I'm planning to have Rob Walls sign it.  He signed the last one  ( the 
original notice of dispute to President de la Rua to start the ICSID clock 
for filing) and Rob is also on the Power of Attorney.  The purpose of this 
letter is to document all the meetings Guido, Doak and I have had with 
various government officials, and to restate in writing all the requests for 
relief we have made to the Argentine government prior to filing the suit.  In 
a recent BIT case against the Argentine government, the ICSID panel dismissed 
the claim because the claimant failed to show that it had made an effort to 
state the relief it sought to the government prior to filing the case.  We 
have certainly made our requests known to just about every  Argentine 
official who would listen, but as a matter of precaution we want to get this 
letter on file before filing, so there is no doubt. 
Pete, I think Doak is advising Azurix on its BIT claim as well, although I 
don't know the extent of his involvement.  But thanks for reminding me about 
that.   Recall that ICSID is the only arbitral system in the world that 
requires the claimant to fit into various jurisdictional "pigeon holes" 
before it will hear the case. Thus it is important that we communicate with 
Azurix to avoid either company making contravening jurisdictional statements 
(the ICSID jurisdictional rules are not specific enough to avoid various 
interpretations).  We estimate our jurisdictional battle could last at least 
a year before we get to the merits, but our hope is that we can reach a 
settlement in the interim.  I'll keep you updated and will meet with you 
before we file the claim to lay out our strategy and answer any questions.
Regards,
Michelle




Peter E Weidler@ENRON
01/04/2001 09:09 AM
To: Michelle Blaine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Eduardo Quintana/TGS@TGS@ENRON_DEVELOPMENT, Bruce 
Lundstrom/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Richard B 
Sanders@ECT@ENRON_DEVELOPMENT, Rob Walls/NA/Enron@Enron@ENRON_DEVELOPMENT 

Subject: Re:  

That is good progress - who are we planning to have sign the letter to 
President de la Rua ?   So everyone is aware - Azurix is also preparing to 
file for arbitration under the BIT.  Not quite sure what over.  I gave John 
Garrison - Michelle's name to cooridinate with.

Pete



Michelle Blaine@ENRON_DEVELOPMENT
01/03/2001 07:59 PM
To: Eduardo Quintana/TGS@TGS
cc: Peter E Weidler/NA/Enron@Enron, Bruce 
Lundstrom/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Richard B Sanders@ECT, Rob 
Walls/NA/Enron@Enron 

Subject: 

Subject: Re: ICSID/BIT claim  

Happy New Year Eduardo!
I've met with Doak and Guido and they have agreed to the caps we discussed on 
the projected budget for filing the BIT claim against the Argentine 
government. Only those two law firms will be involved from now on.  Doak and 
Guido also requested the opportunity to review the numbers again at the end 
of 2001, see where we are and adjust the budget as needed on a yearly basis.  
I will be involved in that process as well.  I don't see this as being a big 
revision or increase, but more of an adjustment depending on the timing and 
progress of the  proceedings.  In other words, we may not get nearly as far 
in the jurisdictional proceedings as we have projected for 2001, so we'd 
adjust the numbers accordingly.  I believe this is a very reasonable approach 
and hope that you and Perez Companc will find it acceptable.  Please let me 
know if you have any question or concerns that I can answer to expedite this 
process.

 We are waiting for your return to send that letter to President de la Rua 
because we have made changes and I think your input is crucial.  We plan to 
file the Request for Arbitration two weeks following and we are sending you a 
draft copy which we'd like to discuss with you and Cristian before filing.

I hope that you are having a wonderful holiday and I wish you and your family 
the best for the new year.
Kindest regards,
Michelle
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