But, yes, I think it would be of concern for the Republican Party if
they can't seem to hold a more moderate wing of the party. I mean,
they don't necessarily need liberal Republicans, but they need people
other than conservatives.<br> <br> I thought one of the interesting
things is that, not only is Tom Daschle at the McCain ranch this
weekend, but go is Bruce Reed, who was a domestic policy adviser to
Rill Clinton for eight years and is now head of the Democratic
Leadership Council, which tries to occupy that kind of center ground.

And I wonder, why is Bruce Reed there?<br> <br> (CROSSTALK) <br>
<br> ROBERTS: You know, during...<br> <br> BLITZER: Do you
think you can answer that question?<br> <br> ROBERTS: To some

extent, because I think that McCain does have an interest, as I say, in
certain issues. Bruce Reed is interested in -- a domestic policy
adviser to Clinton -- very interested in HMO reform, a very good
example of an issue where McCain is probably more closely allied with
the Democrats. <br> <br> But, you know, one of the things that
struck me during the campaign was, George Bush knew how to count. You
know, he had his conservative base, but he knew he had to run through
the middle, he knew he needed moderate votes in order to win the
election. <br> <br> But it's suddenly as if he can't count anymore.
You know, you've got all of these Republicans saying, "Well, we got to
stick to our conservative principles." Fine, that's 35, 40 percent of
the country, and it's not a majority in the U.S. Senate. <br> <br>
And if you continue to play to your base and not court the moderates,
whether it's on certain issues, whether it's McCain or Jeffords or
Susan Collins of Maine or Olympia Snowe of Maine, you're going to lcse.
and suddenly he's lost his ability to calculate.<br> <br> BROOKS:
Yes, but here's where the Jeffords thing really transforms that. Now
Bush really can‘t be very conservative for the next couple of years. I
think what we are going to have in the next couple of years is sort of
nothing politics, a lot of bills like the tax bill which are such a
mishtosh of things -- they have no ideological coherence -- or like the
education bill. And we're just going to have a little of this, a
little of that, and there will be no big issues for either party to hit
the other upon.<br= <br> PAGE: Of course, that is exactly what
happened to Bill Clinton after the 1994 midterms, and it probably got
him reelected in 1996. So, while to conservatives that may sound like
the worst of all worlds, to a president who wants to get reelected,
maybe that's not all bad news. <br> <br> ROBERTS: One person's
ideological mishmash is another person's reasonable centrist
compromise, which ig where the balance of power in this country is.
And conservatives and liberals both have to accept that, that that's
where the balance is. <br> <br> BLITZER: And getting back to what
Susan said about Bruce Reed, who was the domestic policy adviser to
President Clinten for eight years, he's there at -- he was at the ranch
with Tom Daschle as well, at McCain's ranch. But we know that Bruce
Reed is passionate about, not only health care, patients’ bill of
rights, but tobacco -- McCain is passionate about that -- and guns, a
big issue. Those are not traditionally associated with the
conservative wing of the Republican Part: «<br> <br> BROOKS: Yes,
that's true, but I was at a Democratic Leadership Council meeting in
Florida a couple of weeks ago, and many of the leaders in that movement
had a sense the Democratic Party was moving to the left, a little way
from them. And go there is naturally going to be looking to the other
side,<br> <br> The other issue I would finger, aside from the ones
you've mentioned, is national service. Bush really ran on reinstilling
faith in America, in America's young people. I know he and will

00800000000568


earlier, (source: CNET)
http://www, investorguide.com/cgi-bin/daily.cgi?05s626

IBM's quarterly earnings fell 13 percent from the same period last
year, although the technology sector bellwether company surpassed
analysts' earnings expectations with help from cost cuts. (source:
Marketwatch)

http://www. investorquide.com/egi-bin/daily.cgi?05629

Thursday's major earnings reports:

Company Name (Ticker): actual, expected, same q last year
Bank of NY (BK): $0.45, $0.46, $0.50
Boise Cascade (BCC): $0.03, -$0.05, $0.29
Briggs & Stratton (BGG): $0.35, $0.32, $0.92
Citigroup (C): $0.74, $0.73, $0.65
Echelon (ELON): $0.13, $0.13, $0.03
Ford Motor {F): -$0.48, ~$0.50, $0.64
General Electric (GE): $0.39, $0.39, $0.36
TBM (IBM): $1.33, $1.32, $1.48
Legg Magon (LM); $0.60, $0.54, $0.61
Microsoft (MSFT): $0.41, $0.45, $0.47
Network Assoc (NETA): $0.23, $0.08, -$0.87
Nortel Networks (NT): -$0.16, -$0.17, $0.30
SABRE Grp (TSG): $0.03, $0.02, $0.25
Sage (SACI): -$0.06, -$0.08, -$0.01
Sears, Roebuck (3); $2.02, $1.91
SmartForce (SMTF): $0.04, -$0.03
Transmeta (TMTA) : -$0.18, $0.20
Unisys Corp (UIS): $0.11, $0.41
Willamette (WLL): $0.41, $0.41, $0.78

Friday's major expected earnings reporter
Company Name (Ticker): expected, same q last year

Sun Microsystems (SUN): -$0.04, $0.16
Visteon (VC); -$0.09, -$0.05

Por more earnings information, check out
http: //wew. investorguide.com/earningscalendars. htm)

word of the day

e-mini - A futures contract that can be traded electronically on the
Chicago Mercantile Exchange and is based on the S&P $00 index. As
opposed to normal S&P futures contracts, which have a point value of
$250, the emini contract has a point value of $50. Short for
Electronic Mini S&P 500.

For more financial terms, please visit http://www. investorwords.com

on this date

January 17, 1950: The Brink's robbery occurs when a small band of
masked men committed what becomes known as the crime of the century.

notable quotable

"October, This is one of the peculiarly dangerous months to speculate
in stocks. The others are July, January, September, April, November,

May, March, June, December, August and — = Mark Twain 01454

01200000000810


metal pollution have increased birth defects, the story says.

Dams under construction risk destroying a third of the world's still-wild rivers
in the next 10 years, displacing up to 10 million people, AFP reports said the
World Wildlife Foundation, About 10,000 dams are to be built in coming years,
principally in India, China and Turkey, the foundation said. The WWF statement
precedes a World Commission on Dams meeting from February 25 to 27 in Cape Town,
South Africa, The 68-member WCD, which includes government agenci
multilateral organizations like the World Bank, utility companies and
non-governmental organizations, will discuss ways to stop harmful dam
construction,

A year after floods that wreaked havoc in one of the world's poorest countries,
Mozambique yesterday appealed for aid to fight a new disaster that has killed at
least 41 people and displaced tens of thousands, AFP reports. Foreign Minister
Leonardo Simao, who heads an emergency commission to deal with the floods, said
most of the deaths occurred in the coastal province of Zambezia, which was hit
by a tropical storm between January 23 and 25. He said over 77,000 people had
been displaced, and large tracts of farmland swamped. Earlier reports have said
that some 280,000 people have been affected by the new floods.

Pakistan has asked some 100,000 Afghan refugees to leave their homes in a
20-year-old camp to make way for a housing development, AFP reports officials
said today. The government of North West Frontier Province (NWFP) has told them
to either move to another camp nearby or go back to Afghanistan, where drought
and war have created a new exodus of refugees in recent months.,.Nearly three
quarters of a million displaced Afghans are struggling to survive freezing
temperatures in refugee camps with scarce supplies in various parts of
Afghanistan and Pakistan, prompting the UN to warn that many face imminent death
unless drastic steps are taken to alleviate their misery, the Washington Post
(p.Al) reports.

Thousands of unemployed Argentines marched into Buenos Aires yesterday to demand
jobs and food from the government to help those left jobless by an extended
recession in Latin America's third biggest economy, Reuters reports. "There is a
national emergency. People are dying of hunger," said Victor De Gennaro, head of
Argentine Workers Central, one of the country's most active unions. “It is a
slap in the face that people are dying of hunger in a country that exports
food." The World Bank meanwhile estimated some 13 million people live in poverty
in Argentina, where official unesployment currently stands at nearly 15 percent.
An estimated 1 percent of the population is malnourished,... The World Bank said
yesterday that talks about a potential guarantee to help Colombia issue bonds
worth $1.3 billion were going according to plan and that the guarantee would be
decided upon in the first half of March, Reuters reports. “Everything is going
according to schedule. It's still not before the board but it will be presented
to the board sometime in the first half of March," said World Bank spokeswoman
Alejandra Viveros, confirming that the board meeting would take place on March

‘The World Bank is demanding greater disclosure from the more than 20 hedge fund
managers it employs, the Wall Street Journal (p.Cl6) reports. It uses
Measurisk, a service which has full access to the hedge funds’ portfolios and
offers a monthly breakdown of the type of securities and industries represented.
IT also analyzes each fund's whole portfolio to see how it would perform in
various crisis situations.

00500000000415


{((b)(5))

01200000001150


{(b)(5)]

01200000001145


Page | of 2

Bieger, Peter

From: Sharer, James

Sent: Wednesday, October 31, 2001 3:19 PM

To: Kerner, Francine; Bieger, Peter

Subject: FW: Oct 31 Noon Report ~ 4 morming of surprises.. better-than-expected data but the curve flattens

---—-Original Message---+

From: Cetina, Jill

Sent: Wednesday, October 31, 2001 1:02 PM

To: _OL_Market Group; Andrew Sacher; ClayLowery; Eric Otto; Griffiths; Hoffman;
MegLundsager; Paul Reid; PMalmgren; Wayne

Subject: Oct 31 Noon Report — A morning of surprises., better-than-expected data but the
curve flattens

{(b)(5)]

01/17/2002

00200000000270


VVVV VV VV VV VV VV

chetp: / /www. whitehouse. gov/news/releases/2002/01/20020110-1.html>

Committee Announcement of Enron Investigation:

<http://www. senate. gov/-gov_affairs/010201prese .htm>

Gen, Lieberman Statement on Enron Investigation;
«http://www. senate. gov/-gov_affairs/010201statement .htm>

Sen. Levin Statement on Enron Investigation:
chttp://www.senate.gov/~levin/releases/010202pr2.htm>

Sen. Sarbanee letter to the GAO:
shttp;//banking.senate.gov/pre102/0115gao.htm>

ICE Reports Record Volumes
Intercontinentalfxchange announced that average daily trading volumes in
January are up 30 percent compared to last month. The online commodity
marketplace also announced record volume for North American electricity
volume on January 14 when more than 17 million megawatt hours moved across
the ICE platform. The exchange expects volume to continue to rise in
February when ICE will begin offering clearing services through the London
Clearing House.

More info: <http://www. intcx.com/pressjan02d.html>

FERC Preparing Derivatives Reporting Rule

The Federal Energy Requlatory Commission agreed at a Dec. 19 open
meeting to issue a “notice of proposed rulemaking" regarding changes to
its accounting and reporting requirements for derivatives and certain
other financial instruments. The notice also asked for public input on
whether PERC should continue to exempt power marketing companies from
these accounting rules.

