Suggest that OPIC clear with Exim in addition to State and Treasury if Exim is involved.

Original Message
From: Sits, Gay
Sent: ‘Wednescay, July 11, 2003 3:54 PH

To: Rao, Geetha; Grewe, Maureen; Resnick, Bonnie; Christnpulos, Greg; Sampiiner, Gary
(Ce: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve; Berg, Kate
Subject: RE: Dabhot meeting on EreoryOPIC project at NSC

(((5)] am adding katie berg. she does export
radi. and eximbank
Original Message——-
From: Rao, Geetha
‘Sent: Wednesday, July 11, 2001 1:54 PM
To: Grewe, Maureen; Sis, Gay; Resnick, Bonnie; Christopulos, Greg; Sampliner, Gary
ca Donovan, Meg; Mills, Marshal; McDonald, Larry; Radelet, Steve

{(b)(5)]

The Charge from the US
Embassy will most likely deliver the points to the GOL + Please comment asap. Thanks.

<< File: EmbtalkY¥1,doc >>

—-~Original Message

From: Grewe, Maureen

Sent: Wednesday, July 11, 2001 12:52 PM

Tor Silis, Gay; Resrick, ; Cwistopulcs, Greg, Sampliner, Gary; Rao, Geetha
ca Conover, Meg: Mills, Marshall; McDonaki, Larry; Radelet, Steve

‘Subject: Sabha! meeting on EnronyOPIC project at NSC

This is a readout of the meeting at NSC this morning. There is also an ACTION request. USG
agencies are requested to get back to NSC by cob tomorrow with comments on OPIC's suggested
talking points for a demarche to the GOI by the Charge in Delhi. | talked to the State reps after the
meeting (from South Asia bureau, Investment office and Larson's office) and they seem to be basically
in the same place as | was on what an appropriate message might be. My proposed plan is that
Geetha will take a first crack at comments on the talking points and circulate them within Treasury @s
early as possible this afternoon. Lam requesting that everyone provide comments by cob today, so

to NSC by cob tomorrow. Please let me know if you have any concerns about this plan.

Readout of meeting:
Attendees: NSC, State (EB front office and investment office, South Asia Bureau), Treasury (Grewe,
Rao, Sampliner), Commerce, OPIC (President Peter Watson, GC Ron Jonkers and several others)

{(b)(5)]

00500000002226


Rao, Geetha

Deen eee

From: Rao, Geetha

Sent: Monday, July 23, 2001 246 PM
To: Gunaratne, Nilmini

Subject: Classified system

Can you check the classified to see if the USG delivered the demarche to the Indians over the weekend or last
friday on the Enron issue? thanks! Once | know | will finalize the OPIC/Enron memo for Taylor to be delivered

today (note the timeframe’).
‘Tracking: Recipent Read
Gunaratne, Nilmini Read: 07/25/2001 246 PM

00500000002311


India: Investment Climate

((b)(5)]

00500000002191


{(b)(5)}

SENSITIVE BUT UNCLASSIFIED

00500000002478


Morocco

[OUTSIDE SCOPE , (b)(5)]

Drafted by Geetha Rao; Treasury (ISM) 9/27/01. Reviewed by L, McDonald

00500000002473


((b)(5)]

ATTACHMENTS: Tab A: Background on Economic Developments
Tab B: — Selected Economic Indicators
TabC: — The India - United States Financial and Economic Forum

00500000002146


From: Rao, Geetha
Sent: ‘Thursday, July 12, 2001 6:05 PM
To: “Speck, Janet G’; Rao, Geetha; Usrey, Gary S; Gadzinski, Peter S; Shub, Adam M(E); Walker, M
Karen; ‘brooks, jo’
Cea: Scholz, Wesley S$; Delare, Thomas L; Bay, Janice F; Grewe, Maureen
Subject: RE: TALKING POINTS FOR US EMBASSY- INDIA
(Ormaky! Deore
me Janet:

We have cleared the final set of talking points (with a minor addition in the final section). When you send
over, please convey as Joint State-Treasury suggested points on the Enron issue. Thanks.

-—Original Message-—

From: Speck, Janet G [mailto:SpeckJG@state.gov]

Sent: Thursday, July 12, 2001 5:20 PM

To: "Rao, Geetha’; Usrey, Gary $; Gadzinski, Peter S; Shub, Adam M(E);
Walker, M Karen; ‘brooks, jo’

Ce: Scholz, Wesley $; Delare, Thomas L; Bay, Janice F

Subject: TALKING POINTS FOR US EMBASSY- INDIA

Attached are talking points for the Embassy to deliver to the GOI re Dabhol.
They have been revised as per Treasury's suggestions. Please let me know
asap if you have further comments so that we can forward them to the NSC
tonight. Thanks.

< <TP - Dabhol rev.doc> >

Tracking: Recipient Read
“Speck, Janet G
Rao, Geeths Read: 07/12/2001 €:06 PM
Uwey, Gary $
Gaksinski, Peter S
Shub, Adam M(E)
‘Walker, M Kare
“brooks, jo’
Scholz, Wesley $
Dette, Thomas L
Bay, Jane F
Grewe, Maueoea Reade 07/12/2001 6:19 PM.

00500000002304


To: Keel, Albert
Subject: PW: Transfer Pricing Issues in India - readout fron USIBC meeting
Importance: High

hi- 1 wanted to flag this issue for you to see if you've dealt with transfer pricing issues in China. This
question (see below) was posed a meeting on this issue yesterday at an US-India business council
meeting. thanks. Geetha

nm Original Message———-

From: ‘Rao, Geetha

Sent: Wednesday, August 06, 2001 1:34 PM
Tor McDonald, Larry; Brown, Patrica A.
Ce: Mills, Marshall

Subject: ‘Transter Pricing Issues in India - readout from USIBC meeting
Importance: High

USIBC meeting - Tuesday August 8

The GO! is amending the Income Tax Law to deal with income computation from
international transactions between associated enterprises. The USIBC mecting yesterday
discussed some of the weaknesses/problems of the current legislation and requested further
discussion (with Treasury involvement). DoC, State, Deloitte Touche, PWC, Arthur
Anderson, KPMG, and Thelen, Ried and Priest were present.

Key issues
{(0)(5)}

USIBC may request that this issue be raised at the upcoming Oncill-Sinha mecting in
November.

00500000002241


Saudi Arabia
[To be completed 9/28]

[OUTSIDE SCOPE , (b)(5)]

00500000002476


Rao, Geetha

Deena eee

From:
Sent:
To:
Subject:

Sampliner, Gary

Tuesday, July 24, 2001 9:59 AM
Rao, Geetha; Christopulos, Greg
RE: Info memo to Taylor on Enron

l'd be willing to bet that the June 21 descnption is the correct one, but why don't you call one of the OPIC people to make

sure?
=n Original Message——
From: Rao, Geetha
Sent: ‘Tuesday, July 24, 2001 9:57 AM
To: , Gary; Christopules, Greg
Subject: RE: Info memo to Taylor on Enron

1 t00k the information from OPIC's background information (July 10, 2001) that was prepared along with their talking
points that was sent in advance of the NSC meeting on July 11, [(b)(5)}

Subject: RE: Tivo memo to Tavor on Exvon
J looked back to the sheet, and it says $143m in loan guaranties.

Original Messager--

From: (Chinstopulos, Greg

Sent: Lagat July 23, 2001 6:28 PM
To: Sampiner, Gary; Rao,

Subject: RE Ras meou to tafercnibee

The correct numbers are in the handout OPIC distributed at the NSC meeting, Geetha, is that where you got
the numbers?

oe Original Message

From: ‘Senpliner, Gary

Sent: Morday, July 23, 2001 6:22 PM

To: Rao, Geetha; Cirstopuics, Greg

Subject: RE: Info memo to Taylor on Enron

b)(5;

(oy(s)] — no other comments.
--~-Original Message-~--
From: Rao, Geetha
Sent: Monday, day 23, 2001 5:11 PM
To: Sampliner, Gary; Christogaios, Greg
Subject: Info meme to Tayter on Enron

FYI We've prepared an info memo to U/S Taylor on the Dabhol issue. DAS Radetet is currently
reviewing. If you have any clarifications, please let me know. Thanks.

<< File; (07-12-01) Enron-OPIC info memo - final.doc >>

PS Greg - these are the final talking points which were delivered to Post on Friday.

1

00500000002258


India: Selected Economic Indicators 1/

(()(5)]

Prepared by Geetha Rao

00500000002165


Briefing for Treasury
Dabhol
83101

[(b5)]

00500000002316


Rao, Geetha

From: Rao, Geetha

Sent: Thursday, November 08, 2001 6:42 PM

To: "Rapson, Robert G’; Rao, Geetha

Ce: Soriano, James V; McDonald, Larry

Subject: RE: Terrorist financing/ PHO-Oneill Meeting

For the meeting tomorrow with Vasudev, we'd be interested in the following areas:

[OUTSIDE SCOPE , (b)(5)}

[(b)(5)]

[OUTSIDE SCOPE , (b)(5)]

--—-Original Message—
From: Rapson, Robert G [mailto:RapsonR G@state.gov]
Sent: Thursday, November 08, 2001 1:40 AM
To: 'Geetha.Rao@do.treas.gov'
Ce: Soriano, James V; ‘Larry. McDonald@do.treas.gov'; Bean, James W
Subject: RE: Terrorist financing/ PHO-Oneill Meeting
1

00500000002322


TALKING POINTS FOR US EMBASSY- INDIA
Re: Meeting with Ministries of Finance and Power and Dabhol Lenders’ Steering Committee

[Follow-up to meeting between Principal Secretary and National Security Advisor Mishra and
OPIC President Watson in Washington]

{(b)(5)]

00500000002253


Feb9

{(b)(5)]

00500000002199


Rao, Geetha

From: Rao, Geetha

Sent: Wednesday, July 11, 2001 9:38 AM

To: Grewe, Maureen

Subject: RE: TALKING POINTS FOR US EMBASSY- INDIA

Could you check the classfied system to see if there are any additional cables from Delhi on Enron (before
the 10:30 mtg). As for clearing on these OPIC points, [(b)(5)]

ete
etc,.,. thanks!

-—Original Message—

From: Grewe, Maureen

Sent: Tuesday, July 10, 2001 5:16 PM

To: Rao, Geetha; Sampliner, Gary; McDonald, Larry; Christopulos, Greg
Subject: RE: TALKING POINTS FOR US EMBASSY- INDIA

I just printed it. Geetha - can you arrange to get a copy to Gary?

— Original Message—

From: Rao, Geetha

Sent: Tuesday, July 10, 2001 5:11 PM

To: Grewe, Maureen; Sampliner, Gary; McDonald, Larry; Christopulos, Greg
Subject: RE; TALKING POINTS FOR US EMBASSY- INDIA

No I have not yet seen this cable - since Lay met with the Power Minister yesterday and with Sinha today,
the cable must be out today. Can you pull off the classified system for me? thanks.

—Original Message—

From: Grewe, Maureen

Sent; Tuesday, July 10, 2001 5:05 PM

To: Rao, Geetha; Sampliner, Gary; McDonald, Larry; Christopulos, Greg
Subject: FW: TALKING POINTS FOR US EMBASSY- INDIA

FYI - 1 imagine this will be raised at tomorrow's meeting. Geetha — do you have the referenced cable?

——Original Message—

From: Harry_K._Thomas@nsc.eop.gov [mailto:Harry_K. Thomas@nsc.cop.gov]
Sent: Tuesday, July 10, 2001 5:04 PM

To: bryan_elenagustr.gov

Ce: maureen.grewe@do.treas.gov

Subject: TALKING POINTS FOR US EMBASSY- INDIA

00500000002288


India
((b)(5)]

00500000002206


[OUTSIDE SCOPE , (b)(5)]

Drafted by Marshall Mills, Treasury (ISM) 9/27/01. Reviewed by L. McDonald

00500000002490


Rao, Geetha

From: Gunaratne, Nilmini
Sent: Friday, May 04, 2001 12:26 PM
To: Grewe, Maureen
Ce Rao, Geetha
Subject: RE: ACTION (due FRIDAY): FY 2002 laternational Affairs Appropriations Briefing Book
i
Otte manAg @
oe Nothing substantive - just a couple of typos in the india Glen Amendment section noted in the attached.
—-~-Onignal Message-—

From: Grewe, Maureen

Sent: Friday, May 04, 2001 12:18 PM

To: Katz, Nancy, Rewart, Elizabeth K.; Joy, David; Munk, Russell; Stedman, Lovellen; Setser, Grad; Baker, Jeffrey; Gunaratne, Niimini;

Crvistopulos, Greg; Samginer, Gary
Subject: FW: ACTION (due FRIDAY): FY2002 International Aifairs Appropriations Briefing Book
Importance: High

<< File: 050 1testimonyg&A.coc >>

Attached please find ISM's submission for the Secretary's testimonies for clearance. | still need to run them by Steve,
so please clear by 2:30pm, Sorry for short tumaround. Marshall had already sent Turkey ones around earter today,
only change since then was formatting. Some of the others have also been circulated earlier for clearance for the ADB
meetings.

Topics in order for ease of review are:

India - Enron Dispute

Iran - World Bank Lending

India and Pakistan - Glean Amendment Sanctions
Turkey - Rationale for Exceptional Financing
Turkey - Multilateral vs. Bilateral Financing
Turkey - Prospects

Turkey - “Bail Out”

Thanks for your help,

~—-Onignal Message---~

From: Tolou, Ramin

Sent: Wednesday, May 02, 2001 10:55 PM

To: Coffman, Priyvilis; Engelhard, Joe; Estep, Tammy; Fall, James; Marrs, Rosemary; Kimack, Michael; Lee, Nancy; Lemay, Joanne;

Cc: Donovan, Meg; Brown, Judawn; Duncan, John; Keeler, Tien
‘Subject: ACTION (due FRIDAY): FY2002 International Affairs Appropriations Briefing Book

Secretary O'Neill is scheduled to testify in two different-but-related sets of hearings this month:

(1) on IFI reform before the Senate Foreign Relations Committee (May 8) and the House Financial Services
Committee (tentatively the week of May 21), and

(2) on the FY2002 international affairs budget request before House Foreign Operations (May 15) and Senate
Foreign Operations (May 17).
4

00500000002237


India

[OUTSIDE SCOPE , (b)(5)]

00500000002470


Weekly April 6

India

{(b)(5)]

00500000002202


Rao, Geetha

From: Keidel, Albert
Sent: Wednesday, August 08, 2001 3:18 PM
To: Rao, Geetha
Subject: RE: Transfer Pricing Issues in India - readout from USIBC meeting
{(b)(5))
---Oniginal Menor -
Prom:
Sent: Wohnen August 08, 2001 3:14 PM

To: Kee, Albert
Subject: RE: Transfer Pricing Issues in India» readout from USEBC meeting

{(o)(5)]

~~ Onginal Message---—

From: = Keidel, Albert

Sent: Wednesday, August 08, 2001 3:06 PH

To: Rao, Geeths

Subject: RE: Transfer Pricing Issues in India - readout from USIBC meeting

[(b)(5)}
~-~Onginal Message—~
From: Rao, Geetha
Sent: Wednesday, August 08, 2001 2:59 PM
To: Keidel, Albert
Subject: RE: Transfer Pricing issues in India ~ readout from USIBC meeting

Thanks - any info you come across would be great. Also at some point, [(b)(5)]

Thanks again, Geetha

ne alia 7)

From:

Sent: wees, i, 2001 2:57 PM

Tos

Subject: Res Terefer Pring Innes in India - readout from USIBC meeting

Hi Geetha,
These are good questions. [(b)(5)]

see what I can learn from lawyer or investment banker friends.
Thanks for forwarding this,

Bert

—-4Onginal Message
From: Rao, Geetha
‘Sent: Wednesday, August 08, 2001 2:51 PM

1

00500000002240


Maureen/Elena: This is the paper that OPIC wants us to obtain interagency
agreement on to have Embassy Delhi deliver as a demarche to the Indian
government.

Also, pls. read New Delhi 5003, which is a read out of Ken Lay's meeting
with the Indians, Cheers

Forwarded by Harry K. Thomas/NSC/EOP on 07/10/2001
05:02 PM

(Embedded

image moved “Jonkers, Ronald" <RJONK@opic.gov >
to file: 07/10/2001 04:33:57 PM

PIC27595.PCX)

Record Type: Record

To: Harry K. Thomas/NSC/EOP

ce:
Subject! TALKING POINTS FOR US EMBASSY- INDIA

Auached are the talking points we believe you are looking for in respect
of

Dabhol. They are focused on securing the the lender meeting with
Ministries

of Power and Finance.

By separate e-mail follows the update promised.

Ron < <EmbtalkY.doc> >

Tracking: Recipient Read

Grewe, Maureen Read: 07/51/2001 9:52 AM

00500000002289


Egypt
{OUTSIDE SCOPE , (b)(5)]

Drafted by Jason Singer, Treasury (ISM) 9/27/01. Reviewed by L. McDonald.

00500000002493


Rao, Geetha

From: Rao, Geetha
Sent: Wednesday, August 29, 2001 9:55 AM
To: Christopulos, Greg
Subject: RE: Briefing Book for D/S Dam's trip to India
((b)(5)]
oereQnginal Message----
From: (Christopules, Greg
Sent: Wednesday, August 29, 2001 9:31 AM
To: Rao, Geetha
‘Subject: P¥é: Brefing Book for DYS Bam's tnp to India
Importance: High
{(b)(5)}
Orginal Message-——-
McDonald, Lacry
Sent: ‘Tuesday, August 28, 2001 5:29 PM
To: Chang, Won; Chaves, Mary; Warthin, Whit; Christopulos, Greg; Sills, Gay; Gunaraine, Nilmini; Kuhn, Julia; Monroe, Wilbur; Crowe,
Bran; Pauton, Sara; Brown, Patricia A; LeCroy, Jessica; Burrows, Mathew
Ce: Lakritz, cb; Rao, Geetha; Mis, Marshall; McDonald, Larry
Brefing Book for O/S Dam's tnp to India
Importance: Hoh

<< File: India Table Contents.doc >>

Deputy Secretary Dam will be traveling to India, Korea and Japan from September 11-22. Cleared briefing books for
his trip are due to the D/S's office for review the middle of next week (a short week). A table of contents for the India
book with tasking assignments for requested issue papers is attached. |n order to give relevant IA policy officials an
opportunity to review materials for the book over the coming weekend, | would greatly appreciate receiving
submissions by noon this Friday (August 31). (Please copy Geetha Rao on any submissions ) | apologize for the
requested quick turn-around, especially at a time when many offices are short-staffed due to summer vacation (such
as it Is).

