also, are 
we going to become a member of this association and are we going to send 
someone to the meetings regularly?  Do we have any brochures or other 
information regarding the makeup of the association?  

From my conversations with Mark Taylor I do not think that ISDA has any plans 
to implement a Spanish language ISDA master.  The translation process of the 
master, the schedules, and all of the various definition books would be a 
serious undertaking (there are literally hundreds of pages of documentation 
that would have to be legally translated).  And most US companies that make a 
market in derivatives products would not have the legal and back-office 
personnel to negotiate and process masters and transactions in Spanish.  I 
know that ENA does not have the capacity to do this at the moment.  I think 
the only other language ISDA is published in is Japanese and that is a 
restricted format used only between two Japanese companies for a limited 
number of types of trades specific to the Japanese market.  English will 
likely remain the language of choice in international transactions such as 
what we are doing now between ENA and Argentine counterparties.  If the tax 
situation in Argentina were to change and ESA sets up its own trading entity 
in Argentina with front, back and middle offices, then the language issue 
could be assessed locally.  

I wish there were a simple answer to the current situation.  Please keep me 
updated in any local market information you come across.  

Thanks,
Brent




John J Shoobridge
23/01/2000 02:01 PM
To: Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Michael Guerriero/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andrea 
Calo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeff 
Kabel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gabriela 
Aguilar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Julian 
Poole/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mark Taylor@ECT, Sara 
Shackleton@ENRON_DEVELOPMENT, Rodolfo 
Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Federico 
Cerisoli/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 
Subject: Re: ISDA Enron Europe  

I'm in the need of informing the whole team that Argentina through the 
Argentine Association of Derivatives has developed a document that's 
circulating in the market and will surely be optimised to the extent that 
Argentine companies will use it in the near future if not inmediately. This 
document has been prepared by experienced groups of professionals with 
foreign support on terms of credit and legal issues. 

My impression is that will be competing against that document in a great deal 
of disadvantage. This disadvantage will be a "cultural" disadvantage from the 
moment that latin american countries tend to have "shorter" documents written 
in the local language where the transaction is taking place. 
If the ISDA was at least written in Spanish (rather than French or German) it 
would be of great help. This is an issue that really "tickles" me: Why isn't 
the ISDA document translated into Spanish being that it is after English 
probably the language most spoken through out the globe and second that 
there's much more opportunity of selling Risk Management Products to Latin 
American countries rather than French companies through my more than 
disappointing experience in trying to close a deal with French Total.

I believe Sara's visit would be more that important. I'll try to forward 
everybody a copy of the document that was drafted in Argentina for 
everybody's info.

I strongly believe in the matters of evolution and I'm sure that in the 
future ESA's market will mature in such a way that will just like Enron 
Europe a document to match market's needs.