At the public meeting, FERC officials noted that the proposed
changes to its accounting rul had been in the works for some time and
stressed that this was not an Enron-inspired attempt to expand the
agency's regulatory powers. However, several officials acknowledged that
“recent events" had made the proposed changes more relevant.

The public will have 60 days to comment on the notice, which in
ence would conform FERC reporting rules to accounting standards
recently issued by the Financial Accounting Standards Board, notably FAS
133 and PAS 136.

“The addition of new accounts and new reporting schedule is intended
to address and resolve the problems of lack of visibility, completeness
and consistency of accounting and reporting changes in the fair value of
certain financial instruments, items of other comprehensive income,
derivative instruments and hedging activities,” the notice said.

Proposed Rule: <http://cips.ferc.fed.us/Q/CIPS/RULES/RM/RMO2-3.000.TXT>

Transcript of Dec. 19 FERC Commission Meeting:
<http://www. ferc.gov/calendar/commissionmeetings/transcripts.htm> (go to
pages 163 to 193)

BMA Reports Sharp Fall-off in Number of Sond Trading Platforms

The Bond Market Association, the trade group for the U.S. fixed
income markets, released its annual survey of electronic trading systems
on Dec, 12. The BMA found that the number of electronic systema that trade
fixed-income securities and derivatives dropped from 6&8 systema in 2000 to
49 systems this year, due to a "significant change" in the business
environment for t! systems, the contraction in the Internet economy,
and the "“over-capacity" that existed in 2000. The report so includes
expanded coverage of European bond trading syetems and electronic loan
trading systems.
More info:
chttp: //www. bondmarkets .com/research/ecommerce/ecommercedraft .shtml>

For more news check out the B2B Clips archive at
c<http://www.atmarkets.org/content/b2bclipsarchive:

oe" 94.450

01200000000806



schedule, and I'll be happy to take questions,

The President this morning had breakfast with a bipartisan congressional
leadership to discuss the remaining issues that Congress has on its plate for
the rest of the year. He urged the Congress to continue to work together so
that the economic stimlus package could be approved by the Congress, be signed
this year, he hopes, so that we can help America's unemployment workers.

Following the breakfast, the President met with the CIA for his
intelligence briefing; met with the PBI for an update on the domestic front.
And then he convened a meeting of the National Security Council.

Throughout the afternoon, the President will meet with members of Congress
on trade promotion authority. The House of Representatives is scheduled to take
a very important vote tomorrow on whether or not President Bush will have the
authority to enter into trade agreements around the world, The President urges
members of Congress to vote for that, It will be a very interesting vote, to
gee whether or not Congress or the House will go along.

The President also early this afternoon will have an event in the Oval
Office, where he will announce a new Chairman of the Republican National
Committee. and the President will meet with the Prime Minister of Norway this
afternoon to discuss cooperation on the war on terrorism.

One update. As a result of the action the President took yesterday in the
fight against international terroriam on the financial front, I want to report
to you this morning that over $5 million has been blocked in assets belonging to
the Holy Land Foundation. And as a result of the freezes and blocking orders
the President has implemented on the financial front worldwide against the war
on terrorism, more than $61 million has been either frozen or blocked around the
world,

Q Ari, what makes the President -- I'm taking note of his wide-swinging
threats in speeches recently. What makes him think that he has the right to go
into a sovereign country and bomb the people?

MR. FLEISCHER: His threats?

Q Any country. Yes, he's --

MR. FLEISCHER; Would you like to be more specific?

Q Does he think he can go beyond Afghanistan or anywhere else?

MR. FLEISCHER: The President has made it clear to the American people that
the United States, in the wake of an attack on our country, will defend itself.
And ag a result of defending ourselves, you can see what is happening in
Afghanistan. The President has said that this is a war against terrorism
because terrorists continue to pose a threat to the United States and to others
around the world, and that he is involved in phase one of defending this country
against terrorists, and he will continue to do so.

Q what gives him the authority to go into other countries and bomb them,
which is what he is threatening to do?

MR. FLEISCHER: The right as the Commander-in-Chief to protect and defend
the American people.

Q Ari, what's the White House reaction to the agreement signed in Bonn
by the parties who have been negotiating a future for the Afghan government?
Does it meet the standards that the White House has ser out -- broad-based,
ethnically diverse, women involved?

MR. FLEISCHER: The President is very pleased with the agreement that's
ched on Bonn concerning the future of the Afghanistan government. He
it is a positive agreement that bodes well for the people of

Afghanistan. This vote will allow the people of Afghanistan to take -- this

00800000000831


{(b)(S)}

Conclusion

01200000001148


Bradshaw, Tara

From: Bradshaw, Tara

Sent: Thursday, November 08, 2001 8:18 AM
To: Davis, Michole

Subject: Is this the whole transcript???
Importance: High

Copyright 2001 Community Television Foundation
of South Florida, Inc.
The Nightly Business Report

SHOW: NIGHTLY BUSINESS REPORT (NBR 6:30 pm ET)
November 7, 2001 Wednesday

Transcript # 110701cb.118
SECTION: BUSINESS

LENGTH: 3846 words

HEADLINE: Nightly Business Report
GUESTS: Paul O'Neil

BYLINE: Paul Kangas, Susie Gharib
BODY:

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE
UPDATED.

PAUL KANGAS, NIGHTLY BUSINESS REPORT ANCHOR: The Treasury secretary says, "follow the
money,” and Federal agents do just that today as the administration tightens the financial noose on terrorism,
Good evening. I'm Paul Kangas in Miami.

SUSIE GHARIB, NIGHTLY BUSINESS REPORT ANCHOR: And I'm Susie Gharib at the New York Stock
Exchange. Here on Wall Street, investors pull back, waiting for the next round of economic reports. The Dow

breaks its four-day winning streak, losing 36 points, and the NASDAQ inches up two. Then, what kind of cars
are these? Ones you'll see only at the world's most unusual auto show. We take you to Tokyo.

Good evening, everyone. Another attack on terrorism today: the US government once again cracked down on
Osama bin Laden's money supply. Federal agents raided nine locations in four cities this moming: Boston,
Minneapolis, Columbus, and Seattle. They seized evidence allegedly connected to two of bin Laden's financial
networks, called Al Taqwa and Al- Barakat. The government also froze assets of nine organizations and two
people. Treasury Secretary Paul O'Neill told "NIGHTLY BUSINESS REPORT's” Washington bureau chief
Darren Gersh that the key to fighting terrorism is choking off the cash.

PAUL O'NEILL, TREASURY SECRETARY; I'm confident that we have interrupted what they consider to be
1

00800000000918


recently begun to deploy in rebel-controlled areas. Donors are tentatively
looking to help beyond existing humanitarian programs

The IMP said in February that it could provide additional post-conflict
sistance amd some directors felt a full Poverty Reduction and Growth Facility
might be agreed by the middle of this year, says the story.

BRAZIL SCRAMBLES FOR MORE ENERGY. Brazilians are hoping for at least 20 percent
more rain than normal for this time of year to ensure that hydroelectric plants
will continue to run at full capacity, averting the need for energy rationing,
like the recent rolling blackouts in California, in at least part of Brazil
later in the year, reports the New York Times (p. Wi). For the last few years,
experts have warned of an impending energy crisis in Brazil, as increasing
industrialization has caused the demand for energy to outpace supply by about 20
percent, The government's three-year-old effort to attract more investors
through the privatization of most of the country's power grid had had a slow
start. Local companies have been hindered by a lack of financing. And
uncertainties in the newly deregulated power market over such things as the
pricing of electricity have stymied grid-expansion plans by the private
enterprises, including Enron, that bought up the former state-owned companies,
gays the story.

POOR CITIZENS LEFT WITH THE LEGACY OF KLEPTOCRATS: COMMENT. Writing in a
letter to the editor of the Financial Times (p.14), Ann Pettifor of the Jubilee
Plus debt relief campaign says that if kleptocrats have huge foreign debts, it
is because they have been financed by irresponsible and sometimes corrupt
foreign creditors. Jubilee 2000 insisted that both international creditora and
debtors share responsibility for unsustainable debts. They demanded that
international lending to sovereign governments be made more accountable and
transparent.

in contravention of a fundamental rule of law, international creditors act as
plaintiff, judge and jury in their own courts (the IMF, the Paris Club and the
London Club) and rule on their own claims. This is in contrast to the
discipline of more independent and transparent bankruptcy codes in domestic
spheres.

Because sovereigns don't go bankrupt, foreign creditors are not disciplined,
says Pettifor. Long after the kleptocrat has gone, poor citizens will carry the
millions of debts they were never party to.

ALSO REPORTS...The findings of a World Bank study of 10 African countries reveal
that when the government of a country is committed to economic reforms,
development assistance produces economic growth, the Economist also reports,
noting that for decad African rulera have been model pupils, copying ry
World Bank whim into xr policy papers. They did just enough to get the aid
money, then, as soon as the donors turned away, they started behaving like the
leaders of Nigeria and Congo.

BRIEFLY NOTED.,.The Third World Network represents the respectable face of the
anti-globalization movement, reports the FT...Trade ministers from the 34
countries negotiating the Free Trade Area of the Americas will today meet in
Buenos Aires, and many in Latin America predict that the ministers will be
greeted with protests much larger than the cnes that exploded in Seattle in
1999, notes Naomi Klein of the Guardian (UK) -

Salvadorean President Francisco Flores said on Thursday £1 Salvador could cope
with running up debts to rebuild the country af a weries of devastating
earthquakes this year, Reuters reports. Flores said the government had held
talks with the IMF, the World Bank and the IADB and he was confident they would
help the coffee-exporting nation deal with the deficit.

00500000000405


O'Neill has a physical tic, a tendency to turn his head to
his left in profile in the middle of a conversation, when
he wants a moment to himself to actually think. He did this
now, Then he said, ''That's not who I am.'' He is a
registered Republican, he said. ‘‘But if you asked me what
I am, it would be a long time before I got around to
political identification.'' He paused again, then said,
‘*When George Shultz hired me at 0.M. he never asked if
I was a Republican.'' Pause. ''Come © hink of it, no one
at O.M.B. ever asked me what I was.'*

‘Did Bush and Cheney ask?'' Given the complete absence of
O'Neill money frome the Bush campaign, they might at least
have probed him on this.

"NOT!

REASON NO. S: ‘I TOLD MY WIFE I'D FINALLY PLAY
SHUFPLEBOARD, TAKE CRUISES AND IN GENERAL BEHAVE LIKE AN
ORDINARY RETIRED PERSON’

Everywhere O'Neill has worked, he has been known as the guy
who pute in the longest hours. For a Kennedy School
interviewer in the early 1990's, he recalled how at 0.M,8,
he had worked every day except Christmas, a minimum of
12-hour days. O'Neill's daughter Julie told me, ‘''My mother
was saying how they were going to do this and do that when
my father left Alcoa, but we all knew that it wasn't going
to happen.'*

Last January, O'Neill moved from his nice home in
Pittaburgh into a room in the Hotel Washington, across the
street from the Treasury building, where he lived for the
next 10 months. He might as well have slept in a cube.
Where he lived didn't much matter because mostly all he did
was work.