Consistent with U/S Taylor's recent memo on briefing format, each issue paper should be brief -- aim for one page;
under no circumstances more than two — and should consist of an overview and key points (not in the form of talking
points).

Youll notice that the last tab of the briefing book will be for Q's and A's. Please think about and propose any essential
QJAs in areas that you cover. The D/S will have interaction with indian and U.S, press. Without going overboard, we

should provide key points and any essential background on any thorny issues that are likely to come up (for example

U.S. sanctions applicable to India),

Many thanks.

‘Tracking: Recipient Read

CArimopslos, Greg Read CH/29/2001 12:43 PM

00500000002314


Page 1of 5

Rao, Geetha

From: Alok Shee! [(b)(6)]

Sent: Wednesday, September 05, 2001 2:07
To: geetha rao

Subject: Fw: Our Meeting on August 23¢d 2001
Dear Geetha,

May ike to see our recent letter to Moody's Investor services, Thanks for the Disinvestment Commission link. its
really very good. Any news regarding a meeting between Secretary of the treasury and the Indian FM?

regards.
Alok
+ Original Message -----
From: Alok Sheel
To: David H Levey ; Alsi Sheth
Ce: ; » Mukherji ; Chaturvedi And

yogesh khanna ; Joydeep
Sent; Friday, August 31, 2001 10:50 AM
Subject: Re: Our Meeting on August 23rd 2001

Dear David Levey,

It was a pleasure meeting with you and Atsi Sheth in your New York office on August

23°4, Our discussions with you were most fruitful. | am sure you would agree with me
that meetings such as this would lead to a more fuller appreciation of each other’s
viewpoints. Moodys’ Investor services has a tremendous reputation and track record, and
has the ability to significantly influence both the volume and cost of capital flows to
emerging markets like India. Since we envisage a major role for private capital inflows to
boost growth rates by supplementing domestic savings, we listen carefully to any
observations that you might have to make regarding India as this constitutes an important
market signal. As suggested by you, we would like to share some of our reflections on
your recent press statement dated August 8, 2001 while downgrading India’s foreign
currency country ceiling from Ba2 positive to stable, and from Ba2 positive to negative on
domestic currency debt.

Turning first to the external sector. It was, inter alia, observed that Moody’s “decision to
remove the positive outlook on the foreign currency ceiling (assigned in October 1999)
reflects its analysis that current and capital account inflows on the balance of payments
will be insufficient to prevent a further rise in the country’s external debt liabilities.

"In the absence of significant foreign investment, non-resident Indian inflows (through
private transfers and bank deposits) and commercial debt-creating capital are now the
major source of balance of payments support, which cannot be relied upon to provide
financing on an ongoing basis in all market conditions”

01/16/2002

00500000002212


From: Sills, Gay

Sent: ‘Thursday, July 12, 2001 3:44 PM

To: Rao, Geetha

Cc: Donovan, Meg

Subject: FW; Dabhol meeting on Enron/OPIC project at NSC
+Onginal Message-—

From: Donovan, Meg

Sent: ow Judy 12, 2001 3:21 PM

To: Sits, Gay

Subject: RE: Dabhol meeting on EnrceyOPIC project at NSC
{Sills, Gay] fine with me. tdi is good for india and not paying will dampen foreign investors interest in india.

Just a question ~ [(b)(5)]

Original Message--—
From:

= ‘Sits, Gay
Sent: ‘Thursday, July 12, 2001 3:16 PM
To: Rao, Geetha; Berg, Katie; Grewe, Maureen; Resnick, Bonnie; Christopules, Greg; Sampliner, Gary
Cc: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve
Subject: RE: Cadhol meeting on Enron/OPIC project at NSC
{(b)(5))
~—~-Onignal Mestage——

From: fia, Geetha

Sent: Thursday, Ay 12, 2001 11:01 AM

To: Rao, Geetha; Berg, Katie; Sils, Gay; Grewe, Maureen; Resnick, Bonnie; Christopuics, Greg: Sampliner, Gary
Ce: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve

Subject: RE: Dabhot meeting on Enron/OPIC project at NSC

Importance: High

Attached are the talking points that State sent over this ing. Please review and send back any comments by
1:30pm TODAY. We need to submit a joint set of TPs today. floy(5)]

@ny other
suggestions?

<< File: EmbtalkY1 State.doc >>

—-—-Original Message—-—
From: Rao, Geetha

Katie,{(b)(5) A We'll go ahead and
send 2 points to State to push for a joint agreement on talking points... Thanks to all.

Original Message-~

From: Berg, Katie

‘Sent: Wednesday, July 11, 2001 4:09 PM

To: Sils, Gay; Rao, Geetha; Grewe, Maureen; Resnick, Sonnie; Christopulcs, Greg; Sampliner, Gary

00500000002266


INFORMATION

MEMORANDUM FOR UNDERSECRETARY TAYLOR
FROM: Steven C. Radelet, DAS (Africa, Middle East, South Asia)

SUBJECT: OPIC’s role in Enron’s Power Dispute in Maharashtra

{(b)(5)]

00500000002156


{(b)(5)]

Rao/OASLVISM 4/18/01

00500000002149


Jordan

[OUTSIDE SCOPE , (b)(5)]

Drafted by Jason Singer, Treasury (ISM) 9/27/01. Reviewed by L, McDonald

00500000002474


Weekly Mar 09

India

{(b)(5)]

00500000002209


Pakistan

[OUTSIDE SCOPE , (b)(5)]

Drafted by A. Kifayat, Treasury (ISM) 9/27/01 622-0907. Reviewed by L. McDonald

00500000002487


Rao, Geetha

From: Rao, Geetha
Sent: Thursday, July 12, 2001 6:05 PM
To: “Speck, Janet G"; Rao, Geetha; Usrey, Gary $; Gadzinski, Peter $; Shub, Adam M(E); Walker, M
Karen; "brooks, jo"

Ca Scholz, Wesley $; Delare, Thomas L; Bay, Janice F; Grewe, Maureen
Subject: RE: TALKING POINTS FOR US EMBASSY: INDIA

©)

Eetianvt Oaerot
ove abe Janet:

We have cleared the final set of talking points (with a minor addition in the final section). When you send
over, please convey as Joint State-Treasury suggested points on the Enron issue. Thanks,

Original Message—-

From: Speck, Janet G [mailto:Speck] G@state-gov]

Sent: Thursday, July 12, 2001 5:20 PM

To: 'Rao, Geetha’; Usrey, Gary $; Gadzinski, Peter S$; Shub, Adam M(E);
Walker, M Karen; ‘brooks, jo’

Ce: Scholz, Wesley $; Delare, Thomas L; Bay, Janice F

Subject: TALKING POINTS FOR US EMBASSY- INDIA

Attached are talking points for the Embassy to deliver to the GOI re Dabhol.
‘They have been revised as per Treasury's suggestions. Please let me know
asap if you have further comments so that we can forward them to the NSC
tonight, Thanks.

< <TP - Dabhol rev.doc > >

00500000002252


((b)(5)]

Geetha will circulate revised points today. Please comment as quickly as you can and by cob today if possible, so
we can try to coordinate with State. Call me or Geetha if you have any questions or need other background.

Thanks.

00500000002261


MEMORANDUM FOR SECRETARY O’ NEILL
FROM: John B. Taylor, Under Secretary for International Affairs
SUBJECT: Your meeting with Indian Finance Minister Yashwant Sinha

The Embassy of India has requested a meeting with you for the Indian Finance Minister Yashwant
Sinha on Thursday, September 27, 2001 prior to the World Bank and IMF meetings in Washington
at the end of September. DAS Steve Radelet, Larry McDonald (the director of the Middle East and
South Asian Office), Geetha Rao (India desk officer) and I will join you for this meeting. Finance
Minister will be joined by XXXX.

This will be your second meeting with Finance Minister Sinha, whom you met for the first time on
April 27, 2001. [(b)(5)]

00500000002145


[(b)(5)]

Geetha will circulate revised points today. Please comment as quickly as you can and by cob today if possible, so we
can try to coordinate with State. Call me or Geetha if you have any questions or need other background,

Thanks.
Tracking:

Recipient
Grewe, Maureen
Sill, Gay
Restuck, Bunnie
Cheimopailos. Greg
‘Sampliner, Gury
Donovan, Meg,
‘Mill, Mathall
McDonald, Larry
Radelet, Steve
Lemay, Jounse

Read
Read 07/11/2001 1:54 PM
Reade 07/11/2001 3:82 PM

Read: 07/23/2001 1026 AM
Read 07/11/2001 24 PM
Read: 07/11/2001 2:22 PM
Read: 07/11/2001 2:07 PM

Read: 07/17/2001 4:03 PM

00500000002293


Page 3 of 3

The dispute over arbitration is one element of a cooling
relationship between Enron and India. Matters reached a
diplomatically embarrassing point last month after Ken Lay,
chairman of Enron, spoke of sanctions against India if the US
company was not fully compensated.

01/16/2002

00500000002319


Egypt
[OUTSIDE SCOPE , (b)(5)}

Drafted by Jason Singer, Treasury (ISM) 9/27/01. Reviewed by L. McDonald.

00500000002485


Meeting With Indian Finance Minister Yashwant Sinha
April 27, 2001

OVERVIEW

[(b)(5)]

KEY ISSUES
((b(5)]

00500000002148


TALKING POINTS FOR US EMBASSY- INDIA.
Re: Meeting with Ministries of Finance and Power and Dabhol Lenders’ Steering Committee

[Follow-up to meeting between Principal Secretary and National Security Advisor Mishra and
OPIC President Watson in Washington)

[(b)(5)]

00500000002294


Weekly
India
{(b)(5)]

00500000002197


[(b)(5)]

Geetha will circulate revised points today. Please comment as quickly as you can and by cob
today if possible, so we can try to coordinate with State. Call me or Geetha if you have any
questions or need other background.

Thanks.

00500000002268


<< File: EmbtalkY1 State.doc >>

~—-Ongnal Message-——
From: Rao, Geetha
Sent: Wednesday, July 11, 2001 4:13 PM
To: Berg, Katie; Sits, Gay; Grewe, Maureen; Resnick, Bonnie; Ovistopuios, Greg; Sampliner, Gary
ce Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve
Subject: RE: Dabhol meeting on EneoryOPIC project at NSC
Katie, {(b)(5)} ; , We'll go ahead and
send forward the points to State to push for a joint agreement on talking points... Thanks to all,
Original Message——
From: ‘Berg, Katie
Sent: Wednesday, July 11, 2001 4:09 PM
To: Sits, Gay; Rao, Geetha; Grewe, Maureen; Resnick, Bonnie; Cvistopulos, Grog; Samptner, Gary
Cc Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve
Subject: RE: Dabhol menting on EnrorvOPIC project at NSC

| must admit to never having heard of this problem, Geetha’s revised talking points took good to me,
but | would suggest that OPIC clear with Exim in addition to State and Treasury if Exim is involved.

~-Onginal Message
From: Silts, Gay
Sent: ‘Wednesday, July 11, 2001 3:54 PM
Tor Rao, Geetha, Maureen; Resnick, Bonnie; Christopuies, Greg; Samnpliner, Gary
ce: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve; Berg, Katie
Subject: RE: Dabhal meeting on Enron/OPIC project at NSC
am adding katie berg. she does

(ex P eats. anc eximbans

—~-Onginial Message---

From: Rao, Geetha

Sent: Wednesday, July 11, 2001 1:54 PM

To: Grewe, Maureen; Sits, Gay; Resnick, Bonnie; Christopules, Greg; Sampliner, Gary

Cc: Donowan, Meg; Mills, Marshal; McDonald, Larry; Radelet, Steve

Subject: RE: Dabhol meeting on EnroeyOPIC project at NSC

Importance: High

{(b)(5)]

‘The Charge from the US Embassy will most likely deliver the points to the GO! Please
comment asap, Thanks,

<< File: EmbtalkY1.coc >>

Original Message----

From: Grewe, Maureen

Sent: Wednesday, Juty 11, 2001 12:52 PM

To: ‘Sills, Gay; Resteck, Bonnie; Christopulos, Greg; Samoliner, Gary; Rao, Geetha
ce Donovan, Meg; Mil, Marshall; McDonald, Larry; Radelet, Steve

Subject: meeting on Enron/OPIC project at NSC

Importance:

This is a readout of the meeting at NSC this moming.

USG agencies are requested to get back to NSC by cob tomorrow with comments on
OPIC’s suggested talking points for a demarche to the GO! by the Charge in Dethi. |
talked to the State reps after the meeting (from South Asia bureau, investment office and

00500000002263


Robert D. Blackwill
Ambassador of the United States of America
to the Republic of India

Ambassador Blackwill took up his duties in India on July 27,

The Ambassador was the Belfer Lecturer in Intemational Security at Harvard University's John F.
Kennedy School of Government and taught foreign and defense policy and qualitative public
policy analysis. A former Associate Dean of the Kennedy School, he was faculty chairman of the
School's Executive Program for U.S. and Russian General Officers; of the School's Chinese
Security Studies Program; and of the Kennedy School's Middle East Initiative.

He is the author of many books and articles including co-editor of Conventional Arms Control and
East-West Security (Duke University Press, 1989), and A Primer for the Nuclear Age (University
Press of American, 1990). He also co-edited New Nuclear Nations (Council on Foreign Relations
Press, 1993) with Albert Camesale, Damage Limitation or Crisis? Russia and the Outside World
(Brassey's Inc., 1994) with Sergei Karaganov, and Allies Divided; Transatlantic Policies for the
Greater Middle East (MIT Press, 1997) with Michael Sturmer of German's Research Institute for
Internationa] Affairs. Other books include Engaging Russia (The Trilateral Commission, 1995)
with Rodric Braithwaite and Akihiko Tananka, and Arms Control and the US-Russian
Relationship (Council on Foreign Relations Press, 1996). In 1999, the Council on Foreign
Relations published his monograph, The Future of Transatlantic Relations, His latest book,
America’s Asian Alliances, co-edited with Paul Dibb, was published in July 2000 by MIT Press.

A career diplomat from 1967, Blackwill had previously been a Peace Corps Volunteer in Malawi.
During his foreign service career, he served as Political Officer in Embassy Nairobi; Executive
Assistant to the U.S. Ambassador in London; Political Counselor in Embassy Tel Aviv, Director
of West European Affairs on the National Security Council Staff; Principal Deputy Assistant
Secretary for European Affairs; and U.S, Ambassador and Chief Negotiator at the Negotiations
with the Warsaw Pact on conventional forces in Europe. He was Special Assistant to President
George Bush for European and Soviet Affairs in 1989-90. In December 1990, while at the White
House, he was awarded the Commander’s Cross of the Order of Merit by the Federal Republic of
Germany for his contribution to German Unification.

August 2001

00500000002162


Rao, Geetha

From: Christopulos, Greg

Sent: Monday, August 27, 2001 10:15 AM

To: Sills, Gay; Wallace, James; Rao, Geetha; LandbergCA@State.Gov
Subject: Enron dispute with India.

This morning | talked to John Hardy from Enron about Friday's FT article about Enron's dispute with the Gov of india and
Enron's threats to have the USG apply sanctions,

Hardy realizes the head of the company was poorly briefed about the likelihood that the USG would apply sanctions
anytime soon. He said Enron wants to work out a deal and is not trying to escalate the situation right now

00500000002221


Turkey

[OUTSIDE SCOPE , (b)(5)]

00500000002497


Rao, Geetha

Cee

From: Rao, Geetha

Sent: Friday, June 08, 2001 12:39 PM

To: Donovan, Meg; Grewe, Maureen; Toloui, Ramin
Ce: Mills, Marshall

Subject: RE: Enron Call to O'Neill

Ramin just called and said according to Tim Adams - PoN was in listening mode, he did not express any views nor did he
Commit to anything,
Tim did not stay for the entire phone call and also did not hear specifically Ken Lay's explanation of the Enron situation.

Thanks Ramin, if you hear anything more, please let us know,

——Oniginal Message
From: Derovan, Meg
Sent: Friday, June 08, 2001 10:02 AM
To: Grewe, Maureen; Tolow, Ramin; Rao, Geetha
Cc: Mils, Marshall

Subject: RE: Enron Call to O'Vews
Tim Adams was going to stop by yesterday to speak with Ramin... il see what | can find out,
thanks Maureen,

al Original Message

From: Grewe, Maureen

Sent: Friday, Rune 06, 2001 9:50 AM
To: Toloui, Ramin; Rao, Geetha
ce Donovan, Meg: Mills, Marshall
Subject: RE: Enron Cal to O'Neil

Any news on this?

-—--Ongnal Message---—-

From: Toloul, Ramin

Sent: ‘Thursday, June 07, 2001 9:07 AM
To: Reo, Geetha

(Ce: Donovan, Meg; Grewe, Maureen; Mills, Marshall
‘Subject: Fv: Enron Cail to OTNei

Geetha -- Should have an answer later today. Please remind me if you haven't heard from me. Thanks,
Ramin

-—--Onigniat Message—
From: Adams, Tir

Sent: Thursday, dune 07, 2001 7:02 AM
To: Tol, Ramin
‘Subject: RE: Enron Cail to O'Neit

I'll follow up -- stop by later.

