Message-ID: <21337500.1075840213953.JavaMail.evans@thyme>
Date: Mon, 9 Oct 2000 08:51:00 -0700 (PDT)
From: philip.rhind@za.hsbcib.com
To: timothy.b.rebhorn@enron.com
Subject: Your AIPN presentation
Cc: klay@enron.com
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
Bcc: klay@enron.com
X-From: philip.rhind@za.hsbcib.com
X-To: Timothy.B.Rebhorn@enron.com
X-cc: klay@enron.com
X-bcc: 
X-Folder: \Kenneth_Lay_Dec2000\Notes Folders\All documents
X-Origin: LAY-K
X-FileName: klay.nsf

Dear Sir,

I  had  the  misfortune  recently  of listening to your presentation at the 
AIPN
conference in Cape Town, South Africa. I had to leave immediately following 
your
talk , otherwise I would have challenged you about the contents of you talk. 
You
used  this  opportunity  to  criticise  bankers  (lenders)  as  you  called 
them
referring  to  them  as  quote "concrete shoes" and also criticised 
para-statals
commenting that "they never offer to buy you lunch." Such idiotic references 
are
not  what  I would expect from an officer of Enron Corporation. Although your 
cv
indicates  that infact you are part of Merrill International. It is not clear 
if
you are also an officer of Enron.

I  as  a  Director of HSBC Investment Bank , plus my UK and RSA based 
colleagues
have over recent years spent a considerable amount of time and money  
performing
various  studies  for  Enron  iro  the proposed MISP and gas export project 
plus
Project "Sunshine" etc.  HSBC have not billed Enron for any of this work.

I  had the pleasure of meeting  Dr Ken Lay at CERA in February and amongst 
other
things  he  referred  to  the  various  problems  Enron had experienced wrt 
this
project  and  stated  that quote  "Enron do not build steel plants."  This 
clear
and  honest  comment  from  your  boss  is  welcome  and  this is indeed 
Enron's
prerogative.  What  I  object  to  frankly  is a presentation that maintains 
the
pretence  of a project and seeks to blame third parties such as lenders and 
para
statal organisations for difficulties you may have experienced.

I suggest that it is in everyone's interest to speak openely and 
constructively.
I  for one have no problem at all Enron saying that their future is in 
broadband
and not in steel plants in Mozambique.

If  anyone  is  interested in my own views as to how things could have been 
done
differently out here I would be delighted to let you  or Dr Lay know.

Yours sincerely,

Philip Rhind


___________________________________________________________________


This information (including any attached information) is issued by
a member of the HSBC Investment Banking group of companies for the
information of its non-private customers only.  It is not an
invitation to buy or sell securities. HSBC Investment Banking makes
no representation and accepts no responsibility or liability as to
its completeness or accuracy.

Each page attached hereto must also be read in conjunction with any
disclaimer which forms part of it.