He actually had a fairly long list of reasons for wanting
to be treasury secretary to offset the list of reasons for
mot wanting the job. At the top was a chance to push ideas
about public policy -- and especially about radically
changing Social Security. Just below that was the chance to
change the biggest organization on the planet -- the
federal government.

He has concerned himself with the most quotidian details of
Treasury operations. Two months into the job, he visited
the Philadelphia Mint and wound up on the factory floor
making changes in the production line. He requested the
Treasury worker-safety records and made a priority of
eliminating job-related injuries. (Already he has cut the
lost daya in half.) He found that Americans made 77.5
million phone calls last year to the Internal Revenuc
Service which is part of the Treasury Department -- to
ask for explanations of the tax code and that 3,654
government workers do nothing but answer these calls. He
has set as a goal to create such clear explanations of the
rules -- or even better, to simplify the tax code -- that
the calis cease.

When I asked him once how he judges himself, he said:
‘*Ie's not, Did we get some bill passed or did someone like
what I said or wrote? What really matters to me is lasting
institutional change Then he turned hie head to the left
and thought # minute, ''Metal has shape. If you form metals
into a shape they'll tend to return to that shape.

“4

01200000001493


O'Brien, Michael

From: Jones, Blake T. (BTJones@tmus.leggmason.com]
Sent: Monday, December 03, 2001 9:28 AM

To: Jones, Blake T.

‘Subject: Client Approved AM notes

<<..-OLE_Ob}...>>

LEGG MASON
MORNING MARKET UPDATE
December 3, 2002

Wall Street kicks off the month of December with the largest bankruptcy
filing in U.S, history. As anticipated, Enron filed for Chapter 11
protection after the dissolution of its merger deal with Dynegy. Shares
of the world’s largest energy trader have lost $26 billion in value since
mid-October. Historically, December has been the best-performing month
for equity markets, rising 73% of the time and rising 1.5% on average.
Investors will also get a look at the health of the U.S. manufacturing
sector, with the National Association of Purchasing Managers Index due to
be released shortly after the market opens. Analysts expect the index to
rise to 42.0 in November, up from 39.8 in October. S&P futures are 6
points below fair value, while NASDAQ futures are 16 points below fair
value, indicating a lower opening for U.S. On Friday, U.S. markets
finished mixed; the Dow gained 22 points to close at 9,851, while the
NASDAQ lost 2 points to close at 1930. Overseas, Asian markets posted
sharp loi Japan's Nikkei fell more than 3.0%, while Hong Kong's Hang
Seng lost 1.0%. European markets are lower in early trading. The dollar
is stronger versus the yen and the euro. Treasury markets are higher; the
10-year bond is up 3 ticks and the 30-year is up 11 ticks.

Economic Statistics For 12/3

Personal Income for October 8:30am (0.2% est)
Personal Spending for October 4:30am (2.3% est)
Construction Spending for October 10:00am (-0.5% est)
NAPM for November 10:00am (42.0 eat)

Domestic Vehicle Sales for November 3:00pm [14.9m est)

Barnings Reports For 12/3
None of significance
(First Call Estimates)

Year-To-Date Statistic:
Dow Jones- Down 8.67% YTD

NASDAQ- Down 21.86% YTD

S&P 500- Down 13,78 ¥TD

Russell 2000- Down 4.7% YTD

Wilshire 5000- Down 13.5% YTD

MSCI EAFE Index- Down 23,1 YTD

Amex Morgan Stanley REIT Index- Up 10.0% YTD
Dow Jones Utilities - Down 31.8% YTD

Dow Jones Transportation - Down 14,8% YTD

S&P 500 Factoids: 37.8% of the stocks in the S&P 500 are up YTD.
Basic Materials- Up 2.97% YTD

Capital Goods- Down 15.45% YTD

Communication Services- Down 15.09% YTD

Consumer Cyclicals- Up 6.12% YTD

Consumer Staples- Down 10.18% YTD

Energy- Down 16.57¢ YTD

Pinancials- Down 12.31% YTD

VVV VV VUE eee

tee eee

01200000000945


can contact april@cfdebt.com

01200000000961


in any case, Rubin, who created the model Summers followed,
was genuinely so diffident that his opinions were never
likely to get him into trouble.

Por better or worse, O'Neill instinctively takes the
opposite view: that people are more likely to prosper if
you develop positive opinions on subjects and tell them
what you think in plain English. "'I thought there would be
a bigger market here than there is for clarity of
expression,'' O'Neill says. He remains incredulous about
the outrage over some of his comments. Take his remark
about the strong dollar. It was simple fact: the value of
the dollar is determined in the long run not by some
Treasury policy but by America's growth rate relative to
that of other nations. ‘'But nobody wrote that,'' he says.
‘*Not one person. All they wrote was 'controversy!''’

The first time I went to visit O'Neill, I felt
professionally obliged to try to get him to say something
he shouldn't. When a man, with a single slip of his tongue,
can turn you into the envy of investigative reporters, you
have to go into any discussion with him armed with banana
peels. But thie business of getting him to make a spectacle
of himself wasn't easy; these horrible gaffes aren't
provoked -- they pop out of the treasury secretary
unbidden, and either you are there to immortalize them or
you aren't,

Which brings me to the time I caught him at his Bloomberg,
the desktop financial-news machine.

O'Neill has a phobia of closed office doors and keeps his
own wide open, in case anyone wante to walk in. Having
learned from his secretary that he had returned from lunch
-- a little doorbell had gone off, alerting the secretary
that he had slipped in through a back door -- I quietly
poked my head inside his open door, There he stood with his
back to me, sbout 20 yards away, jabbing at the keyboard on
his Bloomberg. (The Bloomberg arrived with O'Neill. Rubin
never had one.)

I walked up behind the treasury secretary, and he gave a
start, then let out a noise that fell somewhere between a
chuckle and a giggle. He knew well enough that he shouldn't
let me catch him at whatever he was doing, but he decided
to go ahead and let me catch him anyway. When he smiles,
which he often does, there is a trace of the imp about him.

‘*Ir think I just made news,'' he said. He kept staring at
the Bloomberg screen. He left a lunchtime meeting with
Republican senators just 20 minutes before. '*I came out of
jley,*' he said now, referring to

ey of Iowa, ‘‘and we were immediately
surrounded by all these microphones.*' Into these, he said
something about the stimulus package debate he was sure
would cause trouble -- I never could find out what it was
-- and the memory of it still lit his face with a grin.
Then he walked out the door of the Senate and into hia
private car, which whisked him back to his office, where,
just a few minutes later, he expected that he would already
be able to read news of his indiscretion, When you are
treasury secretary, you don't have to wait long for your
feedback.

On his Bloomberg, O'Neill brought up the page with the news
6

01200000001485


Bitsberger, Timothy
From: Byme, Kathleen
Sent: Wednesday, November 28, 2001 5:03 PM

To: _OL_Market Group; Andrew 0. Sacher (E-mail); David Griffiths; EA. Wayne; Eric H, Otto (E-

mail); J.P. Reid; Jay Hoffman; Meg Lundsager, Philippa Malmgren; TJ. Sheviin
Subject: Closing Global Financial Markets - November 28, 2001

{(b)(5))

01200000001416


war and financing of terrorist organizations is one of the fronts at which the
United States and others will actively engage.

Q When he first began the war on terrorism, they used terrorist groups
with a global reach to apply specifically to al Qaeda. And as part of the
rationale for going after these groups, militarily if necessary, should we apply
the same criteria to what is now happening in the Middle East? Would the U.S.,
for instance, consider military action against Middle Eastern terrorist groups?

MR. FLEISCHER: Again, as you know, the President has repeatedly said he's
focused on phase one on the war against terrorism, and that's where I think I'll
leave it.

ce] Ari, two questions on Afghanistan. As part of the agreement today,
there was discussion of having some kind of a U.N. force in Kabul, at least for
a while. How long -- I know the President has expressed reluctance to have
American forces there for long. what kind of contribution is he willing to
make, and with what range of time parameters? And, secondly, in order to reach
this agreement, were there any American commitments made on aid?

MR. FLEISCHER: The principal contribution the United States is making is
creating an environment in which peace can take place in Afghanistan. And if
there are to be any international security forces put into Afghanistan, it will
only be as a result of winning a war against al Qaeda and the destruction of the
Taliban. So I think events are still somewhat fluid involving what type of
steps will come next with any international security force. You know, the
President is unchanged in what he has always said, that the American military
should be used for the purpose of fighting and winning wars, and the President
has not changed his opinion on that.

Q on the aid issue?
MR. FLEISCHER: On the which one?

On the aid issue, were there any further commitments of American aid
for Afghanistan made as part of this agreement?

MR. FLEISCHER: Nothing that I'm aware of, David.

@ Democrats are still, as far as I know, trying to add $15 billion in
spending on homeland security to the defense bill. As I understand it,
Republicans, in order to stop that, may end up involving stalling the defense
appropriations bill. Does the President think it's worth it to end up doing
that in order to keep this money, extra money, off of the bill?

MR. FLEISCHER: In the mecting with the members of Congress this morning,
the President made it as plain as day that if the Senate were to send the
President a bill that complicates our nation's defense needs, he will veto it.
And by *complicate,* he means if they try to attach extra spending beyond what
has already been promised and agreed to by the Congress to a Defense Department
appropriation bill at a time of war, the President will immediately veto it,
send it back so Congress can back to work on something that can indeed be done.

There is also a letter that is now circulating up on Capitol Hill, and
Senator Lott's office is distributing, that has a sufficient number of senators
to sustain any presidential veto. So why on Earth would the Senate go through
this exercise when it clearly won't go anywhere, other than to delay America's
national defense needs.

America is at war and the war should not be fought on last year's budget.
And that's why the President feels so strongly that Congre: should send him a
defense appropriation bill that has the funding increases for the Pentagon to
fight a war and that that bill should not get bogged down by other issues beyond
what has already been agreed to by the Congress.

Q Do you want Republicans to vote against that bill?

9

00800000000837


From: ex. mail. “tcrawtord @worldbank.org”

To: ex, mail(elizabeth.k. stewart’, “gary sampliner”),DO....

Date: ‘3/15/00 7:52pm

Subject: MIGA R2000-6, Dominican Republic, Guarantee to Coastal Power
forgot to copy you on this.

apologies.
Forwarded by Todd W. Crawlord/PersonWorld Bank EDs on
03/15/2000 07:52 PM

Todd W. Crawford
03/18/2000 07:32 PM
Extn: 80112 €Ds01

To: Gay.Sits@Do.Treas.Gov, Grog Christopulos@Do. Treas. Gov,
Gene.Clapp@Do Treas. Gov, Meg. Donovan@Do. Treas.Gov
ce: Alisa D, Abrams, Deborah A. Wooldridge Eds

Subject: MIGA R2000-6, Dominican Republic, Guarantee to Coastal Power

Thanks for all your help to prepare me for the Board discussion of the subject
quarantoe. The talking points | used are attached.