-—Original Message-—-—

From: Toloul, Ramen

‘Sent: Wednesday, June 06, 2001 9:08 PM
To: Adaens, Tn

Ce: Donovan, Meg

Subject: FW: Enron Call to O'Neill

Tim — Do you know anything about this call that | could pass along to our India desk officer? Please let
me know if | should follow up with someone else, Thanks, Ramin

00500000002281


{(b)(5)]

Drafted by Geetha Rao; Treasury (ISM) 9/27/01. Reviewed by L. McDonald

00500000002496


((b)(5)]

00500000002254


Weekly April 27

India

{(b)(5)]

00500000002203


Page 4 of 5

attributable to revenue shortfalls deriving from lower growth, and interest
payments, which reflect past borrowings, rather than to runaway expenditure.
During the first three months of the FY 2001-2002, total receipts were 8.8% of
the annual budgeted estimate, as against 14.1% in the corresponding period last
year, Total expenditure, on the other hand, was 17.3% of the annual budgeted
estimate, only marginally higher than 16.9% in the corresponding period last
year. Indeed, by lowering the benchmark small savings interest rates, once
growth picks up, the fiscal situation can be expected to improve on account of
decline in interest liabilities in future.

3. While a higher fiscal deficit has meant that government’s borrowing
requirements have increased, this increase has not been so great as to warrant
fears of crowding out of private investment. The economy has been able to
sustain the lower interest rates in real terms, as there has not been any
significant increase in inflation. It may be observed that since the
Government's deficit is mostly financed through market borrowings, interest
rates are subject to market discipline.

4. China started opening up and reforming its economy over two decades ago,
whereas India’s liberalisation process is barely 10 years old. It is moreover
being conducted in a democratic environment, based on consensus across the
entire spectrum of political groupings, which reduces long term political risk,
or the probability that the reform process would ever be reversed. Although
several governments and parties have come and gone during the last ten years,
the movement, if slow, has been in only one direction, and that has been
forward. In developing countries there is arguably some trade-off between
democracy and pace of growth and change. There have been no reversals in
economic policy, Parties and governments have differed on timing, pace and
sequencing, but not on the substance of reforms. Most of the opposition to
reform that is articulated is clearly electoral rhetoric, since the same party
when it comes to power follows economic policies no different from its
predecessor, indeed, carries the reform process forward. Despite the fractious
polity, the federal cabinet has recently approved three important second
generation reform bills, viz. the forward looking "Convergence" bill seeking to
integrate the IT, communications and entertainment sectors, the Electricity
Bill, which would ensure that the Enron imbroglio is not repeated, and the
Competition Bill. These bills will shortly be placed before parliament for
approval.

We are sure that Mood’s would agree with us that part of the weakening of the economic
outlook in the country mirrors the current bleak global economic scenario. Indeed, many

01/16/2002

00500000002215


this afternoon. Lam requesting thal everyone provide comments by cob today. so that we
can circulate our comments to State and try to come up with joint suggested paints to.
submit to NSC by cob tomorrow._ Please let me know if you have any concems about this
plan.

Readout of meeting:

Attendees: NSC, State (EB front office and investment office, South Asia Bureau),
Treasury (Grewe, Rao, Sampliner), Commerce, OPIC (President Peter Watson, GC Ron
Jonkers and several others)

((b)(5)]

00500000002302


Bricfing for Treasury
Dabhol
8301

[(b)(5)]

00500000002220


comfortable retirement for some. It’s been a painful experience for people like Enron employee Roy Rinard,
who was invested heavily in Enron stock.

“I'm basically wiped out,” said the 54-year-old Rinard, who lost more than $400,000 as a result of investing all
of the funds in his 401(k) retirement account in Enron stock.

SWIFT SLIDE

Enron's collapse began earlier this year but picked up speed six weeks ago with the announcement of a $638
million quarterly loss. Investor and customer confidence eroded further after the company admitted it had
overstated carmnings by almost $600 million since 1997.

The disclosure of the company’s so-called “off-balance sheet” debts - those not carryed on its books nor
disclosed to investors - heightened concems about its financial health. Those debts were hidden in a scrics of
partnerships which included top Enron executives, including its now-ousted chief financial officer Andrew
Fastow. The deals, in which Fastow eamed about $30 million in management fees, are the subject of a
Securities & Exchange Commission investigation.

The final blow came when Dynegy on Wednesday accused Enron of breaching a takeover agreement negotiated
on Nov. 9, and invoked an escape clause that let it pull out of the all-stock deal valued at about $9 billion at the
time,

In a terse conference call with Wall Street analysts, investors and reporters, Dynegy Chairman and CEO Chuck
Watson said early Wednesday afternoon that merger talks had broken down because Enron had breached the
original merger agreement, “including the material adverse change provision.”

Watson said the merger was off because the company didn't want to risk its “franchise, credit or credibility.”
“We weren't going to do anything to jeopardize our stakeholders,” he said. “Sometimes a company’s best deals
are the very ones they did not do.”

DEBT AVALANCHE

In calling off the merger, Dynegy was fleeing an impending avalance of debt. All three major credit rating
agencies had downgraded Enron's bonds to junk status by the time Dynegy called off merger talks. That lit the
fuse on a debt bomb that Enron is unlikely to be able to defuse. The loss of Enron's investment-grade credit
rating forces some $3.9 billion in debts to come due immediately, a major problem for a company that has spent
most of the $5.5 billion it sought in recent weeks to stay afloat. Enron said in a recent regulatory filing that it
was unlikely to “continue as a going concern” were its credit rating to be slashed to junk status.

Analysts say it’s still not clear just how much debt is out there. Prudential Securities energy analyst Carol Coale
estimates the total - both on and off the books - at about $23 billion. How could the company hide so much debt
from analysts and investors? Part of the reason stems from the company’s insistence that its business model
relied on proprictary trading strategics that it could not disclose to its competitors, Coale said, The lesson
leamed is that managements do lie,” she said, “And analysts need to be less trusting of management when they
have poor financial disclosure.”

Enron’s customers have been scrambling to find other energy companies to trade with. Dynegy CEO Watson
said Wednesday there was a “a clear flight to quality” underway in the energy markets, and that Dynegy was in
a position to pick up a piece of that business “with virtually no incremental cost to us.” Dynegy has about $75
million in exposure to possible trading losses with Enron, he said. Watson also said Wednesday that Dynegy has
exercised an option to buy Northem Natural Gas - Enron's largest interstate distribution system with some
17,000 miles of pipeline that stretches from the Permian Basin of Texas to the Great Lakes. ChevronTexaco
Corp., which owns 26 percent of Dynegy’s stock, contributed $1.5 billion to Dynegy as part of the transaction.

INVESTOR PAIN
Watson insisted the business mode! that Enron had pioneered remains sound, but stocks in other companies with
energy trading operations moved lower, But whatever the long-term impact on the rest of the energy industry,
Enron’s legacy will almost surely be the wide swath it cut through its investors’ portfolios.

2

00500000002326


Page 5 of 5

other countries who are more closely integrated into the world system have seen their
economic fortunes affected far worse than what India has witnessed. With all its
weaknesses, India has certain natural hedges against the global recession, which can be
gauged from the continued robustness of its external sector, and domestic growth rates,
which are still high by current global standards. We listen very carefully to the credit
rating agencies, because we appreciate the importance of private capital flows to our
growth process, and are sensitive to the cost of such capital, both of which are adversely
impacted by negative assessments by credit rating agencies, thereby making the daunting
task of development more difficult for developing countries like ours. We understand the
concerns of Moody’s on some of the issues raised in the press statement, but I hope it is
also appreciated that whatever the stress, external and/or domestic, the Indian
government has never defaulted on, or rescheduled, its liabilities, unlike a number of
other countries. Therefore overseas lenders to India, and indeed domestic bond holders,
may not be exposed to risk to the extent that Moody’s assessment may indicate. India has
also in recent years eschewed deficit financing through recourse to the mint as a way out
of fiscal stress, and hence inflation and real interest rates have held their own. The real
effective exchange rate of the rupee has also not undergone any precipitous change, one
way or the other, ever since it was floated on the current account in the early nineties.

Credit rating agencies are, and should be, independent agencies, at arms length from both
corporate entities and sovereigns, as this neutrality is the bedrock of their credibility, and
we appreciate this independence. However, we nevertheless hope that in future Moody’s
would take into account our observations on their concerns before firming up their views
on India’s ratings. Please fell free to approach us for any financial and economic data or
for our comments on any particular concern,

With regards,

Sincerely,

Alok Sheel,
Counsellor (Economic)
Embassy of India
Washington DC,

USA

O1/ 16/2002

00500000002216


{(b)(5)]

Geetha wil circulate revised points today. Please comment as quickly as you can and by cob today if
possible, so we can try to coordinate with State. Call me or Geatha if you have any questions or need

other background.
Thanks.

00500000002257


ca Donovan, Meg; Mis, Marshal; McDonald, Larry; Radelet, Steve
‘Subject: RE: Dabhol meeting on Enron/OPIC project at NSC

| must admit to never having heard of this problem. Geetha's revised talking points look good to me, but |
would suggest that OPIC dear with Exim in addition to State and Treasury if Exim is involved

From: Sats, Gay
Sent: Wednesday, July 11, 2001 3:54 PM
To: Rao, Geetha; Grewe, Maureen; Resnick, Boneve; Christopulos, Greg; Sampliner, Gary
Cc: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve; Berg, Kabe
Subject: RE; Dabhol meeting on Enron/OPIC project at NSC
b)(5) am adding katie berg. she does

ORE ects. ond eximbank

—Ongnal Message——-

From: Rao, Geeta

Sent: ‘Wednesday, July 11, 2001 1/54 PM

To: Grewe, Maureen; Sills, Gay; Resnick, Bonnie; Cheistopulos, Greg; Sampiner, Gary

ce: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet,

RE: Dabhol meeting on Enron/OPIC project at NSC

Attached are the revisions to the OPIC talking points that OPIC sent over late yesterday. [(b)(5)]

The
Charge from the US Embassy will most likely deliver the points to the GOL. Please comment
asap. Thanks.

<< File: EmbtalkY1 doc >>

—--Original Message-—-

From: Grewe, Maureen

Sent: Wednesday, July 12, 2001 12:52 PM

Tor ‘Sills, Gay; Resnick, Bonnie; Christopulos, Greg; Sampliner, Gary; Rac, Geetha
Cc: Donovan, Meg; Mills, Marshall; McDonald, Larry; Racelet,

Subject: Dabhol meeting on EnroryOPIC project at

This is a readout of the meeting at NSC this morning. There is also an ACTION request.
USG agencies are requested to get back to NSC by cod tomorrow with comments on OPIC’s
suggested talking points for a demarche to the GOI by the Charge in Delhi. | talked to the
State reps after the meeting (from South Asia bureau, investment office and Larson's office)
and they seem to be basically in the same place as | was on what an appropriate message
might be. My proposes plan is that Geetha will take a first crack at comments on the talking
points and circulate them within Treasury as early as possible this afternoon, Lam requesting
that everyone provide comments by cob today, so that we can circulate our comments to
State and try to come up with joint suggested points to submit to NSC by cob tomorrow.
Please let me know if you have any concerns about this plan,

Readout of meeting:

Attendees: NSC, State (EB front office and investment office, South Asia Bureau), Treasury
(Grewe, Rao, Sampliner), Commerce, OPIC (President Peter Watson, GC Ron Jonkers and
several others)

{(b)(5)]

00500000002267


OAISA weekly

{(b)(5)}

00500000002210


Page 1 of 3

Rao, Geetha

From: Rao, Geetha
Sent: Monday, September 10, 2001 7:51 AM

To: Donovan, Meg; McDonald, Larry

Ce: Sobel, Mark

Subject: RE: vom soe sthore = de we need anything In the dam briefing book on this, is he still going o
india’

Tracking: Recipient Read
Donovan, Meg Read: 09/10/2001 7:51 AM
McDonald, Larry
Sobel, Mark Read: 09/10/2001 7:54 AM

| also saw this over the weekend, We have a one page information piece on OPIC's role in the Dabhol project
which mentions Exim's involvement as well. See attached.
as FYI, we will include this article in the briefing book as well.

ps ~ Meg this will probably look familiar to you

~----Original Message-----

From: Donovan, Meg

Sent: Monday, September 10, 2001 7:25 AM

To: McDonald, Larry; Rao, Geetha

Cc: Sobel, Mark

Subject: FW: from sobe! at home -- do we need anything in the dam briefing book on this. is he still going o
india?

are you all covered on this? Let me know if I can help.

thanks.

-----Original Message-----

From: marmar90 [mailto:marmarS0@gateway.net)

Sent: Sunday, September 09, 2001 10:36 PM

To: meg.donovan@do.treas,gov; chris.mccoy@do,treas.gov

Subject: from sobel at home -- do we need anything in the dam briefing book on this. is he still going o
india?

US credit agency may call in Indian loans

By Khozem Merchant in Bombay

Published; September 9 2001 16:16 | Last Updated:
September 9 2001 20:03

=) The US Export-Import Bank, one of the
| biggest lenders to the controversial Enron
‘power project in Bombay, has indicated it
may call in loan guarantees from Indian
banks if a legal dispute over the plant is not
resolved.

The Washington-based export credit
agency has advanced $298.2m to Enron's Indian arm, Dabhol

01/16/2002

00500000002317


Katie, [(b)(5)]

Well go ahead and send

forward the points to State to push for a joint agreement on talking points... Thanks to all.

Original Message==-"

From:

Berg, Kave
Wednesday, duly 11, 2001 4:09 PM

Sent:
To: Sils, Gay; Rao, Geetha; Grewe, Maureen; Resnick, Bonnie; Christapules, Greg; Samoliner, Gary

Ce: Donovan,
Subject:

Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve

I must admit to never having heard of this problem. Geetha’s revised talking points look good to me, but |
would suggest that OPIC clear with Exim in addition to State and Treasury if Exim is involved,

——~Orignl Message-—
From: ‘Sis, Gay
Sent: Wednesday, July 11, 2003 3:54 PM
To: Rao, Geetha; Grewe, Maureen; Bonnie; Cheistopulos, Greg; Sampliner, Gary
ca Donovan, Meg: Mills, Marshall; McDonald, Larry; Radelet, Steve; Serg, Katie
‘Subject: RE: Dabhol meeting on Enron/OPIC project at NSC
(OYS)L 4 am adding katie berg. she does export
Y eximbank
-—--Oniginal Message---—-
From: Rao, Geetha
Sent: Wednesday, July 11, 2001 1:54 PM
To: Grewe, Maureen; Sills, Gay; Resnick, Bonnie; Christopulss, Greg; Sampiliner, Gary
Ce: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve

Subject:
Importance: = High

RE: Dabhol meeting on Enron/OPIC project et NSC

Altached are the revisions to the OPIC talking points that OPIC sent over late yesterday. [(b)(5)]

The

Charge from the US Embassy will most likely deliver the points to the GOL. Please comment asap,
Thanks

<<

Fite; EmbtalkY1.doc >>

~—-Ongnal Message-—

From: Grewe, Maureen

Sent: Wednesday, July 11, 2001 12:52 PM

To: Sis, Gay; Resnick, Bonnie; Christopules, Greg; Samotiner, Gary; Rao, Geetha
Ce: Donovan, Meg; Mills, Marshall; McDonals, Larry; Radelet, Steve

This is a readout of the meeting at NSC this morning. There is also an ACTION request, USG
agencies are requested to get back to NSC by cob tomorrow with comments on OPIC's
suggested talking points for a demarche to the GO! by the Charge in Delhi. I talked to the State
reps after the meeting (from South Asia bureau, Investment office and Larson's office) and they
seem to be basically in the same place as | was on what an appropriate message might be. My
proposed plan is that Geetha will take a first crack at comments on the talking points and circulate
them within Treasury as early 28 possible this afternoon, Lam requesting that everyone provide.
comments by cob today, so that we can circulate our comments to State and try to come up with

NSC by cob tomorrow. Please let me know if you have any
concems about this pian.

Readout of meeting:

Attendees: NSC, State (EB front office and Investment office, South Asia Bureau), Treasury

(Grewe, Rao, Sampliner), Commerce, OPIC (President Peter Watson, GC Ron Jonkers and
2

00500000002298


Rao, Geetha

From: Rao, Geetha

Sent: Monday, July 16, 2001 12:52 PM
To: Resnick, Bonnie

Subject: Enron meeting

Mr. John Hardy from Enron requested a meeting with Treasury to discuss the Enron project in India. We
are planning to set up a meeting this wednesday. Will someone (e.g. Greg, Gay Sills, yourself) from the
investment office be able to attend this meeting?

Please let me know asap,

thanks, geetha

Tracking: Recipient Read
Remick, Boanie Read: 07/16/2001 321 PM

00500000002307


Rao, Geetha

From: Rao, Geetha

Sent: Monday, September 03, 2001 11:29 AM

To: McDonald, Larry

Subject: Comments on Investment papers for Dam's book
Importance: High

{(b)(5)]

Please comment and we would need to send back to ITI for their approval. Thanks!

00500000002315


Egypt
[OUTSIDE SCOPE , (b)(5)]

Drafted by Jason Singer, Treasury (ISM) 9/27/01. Reviewed by L. McDonald.