There wasn't @ whole lot of discussion in the Board, The only other speakers
were the German, French and one of the African chairs [()(5)]

Alisa/Deborsh — could you put a copy of my TPs into your file of statements?
Thanks.

(See attached file; MIGA R2000-6, OR, Coastal Power - 031400.doc)

Todd Crawlord

Tempory Acting U.S, Alternate Executive Director
World Bank

tel: 202-458-0112

fax: 202-477-2967

email: tcrawlord@worldbank.org

00500000001 157


NW-19-1933 10°15 CASIA ITT 202 622 2351 P.@1

David W. Shields
hyp aon
Caribueam Region
UN Enron Caribbean Basin
4 Fax tor a

713-466-4095
Fer 713-648-768

v " end ShieidsBenrencom
Novery G et -

ge Oe og
His Excellency ». coll this>
Dr. Leone] Fernandez
President of the Domini Fi
National Palace .

Santo Domingo, D.R. ‘, Sy of”

Honorable Mr. President:

The purpose of this letter is to explain to you the precarious financial situation in which
Smith Enron Cogeneration, Ltd. (“SECLP”) finds itself and the causes that have motivated
SECLP to send a shutdown notice to CDE, in conformity with our PPA Contract. For Enron,
it has been a difficult decision since we understand the tenuous nature of an incipient
capitalization process and your personal commitment lo making such a vital reform of the
elcetrical sector successful.

However, SECLP and Enron, as its largest sharcholder, have contributed substandally to help
sustain the energy production in the last five months since June without receiving any
payments from CDE. Current debt arrears have reached an unprecedented and unsustainable
level of US$ 38 million. SECLP is in an extreme situation with no working capital that would
allow it to continue to generate. Among the more pressing obligations are in past due fuel
payments to its supplier of US$ 34 million, a forthcoming payment to its creditor pool of
banks in early December of USS 13 million, plus the normal] cperational expenses to rin the
plant. At present, SECLP has lost its credit with its fuel supplier, despite Enron's credit
support until payment is received.

We trust Your Excellency understands that Enron has made all of the necessary efforts to
develop a positive and supportive relationship with the CDE and the Government, In effect,
during 1998 and 1999, SECLP and CDE successfully renegotiated the PPA Contract
providing improved terms te the Dominican Republic, terminated in good faith the arbitrage
litigation and collaborated jointly to better our normal working relationship.

The importance of these aforementioned successes is further supported by Enron's
development of new businesses in your country. Enson has demonstrated its faith in the
fature of the Dominican Republic and its economy, by participating as the lead investor in the
Haina Consortium. One other business opportunity currently being developed is a LNG
terminal and gas distribution system that would significantly reduce the cost of energy supply

Endless possibilities.TM

01000000000970


POWELL: If they are individuals who had been arrested for crimes that
they had committed and they have not been brought to the bar of
justice, then I think they ought to be rearrested. But I don't know
who they are or what the names are or what charges were against these
individuals, <br> <br> I do know that the Israeli government is
anxious to see those who are responsible for such atrocities and
terrorist actions arrested. And they had been arrested at one point, so
Mr, Arafat's authorities must have thought they had done something
wrong. And unless those charges were resolved one way or another, then
it's not clear why they should have been released. <br> <br>

BLITZER: Do you belleve that President Arafat is in control and can
determine what is going to happen in the West Bank and Gaza? <br> <br>
POWELL: I don't think one can say he is in control of every single
Palestinian who may wish to perform act of violence, but I think he
does have a considerable degree of control over the organizations
within the Palestinian Authority and organizations not in Palestinian
Authority that are under his direct supervision. Even more than just
control, what he has is the most powerful voice in the Palestinian
world. And so, he can speak out as an authority to his people, <br>
<br> with respect to his people, he is a moral authority as they
see him. And if he speaks to them about ending the violence, about
getting on to a new track toward a cease-fire and toward peace and
toward finding a way for these two peoples to live in this one land,
then I think he will be meeting the kinds of obligations that I think
he has under the Mitchell Committee report, <br> <br> BLITZER: As
you know, the Israeli Prise Minister Ariel Sharon has, at least for the
last 10 days, imposed a unilateral Israeli cease-fire. Are you urging
the Israeli government right now to avoid retaliation for the Priday
night suicide blast in Tel Aviv? <br> <br> POWELL: I have not
given that direct comment to the Israeli government. The Israeli
government and Mr. Sharon, they are well aware of the very, very
delicate, volatile nature of the situation right now after Friday
night's terrible tragedy -- those young people who just lost their
lives just trying to entertain themselves and find a little bit of fun
on a Friday night. <br> <br> He understands how volatile this
situation is. And as we have seen over the last 24 hours, the Israeli
government is very serious about getting the violence down, and they
are responding so far in a matter befitting of the delicacy of the
situation, They have not suddenly launched military attacks -- but I'm
wure they are reserving that right to themselves -- and they are taking
non-military actions at this time, <br> <br> So, I spoke to Mr.
Sharon in measured and responsible terms yesterday, and I'm sure I'll
speak to him again today and get his jsment of the situation. This
is the time for caution, because if this just turns into another cycle
of violence back and forth, we are on the edge of a very, very deep
hole, and we don't want to fall into it. <br> <br> BLITZER: Well,
then why not ask the Israelis specifically, “Don't retaliate, keep it
calm*?<br> <br> POWELL: I think it is better for me to make the
points I want to make in a manner befitting the delicacy of this
Situation. <br> <br> BLITZER: Last time the Israelis did
retaliate, they used U.S.- made F-16 fighters. Is that a problem, in
the U.S.-Israeli relationship, when the Israelis use equipment they
purchased from the United States for these kinds of retaliatory
strikes?<br> <br> POWELL: It does create something of a difficult
situation, because questions are immediately asked whether or not these
U.S. weapons are being used in accordance with the conditions of sale
and for defensive purposes And then you get into very interesting

00800000000548


Money & Investing

Enron Workers Face Losses
On Pensions, Not Just 401(k)s

By ELLEN E. SCHULTZ
Staff Reporter of THE WALL STREET JOURNAL

Many Enron Corp. employees will suffer even greater losses to their retirement income than was
immediately apparent in the wake of the energy-trading company's sudden downfall.

it is well Known that many Enron employees will take big hits in their 401(k) retirement-savings plans
because much of their investments were in company stock. What has been largely overlooked is that
the pensions of many employees also will be reduced as a result of complex, interrelated changes
involving pension and retirement-savings plans.

The decline wasn't caused by investments in the pension plan, which by law cannot invest more than
10% of its assets in the company stock. Rather, it stems from ways that companies such as Enron
have increasingly coordinated their pensions, 401(k)s and employee stock ownership plans (ESOPs)
to reduce costs for the company and shift investment decisions to employees. Enron had no
comment.

Lawmakers, reacting to the decimation of the savings of many employees in Enron's 401(k) have
begun calling for legislation that would hold savings plans to the same standards as pensions.
Employees suffered steep losses in their 401(k) plans because more than 60% of the assets were in
puns stock at one point, and the stock has dropped to about 50 cents a share from a peak of $90
last year.

But Enron's situation reveals that employees’ retirement benefits are exposed to company stock in
more than their 401(k) plans.

Employees share some of the responsibility for this overexposure. That's because to some extent
employees could have limited their retirement-related holdings of Enron, if they had taken the right
steps at the right time, though many didn't because the stock was long a highfiier.

One of these is Kenneth Parrish, an electrician at Portland General Electric, an Enron tapos
who essentially has lost additional benefits related to his pension from Jan. 1, 1999. That was when
the pension plan for unionized employees, including Mr. Parrish, was changed. The pension benefit
they already had earned was frozen; instead of continuing to add to the pension, the company gave
a cash contribution of 5% of employees’ pay to their 401(k) plan, where they could put it into a vanety
of investments, including Enron stock.

Unfortunately, Mr, Parrish and many others elected to put the pension-related contribution into Enron
stock, along with his own 401(k) savings. “It seemed like such a good investment," says Mr. Parrish,
who |s 43 years old. Moreover, the company’s matching contribution to his 401(k) was in Enron stock
that couldn't be sold till the employee tu: 50. As a result, the value of his savings plan, including

the pension amounts, fell from about $200,000 to a couple of thousand dollars.

Mr. Parrish, a single father of two daughters. who are 16 and 17, now isn't sure what he will do. "I got
doubly slammed,” he says. "Not only did | lose all my retirement savings, | lost the pension savings,
too." He is selling his house and planning to buy a trailer. “This ruined me," he says.

Meanwhile, salaried workers at Enron had a different kind of pension arrangement that exposed
5

01200000001172


800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT
wow. fdeh.com

</tdv</tr>

</table>
«</TO></TR></TABLE>

enemas /content sssescenseneseusns -->

a ~~ 90800000000573


Fisher, Peter

From: Devin, Christine
Sent: Thursday, January 17, 2002 9:15 AM
To: Aufhauser, David; Clarida, Richard; Fisher, Peter; Flanagan, Rosemary; Hubbard, Glenn;
Huffman, Lucy; Kroszner, Randall; Malgren, Pippa; Murphy, Edward; Myers, Barbara;
eens Peter; Roseboro, Brian; Smetiers, Kent; Warshawsky, Mark; Wiedman, Mark;
forth,
‘Subject: FW: (Fwd: AICPA response to Enron Bankruptcy}

PYL - from Mark Warshawsky

tee Original Message-----

Prom: Warshawsky, Mark

Sent: Thursday, January 17, 2002 9:12 AM

To: Devlin, Christine

Subject: FW: [Pwd: AICPA response to Enron Bankruptcy]

were Original Message----~-

From: Fred Mittelataedt [mailto:H.F.Mittelstaedt ,i@nd.edu)
Sent: Thursday, January 17, 2002 6:28 AM

To; Mark. Warshawsky@do.treas.gov

Subject: (Fwd: AICPA response to Enron Bankruptcy]

I thought that you sight like to see this. Fred
AICPA_Management wrote:

> January 16, 2002
>

>
> To Members of the AICPA:

>
> As you are awa:
profession and it
> self-regulatory system. The AICPA, in recognition of its public interest
responsibilities, and at the insistence of the

> SEC, is developing a new requlatory model that represents a significant and substantive
change from current

> self-regulatory processes. ‘This model would affect all firms doing SEC audits.

>

> The accounting profession has a successful, 100-year tradition of self-regulation, which
has contributed to the most

> respected financial reporting system in the world, This is a tradition to which we have
been and are deeply committed.

> To maintain this commitment to excellence and support public confidence in America’s
security markets, we have always

> responded to valid criticisms and addressed market changes and environmental issues that
demanded our scrutiny.

the bankruptcy of Enron has put unprecedented focus on the accounting

>
> With this commitment in mind, we are diligently working to improve the profession's peer
review and disciplinary process

> as it relates to auditors of SEC registrants, Our objectives are to include public
Participation and increase

> transparency, effectiveness, and timeliness.

>

> While the current self-regulatory model provides for significant public oversight over
the SECPS peer review process,

> there is no public oversight over discipline. Under the new model being explored, there

1

01200000001504


((b)(5)]

01200000001144


Connastbeis Sheol Closoleian Party

“ome Calabrate the holiday season with
Comerstona students, parents, and staff

Friday, Yrvember 30, 2001
6:30 to 8:30 p.m.

Aunsiicn at Union Si Kira Seewaad, aleve

Donation: $50 per Individual /$100 per Couple

Comnsrstone Community School is « Christ-centered urban school,
Providing 1 quality education for the children off Capitol Hill,
Basiness Aine

For mare information, plaase contact:
Cornerstone School 202-583 2881

00800000000323


ce:
Subject: PRESS BRIEFING BY ARI FLEISCHER

‘THE WHITE HOUSE
Office of the Press Secretary

For Immediate Release : December 5, 2002

PRESS BRIEFING BY
ARI FLEISCHER

INDEX

President's authority/bombing. ..
Afghanistan/new government /White House reaction.
Middle East/Chairman Arafat actions........+.-++
President's conversations with Sharon, Zinni.
Friendly fire deaths.. . .
Trade authority vote 7
Trade adjustment assistance......
Decision on burial of pilot at Arlington Cemetery.
American Taliban fighter/President's reaction.
Enron.... is
U.S. forces in Afghanistan after war
Defense bill/homeland security money
Partisanship/Senator Hatch's remarko
Stimulus package.....
New RNC Chair..
EPA decision/GE
Osama bin Laden/dirty bomb:

THE WHITE HOUSE

Office of the Press Secretary

For Immediate Release December 5, 2001
PRESS BRIEFING BY
ARI FLEISCHER

The James 5, Brady Briefing Room

12:05 P.M. EST

MR. FLEISCHER; Good afternoon. Let me walk you a little bit through the

2

00800000000830


of the moment and scanned the headlines for hia name. It
wasn't there. In a gesture that was clearly already second
nature to him, he pulled up a search page and, with a
single index finger, tapped in P-A-U-L HO! N-B-I-L-L. Up
popped the many headlines from the past few days with his
mame in them, but none from that day. He skipped around
cyberspace in the spirit of a boy who had just hurled a
stone into a pond and was trying to count the ripples. It
wasn't just a matter of principle with him to shock people
with his iconoclasm, It gave him pleasure.

REASON NO. 2; ‘I'VE CHANGED SINCE I LEFT WASHINGTON’

O'Neill didn't put it that way to Cheney, of course. What
he said was, that as the C.£.0. of a company with 145,000
employees, he had grown used to being the final word on any
subject. People who have known O'Neill for a long time say
that to understand his behavior as treasury secretary you
have to understand that he wasn't j any old C.E.0. When
he became C.E£.0. of Alcoa in 1986, O'Neill knew nothing
about aluminum, and Alcoa was in trouble. Just about
everyone believed that it would soon be impossible to make
stuff for a profit in America and that commodities like
aluminum and steel would be supplied by poor countries with
cheap labor, Alcoa's previous C.&,0, had tried, with ill
effects, to wriggle out of the closing trap by buying other
kinds of businesses and getting Alcoa out of aluminum,
O'Neill took the opposite tack: he shed all the extraneous
businesses and made nothing but aluminum, In the next 12
years, he doubled Alcoa's global market share and more than
doubled its number of workers. After several years of
depressed earnings in the early 90's, O'Neill took Alcoa
from a profit of $4.8 million in 1993 to a profit of $1.5
billion in 2000. Along the way, he transformed Alcoa's
manufacturing procese and grafted his character and his
beliefs onto the lives of its workers.

Hie also created, pretty much by an act of will, a new
corporate culture. How he did this is actually interesting,
in view of how he has gone about his job at the Treasury.
He began by making a big pain in the rear of himself. On
his firet day, he told Alcoa's executives that they weren't
going to talk people into buying more aluminum and that
they weren't going to be able to raise prices, so the only
way to improve the company’s fortunes was to lower its
costs. And the only way to do that was with the cooperation
ef Alcoa's workers. And the only way to get that was to
show them that you actually cared about them. And the only
way to do that was actually to care about them, And the way
to do that was to establish, as the first priority of
Alcoa, the elimination of all job-related injuries. Any
executive who didn't make worker safety his personal fetish
-- a higher priority than profit: -~ would be fired.

On his second day, O'Neill told the same executives that he
was eliminating the longstanding practice of paying their
membership dues at a Pittsburgh-area country club that
excluded women and blacks. (The club soon went looking to
scare up a few blacks.)

Well before it became fashionable -- that is, before the
Internet boom -- O'Neill replaced the old corporate
hierarchy with a flatter management structure. It took him
several years, and he was forced to fire a few otherwise
useful people who refused to believe he was serious about

7

01200000001486


conversation.

‘'I have a journalist here,'' O'Neill began, and went on to
explain who I was and what I wanted. There followed an
ominously long pause.

‘*Oh, I didn't know that.'*
‘Uh-huh. *!
"90.K.""

O'Neill hung up and walked over

with the closest thing to no expression on his face. '‘Alan
says he'll come, but he won't say anything,'* he said, f
tried my best to look surprised.

** Probably better if you didn't come.'*

It was hard not

to like him for trying, It wasn't that he thought he was
letting me in on some secret. In his mind, there was no
reason for secrets.

REASON NO. 4: ‘MY POLITICS AREN'T NECESSARILY YOUR
POLITICS’

It was with this point that O'Neill, so far as I can piece
together and he can remember, filled tt of the lines on
his three-page list. In the late 1960's, he advocated a
$0-cents-a-gallon gasoline tax. He thought global warming
was a real problem. He thinks that the whole Social
Security system should be scrapped and replaced with
accounts owned by individuals and invested in stock market
indices and bond funds. On and on, this list of specific
policy points went. Some were clearly not Republican
policies. He doesn't think in terms of Republican policies
or Democratic ones. When you build your political views
from the ground up, basing them on your own set of closely
observed facts, you wind up in your own private place, well
outside the boxes built by political parties. The greatest
part of O'Neill's list can be summarized in a sentence: I
disagree with you because I know more than you do about the
down-to-the-ground stuff. He didn't put it that way to
Bush, of course. Instead, he said, ‘'I've taken unpopular
positions.''

The last time I saw O'Neill was just before Christmas. I
had finally gotten around to reading everything he had ever
said publicly. I told him that if I didn't know anything
about him but what he was on record as having said I
wouldn't be aure if he was a Democrat or a Republican.

He laughed and said, ‘'You're going to get me into trouble,
aren't you?''

‘*But it's true that the only way anyone would even guess
you might be Republican is to know you were a rich
businessman.''

‘'Now there's a stereotype!''

I said that while it's possible (just) to be a maverick in
the Senate, it's another thing to be a maverick in the
cabinet. Inside an administration, you aren't really
allowed to stake out an independent political identity,

ub

01200000001492


NOQV-19-1993 1215 CASI IT! 202 622 2351 P.B2
in the Dominican Republic. All this has been made possible by the creation of a proper
climate for new investments based on politicul stability and economic growth. These
encouraging developments in the investment profile of the Dominican Republic can only be
adversely affected by the prevailing crisis that affects all generators in the system.

Our company understands that your staff is searching for several mechanisms to provide the
IPP’s with payments for all the outstanding debts. We urge Your Excellency to direct your
staff to immediately implement one of these available mechanisms. SECLP also respectfully
requests you to instruct the CDE to comply with the Definitive Agreement by providing the
Distribution Companies orders to pay into the Escrow Account all monies duc to CDE. The
Escrow Account is now operational, but as late as Monday, the CDE informed a group of
IPP's that CDE does not intend to comply with the Definitive Agreement during the
Transition Period.

We are committed to continue to help CDE and your Govemment with the successful
transition to anew electrical sector, but are in dire need of your artention to the payment issuc
and the negative effects on generation. Enron is more than willing to contribute our human
resources to analyze the cash flows needs of the system, as well as any other associated
technical issues. Please count on our continued assistance in the search for creative solutions
that will promote the success of the capitalization reform.

With the bope that you understand our necds and immediate pressures, we remain at your
services.

Yours Truly,

Daido. Hats,

David Shields
Senior Vice President

ec; Temistocles Montas
Alejandrina German
Tony Isa Conde
Rhadames Segura
Marcos Cochen

TOTAL P.8S

TOTAL P.2
01000000000971


triggered immediately upon a default event - for example, a missed payment or bankruptcy filing
Enron. "We understand that some contracts may have already been triggered,” Ms. Schroeder said.

On Friday, Chubb Corp., Warren, N.J., said it was reviewing its surety bonds related to Enron and
estimated its maximum exposure at $143 million. The property-casualty underwriter said it is unable
to estimate the actual amount, if any, that it may be required to pay and that thus far it hadn't
received any claims under the surety bonds.

Ms. Schroeder estimated that a maximum of $300 million in directors-and-officers liability coverage
likely is involved, divided among several insurance companies, Already, Enron faces multiple
shareholder-driven lawsuits because of the steep drop in the company’s stock price.

Jason Zucker, a life-insurance analyst at Banc of America Securities, said the Enron exposures
would "pressure bond portfolios in this recessionary environment.”

Among those with big holdings is John Hancock Financial Services Inc., according to insurance
analyst Colin Devine of Salomon Smith Barney, who expects the company to incur a loss of $120
million this quarter on the bonds. A John Hancock spokeswoman declined to comment on the
estimate.

Mr. Devine said Principal Financial Group Inc. and Lincoln National Corp. also have substantial
Enron bond holdings. In a news release, Principal said the company is reviewing its approximately
$171 million “exposure to Enron” and expects to take a write-down this quarter of a size not yet
estimated. Principal said it also is reviewing an additional exposure of $50 million from investments in
Enron-related entities. A spokeswoman for Lincoln National said the company had $25 million of
Enron Corp. debt and $70 million from its subsidiaries. "We may take a charge of some of the
exposure related to the parent, but we won't know until we get closer to the end of the quarter.”

Write to Christopher Oster at chri

01200000001175


Bair, Sheila

From: Davis, Michele

Sent: Monday, January 14, 2002 7:16 PM
To: Bair, Sheita
Subject: RE: for Secretary's speech TOMORROW

thanks - I'll make that change.

wo=-Original Message—--

From: Bair, Sheila

Sent: Monday January 14, 2002 4:35 PM

To: Davis, Michele

Subject: RE: for Secretary's speech TOMORROW
{()(5)}

-—~Original Message--—-

From: Davis, Michele
Sent: — Monday, January 14, 2002 1:41 PM
To: Baw, Sno

Subject: for Secretary's speech TOMORROW
What do you think of these few paragraphs?