00500000002475


Pakistan

[OUTSIDE SCOPE , (b)(5)]

Drafted by A. Kifayat, Treasury (ISM) 9/27/01 622-0907. Reviewed by L. McDonald

00500000002479


MEMORANDUM FOR SECRETARY O'NEILL

FROM:
SUBJECT:
Date and Time;
Location
PARTICIPANTS:

Treasury:

BRIEFING:
ATTACHMENTS:

Acting Assistant Secretary Sobel (International Affairs)
Meeting with Indian Finance Minister Yashwant Sinha
April 27, 2001 at 4:00 ~ 4:45

TBA

Secretary O’Neill
DAS Radelet
Others TBA

Finance Minister Yashwant Sinha

Indian Ambassador Lalit Mansingh

Mr. Rakesh Mohan, Advisor to the Finance Minister
Mr. Adarsh Kishore, Additional Secretary (Fund/Bank)
Mr. Yogesh Khanna, Minister (Economic)

Overview & Key Points

Tab A: — Macroeconomic Overview

TabB: — Selected Economic Indicators

TabC: Background on Development Committee Issues

TabD: — The India - United States Financial and Economic Forum

Prepared by Geetha Rao
OASIA/ISM 4/18/01

00500000002147


BSES, a Mumbai-based generating and distribution firm. Due diligence on the sale was set to begin at the start
of this month, but that timetable evaporated along with Enron itself,

LEGAL WOES

Getting the process back on track may take a little time. Enron owns 65% of the plant, while Bechtel and GE,
which own another 10% each, are unlikely to separate the fate of their stakes from that of Enron's, Further
complicating the situation is the continuing court fight between the Dabhol plant and the MSEB. Dabhol is
threatening to issue a final termination notice, a move that rips up the power contract between the two parties
and starts what would probably be long and costly divorce proceedings.

At this point, however, a protracted court fight is less likely than a distress sale. "If they want to have a smooth
sale, these legal tangles will have to be removed," says R.V, Shahi, managing director of BSES.

Shahi won't reveal the price range of a future bid, but estimates hover around $500 million-600 million. BSES
and Tata Power are now likely to push for even further discounts, "The plant is sick--as it stands it is unviable,”
says Shahi. "Where is the question of valuation in this?”

Fixing Dabhol will require far more than the money needed to buy Enron's stake. A good deal of the negotiation
will be centred around how to restructure the project's high fixed costs, which in turn led to an expensive tariff
for its power.

Shahi ticks off the demands: the fuel-supply contract must be renegotiated downward; the cost of capital must
be reduced; the buyer must be given some security that it will be paid for power gencrated. The government will
also need to relax restrictions on selling power across state lines, “since Maharashtra alone simply cannot absorb
that power,” says Sant of Prayas

Tracking: Recipient Read
Chriveopulos, Geog Read: 12/26/2001 253 PM
McDonabt, Larry
Mills, Marshall Read: 12/06/2001 997 AM

00500000002333


{(b)(5)]

00500000002291


India - Enron Dispute

[(b)(5)}

Drafted by: Geetha Rao, x1238
Cleared by Investment Office
05/02/01

00500000002239


Rao, Geetha

From: Christopulos, Greg
Sent: Friday, August 31, 2001 2:33 PM
To: Rao, Geetha
Subject: FW: Dabhol-OPIC insert

7)

core E

fyi

-—-Original Message—~

From: Jonkers, Ronald [mailto:RJONK@opic.gov)
Sent: Friday, August 31, 2001 12:16 PM

To: ‘greg.christopulos@do.treas.gov"

Subject: Dabhol-OPIC insert

Please find enclosed an update insert for the briefing book. Just about
everything in here will likely be old by the end of next week (there will

be meetings at OPIC with the lenders, Enron, and the Indian institutions
next week), Would you like a short status update by telephone to give you a
more complete picture? < <chrisot.doc> >

00500000002219


Morocco

[OUTSIDE SCOPE , (b)(5)]

Drafted by Geetha Rao; Treasury (ISM) 9/27/01. Reviewed by L. McDonald

00500000002499


Rao, Geetha

From: Rao, Geetha

Sent: Monday, June 25, 2001 6:31 PM

To: Sampliner, Gary; Christopulos, Greg
Co: Grewe, Maureen

Subject: ‘Clearance on Enron TPs
Importance: High

Gary/Chris;

Sec. ONeill will be meeting with Brajesh Mishra (Indian National Security Advisor) this friday to discuss,
among other issues, Enron, As disucssed at the NSC mecting last week, here are the talking points for the Enron
disucssion that are being sent to all (most?) USG officials who are meeting with Mishra, Please comment asap

and I can forward any concerns you have to NSC, thanks.

((b)(5)]

Tracking: Recipient
Saenplines, Gary
Chrstopulos, Greg

Grewe, Maureen

Read

Read 06/25/2001 143 PM
Boral: 06/26/2001 9:35 AM
Read 06/25/2001 632 PM

00500000002286


{(b)(5)]

Prepared by B. Resnick, G. Christopulos/ITI: 9/0501

00500000002192


((b)(5)]

Prepared by Geetha Rao, Office of Middle East and South Asia

00500000002174


TALKING POINTS FOR US EMBASSY- INDIA
Re: Meeting with Ministries of Finance and Power and Dabhol Lenders’ Steering Committee

{Follow-up to meeting between Principal Secretary and National Security Advisor Mishra and
OPIC President Watson in Washington}

{(b)(5)]

00500000002290


India

[OUTSIDE SCOPE , (b)(5)]

00500000002488


Morocco

[OUTSIDE SCOPE , (b)(5)]

Drafted by Geetha Rao; Treasury (ISM) 9/27/01, Reviewed by L. McDonald

00500000002491


Pakistan

[OUTSIDE SCOPE , (b)(5)}

Drafted by A, Kifayat, Treasury (ISM) 9/27/01 622-0907. Reviewed by L. McDonald

00500000002495


OASIA weekly

{(b)(5)]

00500000002201


Egypt
[OUTSIDE SCOPE , (b)(5)]

Drafted by Jason Singer, Treasury (ISM) 9/27/01. Reviewed by L. McDonald.

00500000002501


Rao, Geetha

From:
Sent:
To:

Ca
Subject:

{(b)(5)]

Rao, Geetha

Thursday, July 12, 2001 3:52 PM

Sills, Gay

Donovan, Meg

RE: Dabhol meeting on Earon/OPIC project at NSC

v7)

Eeceabirt Sate 2 doe

Original Message--r=

From: ‘Sls, Gay

Sent: ‘Thursday, July 12, 2003 3:44 PM

To: Rao, Geetha

cc Donovan, Meg

Subject: FW: Dabhol meeting on Enron/OPIC project at NSC
~--Orighnal Message

From: Donovan, Meg

Sent: ‘Thursday, duty 12, 2002 3:21 PM

To:

Sits, Gay
RE: Dabhal meeting on Enron/OPIC project at NSC

Subject:
{Sills, Gay} fine with me. {di is good for india and not paying will dampen foreign investors interest in india
{(b)(5)}

~Original Message-—-~

From:  Stis, Gay
Sent: Thursday, July 12, 2001 3:16 PM

To:
Ce:

‘Rao, Geetha; Berg, Katie; Grewe, Maureen; Resnick, Bonnie; Christopulos, Greg; Sampiner, Gary

Subject: RE: Dabhol meeting on ErrenVOPIC project at NSC

ok with me to add in tps on damaging consequences on fdi.
i am not bothered by emphasis on opiclexim because ian’ that point of demarche.

~-~-Oniginal Message——

From: Raa, Geetha

Sent: ‘Thursday, duty 12, 2001 11:01 AM

To: Rao, Geetha; Berg, Kathe; Sits, Gay; Grewe, Maureen; Resnick, Borie; Christopules, Greg; Sameiiner, Gary
(Cer Donovan, Meg; Mils, Marshall; McDonald, Larry; Steve

Subject: RE: Dabhol meeting on Enron/OPIC project at NSC

Importance: High

Attached are the talking points that State sent over this morning. Please review and send back any comments
by 1:30pm TODAY. We need to submit a joint set of TPs todav. (()(5)]

is any other
suggestions’

<< File: EmbtaikY1 State.doc >>

00500000002300


>to

> Delhi, We trust (and hope) that they will agree to this meeting.
> The objective of this mecting to discuss a range of U.S,-India

> bilateral

> issues, including [(b)(5)]
r

Geetha
‘Tracking: Recipient
“Rapson, Robert G
Rav, Geetha
Soriano, James V
Mefoeald, Larry

Kead

Read: 11/08/2001 10:11 PM.

00500000002324


Rao, Geetha

—

Donovan, Meg

Thursday, July 12, 2001 1:54 PM

Rao, Geetha

FW: Dabhol meeting on Enron/OPIC project at NSC

High

| couldn't resist, What's the deal with State's ability to spell korektli?

{(b)(5)]

Eskuz the rant! and pleez uze the deeleet ki_

~——-Oniganal Message-——

From: Rao, Geetha

Sent: ‘Thursday, July 12, 2001 11:01 AM

To: Rao, Geetha; Berg, Katie; Stis, Gay; Grewe, Maureen; Resrick, Bonnie, Christopulos, Greg; Sampfiner, Gary
Ce: Donovan, Meg; Mis, Marshall; McDonald, Larry; Radelet, Steve

Subject: RE: Dabhal meeting on Enron/OPIC project at NSC

Importance: = High

Attached are the talking points that State sent over this moming. Please review and send back any comments by 1:30 pm.
TODAY. We need to submit a joint set of TPs today. ((1p)(5)]

#7)

Enea! Saw oe

any other suggestions?

From: Ran, Geetha
Sent: Wednesday, July 11, 2003 4:13 PM

To:

‘Berg, Katie; Sifts, Gay; Grewe, Maureen; Resnick, Bonnie; Crristopulos, Greg; Samptiner, Gary

ce Donovan, Mog; Mils, Marshall; McDonald, Larry; Radelet, Steve
Subject: RE: Dabhel meeting on EnrorVOPIC praject at NSC
bin Kate. {(b)(5)] We'll go ahead and send

lorward the points to State to push for a joint agreement on talking points... Thanks to all.

—-Original Message-—~
From: Berg, Katie
Sent: Wednesday, bly 11, 2001 4:09 PM

To:

ee tee’ Maureen; Resrick, Bonnie; Chnistopulles, Greg; Sampliner, Gary

I must admit to never having heard of this problem, Geetha's revised talking points look good to me, but I would

1

00500000002225


Rao, Geetha

—SS———

From: Rao, Geetha
Sent: Thursday, July 12, 2001 2:25 PM
To: Donovan, Meg
Subject: RE: Dabhol meeting on Enron/OPIC project at NSC
((b)(5)}
vo Original Message-----

From: Donovan, Meg

Sent: Thursday, July 12, 2001 1:54 PM

To: Rao, Geetha

Subject: FW: Dabhol meeting on EnrorVOPIC project at NSC

Importance: High

| couldn't resist. What's the dea! with State's abéity to spell korektli?

{(b)(5)]

Eskuz the rant! and pleez uze the deeleet ki.

~~ Original Message——

From: Rao, Geetha

Sent: merpeey a 12 2001 11h A

To: Sete Bei, eins ms, a Coa (eezaae Reh, Beene: reer 0m eee ony
Ce: Donen, Pig boa, Marina McDonald, Larry; Radelet,

Subject: RE: Davhol meeting on Enron/OPIC project at NSC

Importance: High

Attached are the talking points that State sent over this morning. Please review and send back any comments by 1:30
pm TODAY. We need to submit a joint set of TPs today. {(b)(5)]

any other suggestions?
<< File: EmbtalkY1 State.doc >>

Original Message

From: Rao, Geetha

Sent: Wednesday, July 11, 2001 4:13 PM

To: Borg, Katie; Sits, Gay; Grewe, Maureen; Resnick, Bonnie; Christopuios, Greg; Sampliner, Gary
ce: Donovan, Meg; Mis, Marshall; McDonald, Larry; Radelet, Steve

‘Subject: RE: Dabhio! meeting on Enron/OPIC project at NSC

00500000002297


Rao, Geetha

————

From: Rao, Geetha

Sent: Thursday, July 12, 2001 11:01 AM

To: Rao, Geetha; Berg, Katie; Sills, Gay; Grewe, Maureen; Resnick, Bonnic; Christopulos, Greg;
Sampliner, Gary

Ca Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve

Subject: RE; Dabhol meeting oa Earon/OPIC project at NSC

Importance: High

Altached are the talking points that State sent over this morning. Please review and send back any comments by 1:30 pm
TODAY. We need to submit a joint set of TPs today. {(b)(5)]

any other suggestions?
©)
Eretan | State doe
From: Rao, Geetha
Sent: Wednesday, July 11, 2001 4:13 PM
To: Berg, Kate; Sits, Gay; Grewe, Maureen; Resnick, Bonnie; Christopuiios, Greg; Sampliner, Gary
Cc: Donovan, Meg; Mis, Marshall; McDonald, Larry; Radelet, Steve

Katie, EX'M should be on board with OPIC's points but we'll mentioned it just in case. Well go ahead and send
forward the points to State to push for a joint agreement on talking points... Thanks to all.

Orginal Message-—

From: Berg, Katie

Sent: Wednesday, Duly 11, 2001 4:09 PM

To: Sills, Gay; Rao, Geetha; Grewe, Maureen; Resnick, Bonnie; Christoputos, Greg; Sampliner, Gary
Cc; Donovan, Meg, Milts, Marshall; McDonald, Larry; Radelet, Steve

‘Subject: RE; Dabho! mecting on Enron/OPIC project at NSC

| must admit to never having heerd of this problem. Geetha's revised talking points look good to me, but | would
suggest that OPIC clear with Exim in addition to State and Treasury if Exim is involved.

——-Onginal Message—-—-
From: ‘Sills, Gay
Sent: Wednesday, July 11, 2001 3:54 PM

To: Rao, Geetha; Grewe, Maureen; Resnick, Bonnie; Crvistopulos, Greg; Sampliner, Gary
Ce: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve; Berg, Katie
Subject: RE: Dabhol meeting on Enron/OPIC project at NSC

(EXPY eximbann
——-Orignal Message---—
From: Rao, Geetha
Sent: Wednesday, July 11, 2003 1:54 PM
To: Grewe, Maureen; Sifs, Gay; Resnick, Bonnie; Christopuios, Greg; Sampliner, Gary
sakpests Donovan, Meg; Mis, Marshall; McDonald, Larry; Radelet, Steve
RE: Dabhol meeting on Enron/OPIC project at NSC

00500000002255


{(b)(5)}

GAITI\Bonnic\India invt climate.doc

00500000002194


Q&A
Asian Development Bank Meeting

{(b)(5)]

05/02 ISM/OASIA
Cleared by Investment Office

00500000002279


((b)(5)]

101

00500000002157


Attached are the revisions to the OPIC talking points that OPIC sent aver late yesterday. [(b)(5)]

The Charge from the US
Embassy will most likely deliver the points to the GOI, Please comment asap. Thanks

<< File: EmbtalkY1.doc >>

eon Oniginal Message-——

From: Grewe, Maureen

Sent: Wednesdiy, July 11, 2001 12:52 FM

To: ‘Sits, Gay; Resnick, Bonnie; Crristoputcs, Greg; Sampliner, Gary; Rao, Geetha
Ce: Donovan, Meg; Mills, Marshall; McDonald, Larry; Rodelet, Steve

Subject: Dabho! meeting on EnrceyOPIC project at NSC

Importance: High

This is a readout of the meeting at NSC this morning. There is also an ACTION request. USG
agencies are requested to gel back to NSC by cob tomorrow with comments on OPIC's suggested
talking points for a demarche to the GOI by the Charge in Delhi. | talked to the State reps after the
meeting (from South Asia bureau, Investment office and Larson's office) and they seem to be basically
in the same place as | was on what an appropriate message might be. My proposed plan is that
Geetha will take a first crack at comments on the talking points anc circulate them within Treasury as
early as possible this afternoon, |_am_requesting that everyone provide comments by cob today, so
that we can circulate our comments to State and try to come up with joint suggested points to subnet.
to.NSC by cob tomorrow. Please let me know if you have any concerns about this plan,

Beadout of mesting.
Attendees: NSC, State (EB front office and investment office, South Asia Bureau), Treasury (Grewe,
Rao, Sampliner), Commerce, OPIC (President Peter Watson, GC Ron Jonkers and several others)

{((b)(5)]

00500000002256


Rao, Geetha

From: Sills, Gay
Sent: ‘Thursday, July 12, 2001 5:41 PM
To: Rao, Geetha; Berg, Katie; Grewe, Maurcen; Resnick, Bonnie; Christopulos, Greg; Sampliner, Gary
Ce: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radclet, Steve
Subject: RE: Dabhol meeting on Enron/OPIC project at NSC
OK WITH ME
Original Message--—~

From: Rao, Geetha

Sent: Thursday, Duly 12, 2001 5:39 PM

To: ‘Sls, Gay; Berg, Kave; Grewe, Maureen; Resrick, Borne; Cwistopulos, Greg; Sannpliner, Gary

cc: Donovan, Meg; Mills, Marshall; McDonald, Larry; Racelet, Steve

‘Subject: RE: Dabhot meeting on Enron/OPIC project at NSC

Importance: High

We have a final set of talking points for both Treasury and State to send over to NSC by COB today ..... please
comment by 6 pm today if you have any concems.... it is line with what we had suggested. We've also posed some
questions to OPIC. Thanks! and sorry for the short deadline!

o++-- Original Measage-----

From: Speck, Janet G [mailto:SpeckJGéstate.gov]

Sent: Thursda: july 12, 2001 5:20 PM

To: ‘Rao, Geetha'; Usrey, Gary S; Gadzinski, Peter S; Shub, Adam M(E);
Walker, M Kare ‘brooks, jo’

Cc: Scholz, Wesley §; Delare, Thomas L; Bay, Janice P

Subject: TALKING POINTS FOR US EMBASSY- INDIA

Attached are talking points for the Embassy to deliver to the GOI re Dabhol,
They have been revised as per Treasury's suggestions, Please let me know
asap if you have further comments so that we can forward them to the NSC
tonight. Thanks.