{(b)(5)]

01200000000862


to meet with Senator McCain this weekend was simply social, that there
in nothing going on that could lead to another Republican senator
leaving the GOP? REID: Pirsat of all, John McCain has fans all
ever this country. Millions of people voted for him in the Republican
primary. A lot of Democrats would like to have voted for him. So I
think thie visit to Arizona is instructive only in that John McCain ia
an individual. <br> <br> This trip has been planned for a long
time. John McCain is a close, personal friend of Tom Daschle. They
are pals, so to speak. So I don't think that we can read too much into
thie visit, other than it just came at this time when Senator Jeffords,
as a matter of conscience, decided to switch. We'll wait and see what
John MeCain's going to do, but whatever he does is not based on this
trip to Arizona by Linda and Tom Daschle. <br> <br> BLITZER: But
as you know, Senator Reid, it's not just Tom Daschle who's visiting
Senator McCain in Arizona. It's also Bruce Reed, who was the chief
domestic policy adviser to President Clinton, who's now president of
the DLC, the Democratic Leadership Council, a new Democrat organization
here in Washington. <br> <br> Doesn't that simply fuel ali this
speculation that something is perhaps going on? <br> <br> REID:
Well, I hope what it would fuel ia that the Republicans now would do
the right thing. Let's get the bill on this campaign finance over to
the House. You know, it's been held up for months. I think we need to
get that done in the House. We need to have a conference done there.

I think we need to have now, which we are going to have with Daschle as
the leader, we're going to have a full public debate for the first time
on the patients’ bill of rights. 1 think that's more what John McCain
is talking about. <br> <br> Let's open up the process. Let's have
an open dialcgue on some of these issues that are so important to the
American people. And I think if that's allowed to take place, John
MeCain will be just fine. <br> <br> I think what he is tired of is
the backroom sniping at him for his being an individual. John McCain
is who he is, and Tom Daschle or Harry Reid or Orrin Hatch are not
going to change that. But I think he needs to understand that there's
not going to be a lot of back- stopping and trying to do things to
prevent him from having his voice heard. I think that's what John
McCain wants. <br> <br> BLITZER: John McCain has been severely
eriticized, Senator Hatch, by a lot of Republicans behind the scenes,
and presumably that effects hie kind of thinking, wouldn't you

think?<br> <br> HATCH: Well, you can only take so much from
people, and frankly I think there has been some unfair criticism of
John. «bre <br> You know, John's controversial. He does do some

things that Republicans disagree with. Campaign finance reform is one
I disagree violently with him on, but that doesn't stop us from being
friends. The fact is, I think the bill's so unconstitutional that it’s
not justifiably passed, and I think in the end that will be proven to
be true. But I'm glad he's got Tom Daschle out there. It'll be
goed for Tom to be out there in the intermountain West and understand
some of our needs. I think maybe we'll get sore out of Tom because of

John's good work here this weekend. <br> <br> BLITZER: As Senator
McCain joked, he said maybe he can convince Senator Daschle to leave
the Democratic Party. <br> <br> (LAUGHTER) <br> <br> HATCH:
Well, yes. See, it's about time -- I think Harry -- I think it's more
likely we'll get Harry.<br> <br> But I'll tell you, Harry, I's
going to work on you Harry. <br> <br> BLITZER: You know, Senator

Hateh, Trent Lott the Republican leader in the Senate issued sort of a
parting shot at Senator Jeffords, He wrote thie in a letter that he's
sending out to a lot of Republicans. He said this: “This coup of one

00800000000554


GHARIB: And recapping today's market action, the Dow fell 36 points and the NASDAQ gained about 2.
And please be sure to join us at our World Wide Web site, nbr.com.

And that's NIGHTLY BUSINESS REPORT for Wednesday, November 7. I'm Susie Gharib. Good night,
everyone. And good night to you, Paul.

KANGAS: Good night, Susie, I'm Paul Kangas wishing all of you the best of good buys.
LOAD-DATE: November 7, 2001

00800000000926


10-18-1993 15:42 EXPO INTERNATIONAL 202 331 4727 Pees
David W. Shields
Managing Director
Caribbean Repien
UN Enron Caribbean Basin

2, PO. Ber 108
Hewsten, TX 77752-1048
711-666-6575
Far PIS-645-7768
Dered ShiddsBenren.com

November 10, 1999

His Excellency

Dr. Leonel Fernandez

President of the Dominican Republic
National Palace

Santo Domingo, D.R.

Eonorable Mr. President:

The purpose of this letter is to explain to you the precarious financial situation in which
Smith Enron Cogeneration, Lid. (“SECLP") Sinds itself and the causes that have motivated
SECLP to send a shutdown notice to CDE, in conformity with our PPA Contract. For Enron,
it has been a difficult decision since we understand the tenuous nature of an incipient
capitalization process and your personal commitment to making such a vital reform of the
elecmncal sector successful.

However, SECLP and Enron, as its largest sharcholder, have contributed substantially to help
sustain the energy production in the last five months since June without receiving any
payments from CDE. Current debt arrears have reached an unprecedented and unsustamable
level of USS 38 million. SECLP is in an extreme situation with no working capital that would
allow it te continue to generate. Among the more pressing obligations are in past due fuel
payments to its supplier of USS 34 million, a forthcoming payment to its creditor pool of
banks in early December of USS 13 million, plus the normal operational expenses to run the
plant. At present, SECLP has lost its credit with its fuel supplier, despite Enron's credit
support until payment is received,

We trust Your Excellency understands that Enron has made all of the necessary efforts to
develop a pesitive and supportive relationship with the CDE and the Government. In effect,
dunng 1998 and 1999, SECLP and CDE successfully renegotiated the PPA Contract
providing improved terms to the Dominican Republic, terminated in good faith the arbitrage
litigation and collaborated jointly to better our nonms! working relationship.

The importance of these aforementioned successes is further supported by Enron's
development of new businesses in your country. Enron has demonstrated its faith in the
future of the Dominican Republic and its economy, by participating as the lead investor in the
Haina Consortium. One other business opportunity currently being developed is a LNG
terminal and gas distribution system that would significantly reduce the cost of energy supply

Endless possibilities.”

00500000000074


¢ We are suspending issuance of the 30-year bond: there will be no auction of 30-
year securities in February 2002 and we plan no further auctions of either 30-year
nominal or inflation-adjusted bonds.

Recent Changes in the Fiscal Outlook

Debt issuance over the past several years has been structured in an environment of
large budget surpluses. However, the fiscal environment has changed substantially over
the past few months due to the slowdown in economic activity and to the federal
government's prompt response to the attacks of September 11". The Treasury's debt
management has adjusted already, and will continue to adjust, as we accommodate the
federal government's increased financing needs during this period. But our expectation
is that these heightened financing requirements will prove short-lived, as the economy
eventually strengthens, and as the pressures for increased federal outlays stemming from
the attacks of September 11" subside.

Suspension of Thirty-Year Borrowing

The debt management strategy of the Treasury has been to strive to be regular and
predictable in the issuance of debt while minimizing borrowing costs over many years
and interest rate cycles, The Treasury does not try to outsmart the market at any one
moment or to be a “market timer” with respect to any particular shape of the yield curve,
However, debt management necessarily involves judgments about the size and duration
of the federal government's borrowing needs, This compels us to focus on likely
borrowing needs over the coming years but we also take into account the likely
consequences of unlikely outcomes.

We do not need the 30-year bond to meet the government's current financing
needs, nor those that we expect to face in coming years. Looking beyond the next few
years, as | already observed, we believe that the likely outcome is that the federal
government's fiscal position will improve after the temporary setback that we are now
experiencing.

There arc two less likely outcomes that we have also considered.

First, it is possible that the federal government will retum to significant and
sustained budget surpluses even more quickly than we now expect. In this event,
maintaining current issuance levels of 30-year bonds would be unnecessary and
expensive to taxpayers.

Second, we face the possibility that sustained surpluses do not materialize as
promptly as we now expect. If later in this decade it tums out that 30-year borrowing is
necessary to meet the government's financing needs, it is still likely that our decision to
suspend 30-year borrowing at this time will have saved the taxpayers moncy, In addition,
the reintroduction of the 30-year bond, at some point in the future, if necessary, would
likely be costless to the Treasury.

00200000000273


{(b)(5)]

01200000001146


Would that have been a useful purpose?<br> <br> POWELL: No, there
was nothing to meet about. I talk to them all of the time. You can’t
simply drop in every time you are in the region. And you know, there
is a limit to how much you can just drop in if the two sides are not
ready to have 4 serious engagement. <br> <br> In fact, it is over-
involvement on occasion. Over-involvement on the part of the most
senior people in government tends to keep people from making the kinds
of decisions they have to make, because they are always looking for a
little better deal, and *The Americans are coming. They'll make it
happen,” or, "The Americans will put pressure here, the Americans will
do that." <br> <br> Sometimes it's wise to handle things at not
the highest level, everybody dropping in at the drop of a hat. I will
go to the Middle East I will talk to the parties concerned in person
when there is something that I can bring to the table that is useful
helping to solve the problem and not just chat for the sake of
chatting. I'm able to talk to them any time I wish, and I do on a
regular basis. <br> <br> BLITZER: I just want to tie up one loose
end from the Mitchell report, former Senator George Mitchell's
recommendations, most of which you accepted. Although, one nuance,
there seems to be a problem, the freeze on Israeli settlements,
including the natural growth freeze. What ia the position of the
Bush administration? Must the Israelis right now cozpletely freeze
settlement activity, including the called natural growth
activity?<br> <br> POWELL: Our position has been -- and it
reflects the Israeli position -- that there will be no new settlements.
The natural growth issue is a very, very sensitive one. The Israelis
gay, “You know, families have children, and they live in that
settlement. How can there be no natural growth?" The mitchell
Committee said that should stop. The Palestinians want that to be
stopped. <br> <br> In the deal that Mr. Arafat was unable to
accept in January, the Taba deal, the settlement issue was to a large
part solved as a result of that negotiation. He couldn't accept it.
<br> <br> The American position is that we believe that two sides
have to discuss this expanding-of-existing-settlements issue. But for
everybody to categorically say to Israclis at this point that this is
gimply not anything that can be discussed might have caused a different
sort of response to Mitchell Committee report. <br> <br> POWELL:
And so we tried to at least leave this as an issue to be resolved
between the two sides as part of the confidence-building eeasures
discussion. <br> <br> For 20 years, American administrations have
always said to the Israelis, *These kinds of activities are
provocative, and they don't help get to us a settlement." And so we
really have to find out a way to break through this settlement issue in
a way that is acceptable to both the Israeli and Palestinian sides.
<br> <br> BLITZER; We only have o few seconds left, but I want to
ask a quick question on China. The EP-3 is about to be returned in
pieces to the United States from Hainan Island. Will that set the
stage for a visit by Colin Powell te China in the next several weeks,
or set the stage for the president's visit later thie year to
Beijing?<br> <br> POWELL: My judgment as to whether or not it's
appropriate for me to visit China will be driven by a number of issues,
and not just when the plane comes out or if the plane comes cut. <br>
<br> I'm confident the plane will come out. We now have an
arrangement with the Chinese that will allow the plane to be brought
out and in a manner that we can hopefully put it back together without
too much difficulty. And we have our plane back, which is what our
objective was, «<br> <br> BLITZER: Mr. Secretary...<br> <br>

00800000000551


McCall, Neal

From: Young, JT

Sent: Wednesday. Januar ad 2002 9:45 AM

To: Sweetnam, Bil Jr, Wein as ender. Ny Thomas: Olson, Pam, Walker, Deborah;
Bradshaw, Tara; Bair, Neal, DeMarco, Edwai

Subject: RE: Sen keke oe he

i nave also heard kennedy is doing something i have also heard that finance is notat this time

---—-Original Message—-—-
From: ‘Sweetnam, Bit Jr
‘Sent: Tuesday, January 15, 2002 8:20 PH

To: Weinberger, Mark; Reeder, W Thomas; Olson, Pam; Walker, Deborah; Young, JT; Bradshaw, Tara; Bair, Shesta; McCall, Neal;
DeMarco, EGward

‘Subject: ‘Senate Hearing on Enron-Related Persson Issues

| have heard, second hand, that Sen. elaine Aelabereor pet hae, ber hiects to discuss the pension

7
surrounding Enron. He will have a government panel and will ask for W from DOL and Office of Tax Policy,
He will also have a victims pane! and a panel of academic experts.

reasury Department
1500 Pennsylvania Avenue NW
Washington DC 20220

Phone: 202-622-0170
Fax: 202-622-0646

McCall, Neal
From: Sweetnam, Bill Jr
Tr : Wen or Mark: Reeder icTtas: Oson Pan Walker, Deborah; Young, JT; Bradshaw,
‘0: berger, am;
Tara; Baw, Sheila: McCall, Neal; DeMarco, E
Subject: Senate Hearing on Enron-Related Pension poly

| have heard, second hand, that Sen. Kennedy will schedule a heanng on February 7 to discuss the pension issues
surtounding Enron. He will have a government panel and will ask for testimony from DOL and Office of Tax Policy. He wil
also have a victims panel and a panel of academic experts.

William F_ Sweetnam, Jr.
Benefits Tax Counsel
Oise ORY.
1500 Pennsylvania Avenue NW
Washington DC 20220

Phone: 202-622-0170
Fax; 202-622-0646

01200000001169


Ari, after the breakfast, Speaker Hastert and Leader Gephardt both
said that they believe Congress right to engage in a broad investigation of
Enron. And beth said that they were open to the idea of having some remedial
legislation drafted to protect shareholders, such as those of Bnron’s, who were
affected when their 401({k)e were frozen as the stock value of the company
plusmeted.

Question one, does the White House support any kind of inquiry into
legislation like that? And, two, Mr. Gephardt said the entire Enron situation
raises questions anew about the President's ideas about privatizing, even
partially, Social Security, because assets held in those funds are subject to
all sorts of market pressures, they could disappear overnight. And the Enron
situation adds more evidence, the Democrats complain, you just simply cannot and
should not privatize Social Security. Your reaction?

MR. FLEISCHER: Okay. On the two points -- on the first point, as you
know, right from the beginning I announced that the Department of Treasury and
other government agencies are monitoring the events in the wake of the
announcement about Enron. And since I said that, Enron has, of course, filed
for bankruptcy.

You may want to talk to the Department of Labor. The Department of Labor
has jurisdiction over pension issue: It is not uncommon for the Department of
Labor, in a time like this, to keep a watchful eye over people's pensions to
make gure that any consequences are fairly and adequately dealt with. So they
are the agency that would be involved. They have their own criteria to
determine whether or not they will have any type of investigation. But the
President wants to make certain that all agencies are monitoring events and will
take action as their criteria warrant.

On the second point about markets, you know, one of the things about our
country is that unfortunately, we can be a land of haves and have-nots. And one
of the things that distinguishes the have-nots and the haves is the haves have
access te ownership of stock and mutual funds. And, therefore, they have a
little piece of a rock that can grow land allow them to enjoy more wealth and a
better life.

There are many people in society who would like to have access to markets,
so that way they can accumulate wealth. And often, they can't. Social Security
is one of the reasons they can't. Young people have all this money taken out of
their paychecks, and often they do not receive any return on it, specifically
people who are young today pay taxes for a system that is scheduled to go broke
before they have any return.

So one of the ways the President sees as helping workers who have a low
income is to allow them to have the same market access that upper-income and
middle-income people have, so they, too, can accumulate wealth.

Q That doesn't do anything for the Enron 401K.

Q Yesterday, the President and Secretary O'Neill went out of their way
to talk about Hamas as a terrorist group with global reach. Is that the first
time that that definition has been applied to 4 Palestinian group? And
secondly, this was the first time the President had acted against a group not
associated with al Qaeda. What significance should we attach to that?

MR. FLEISCHER: On the first point, I couldn't tell you if that's the first
time. I think you would have to take a review of that and see what you =~ I
can't tell you from everybody in every government -- branch of the government if
people have ever used such language. But as you know, Hamas was added to the
executive order that the President issued on November 2, allowing the united
States to block or to freeze the assets of groups.

‘The announcesent yesterday was on top of that. It was built on the
foundation of his November 2 announcesent. And I think it shows the world that
the President is sincere and will act when he ways that this is a milci-front

00800000000836


GERSH: Let's talk about the stimulus package, That's something that a lot of people and you are spending a lot
of time on,

O'NEILL: Right.

GERSH: It's looking like that stimulus package might end up being something that's on the president's desk,
kind of like a Christmas present, just in time for the holiday. Is that how long it's going to take, and if it takes
that long, are we going to run into the old problem of fiscal stimulus came a little bit too late and the economy
almost didn’t need it by the time it got it into effect?

O'NEILL; I must say 1 worry a lot about that, The president first said in a very concrete way on October the
Sth, which is now over a month ago, that he believed we needed a stimulus package on the order of $60 billion
to $75 billion and that we needed it right away and we've already lost a twelfth of a year in discussion. And I'm
very, very anxious that we get this done. I don't know why we can't get it done by the middle of November, But
we're running out of days to accomplish it by then.

GERSH: Mr. Secretary, thank you.

O'NEILL: My pleasure. Thank you.

KANGAS: The upward momentum of the previous four sessions kind of ran out today. The Dow ran into some
profit taking, off 36 3/4 points, pretty mild, and actually 7! more issues higher than lower overall, 129 new
yearly highs, only 37 new lows.

Enron (ENE) topped the active list on a massive 72.4 million shares. The stock traded as low as $7 a share today
and then it came back up rather nicely. The "Wall Street Journal” online says Dynegy (DYN) is talking to the
company about making a $2 billion investment and that includes $1.5 billion from ChevronTexaco (CVX). And
there was also a lot of talk after the market closed about an outright buyout bid.

Compaq Computer (CPQ) down $0.51. David Packard, one of the sons of a founder of Hewlett-Packard, came
out against Hewlett's acquisition of Compag today, just like the Hewlett family did yesterday.

AOL Time Wamer (AOL) down $0.65.

EMC (EMC) fell $0.28,

And Qwest Communications (Q) also fell $0.28.

Hewlett-Packard (HWP) itself was off $0.63.

Lucent Technologies (LU) down $0.36.

American Tower (AMT) off another $1.04. Yesterday, it dropped $3.84 on a third quarter loss of $0.65 a share.
Today, Lehman Brothers dropped its price target from $47 all the way down to $33. But that's a little after the
fact it looks like, to me.

Nortel Networks (NT) was up $0.01,

And then Nokia (NOK) down $0.86, tenth in big board volume.

Aetna (AEF), the big insurance company, down $0.77, It traded as low as $28.80, though. The company had a
4

00800000000921


THE DEPUTY SECRETARY OF THE TREASURY
WASHINGTON, 0 C. 20220

December 13, 1999

Mr. E. Joseph Hillings

Vice President and General Manager
Federal Government Affairs

Enron Corporation

1775 Eye Street, NW, Suite 800
Washington, DC 20006-4607

Dear Joe:

‘Thanks for your kind remarks about my speech before U.S. Alliance for
Trade Expansion {am pleased to enclose a copy as you requested. also
appreciate receiving the Energy Services Coalition Introductory Packet. 1
will share it with my colleagues here at Treasury, and will let you know if
we have any comments

I hope to see you again soon

Sincerely,

Stuart B. Eizenstat

00100000000193


Weekly Activity Report, Federal Finance Policy Analysis, September 13 - 17, 1999
[OUTSIDE SCOPE , (b)(5)]

{(b)(5)]

01800

01200000000456


Page | of 2

Bitsberger, Timothy _
From:  Cetina, Jill
Sent: Wednesday, November 21, 2001 12:22 PM

To: _DL_Market Group; Andrew Sacher; ClayLowery; Eric Otto; Griffiths; Hoffman; MegLundsager,
Paul Reid; PMaimgren; Wayne

Subject; Market Noon Report - Volumes thin as Thanksgiving looms.

{(b)(5)]

01/16/2002

01200000001420


Hunt, Ann
Sent Faday, Decor Fagoy, comet 21, 2001 12:44 AM

Sent:
Subject: Step ae {Ln

Weekly Press Release from ConsumersFirst
Thursday December 20, 2001

Current Subscribers: 348,501 strong

Contents:
1, A Note From The Vico President
2. You can now apply online!
3. Christmas Bliss
4, Christmas Giving
5. Fall of a Giant

1. A Note From Tho Vice President

For those of you following along, we are in the middle of a six
pert series on “How to Develop a Personal Debt Free Plan". This
series includes six steps you can do on your own to get on your
way to a debt free lifestyle. The six steps are:

Step 1: Identifying Gngoing Monthly Payments
Step 2: Identifying Debt

Step 3: Identifying Income

Step 4: Establishing The Payoff Priorities
Step 5: Establishing The Power Payment

Step 6: Establishing Your Victory Date

We have spent the last three steps organising our bilis, our
debts and our income, The remaining three steps put this
information into action to begin to become debt free. If you
have missed these, I have included the link below wnere you
can access the previous articles,

Step 4: Establishing The Payoff Priorities

The purpose of thin step is to devise 4 plan on how to attack
each debt. There is a benefit to paying off certain debts
before others. Paying off debts in the wrong priority could
cost you several thousand dollars in unnecessary interest

payments.

There are two schools of thought om how to prioritize your
debt payoffs. ‘The first states that you should arrange your
bills by interest rate. You should then pay the highest
interest rate off first. The second school of thought states
that you should arrance your bills by the total balance owed
and pay off the lowest balance first, 1 am qoing to introduce
you to a third school of thought, which uses a different
metric to assign the priority payoff,

Tf€ you will recall, we created a sheet in Step 2 with a lisr
of your debt information on it. Please refer back to that
sheer (click here if you need to view it again

1

01200000000958


[(b)(5)]

01200000001155


DEPARTMENT OF THE TREASURY
OFFICE OF PUBLIC AFFAIRS

Embargoed until 10:00 AM Contact Betsy Holahan
October 31, 2001 at 202-622-2960.