<< File: EmbtalkY1 Dabhol rev.doc >>

Original Message--——-
From: Sis, Gay

Sent: = Thursday, July $2, 2001 3:18 PM

Tor Rao, Geetha; Berg, Kabe; Grewe, Maureen; Resnick, Bonnie; Christopulos, Greg; Sampler, Gary
Ce Donovan, Meg; Mills, Marshal; McDonald, Larry; Radelet, Steve

‘Subject: RE: Dabhol meeting on EnrorOPIC project at NSC

[(b)(5)]
—---Onginal Message—--
From: Rao, Geetha
Sent: ‘Thurectay, July 12, 2001 11:01 AM
To: fo, Geetha; Berg, Kate; Salis, Gay; Grewe, Maureen; Resnick, Bonnie; Crvistopulos, Greg; Saenpliner, Gary
Ce: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve
Subject: RE: Dabhol meeting on Enron/OPIC project at NSC
Importance: High

Attached are the talking points that State sent over this morning. Please review and send back any comments
by 1:30.9m TODAY. We need to submit a joint set of TPs today. [(b)(5)]

any other
suggestions?

00500000002262


TABB
INDIA: ECONOMIC OVERVIEW
November 2001

[(b)(5)]

00500000002153


Rao, Geetha

Caen ne Latta

From: Rao, Geetha

Sent: Wednesday, July 11, 2001 5:14 PM
To: Grewe, Maureen

Subject: Enron/OPIC talking points

attached Is the final version of the suggested talking points to send over to state...
ca)
Ereuumyt doe
Tracking: Recipient Read
Grewe, Maueven Reade 07/11/2001 5:16 PM

00500000002296


Rao, Geetha

From: Sampliner, Gary
Sent: Wednesday, July 11, 2001 2:38 PM
To: Rao, Geetha; Grewe, Maureen; Sills, Gay; Resnick, Bonnie; Christopulos, Greg
Ca Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve
Subject: RE: Dabhol meeting on Earon/OPIC project at NSC
{(b)(5)]
~—~Original Message——

from: Reo, Geetha

Sent: Wednesday, July 11, 2001 1:54 PM

Te: Grewe, Maureen; Sis, Gay, Resnick, Bonnie; Chnstopulos, Greg: Sarmpiiner, Gary

ca Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet,

Subject: RE: Dabhol meeting on Enron/OPIC project at NSC

Importance: High

Attached are the revisions to the OPIC talking points that OPIC sent over late yesterday. [(b)(5)]

The Charge from the US Embassy will most likely deliver the points to
the GOI, Please comment asap. Thanks.

<< File: EmbtalkY 1 doc >>

This is @ readout of the meeting at NSC this moming, There is also an ACTION request. USG agencies are
requested to get back to NSC by cob tomorrow with comments on OPIC’s suggested talking points for a demarche
to the GOI by the Charge in Delhi. | talked to the State reps after the meeting (from South Asia bureau,
Investment office and Larson's office) and they seem to be basically in the same place as | was on what an
appropriate message might be. My proposed pian is that Geetha will take a first crack at comments on the talking
points and circulate them within Treasury as early as possible this afternoon. Lam requesiing thal everyone.
provide comments by cob today, so that we can circulate our comments to State and try to come up with joint
suggested points to submit lo NSC by cob tomorrow. Please let me know if you have any concerns about this
plan.

Readout of meeting:
Attendees: NSC, State (EB front office and investment office, South Asia Bureau), Treasury (Grewe, Rao,
Sampliner), Commerce, OPIC (President Peter Watson, GC Ron Jonkers and several others)

{(b)(5)]

00500000002260


Cee ee

Prom: Rao, Geetha

Sent: Wednesday, July 11, 2001 1:54 PM

To: Grewe, Maurcen; Sills, Gay; Resnick, Bonnie; Chrisopulos, Greg; Sampliner, Gary
Ce: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve

Subject: RE: Dabhol meeting on Enron/OPIC project at NSC

Importance: High

Attached are the revisions to the OPIC talking points that OPIC sent over late yesterday. [(b)(5)]

‘The Charge from the US Embassy will most likely deliver the points to the GOI
Please comment asap, Thanks,

i

Ereuart ee

—~Onginal Message——

From: Grewe, Maureen

Sent: Wednesday, July 11, 2008 12:52 PM

To: ‘Sils, Gay; Resnick, Sonne; Christopuics, Greg; Sampliner, Gary; Rao, Geetha
Ce: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve

Subject: Dabhol meeting on EnecryOPIC project at NSC

Importance: High

This is a readout of the meeting at NSC this morning. There. is aiso.an ACTION request. USG agencies are

to get back te NSC by cob tomorrow with comments on OPIC's suggested talking points for a demarche to
the GO! by the Charge in Delhi I talked to the State reps after the meeting (from South Asia bureau, Investment office
and Larson's office) and they seem to be basically in the same place as | was on what an appropriate message might
be. My proposed plan is that Geetha will take a first crack at comments on the talking points and circulate them within
Treasury as early as possible this afternoon. Lam requesting that everyone provide comments by cob today. so that
‘we can circulate our comments to State and try to come up with joint suggested points to submit to NSC by cob.
tomorrow. Please let me know if you have any concerns about this plan,

Readout of meeting:
Attendees: NSC, State (EB front office and investment office, South Asia Bureau), Treasury (Grewe, Reo, Sampliner),
Commerce, OPIC (President Peter Watson, GC Ron Jonkers and several others)

{(b)(5)]

00500000002292


Rao, Geetha

Deanne eae eee el

From: Rao, Geetha

Sent: Wednesday, May 02, 2001 9:57 AM
To: Sampliner, Gary; Christopulos, Greg
ca Grewe, Maureen

Subject: RE: Clearance on Q&A

| suppose we can say something to that effect - included below.

{(b)(5)]

—wriggenal Message---~
From: Samginer, Guy
Sent: branes May 02, 200! 9:29 AM
To: Quistoputes, Greg; Rao, Geetha

Subject: RE: Cearance on QBA
{(b)(5)]

Original Message--—

From:  Christopulos, Greg

Sent: Wednesday, May 02, 2001 8:46 AM
To: Ra, Geetha; Saenpliner, Gary
‘Subject: RE: Grarance on Q&A

Perfect answer. | says everything
From: Rao, Geetha

‘Sent: Tuesday, May 01, 2001 7:37 PM

To: Cheistoguias, Greg

Subject: Clearance on Q&A

Greg: We are working on Q&As for Oneill's press conference at the Asian Development

Bank next week. Enron may come up - can you clear the following Q&A on this issue?

Btw, Enron was discussed at our bilat last Friday (Oneill met with FinMin Sinha) where

Sinha said that GOI will be directly involved in the negotiations between the State and

Enron...... [(b)(5)]

{((b)(5))

00500000002277


{(b)(5)]

Geetha will circulate revised points today. Please comment as quickly as you can and by cob today if
possible, so we can try to coordinate with State. Call me or Geetha if you have any questions or need
other background.

Thanks.

00500000002227


‘The correct numbers are in the handout OPIC distributed at the NSC meeting. Geetha, is that where
you got the numbers?

Original Message-——

‘Saenpliner, Gary
Monday, July 23, 2001 6:22 PM
1 Rao, Geetha; Christopuies, Greg
Subject: RE: Indo memo to Taylor on Enron
by(5
((b)(5)] - -
won Original Message—---
From: Rao, Geetha
‘Sent: Monday, July 23, 2001 5:11 PM.
To: ‘Saenpliner, Gary, Chistoputes, Greg
‘Subject: Info memo to Taylor on Enron

FY! We've prepared an info memo to U/S Taylor on the Dabhol issue. DAS Radelet is
currently reviewing. If you have any clarifications, please let me know. Thanks.

<< File; (07-12-01) Enron-OPIC info memo - final.doc >>

PS Greg - these are the final talking points which were delivered to Post on Friday.

00500000002223


((b)(5)]

00500000002170


Page 3 of 5

countries are typically sensitive to growth in OECD countries, India’s invisible flows
provide a natural hedge to such volatilities. Much of the remittances, which are not debt
creating, derive from the earnings of the Indian disapora, who are mainly professionals.
These revenue streams are only indirectly affected by the global economic slowdown,
The second major segment in India’s invisible current account receipts derive from its
export of IT services, in which India is acknowledged to have some sort of
comparative/strategic advantage. While the recession in the American IT sector, a major
market for Indian software exports, has undoubtedly halted the astonishing growth rate
of these exports, these have not been dented as badly as expected because as International
companies seek to cut costs they are also turning to outsourcing services which can be
provided out of India at competitive costs. This again provides a natural hedge to decline
in other external flows on account of the global downturn,

During our discussion, some concern was voiced regarding outstanding liabilities to NRIs
“below the line", However, a perusal of India’s external debt statistics will show that
there has not been any increase in such liabilities over the last few years. Between 1995
and 2001, while long-term debt owed to NRIs has increased by about US $ 3 billion, the
short-term debt owed to them has declined by about US $ 3.5 Billion. There has, in effect,
been a net reduction in NRI debt over this period.

h is particularly unfortunate that Moody’s press release was made at around the time the
IMF’s earlier concern about India’s capital account was easing. In its Press Information
Notification (PIN) on its article IV consultations dated August 14, 2001, the IMF

observed: "These pressures eased in lave 2000 and into early 2001. The government's India Millennium Deposit (IMD)
scheme—involving a five-year instrument marketed to nonresident Indians—yielded inflows of $5.5 billion in October
and November 2000. The boost to reserves and the softening of world oil prices helped restore market confidence, and
the cut in U.S. interest rates in early 2001 also helped strengthen the sentiment toward the rupee. In early 2001, the
rupee/dollar rate had recovered some of its earlier losses, portfolio inflows had rebounded, and gross reserves reached $43
billion by early June (nearly 6 months of imports and four times short-term external debs).”

Turning now to domestic fiscal issues. While acknowledging some of the weaknesses
cited, we would nevertheless like to make the following observations:

1, At least some of this weakening can be attributed to an emerging global
recession. Having said that, India’s relatively closed economy also provides a
natural hedge against such downturns, as a result of which the economy is still
poised to grow at above 5% in real terms, which is not too bad in relation to
growth rates elsewhere in the world. The monsoons this year have been good,
and given the high share of agriculture in the GDP, the prospects of sustaining
a 5% plus growth in the current fiscal are bright. This might improve further if
global growth and the industrial slowdown revives.

2. There have admittedly been some fiscal slippages, but again most of this is

01/16/2002

00500000002214


{(b)(5)]

Geetha wil circulate revised points today. Please comment as quickly as you can and by cob today if
possible, so we can try to coordinate with State, Call me or Geetha if you have any questions or need other
background.

Thanks.

00500000002218


Rao, Geetha

From: Sampliner, Gary
Sent: Wednesday, July 18, 2001 12:08 PM
To: Rao, Geetha
Subject: RE; TALKING POINTS FOR US EMBASSY- INDIA
[(b)(5)]
Are we still on with Enron people at 3?
-—-Original Message—
From: Rao, Geetha

Sent: Wednesday, July 18, 2001 9:32 AM

To: Rao, Geetha; Grewe, Maureen; Sampliner, Gary; McDonald, Larry;
Christopulos, Greg

Ce: Mills, Marshall; Sills, Gay; Resnick, Bonnie

Subject: RE: TALKING POINTS FOR US EMBASSY- INDIA
Importance: High

Attached are the final points for the OPIC/Enron demarche to the GOI... please send any comments you
have to me by NOON TODAY, and I will get back to Laurent. Thanks.

~~-Original Message—

From: Laurent_D, Charbonnet@nsc.eop.gov

[mailto:Laurent_D, Charbonnet@nsc.cop.gov]

Sent: Tuesday, July 17, 2001 4:59 PM

To: jaldo@opic.gov; pwatson@opic.gov; Farah_Naim@ita.doc.gov;
Maureen.grewe@do.treas.gov; CampDA2@siate.gov;
bryan_clena@ustr.gov.treas.gov; Speck] G@state.gov;

Greg. christopulos@do.treas.gov; usreygs@state.gov

Ce: Harry_K. Thomas@nsc.cop.gov

Subject; NSC revision of Dabhol points for demarche

(See attached file: TP - Dabhol rev2 nse.doc)

Folks, please take a look at the attached draft talking points. I believe
that we have addressed everybody's concerns. Please also ensure that all
relevant people within your agency get a copy of this ~ not sure whether
addressees above capture everybody. If there are major issues remaining,
call me at 456-9247 or email, by 3 pm Wednesday (7/18), Please, only one
representation per agency, so coordinate internally first.

Let's consider this closed by COB tomorrow. I'll coordinate with State,
who'll send the demarche cable.

00500000002259


Tracking:

Gay - Is Dam looking for an informational memo on Enron and India or is he
requesting an Enron specific paper for his Jan trip? On the first question, we put
something together over the summer that details OPIC's interests in the project.
Much has happened since then, which can be pull together in an updated memo,

<< File: (07-12-01) Enron-OPIC info memo - final.doc >>

On the second question, we received the first paper from your office and the second
paper from OPIC. I've been following these Enron-India developments and have
additional information if needed.

<< File: (07-12-01) Enron-OPIC into memo - final.doc >> << File: IndiainvtClimate2 gc.doc >>

woe Original Message-—-

From: ‘Sits, Gay

‘Sent: Monday, December 03, 2001 2:56 PM

To: Resnick, Bonnie; Rao, Geetha

Subject: eee Geetha: do you have anything in the briefing about enron's problems with

Dam told Joe Engelhard he wanted something in. please let us see what you have in, if
anything. Otherwise bonnie who is filling in for greg will have to Go something, thanks << File:
Briefing on OPIC-Dabho! - Investment section.doc >>

Read

Recipient

Chrincopulos, Greg Read: 12/06/2001 £47 AM.
McDonabd, Larry Read: 12/04/2001 243 AM
Sill, Gay Read: 12/04/2001 10:46 AM
Resnick, Roomie Read: 12/04/2001 104 AM

00500000002330


Geetha,

The Charge’s meeting with Vasudev is now confirmed for Friday at 1200.
Please pass us any points you'd like for him to raise. As I mentioned in an
earlier e-mail, we understand [(b)(5)]

Look forward to hearing from you. Rob

> Original Message—-

> From: Rapson, Robert G

> Sent: Wednesday, November 07, 2001 5:52 PM

> To: ‘Geetha.Rao@do.treas.gov"

> Ce: Soriano, James V; 'Larry.McDonald@do.treas.gov'; Bean, James W

> Subject: RE: Terrorist financing/ PHO-Oncill Meeting

>

> Geetha,

>

> Talked with Kishore today and passed on your request to schedule a regular
> bilat between O'Neill and Sinha in Ottawa before G-20. Noted that this

> message had been conveyed to their Embassy in Washington. Kishore was
> non-responsive other than to say it would be something they would want to
> talk about with the Charge. FYI, meeting between Vasudev and Charge is
> now tentatively scheduled for Friday at 1200.

>

{(b)(5)]

>

> Rob

>

>  —Original Message—

> From; Geetha.Rao@do.treas.gov [SMTP:Geetha.Rao@do.treas.gov]
> Sent: Wednesday, November 07, 2001 5:01 AM

> To: RapsonRG@state.gov; Geetha. Rao@do.treas.gov

> Ce: Soriano] V@state.gov; Larry. McDonald@do,treas.gov

> Subject: Terrorist financing/ PHO-Oneill Meeting

>

> Rob:

>

> We are going ahead with scheduling a bilateral meeting between
> Secretary

> O'Neill and Finance Minister Sinha in Ottowa before the G-20
> meetings

> commence. The Indian Embassy has already relayed this message back
2

00500000002323


INDIA: ECONOMIC OVERVIEW
October 2001

{(b)(5)]

"The current fiscal year runs from April 2001-March 2002

00500000002163


Rao, Geetha

From: Rao, Geetha

Sent: ‘Thursday, November 29, 2001 9:29 AM

To: McDonald, Larry; Mills, Marshall; Kifayat, Adnan

Ce: Christopulos, Greg

Subject: Enron nears final collapse

[(b)(5)] Enron was in the

middle of negotiations with Tata Power and BSES to sell its stake but given all that has happened in the last few
weeks, Enron probably won't have time to continue those negotiations.

Enron nears final collapse
End of merger talks, debt downgrade all but seal the company's fate, analysts say

Nov. 28 - The collapse of Enron Corp. - which rose during the 1990s from a
sleepy natural gas distribution company to become one of the largest U.S.
corporations - picked up speed Wednesday as merger talks broke off with
rival Dynegy Corp. and its debt was downgraded by another rating
agency. As its energy trading customers fled and its cash problems
mushroomed, analysts said the company’s options were fast running out.

AS RECENTLY as February, Enron's energy trading business - and its stock price - were riding high as the
company rapidly expanded, buoyed by the volatility in natural gas prices and the deregulation of the electricity
industry. Encouraged by glowing Wall Street reports on the company’s cutting-edge business model, Enron's
stock traded earlier this year above $80 a share. It was recently ranked seventh on the Fortune 500 list of the
biggest U.S. companies.

But in a stunning reversal, Enron's commanding share of U.S. energy trading has all but evaporated. Following
the collapse Wednesday of merger talks with Dynegy, Enron's shares closed Wednesday at 6! cents, wiping out
virtually all of the $80 billion in value its stock investors held less than a year ago.

Though analysts say it is all but certain the company will seck bankruptcy protection, the company faces a huge
mountain of debt - the size of which is not fully known. And many of Enron's most attractive assets have
already been pledged as collateral for a series of loans the company sought to stay afloat.

“All the debt is in question,” said Jon Cartwright, a senior energy analyst at Raymond James & Associates Inc.,
after the downgrade by Standard & Poor's, one of the agencies, “It is inconceivable that Enron can continuc as a
going concern.” In response to the credit rating downgrade and Dynegy’s announcement that it was ending
merger talks, Enron said it will temporary suspend all payments other than those necessary to maintain its core
operations

Kenneth L. Lay, Enron's chairman and chief executive, said the company was evaluating and exploring other
options to protect its core energy businesses.

But analysts said there was little in the way of a viable business left to pretect.

“I don’t think there's too much to break up anymore,” according to A.G. Edward analyst Mike Heim, “What
you're left with is people and outdated computers."

The company also faces a blizzard of lawsuits from those Enron workers, whose jobs are now at risk. Many
have lost hundreds of thousands of dollars on Enron stock held in retirement accounts, wrecking dreams of a

00500000002325


Rao, Geetha

From: Christopulos, Greg
Sent: Tuesday, July 24, 2001 10:25 AM
To: Rao, Geetha
Ce Sampliner, Gary
Subject: RE: Info memo to Taylor on Enron
[(b)(5)]

Rao, Geetha

Tuesday, July 24, 2001 10:12 AM
Chntopulos, Greg; Samnpiiner, Gary
RE: Info memo to Taylor on Enron

((b)(5)]

-—-Original Message

From:  Clvistopulos, Greg

Sent: Tuesday, July 24, 2001 10:07 AM
Tor Rao, Geetha; Sampliner, Gary
Subject: RE: Info memo to Taylor on Enron

((b)(5)]
Original Message——
From: Rao, Geetha
Sent: Tuesday, July 24, 2001 9:57 AM

To: Sampliner, Gary; Christopulos, Greg
‘Subject: RE: Info memo to Taylor on Enron

{(b)(5)]
oe Qniginal Messagen=--
From: ‘Sampliner, Gary
‘Sent: Monday, Day 23, 2001 6:35 PM.
To: Crristopulos, Greg; Rao, Geetha
Subject: RE: Info memo to Taylor on Enron

| looked back to the sheet, and it says $143: in loan guaranties.

~---Origital Message=--->

From: Cirstopuics, Greg

Sent: Monday, July 23, 2001 6:28 PM
Tos ‘Sampliner, Gary; Rao, Geetha
Subject: RE: Info memo to Taylor on Enron

00500000002222


INDIA
MACROECONOMIC OVERVIEW
April 2001

{(b)(5)]

00500000002150


Jordan

{OUTSIDE SCOPE , (b)(5)]

Drafted by Jason Singer, Treasury (ISM) 9/27/01. Reviewed by L. McDonald

00500000002500


Drafted by Geetha Rao; Treasury (ISM) 9/27/01. Reviewed by L. McDonald
Turkey
[OUTSIDE SCOPE , (b)(5)}

00500000002489


TALKING POINTS FOR US EMBASSY- INDIA
Re: Meeting with Ministries of Finance and Power and Dabhol Lenders’ Steering Committee

(Follow-up to meeting between Principal Secretary and National Security Advisor Mishra and
OPIC President Watson in Washington)

[(b)(5)]

00500000002251


{(b)(5)]

00500000002193


Rao, Geetha

eS

From: Rao, Geetha

Sent: Wednesday, July 18, 2001 3:49 PM

To: SSAPPT

Cer Grewe, Maureen; Wagoner, Theresa; Tester, Priscilla; Donovan, Meg; Toloui, Ramin; Foote,
Norman; Rao, Geetha

Subject: FW: clearance requested

Importance: High

1 would like to bring to your attention that this clearance information was sent down 24 hours in advance of the meeting.
that was supposed to take place at 3:00 TODAY. However upon his arrival, Mr. Hardy found that he was not cleared
into the building. After failing to reach over the phone the people he was supposed to meet with(We were waiting in Room
3430 for him), he tumed eround and left, unable to attend the meeting that he requested.

Please make avery effort in the future to ensure that this does not happen again for it reflects very badly on Treasury.

—~Orignnal Messages

From: Rao, Geetha

Sent: Tuesday, Duly 17, 2003 1:38 PM
To: SSAPPT

Subject: earance requested

Please clear John Hardy, Enron into Treasury at 3 pm on Wednesday July 18,
Name: John Hardy Jr

SSN: 221 32 7203

BoB: 12/13/49

He will be attending @ meeting in Room 3430 MT (Please indicate to him the location of the meeting).

Thanks, Geetha

00500000002249


Prepared By: Geetha Rao
Contributions: M. Mundaca, M. Feinberg, D. Suringa (Tax Policy)

MEMORANDUM FOR SECRETARY O'NEILL

FROM: John B. Taylor
Under Secretary (International Affairs)

SUBJECT: Meeting with Brajesh Mishra, Indian National Security Advisor and
Principal Secretary to the Prime Minister

OVERVIEW

You are scheduled to meet with Brajesh Mishra (National Security Advisor and Principal
Secretary), Lalit Mansigh (Indian Ambassador to the US) and Yogesh Khanna (Economic
Minister, Indian Embassy). Joining you from Treasury will be John Taylor, DAS Radelet, and
Geetha Rao,

Mr. Mishra is here to meet with several U.S. government officials, including Vice-President
Cheney, Dr, Rice, Deputy Secretary Armitage and Secretary Rumsfeld to discuss the upcoming
Indo-Pakistan summit and economic reforms in India. [(b)(5)]

Date: June 29, 2001
Time: 7:45-8:30 am
Location: Small Conference Room

00500000002456


Rao, Geetha

————

From: Grewe, Maureen

‘Sent: Thursday, May 24, 2001 9:33 AM

To: Radelet, Steve; Mills, Marshall; Rao, Geetha

Subject: RE; Enron/India

‘We heard from them on the trip that they are proceeding with the legal route for termination, though using the six month

window that provides to continue negotiations with the GOI, There was a meeting set up with Enron/GOt including a
central gov'l representative sometime tate this week.

Original Messager

From: Radelet, Steve

Sent: Monday, May 21, 2001 3:06 PM

To: Grewe, Maureen; Mits, Marshall; Rac, Geetha

Subject: Envoxyindia

FYI...

ENRON TO QUIT INDIAN POWER PROJECT OVER UNPAID BILLS. The US power company
Enron is set to withdraw from India after a row over unpaid bills that has
overshadowed the country's biggest single foreign direct investment, the
Financial Times reports (p.12). The Houston-based company has issued a
“preliminary termination notice" to ite Bombay client, the Maharashtra State
Electricity Board (MSEB), ending an acrimonious eight-year relationship.

Enron's $2.9 billion power project near Bombay was a symbol of India's economic
reforms but critics, including the World Bank, said ite tariffs were excessive
and the company was portrayed as a profiteering multinational. Enron's
announcement at the weekend concludes a disappointing chapter in the history of
India's power sector, which lies at the heart of attempts to improve growth and
ease poverty, the story notes.

Enron's tariff is typically three times higher than that of other independent
power producers because of the high cost of naphtha and a depreciation of the
rupee against the dollar. Enron employs 11,000 people in India, the FT adds.

00500000002233


{(b)(5)]

Rao/ISM 6/13/01

00500000002172


India
{(b)(5))

00500000002204


[OUTSIDE SCOPE , (b)(5)}

Drafted by Geetha Rao; Treasury (ISM) 9/27/01, Reviewed by L. McDonald

00500000002483


Rao, Geetha

From: Christopulos, Greg

Sent: Tuesday, June 26, 2001 9:51 AM

To: Rao, Geetha; Sampliner, Gary

Cer Grewe, Maureen

Subject: RE; Clearance on Enron TPs
Original Message

Your TPs are ok, but | added a point under OPIC [(b)(5)]

Sent: Monday, June 25, 2001 6:31 PM
To: Sampliner, Gary; Cheistopulos, Greg
Ce: Grewe, Maureen

Subject: Gearance on Enron TPs

Importance: High

Gary/Chris:

See, ONeill will be meeting with Brajesh Mishra (Indian National Security Advisor) this friday to discuss,
among other issues, Enron, As disucssed at the NSC mecting last week, here are the talking points for the

Enron disucssion that are being sent to all (most?) USG officials who are meeting with Mishra. Please
conument asap and I can forward any concems you have to NSC. thanks.

{(b)(5)]

00500000002224


INDIA; ECONOMIC OVERVIEW
November 2001

[(b(5)]

"The current fiscal year runs from April 2001-March 2002

00500000002175


Rao, Geetha

From: Rao, Geetha

Sent: Thursday, December 06, 2001 9:33 AM

To: Christopulos, Greg; McDonald, Larry; Mills, Marshall

Subject: FEER article: India and Enron - The bankrupt energy giant has left India with a mess of legal tangles
and funding headaches

ENRON

End Game

The bankrupt energy giant has left India with a mess of legal tangles and funding headaches

By Joanna Slater) MUMBA
Issue cover-datec December 13, 2001

FOR YEARS, Enron's foes in India fantasized about how the energy giant might leave the country. It could be
driven out by the government, harassed by protests into heading off, or even bought out in a profitable exit. But
of the many possible endings to the saga of Enron in India, no one ever imagined this one: that Enron might
simply crumble, leaving its troubled Indian power plant to outlast its parent.

At first glance, it looks like a happy ending for those jockeying to pick up a stake in the $2.9-billion power
project at fire-sale prices, But the problem, say observers, is that it remains too soon to tell how Enron's
bankruptcy will affect its Dabhol plant.

One likely consequence may be to delay the process of selling Enron's majority stake in Dabhol, according to
the head of an Indian public financial institution with exposure to the project. More importantly, Enron's
collapse still Icaves the larger question of how to transform Dabhol from an acutely problematic asset into a
productive one.

Anti-Enron activists greeted the demise of India's largest and most controversial foreign investor with no small
amount of glee. In some quarters at least, there's a sense that the hard-charging multinational got what it
deserved. "At the end of the day, if you are trying to fool people, there are people who will try to fool you,” says
Girish Sant, an energy expert at Prayas, a Pune-based non-governmental organization that has criticized Enron.

Those celebrations may be premature. Dabhol is a financial mess and will remain a burden on the Indian
taxpayer, Enron or no Enron. Locked in a six-month-old dispute with its sole customer, the Maharashtra State
Electricity Board, or MSEB, the enormous plant currently sits idle on the coast several hours south of Mumbai.

Construction on the second phase of the project--a whopping 1,444 megawatts--was halted just shy of
completion, For the banks which helped pay for the project, it is ¢ financial black hole, and since September it
has generated neither power nor interest payments.

Before Enron's collapse, nervous Indian lenders with $1.4 billion in exposure had been pushing for a resolution
of the dilemma, preferably through a sale. Enron, for its part, had made it clear it was looking to get out of
India.

Two private bidders emerged: Tata Power, a generating company that is part of the Tata conglomerate, and

i

00500000002332


Rao, Geetha

From:
Sent:
To:
Subject:

Grewe, Maureen

Wednesday, May 02, 2001 11:12 AM
Rao, Geetha

RE: Clearance on Q&A

Sanctions Q&A is fine with me, as long as State cleared, could you run it by David Joy and Elizabeth Stewart though?

\ had sent everyone an emai with some suggestions on what Q&As we should have, but | can't find @ now. Could you
resend back to me if you have it?

on Qniginal Message----

Rao, Geetha
Sent: Wednesday, May 02, 2001 11:03 AM
Grewe, Maureen

RE: Clearance on Q&A

| sent an em to Nancy K. last night - on the India's acces to ASDF and mentioned that we are working on a Glenn
Amendment and Enron/india Q&A and that we would shoot this over to her today. We had a former Q&A on Glenn
Amendments (for confirmation hearings). | passed that by State again and they cleared this mroning. This is attached

for you to look at,

ahead and forward both to her.

~~ Onginal Message—-—
From: Grewe, Maureen
Sent: Wednesday, May 02, 2001 10;58 AM
To: Rao, Geeta
‘Subject: RE: Gearance on QGA

this looks good. Thanks, When are Q&As due again?

——Original Message——

From: Rao, Geetha

Sent: Wednesday, May 02, 2001 9:57 AM
To: Sampliner, Gary; Christopuios, Greg

Cc: Grewe, Maureen

Subject: RE: QGearance on Q&A

| suppose we can say something to that effect - included below.

{(b)(5)]

From: ‘Sampliner, Gary

Sent: Wednesday, May 02, 2001 9:29 AM
To: Christopulos, Greg: Rao, Geetha
Subject: RE: Clearance on Q&A

{(b)(5)}

<< File: India-Pak sanctions.doc >> Do we have any other Q&A for her? Once ready I can go

00500000002273


[OUTSIDE SCOPE , (b)(5)]

Drafted by Marshall Mills, Treasury (ISM) 9/27/01. Reviewed by L. McDonald

00500000002498


1A weekly Nov 30

{(b)(5)}

00500000002211


Larson's office) and they seem to be basically in the same place as | was on what an
appropriate message might be. My proposed plan is that Geetha will take a first crack at
comments on the talking points and circulate them within Treasury as early as possible
this afternoon. Lam requesting that everyone provide comments by cob today, so that we
can circulate our comments to State and try to come up with joi

submit to NSC. by cob tomorrow. Please lat me know if you have any concerns about this
plan,

Readout of mesting:

Attendees: NSC, State (EB front office and investment office, South Asia Sureau),
Treasury (Grewe, Rao, Sampliner), Commerce, OPIC (President Peter Watson, GC Ron
Jonkers and several others)

[(b)(5)]

00500000002264


Saudi Arabia
[To be completed 9/28]

00500000002502


Rao, Geetha

From: Grewe, Maureen

Sent: Thursday, June 21, 2001 3:01 PM

To: Toloui, Ramin; Donovan, Meg; Brown, Judawn
Ce Rao, Geetha

Subject: India meeting for Secretary

Importance: High

| wanted to let you know that yesterday during the Secretary's meeting with Amb.-designate to India Robert Blackwill,
Blackwill suggested that the Secretary meet with Brajesh Mishra from the Prime Minister's office next week when he is in

. The Secretary agreed it was a good idea. | was at a meeting this morning on the Enron dispute in India and
‘one of the NSC staffers noted that Mishra was going to meet with Secretary O'Neill among others. | asked whether NSC
had been in touch wtih Treasury on the meeting and they said no.

‘You may want to check with Scheduling and have them confirm with Tim Adams (who was al the Blackwill meeting) that
the Secretary does want to have the meeting. If so, Scheduling can contact Harry Thomas at NSC, 456-9251. Harry is
coordinating Mishra's USG schedule. Mishra will be in town the afternoon of June 27, as well as June 28 and 29.

Please let us know if a meeting is definitely set, so we can prepare a briefing. Thanks.

00500000002232


{(b)(5))

Geetha will circulate revised points today. Please comment as quickly as you can and by
cob today if possible, so we can try to coordinate with State. Call me or Geetha if you
have any questions or need other background.

Thanks.

00500000002265


[(b)(5)]

00500000002306


Rao, Geetha ———————

From: Rao, Geetha

Sent: Monday, July 23, 2001 5:11 PM

To: Sampliner, Gary; Chrisopulos, Greg
Subject: Info memo to Taylor on Enron

FYI Wee prepared an info memo to U/S Taylor on the Dabho! issue. DAS Radelet is currently reviewing. if you have any
Clarifications, please let me know. Thanks,

PT) even
aren

PS Greg - these are the final talking points which were delivered to Post on Friday.
Tracking: Recipient Read
Samphecr, Gary Read: 07/28/2001 647 PM
Christopubos, Greg Read: 67/29/2001 6:23 PM

00500000002312


Weekly

India Feb 16

{(b)(5)]

00500000002198


India

[(b)(5)]

00500000002480


TREASURY CLEARANCE SHEET

MEMORANDUM FOR: —_LOSFREFARY

NO.
Date

& DEPUTY SECRETARY [JUNDER SECRETARY

Daerios & seierwG (FD inrormation
DOtecistation — [[] PRESS RELEASE (CD PusLicaTtion
Orecuration = () sreecu (CD Testimony
Doren
THROUGH:
FROM: John B. Taylor, Under Secretary for International Affairs
SUBJECT: Your meeting with Indian Finance Minister Yashwant Sinha
REVIEW OFFICES (Check when office clears):
Lander Secretary for Finance Enforcemcat Policy Management
Demestic Finance atr ‘Sehedeling
Yeonomic Policy Custoons Public Affairs/Lishvew
Fiscal FLETC Tax Policy
FMS Seeret Service ‘Treasurer
Pablic Debe Geweral Counsel kar
Inspector General Mist
Under Secretary (Iaternational) 1S Savings Bonds
International Affairs Legislative Affairs
Management ‘Other _
ce
NAME (Please Type) INITIAL DATE OFFICE/ROOM TEL. NO.
NO.
INITIATOR(S)
Geetha Rao ISM/ $332 MT 622-1238
REVIEWERS
Larry McDonald ISM / 5401 MT 622.5508
Steve Radelet 1S (622-7222

00500000002155


“They [Enron] entrapped the sophisticates,” said Robert Stovall, senior strategist at Prudential Securities,
referring to what was once an almost fawning admiration for Enron by institutional investors. “I think this is
going to become a classic case.”

Stovall, with nearly 50 years of Wall Street experience, said he could not recall any previous corporate
unraveling that matches that of Enron.

“You would have to go to pre-SEC days for that,” he said, referring to the creation of the SEC in the aftermath
of the stock market crash of 1929.

Enron has also left its financial backers with egg on their faces. J.P. Morgan Chase and Citigroup, who were
advising the company in merger talks, have already contributed an estimated $1 billion to the deal - much of it
unsecured, according to analysts. Citigroup shares were off $2.30, or 4.55 percent, at $48.25 on the New York
Stock Exchange, while J.P. Morgan shares were off $2.37, or nearly 6 percent, at $37.43.

Enron's collapse will be felt around the world, especially in Europe where the company had expanded into in
most major cities. Until recently, Enron had accounted for about 30 percent of German wholesale power trading.
It was also a major player in U.K. gas and electricity, and Nordic power, and was driving forward a fledgling
French power market.

Tracking: Recapiest Read
MeDeaald, Larry ‘Read: 11/29/2001 10.4 AM
Mills, Marshall Read: 11/29/2001 91 AM
Kifayat, Adean ‘Read: 11/29/2001 124 PM
Chrimopalen, Greg Read: 11/29/2001 941 AM

00500000002327


Pakistan

[OUTSIDE SCOPE , (b)(5)}

Drafted by A. Kifayat, Treasury (ISM) 9/27/01 622-0907. Reviewed by L, McDonald

00500000002469


VE IFIED

INDIA
(S in thousands)
[OUTSIDE SCOPE , (b)(5)]
SENSITIVE BUT UNCLASSIFIED

00500000002477


Page 2 of 5

An analysis of India’s external payments position would reveal that since the early
nineties, India’s trade deficits have not primarily been financed by external borrowings,
but mainly through a mix of invisible receipts on the current account (mainly remittances
by the Indian diaspora working abroad, and services earning in the Information
Technology sector) and non-debt creating (equity) capital flows. The current account
balance as a percentage of the GDP has been contained in the range of 1-1.5 % of the
GDP over the last few years (including the financial year ending March 2001, when it was
below one percent), compared to over 3% in the late eighties and early nineties. Even in
absolute terms the current account deficit today is lower than what it was in the late
eighties/early nineties, even through the base of the economy has grown substantially.
Capital flows over this period have far exceeded the current account deficit, as a result of
which foreign currency reserves have doubled from around US $ 20 billion in the mid
nineties to over US $ 40 billion at present. India’s external debt, in the meanwhile
remains practically the same today as what it was in March 95, at about US $ 100 billion.
The reserve build up is basically through equity flows, and not through borrowing. Even
during the financial year ending March 2001, during which the country raised about US $
5.5 billion through an international debt offering, the external debt increased by less than
US $ 2 billion in the aggregate, implying that other debts were repaid, Less than a third of
the reserve build up during the FY ending 2001 can be attributed to debt, despite the
international debt offering.

It is undoubtedly true that India’s external debt is large in absolute terms. However,
practically the entire debt was accrued by the early nineties, when external imbalances
were allowed to spill over into the external sector. Following far reaching changes in
economic policies in the early nineties, this debt has been by and large frozen. Despite
fiscal slippages, domestic imbalances have not been allowed to spill over into the external
sector, Consequently, debt servicing and debt/GDP ratios have fallen sharply over the
last few years, and this trend has continued into the fiscal year ending 2001. Compared to
other developing countries, India has a much higher proportion of concessional debt,
which is of long maturity, and only about 5% of the debt is short-term. Despite external
shocks, India has neither defaulted nor rescheduled its external debt.

ht is true that POL imports comprise a significant proportion of India’s total exports, and
as such it is susceptible to oil price shocks. However, its capacity to absorb such shocks
has improved vastly over the last few years. While an oil price shock may have been the
immediate provocation to access international markets last year, this was more in the
nature of a confidence boosting measure, than inability to absorb the shock. If India had
not gone in for the borrowing, reserves would still have risen marginally.

It is unfortunate that Moody’s have implied that current account invisible flows
constitute a weak link in India’s overall balance of payments, While exports of developing

01/16/2002

00500000002213


((b)(5)}

00500000002154


Weekly Jan 26

India
{(b)(5)]

00500000002207


TALKING POINTS FOR US EMBASSY- INDIA
Re: Meeting with Ministries of Finance and Power and Dabhol Lenders’ Steering Committee

[Follow-up to meeting between Principal Secretary and National Security Advisor Mishra and
OPIC President Watson in Washington)

{(b)(5)}

00500000002305


INDIA: MACROECONOMIC OVERVIEW
June 2001

{(b)(5)]

00500000002171


{(b)(5)]

00500000002164


{(b)(5))]

00500000002151


Rao, Geetha

From: Rao, Geetha
Sent: Thursday, November 01, 2001 1:47 PM
To: Gunaratne, Nilmini
Subject: RE:

{(b)(5)]

—-~-Original Message——

From: Gunaratne, timind

Sent: Thursday, November OF, 2001 1242 PM

Tor Rao, Geetha

Subject:

| saw this, thought of you...

November 1, 2001

S.E.C. Opens investigation Into Enron
By ALEX BERENSON

The Securities and Exchange Commission has opened a formal investigation into transactions among the Enron
Corporation (news/quote) and partnerships headed by Andrew S. Fastow, the company's former chief financial officer,
Enron said yesterday.

The commission's move comes as Enron struggles to reassure investors and its partners that its profits are real and
that its cash position is strong. Shares of Enron, the world's largest trader of electricity and natural ges, have plunged
83 percent this year as investors question the company’s complex and opaque accounting. Shares of Enron rose
$2.74 yesterday, to $13.90, ending a 10-day string of losses.

in addition, Enron's board said yesterday that it had appointed a special committee to examine the transactions. The
pane! will be headed by William Powers Jr., the dean of the University of Texas law school, who was elected to
Enron’s board yesterday, The committee has hired William R. McLucas, a former head of the division of enforcement
at the S.E.C., as its counsel. He is a partner in the law firm of Wier, Cutler & Pickering in Washington.

Enron disclosed 10 days ago that the commission had opened an informal inquiry into its transactions with Mr. Fastow.
A format investigation signficantly increases the pressure on the company.

John Heine, a spokesman for the commission, said he could not comment on the S.E.C.'s investigation of Enron. But,
speaking generally, Mr, Heine said the opening of a formal inquiry enabled the commission to subpoena documents.
and wes used when S.E.C. staff members thought that the companies or executives were not responding voluntarily to
their questions.

if staff members "run into situations where they feel they need information to look further and the sources for that

information are not cooperative, the staff can go to the commission and recommend that the commission issue a
formal order of investigation authorizing that the staff issue subpoenas,” Mr. Heine said.

When it disclosed the commission's informal inquiry on Oct. 22, Enron promised to cooperate fully with the S.E.C. "We
welcome this request,” Kenneth L. Lay, Enron's chairman, said.

A spokesman for Enron did not return calls yesterday.

Enron began this year on an apparently unstoppable growth streak. But the company has suffered one setback after
another. The company’s efforts to become a profit-making water supplier and to create a new market in broadband

1

00500000002320


{(b)(5)]

00500000002295


Rao, Geetha

ee

From: Rao, Geetha
Sent: Friday, July 20, 2001 10:44 AM

To:
Ce

Rao, Geetha; Resnick, Bonnie; Christopulos, Greg; Sampliner, Gary
Grewe, Maureen; Mills, Marshall; McDonald, Larry

Subject: RE: Reschedule of Enron's meeting
We will be having this meeting on Monday July 23 at 10.30 in Room 3430. thanks.
~-e-Oniginal Message-—
From: Rao, Geetha
Sent: Wednesday, uty 18, 2001 4:55 PM
Tor Resvick, Bonnie; Christopulos, Greg; Sampliner, Gary
Cer Grewe, Maureen; Mis, Marshall; McDonald, Larry

Subject: Reschedle of Enron's meeting

Can we aim to reschedule the Enron meeting either next monday at 10:30 am or Tuesday at 11:00 em? Please
indicate preference. Thanks.

Ongnal Message——

From: Reo, Geetha

Sent: Monday, Duly 16, 2001 4:27 PM

BA pre ra ab ed Sits, Gay

Sassi oer eskee vas Wecustee
Importance: High

John Hardy, Enron (DC office), requested a meeting with Treasury to bring us up-to-date on the Enron's project in
india.

This meeting will take place on Wednesday July 18 at 3 pm in Room 3430 MT.
Please let me know if you plan to attend,

Thanks, geetha

00500000002248


{(b)(5)}

00500000002176


Dabhol not part of Enron bankruptcy proceedings

Our Bureau

MUMBAI, Dec. 3

DABHOL Power Company (DPC) is among the assets excluded from the bankruptcy petition
filed by Enron Corporation. Enron filed for Chapter 11 bankruptcy in the US on Sunday.

A company release said the non-filing entities include Northern Natural Gas Pipeline,
Transwestern Pipeline, Florida Gas Transmission, EOTT, Portland General Electric and
numerous other international entities.

DPC is not part of the bankruptcy filings. And the on-going dispute resolution efforts x sale
or termination x will not be affected by the proceedings. These will continue, the DPC
spokesperson said here today.

The statement issued by DPC said: Dabho! Power Company is an Indian company with a
separate legal entity in which Enron is one of four independent shareholders from India and
US. Therefore, DPC functions independently of Enron Corp. We are currently reviewing the
project to determine how to proceed further to resolve the dispute.

A high-level official at one of the lender banks said even though one part (of the issue) has
become clear, the matter remains complicated. The two suitors, BSES and Tata Power, have
not even started due diligence. He said at this point, it is difficult to say what can be done.
We are waiting and watching the situation, he said.

The BSES Chairman, Mr R.V. Shahi, said that it does not change the companys view
towards the sale process. We will examine independently the impact on DPC. A similar
exercise may be carried out by financial institutions led by IDBI and we will wait for their
opinion, he said.

Enron Corporations bankruptcy petition for Chapter 11 reorganisation includes 14 affiliated
companies controlling its wholesale and retail energy trading businesses and pipelines
operations among others, a news release said.

The corporation has submitted an elaborate plan suggesting ways to reorganise the troubled
energy major. This includes borrowing more funds from financial institutions for debtor-in-
possession financing, cost cutting by laying off workforce in Houston and selling non-core
businesses,

Enron has also slapped a $10-billion breach of contract suit against Dynegy Corporation,
alleging that the latter had no right to exercise its option to acquire the entity that indirectly
owns the Northern Natural Gas pipeline. According to Enron, Dynegy does not have the
right to do so as its termination of the merger agreement with Enron is not valid.

00500000002331


November 5, 2001

BRIEFING
MEMORANDUM FOR DEPUTY SECRETARY DAM
FROM: John B, Taylor, Under Secretary for International Affairs
SUBJECT: Meeting with U.S. Ambassador to India, Robert D. Blackwill

At his request, we have scheduled a 30-minute meeting for you with U.S. Ambassador to India
Robert Blackwill on Tuesday, November 6. Middle East and South Asia Director Larry McDonald,
India Desk Officer Geetha Rao, and I are available to join the meeting for the first 15 minutes. This
meeting will take place in your office.

00500000002160


Rao, Geetha

From: Rao, Geetha

Sent: Tuesday, December 04, 2001 9:37 AM

To: Christopulos, Greg; McDonald, Larry; Sills, Gay; Resnick, Bonnie

Subject: RE; Dam trip to India, Geetha; do you have anything in the briefing about enron's problems with
India?

Dabhol is not part of the Enron bankrupcy proceedings... see attached for additional information.
¥)

bate! net set ot
aed

To: McDonald, Larry; Rao, Geetha; Sits, Gay; Resrick, Borie
Subject: RE; Damn trip to India. Geetha: do you have arytting in the briefing about enron's problems with India?

{(b)(5)]

Original Message--—

From: McDonald, Larry

Sent: Monday December 03, 2001 8:41 PM
To: Rao, Geetha; Sills, Gay; Resnick, Bone

Cc: Christopules, Greg
‘Subject: RE: Dan tip to India. Geetha: do you have anything in the briefing ebout enran's problems with India?

((b)(5)]

Orginal Message——~

From: Rao, Geetha

Sent: Mondiay, December 03, 2003 3:22 PM

To: Siis, Gay; Resnick, Bonnie

(Ce: McDonald, Larry; Greg

Subject: RE: Daen trip to Indka. Geetha: co you have anything in the briefing about enron's problems with India?

We are confirming the timing of the trip and will let you know asap.

‘Onginal Message
From: Sills, Gay
Sent: Monday, December 03, 2001 3:12 PM
To: Rao, Geetha; Resnick, Bonnie
Ce: McDonald, Larry; Sits, Gay; Christopuics,
Subject: RE: Dam trip to India, Geetha: do you have anything in the briefing about enron's problems with Incka?

Cec: McDonald,
Subject: RE: Dam trip to india. Geetha: do you have anything in the briefing about
enron's problems with India?

00500000002329


June 8, 2001

WEEKLY ISSUES (ITT)
Dabhol Power Dispute in India
{((b)(5)]

00500000002196


Jordan

[OUTSIDE SCOPE , (b)(5)}

Drafted by Jason Singer, Treasury (ISM) 9/27/01. Reviewed by L. McDonald

00500000002492


June 8, 2001

WEEKLY ISSUES (ITI)

((b)(5)]

00500000002283


Rao, Geetha

From: Rao, Geetha

Sent: Monday, December 03, 2001 3:07 PM

To: Sills, Gay; Resnick, Bonnie

Ce: McDonald, Larry

Subject: RE; Dam trip to India. Geetha: do you have anything in the briefing about enron’s problems with
India?

¢)

Gay - Is Dam lo oc om. king for an informational memo on Enron and India or is he requesting an
Enron specific paper for his Jan trip? On the first question, we put something together over the summer
that details OPIC's interests in the project. Much has happened since then, which can be pull together in an
updated memo.

®)

107-120") Green Ome

wore
On the second question, we received the first paper from your office and the second paper from OPIC. I've
been following these Enron-India developments and have additional information if needed,

——Onginal Message-—

From: ‘Sils, Gay

Sent: Monday, December 03, 2001 2:56 PM

To: Resnick, Bonnie; Riso, Geetha

Subject: Dum trip to India, Geetha: do you have anything in the briefing about enron's problens with India?

Dam told Joe Engelhard he wanted something in. please let us see what you nave in, if anything. Otherwise bonnie
who is filling in for greg will have to do something. thanks

Tracking: Recipient Read
‘Sills, Gay Read: 12/03/2001 5:18 PM
Resnick, Bonne Read: 12/93/2001 Nils PM
McDonald, Larry

00500000002328


((b)(5)]

From: Christopukes, Greg
Sent: ‘Wednesday, May 02, 2001 8:46 AM
To: Rao, Geetha; Sampliner, Gary

Perfect answer. | says everything.
en Onginal Message

From: Rao, Geeths

Sent: ‘Tuesday, May 01, 2003 7:37 PM
To: ‘nistopuios, Greg

‘Subject: Oearance cn Q&A

Greg: We are working on Q&As for Oneill's press conference at the Asian
Development Bank next week. Enron may come up - can you clear the following
Q&A on this issue? Btw, Enron was discussed at our bilat last Friday (Oneill
met with FinMin Sinha) where Sinha said that GOI will be directly involved in the
negotiations between the State and Enron....... [(b)(5)]

{(b)(5)]

f you can respond back by Wednesday at 10 am - that would be greatly
appreciated! thanks.

00500000002274


Tuesday, November 6, 9:15
Meeting with U.S, Ambassador Robert Blackwill
30 minutes

Ambassador Blackwill will be in Washington DC this week to meet with a range of U.S.
government officials. He requested a specific meeting with you to discuss U.S.-India economic
relations. He is likely to ask about Treasury's current plan on rescheduling the U.S.-India
Economic and Financial Forum,

{(b)(5)]

ATTACHMENTS: Tab A: U.S. Ambassador Robert Blackwill’s bio (provided by State)
Tab B: India’s Economic Overview (G. Rao)
Tab C: — Selected Economic Indicators (G. Rao)

Prepared by Geetha Rao, Office of Middle East and South Asia (622-1238)

00500000002161


Tracking:

| just noticed a cable from India stating that Enron Chief Ken Lay called O'Neill (as well as Rice/Powell)

last Thursday night to discuss Enron's last minute strategies in
disputes with the Maharashtra stale government and the Indian government. [()(5)}

to resolve its power project

1am approaching you both es my first point of contact, Any information you can

obtain and/or advise on how to proceed would be superb.
Thanks in advance.

Recipient
Donovan, Meg.
Grewe, Maareen
Tolou, Ramin
Mills, Marshall

Bead
Read: 06/08/2001 1245 PM
Read: 06/08/2001 1243 PM

Read: 06/38/2001 1244 PM

00500000002282


Rao, Geetha

From: Rao, Geetha

Sent: Wednesday, June 27, 2001 10:55 AM
To: Donovan, Meg

Subject: Mishra meeting stuff

According to Maureen, the OPIC Summary was spectically prepared by OPIC last week for the last Thursday's NSC
meeting on the interagency approach to raising the Enron (and WTO) issues with Mishra. The NSC Guidance was agreed
to during that meeting and is being used by those USG agencies meeting with Mishra.

| prepared all other information - (Macro-overview and Selected Economic Indicators)
Fyi - | also have @ confidential! bio of Mishra to include in the final package to Onell.

As for the talking points, I'm still wailing on reaction from Maureen (My awn take would be to include this as a tab in the
background).

Thanks!
Tracking: Recipiewt Read
Doeovan, Meg Read: 06/27/2005 1055 AM

00500000002287


{(0)(5))

Geetha will circulate revised points today. Please comment as quickly as you can and by
cob today if possible, so we can try to coordinate with State. Call me or Geetha if you
have any questions or need other background.

Thanks.
Tracking: Recipient Read
Sills, Gay Reach 07/12/2001 4:10 PM
Donovan, Meg Reade 07/12/2001 3:52 PM

00500000002303


Preparations for the first of these (IFI reform) are already well underway, Since the Secretary and U/S-designate
Taylor will be away for most of next week for the Asian Development Bank meetings, we will need to have a briefing
book ready for the second (Appropriations) before the delegation leaves on Tuesday. The Appropriations briefing
book will include not only Qs/As on the programs for which Treasury is requesting funding in FY 2002 (i.e., multilateral
development banks, debt reduction and technical assistance programs), but also a full range of OASIA-related topics.
that may come.up in the course of the hearings,

In other words, this is open season for questions about international issues in which Treasury has a role, and we will
depend upon input from all offices to prepare for the hearings. To this end, please

* Review the attached document (“fy01_topics”), which lists the topics for all the Qs/As prepared for last year’s
Appropriations testimony. Please add, delete, or update topics for this year’s testimony as appropriate,

* Prepare brief Qs/As on these topics, drawing es much as possible on Qs/As already developed for tho
confirmation and IFi-reform hearings. These Qs/As need to be short. Ideal format: (1) Question; (2) Answer, with
maximum of three points and each point of two lines maximum length; (3) Background, if needed

* Send Qs/As (cleared by DASes and General Counsel) to Joan Kotze by COB on Friday. May 4th. If the Qs/As
have not yet been fully cleared by that time, please send the draft Qs/As as a placeholder and forward the final,
cleared versions no later than NOON on Monday, May 7th. Please be sure to include the name and phone
number of the drafter in the bottom right-hand corner of each submission.

if you have any questions, please don't hesitate fo contact me. Thank you for all of your efforts during this very busy
penod,

Ramin
<< File: fy01_topics.doc >>

00500000002238


Rao, Geetha

From: Rao, Geetha
Sent: Wednesday, July 18, 2001 9:32 AM
To: Rao, Geetha; Grewe, Maureen; Sampliner, Gary; McDonald, Larry; Christopulos, Greg
Co Mills, Marshall; Sills, Gay; Resnick, Bonnie
Subject: RE; TALKING POINTS FOR US EMBASSY: INDIA
Importance: High
1 Care reed

ra ove Auached are the final points for the OPIC/Enron demarche to the GOI ... please send any
comments you have to me by NOON TODAY, and I will get back to Laurent. Thanks.

~—Original Message-—

From: Laurent_D. Charbonnet@nsc.cop.gov
[mailto:Laurent_D._Charbonnev@nsc.eop.gov]

Sent: Tuesday, July 17, 2001 4:59 PM

To: jaldo@opic.gov; pwatson@opic.gov; Farah_Naim@ita.doc.gov;
Maurecen.grewe@do.treas.gov; CampDA 2@state.gov;
bryan_elena@ustr.gov.treas.gov; Speck] G@state.gov;
Greg.christopulos@ido.treas.gov; usreygs@state.gov

Ce: Harry_K._Thomas@nsc.eop.gov

Subject: NSC revision of Dabhol points for demarche

(See attached file: TP - Dabhol rev2 nse.doc)

Folks, please take a look at the attached draft talking points. I believe
that we have addressed everybody's concerns. Please also ensure thar all
relevant people within your agency get a copy of this - not sure whether
addressees above capture everybody. If there are major issues remaining,
call me at 456-9247 or email, by 3 pm Wednesday (7/18). Please, only one
representation per agency, so coordinate internally first.

Let's consider this closed by COB tomorrow. I'll coordinate with State,
who'll send the demarche cable.

Thanks, everybody. Laurent

00500000002250


TREASURY CLEARANCE SHEET NO.

Date
MEMORANDUM FOR; SECRETARY [5] prrury secretary [JUNDER SECRETARY
Do action () erierinG Oo rormation
COLecistaTion — (] PRESS RELEASE () pusticatios
Dorecuration =] srrecu (J testimony
Lome:
THROUGH:
FROM: John B. Taylor, Under Secretary for International Affairs
SUBJECT: Mecting with U.S. Ambassador to India, Robert D. Blackwill

REVIEW OFFICES (Check when office clears):

Under Sceretary for Finance Enforcement Policy Management
Domestic Finsece ATE Scheduling
Ecosomsc Policy, Custonm Pubic Affaire Lishow
Fivcal rLeTc ‘Tax Polley
ms Secret Service ‘Treasurer
Pubtic Debt General Counsel Ear
Inspector General Mine
Under Secretary (Ieternational) IRS Savings Bowds
International Affairs Legislative Affairs
Manapemest Other
oce
NAME (Please Type) INITIAL DATE OFFICE/ROOM TEL. NO.
NO.
INITIATOR(S)
Geetha Rao ISM/ $332 MT 622-1238
REVIEWERS
Lamy McDonald ISM / 5401 MT 622-5504
Steve Radelet is 622-7222
— —

00500000002166


Saudi Arabia
[To be completed 9/28]

[OUTSIDE SCOPE , (b)(5)}

00500000002486


Rao, Geetha

From: Rao, Geetha

Sent: Monday, June 18, 2001 9:19 AM
To: Grewe, Maureen

Subject: Enron and OPIC

©)

tru 64-91 doe
Attached is Greg's section on Enron and OPIC -
Tracking: Recipient

Grewe, Maureen

Read
Read: 06/18/2001 $25 AM

00500000002284


INDIA: ECONOMIC OVERVIEW
October 2001

{(b)(5)}

' The current fiscal year runs from April 2001-March 2002,

00500000002173


Geetha

From: Berg, Katie

Sent: Wednesday, July 11, 2001 4:09 PM

To: Sills, Gay; Rao, Geetha; Grewe, Maureen; Resnick, Bonnie; Christopulos, Greg; Sampliner, Gary
Ce: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve

Subject: RE: Dabhol meeting on Enron/OPIC project at NSC

| must admit to never having heard of this problem. Geetha’s revised talking points look good to me, but | would suggest
that OPIC clear with Exim in addition to State and Treasury if Exim ts involved.

o--Original Message--—--
From: ‘Sls, Gay
Sent: Wednescay, July 11, 2003 3:54 PM
To: Rao, Geetha; Grewe, Maureen; Resnick, Bonnie; Cinstopuios, Greg; Sampliner, Gary
Ce: Donovan, Meg; Malls, Marshall; McDonakd, Larry; Radelet, Steve; Berg, Katie
Subject: RE: Dabhol meeting on Enron/OPIC project at NSC
{(b)(5)] ‘am adding kalie berg. she does export credits. and
Oxi k
—~Ongnat Message-—

From: Rao, Geetha

Sent: Wednesday, July 11, 2001 1:54 PM

To: Grewe, Maureen; Siis, Gay; Resnick, Bonrie; Ovistopuios, Greg; Sameiner, Gary
Cea Donovan, Meg; Mills, Marshalt; McDonald, Larry; Radelet, Steve

‘Subject: RE: Dabhol meeting on Enran/OPIC project at NSC

Importance: High

Altached are the revisions to the OPIC talking points that OPIC sent over late yesterday. [(b)(5)]

The Charge from the US Embassy will most tkely deliver the
points tothe GOl. Please comment asap. Thanks.

<< File: EmbtaikY 1.doc >>

From: Grewe, Maureen

‘Sent: Wednesday, July 11, 2001 12:52 PM

To: Sills, Gay; Resnick, Bonnie; Srpenemerdy ee bprersgy peal Rao, Geetha
(Ce: Donovan, Meg: Mills, Marshall; McDonakd, Larry; Radelet,

‘Subject: atte meeting on ENerVOPIC wreject ak RSC
Importance: High

‘This is @ readout of the meeting at NSC this morning. There is also an ACTION request. USG agencies are
requested to get back to NSC by cod tomorrow with comments on OPIC's suggested talking points for a

‘on the talking points and crculate ther within Treasury 8 early as possible this afternoon.
80 that we can circulate our comments to State and try to
come up with joint suggested points to submit to NSC by cob tomorrow. Please let me know if you have any

Readout of meeting:
Attendees: NSC, State (EB front office and investment office, South Asia Bureau), Treasury (Grewe, Rao,
Sampliner), Commerce, OPIC (Presktent Peter Watson, GC Ron Jonkers and several others)

00500000002217


Rao, Geetha

From: Rao, Geetha

Sent: Wednesday, June 06, 2001 6:25 PM

To: Toloui, Ramin; Donovan, Meg

Ce: Grewe, Maureen; Mills, Marshall

Subject: Enron Call to O'Neill

Meg/Ramin:

| just noticed a cable from India stating that Enron Chief Ken Lay called O'Neill (as weil as Rice/Powell) last Thursday night
to discuss Enron's last minute strategies in al 1g to resolve its power project disputes with the Maharashtra state

government and the indian government. [(b)(5),
| am approaching you both as my first point of contact. Any
information you can obtain and/or advise on how to proceed would be superb.
Thanks in advance.
Geetha

00500000002280


Weekly Aug 24
India

{(b)(5)]

00500000002200


Saudi Arabia
[To be completed 9/28}

{OUTSIDE SCOPE , (b)(5)]

00500000002494


communications capacity have been expensive failures. In August, Jeffrey K. Skilling resigned as chief executive,
forcing Mr. Lay, his predecessor, to resume day-to-day control

Enron's problems came to a head in mid-October, when it disclosed that its shareholders’ equity, a measure of the
company's value, dropped $1.2 billion in the third quarter because of a deal with partnerships led by Mr. Fastow.
Because of complex accounting rules, the write-down was not apparent in Enron's quarterly earnings report. News of
the write- down disturbed investors because it suggested that Enron might have found a way to hice losses, throwing
the accuracy of its financial statements into queston.

Last week, the company ousted Mr. Fastow, but it is now struggling to explain the transactions to its shareholders and
bond-rating agencies. Amid rumors that the company might face a cash squeeze, Enron used a $3.3 billion line of
credit last week and is seeking additional financing. Still, some energy companies are shying away from making traces
with Enron that will take more than a few weeks to close.

Tracking: Recipient Read
Gusarstine, Nilrmams Read: 13/08/2001 155 PM

00500000002321


INDIA
MACROECONOMIC OVERVIEW
April 2001

{(b)(5)]

00500000002169


Rao, Geetha

From: Grewe, Maureen

Sent: Monday, July 09, 2001 9:47 AM.
To: Rao, Geetha

Subject: RE: Enron Meeting

I definitely think you should attend, Larry may go as well. I probably will nor.

Original Message-—

From: Rao, Geetha

Sent: Monday, July 09, 2001 9:42 AM
To: Grewe, Maureen

Subject: RE: Enron Meeting

I would like to attend, if possible. thanks, geetha

DoB - Jan 9, 1973
SSN - 164543256

——Original Message—

From: Grewe, Maureen

Sent: Monday, July 09, 2001 8:51 AM

To: McDonald, Larry; Rao, Geetha; Christopulos, Greg; Sampliner, Gary
Subject: FW: Enron Meeting

FYI ~ new meeting on Enron. Please let me know who wants to go.

Gary, Greg - the O'Neill meeting with Mishra ended up being cancelled because Scheduling and the
Embassy could not find a mutually convenient time.

Please send me dobs and ssns for those who want to attend, thanks,

Original Message—

From: Harry_K._Thomas@nsc.cop.gov [mailto:Harry_K.Thomas@nsc.cop.gov]
Sent: Friday, July 06, 2001 5:44 PM

To: maureen.grewe@do.treas.gov

Subject: Enron Meeting

Maureen: We are inviting you to attend an interagency meeting intended to
craft a unified government policy re Enron,

Meeting is Wed. July 11 at 1030 in Room 473. If you wish to bring someone
else, pls. do. As always, we will need the DPOB and SS#s for attendees.
Have a good weekend.

00500000002231


Page 2 of 3

Power Company (DPC), which is owed $45m in unpaid bills by
its sole local customer, the Maharashtra State Electricity Board
(MSEB), The two sides are locked in a messy legal dispute
over the choice of an arbitration authority.

Enron's relations with MSEB have collapsed since the utility
rescinded its contract earlier this year and refused to draw
down power from the 2,184mw plant in Maharashtra, western
India,

The Houston-based company says it wants to quit India and is
demanding full compensation of the $1.1bn it has invested in
the plant, whose $2.9bn total cost makes it India's biggest
single foreign direct investment.

About a third of the $2bn in debt raised by DPC to finance the
project was from foreign lenders, including Bank of America,
Citibank, ABN Amro and Overseas Private Investment Corp of
the US. Indian banks’ exposure is $1.4bn, including
guarantees of foreign banks’ loans.

US Export-Import Bank's threat to invoke loan guarantees by a
syndicate of five Indian banks, including Industrial
Development Bank of India, the country's biggest long-term
lender, is contained in a petition to a Bombay court. The US
bank wants to be allowed to argue in court on behalf of DPC,
which is contesting MSEB's choice of a local arbitrator to
resolve the payments dispute.

MSEB says the relatively untested Maharashtra Electricity
Regulatory Commission (Merc) is the appropriate body to
arbitrate. But DPC says arbitration must take place in the

neutral location assigned in their contract.

Last month, India's Supreme Court upheld DPC's appeal
against the Bombay high court, which had earlier ruled that
Merc must decide for itself on whether it is the correct body to
arbitrate. The new judgement by the Bombay high court is
expected soon.

The US bank's move, which follows a similar initiative in July
by 11 foreign banks with loans of $440m to DPC, is designed
to persuade the Bombay court to uphold the arbitration
procedure laid out in DPC's contract with MSEB.

In its petition, US Export-Import Bank, which has loans and
guarantees totalling $1.2bn in India, says a safe and
internationally recognised arbitration process was a key factor
in its decision to advance the loan to DPC.

01/16/2002

00500000002318


several others)

{(b)(5)}

Geetha will circulate revised points today. Please comment as quickly as you can and by cob
today if possible, so we can try to coordinate with State. Call me or Geetha if you have any

questions or need other background,
Thanks.
Tracking: Recipient Read
Dosovan, Meg Read: 07/12/2001 2.8 PM.

00500000002299


~—Original Message—-—

From: Rao, Geetha
Sent: Wednesday, uly 11, 2001 4:13 PM
Tor Berg, Katie; Stls, Gay; Grewe, Maureen; Resnick, Bonnie; Christopulos, Greg; Sampliner, Gary
ce: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve
Subject: RE: Dabho! meeting on Enron/OPIC project at NSC
Katie, ((by5)) ‘We'll go ahead and
send forward the points to State to push for a joint agreement on talking points... Thanks to ail,
—-Orignnal Message-—
From: Berg, Katie
‘Sent: Wednesday, Jy 11, 2001 4:09 PM
To: Sills, Gay; Rac, Geetha; Grewe, Maureen; Resnick, Bonnie; Crristoputos, Greg; Sampliner, Gary
Ce: Donovan, Meg; Milis, Marshall; McDonald, Larry; Radelet, Steve
Subject: RE: Dabhol meeting on Enron/OPIC project at NSC

I must admit to never having heard of this problem, Geetha's revised talking points look good to me,
but | would suggest that OPIC clear with Exim in addition to State end Treasury if Exim is involved.

Original Message--—
From: ‘Sits, Gay
Sent: Wednesday, July 11, 2003 3:54 PM
To: Rao, Geetha; Grewe, Maureen; Resnick, Bonnie; Qwistopuios, Greg; Sampliner, Gary
Cc: Donovan, Meg; Mls, Marshall; McDonald, Larry; Radelet, Steve; Berg, Katie
‘Subject: RE: Dabho! meeting on Enron/OPIC project at NSC
b)i +) am adding katie berg, she does
its. and eximbank
ssQriginal Message-—-
From: Reo, Geetha
Sent: Wednesday, July 11, 2003 1-54 PM
To: Grewe, Maureen; Sils, Gay; Resnick, Bonnie; Christopulos, Greg; Sampliner, Gary
Ce: Donovan, Meg; Mills, Marshall; McDonald, Larry; Radelet, Steve
Subject: RE: Dabhol meeting on Enror/OPIC project at NSC

Importance: High
{[(b)(5)]

The Charge from the US Embassy will most likely deliver the points tothe GO!. Please
comment asap. Thanks.

<< File: EmbtalkY'1.doc >>

This is a readout of the meeting at NSC this morning.

USG agencies are requested to get back to NSC by cob tomorrow with comments on
OPIC’s suggested talking points for a cemarche to the GO! by the Charge in Delhi. i
talked to the State reps after the meeting (from South Asia bureau, Investment office and
Larson's office) and they seem to be basically in the same place as | was on what an
appropriate message might be. My proposed plan is that Geetha wil take a first crack at
comments on the talking points and circulate them within Treasury as early as possible

2

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November 8, 2001

Briefing
MEMORANDUM FOR SECRETARY O'NEILL
FROM: John B, Taylor, Under Secretary for International Affairs
SUBJECT: Your Lunch with Indian Prime Minister Vajpayee at the White House

Indian Prime Minister Atal Bihari Vajpayee is meeting with the POTUS tomorrow morning at the White
House. You have been invited to join them at a luncheon in honor of the Prime Minister. Below is some
background information on key issues that may be useful,

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[(b)(5)]

f you can respond back by Wednesday at 10 am - that would be greatly appreciated!
thanks.

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India

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Jordan

[OUTSIDE SCOPE , (b)(5)]

Drafted by Jason Singer, Treasury (ISM) 9/27/01. Reviewed by L. McDonald

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Rao, Geetha

Cee eae en

Prom: Rao, Geetha

Sent: Wednesday, August 08, 2001 5:02 PM
To: McDonald, Larry

Subject: RE; Draft email to Dam

{(b)(S)]

Let
see what we hear back from Robb.

pis send away and let's hope for a quick response. Thanks.

Original Message--—
From: McDonald, Larry
Sent: Wednesday, August 08, 2001 4:52 PM
To: Rao, Geetha
Subject: Draft e-mail to Dam
{(b)(5)]
Tracking: Recipient Head

McDoeald, Larry Read: 08/06/2001 5:07 PM

00500000002313


Rao, Geetha

From: Rao, Geetha

Sent: Monday, June 25, 2001 1:35 PM
To: Grewe, Maureen

Subject: RE: Talking points for Mishra

| just talked to him - After the Thursday meeting, Peter Watson from OPIC called to [(b)(5))

Original Message-—
From: Grewe, Maureen
Sent; Monday, June 25, 2001 1:13 PM
To: Rao, Geetha

Subject: RE: Talking points for Mishra
not that I've seen. Please call Laurent Charbonnet at 456-9251 to ask him for them. Thanks.

——-Crigha Message

From: Rac, Geetha

‘Sent: — Monday, June 25, 2001 11:17 AM
To; Grewe, Maureen

Subject: Talking points for Mishra

Have we received the final set of talking points from Laurent to include inthe Mishra briefing?
Tracking: Recipeent Read

Grewe, Maureen Read. 06/25/2201 1.40 PM

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Weekly
India

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