UNDER SECRETARY OF THE TREASURY FOR DOMESTIC FINANCE
PETER R. FISHER
REMARKS AT THE NOVEMBER 2001 QUARTERLY REFUNDING

As a consequence of the further weakening of the economy and the increased
federal outlays that have occurred since the attacks of September 11", the near-term
financing requirements of the federal government are larger than we anticipated just three
months ago at our last quarterly refunding in August. In this setting, the management of
the Treasury's marketable debt needs to anticipate the possibility of a unified budget
deficit for this fiscal year and, perhaps, the following fiscal year as well. However, even
if this happens, we expect that the federal government will return to surpluses in the
coming years,

With this outlook in mind, today we are announcing:

© The terms of the November refunding, including a new 5-year note in the amount
of $16 billion and a reopening of the 5 percent 10-year note issued in August
2001 in the amount of $7 billion; and that

© We are adjusting the debt buyback program as follows:
¢ We will continue to conduct buybacks for the remainder of this calendar year;
© We will make no buybacks in January 2002; and
¢ Beginning in February 2002, we will announce at our quarterly refundings the

amount and timing of any buyback operations for the subsequent three-month
period; and finally that

00200000000272


worker safety, but he eventually established Alcoa as the
world's safest place to work. (To give you an idea of what
he achieved, Treasury Department employees, most of whom
don't do much but ait at deske, missed work because of
injury 20 times as often as Alcoa employees, most of whom
work with molten lava and man-eating machinery.) He proved
to the satisfaction of the people who worked for him that
their old ideas of what was possible were based on
artificial limita. What Alcoa achieved with worker safety
became a metaphor that could be applied to attacking any
goal, including the goal of lowering costs. And having
persuaded the workers that he was on their side, they paid
him back with greater efficiency.

Pretty much everything O'Neill did at Alcoa reflected his
belief that most hierarchical distinctiona were nonsense.
(The great exception was the big money he and other top
executives earned.) He created a profit-sharing plan that
was the same for hourly workers and managers. He got rid of
the company's headquarters -- in which senior executives
worked on top floors with lovely views of everything but
ordinary workers -- and moved everyone into a building that
he more or less designed to maximize face-to-face
encounters between employees of every level. As a corporate
boss, O'Neill took a wholly original view of an ancient
business -- metal making -- imposed on it his idea of how
it should work and changed people‘s lives.

That's the short version of a more complicated story. But
it's encugh to help explain why when Dick Cheney called him
there wasn't a trace of the post-office-to-0.M.B. civil
servant left in him. He was 100 percent Captain of
Industry, He had proved that if you had a taste for extreme
measures and a strong will you could bring about big
changes. Alcoa had imbued him with a new idea of the
possible. And at the same time, Alcoa had grounded him in
the real, the tangible, the measurable, That day in his
office, when he had given up looking for whatever
controversial thing he had said, he clicked back to the
default page on his Bloomberg screens. Up popped the prices
on the London Metals Exchange: aluminum, copper, tin. These
prices are the first thing O'Neill checks every morning. I
said that it surprised me that the guy who oversees the
financial markets wasn't more interested in financial
prices. ''This is the real down-to-the-ground stuff,'' he
said, ''Not advertising and marketing and Hula-Hoops.'' Or,
he might have added, stocks and bonds. ''Commodity prices
tend to be a leading indicator,'* he said. '‘And they're
moving up.''

In places where perception is conflated with reality, cause
is often confused with effect. There is a tendency on Wall
Street to see finance primarily as cause rather than effect
-- a view that inflates the importance of people who work
on Wall Street. O'Neill sees finance effect rather than
cause, and the people who work in it as cogs in a bigger
machine. Even now, when you talk to people who work on Wall
Street about O'Neill, they can‘t quite get past what he
said about them in an interview he gave to The Wall Street
Journal last January. In their paper, he described Wall
Street professionals as ''people who sit in front of a
flickering green screen** and went on to say that those
traders ''are not the sort of people you would want to help
you think about complex questions.'' When The Journal asked
him if he had ever worked in front of a flickering green
screen, he said he hadn't, but ‘'I probably could learn in
8

01200000001487


Page | of |

Gross, Jared

From: Wiedman, Mark

Sent: Friday, January 11, 2002 6:15 PM

To: Roseboro, Brian; Gross, Jared; Fisher, Peter

Subject: Sec O'Neill's comments on Presidential directive on corporate disclosure review
From a television interview Thursday night, | think . . -

On what President George W. Bush has asked him to do today:

““The president tasked me to one, head a committee that
includes Don Evans and (Labor Secretary) Blaine Chao to look at
the Enron case and other bankruptcy cases to pay special attention
to the question of whether we need to amend the rules that govern
pension plans and 401k plans to provide a greater deal of
assurance to individuals who have a stake in pension plans and
401k pl ,'* he told CNN, ““That is driven by the president's
concern about the individual employees. The president said to me
we need to see if there is something we need to do go that we
learn from this. If there is a weakness in our rules let's fix the
rules.'!

““and the second committee the president asked me to convene
is one that's a standing committee, the president's economic
committee. That includes myself and Alan Greenspan, the head of
(the Commodities Putures Trading Commission) and Harvey Pitt of
the SEC, The charge the president's given us is to look at the
Enron case and other ca‘ and sce if we need to adjust the
disclosure rules so that shareholders and employ: have all the
information they need to make intelligent decisions. This is not
about Enron, this is about making sure the rules that govern the
way our economic system works are worthy of the conditions that
we're dealing with these days to assure that individuals are not
hurt because of a weakness in our rules.''

1/16/02
01200000001537


Weekly Activity Report, Federal Finance Policy Analysis, February 28 - March 3, 2000

[OUTSIDE SCOPE , (b)(5)]

01801

01200000000457


Dermae-emst 11S ene We 551 ATIF PBS

{(b)(4)}

00500000001152


Gross, Jared ns

From: Radke, Mark (RADKEM@SEC.GOV}

Sent: Monday, January 07, 2002 1:38 PM

To: ‘Jared.Gross@do.treas.gov’

Subject: RE: Request from Under Secretary Peter Fisher

I will get it to you shortly.

cases Original Message-----

From: Jared.Gross@do.treas.gov (mailto:Jared.Gross@do.treas.gov)
Sent: Monday, January 07, 2002 11:08 AM

To: radkem@sec.gov

Subject: Request from Under Secretary Peter Fisher

Hello. I'm Peter Fisher's Senior Advisor here at Treasury.

He asked me to request a copy of the SEC accounting guidance vis-a-vis Enron
when it becomes available. This was mentioned in a WSJ article this morning
(pg. A16).

If you are able to forward something electronically, that would be ideal.
Alternatively, if you could put me in touch with the appropriate people I
ean follow up.

Thank you very much,

Jared Gross 622-2212

01200000001550


economy,” wrote Thomas, R-Calif.

While bipartisan support backs some of the House items, Senste
Democrats have been pushing for expanded unemployment benefits and
help for workers who lose health insurance. Sen. Max Baucus,
chairman of the Senate Finance Commattea, presented a $70 billion
proposal Tuesday that would extend unemployment benefits by 13
weeks, provide a SO percent federal match for COBRA health
insurance policies and allow more workers to qualify for Medicaid.

The legisiation also includes rebale checks and some business
tems siméar to the House bill but not the capital gains reduction
of the alternative minimum tax relief. Tax cuts in the Baucus
measure would total $35 billion in 2002, far below the House GOP
level.

“This proposal eppropriately responds to the sign of the times,
helping this nation get back to work and recover quickly,” said
Baucus, 0-Mont

But Treasury Secretary Paul O'Neill, who has been the Bush
administration's point man in stimulus negotiations, said he wes
“disappointed” in the Baucus proposal, He said it contained $50
billion in new spending instead of focusing more on tax cuts.

“This is a spending package, not a stimulus package,” O'Neill
said,

Other Democrats were working on stil more spending programs.
Senate Appropriations Committee Chairman Robert Byrd, O-W.Va., said
he was putting together a $20 billion package that included hiring
extra customs and border agents and food inspectors, augmented
security at nuclear plants and purchase of more vaccines.

Sen. Charles Grassley, R-lowa, sai¢ President Bush does not want
the stimulus bill laden with additional spending.

Everything in this package needs to be stimulative,” Grassley
said. “There needs to be more done on the investment side.”

00800000000928


Fisher, Peter

From: Scott Harshbarger [sharshbarger@commoncause.org)
Sent: Monday, January 14, 2002 9:30 PM

To: Peter Fisher (E-mail)

Subject: FW: enron

peter -- i know making news thia way, no matter how right you feel you were,
ig no fun! and eventhough you're not the big story regardless.

let me know if i can ‘listen” in any way. i do also have a
guqgention if you'd like to hear it.

i wrote the attached before i saw your name in the paper.

ooeee Original Message----~-

From: Scott Harshbarger

Sent; Priday, January 11, 2002 8:21 AM

To: Seth Amgott; Ben Bycel; Mike Surrusco

Ce: Celia Viggo Wexler; Jeff Cronin; Meredith McGehee; Andy Draheim; Ed
Lauren Coletta; Laura Williams

: enron

seth and ben -- i forward arianna‘s column, on top of all of yesterday's
fast-breaking news and commentary on the administration's hasty and dramatic
retreat from, and severing of all contact with, enron, and a few of the
comments i made to josh meyer of the LaAtimes, as background for our
discussion of our timetable and focus on th biggest story of 2002 for
bush" ( chuck lewis of center for public integrity on CNN wolf blitzer
1/10/02).

i copied eo many folks, because, in addition to what i know you've
done and are doing, i really hope to encourage discussion here and to get
input from our various networks about their take and suggested actions for
us.

as you know, i'd been discussing this emerging meltdown of enron as
part of my discussion of white collar crime/corruption with my class,
eliciting a wide range of views as to the nature of the problem, the
remedies and the role of the "government lawyer" in investigating the
entity, its activities and its major failure. the introduction of the DOJ
task force as part of a comprehensive inquiry ( and its embrace by the
president, AND the secretaries of commerce and treasury,plus the AG) is a
seminal event in my experience; there's been nothing like it since the S &
L scandal broke wide open,

and the effort to “distance” themselves by anyone and everyone who
ever knew ken lay or received his/enron's largesse as professionals,
enforcers, legislators and elected officials tells you more about the state
of the evidence, the extent of the spread of the enron tentacles, the depth
and breadth of the “influence” and “access" before 911, but especially since
911 and the bankruptcy, than any o fthe other facts/stories ever could or
will! ( see the effors of evans and o'neill to explain what they did not do
for ken lay when he called in september and october; but no one asked the
far more obvious and devastating question: why in the world did they even
take his calls personally? and you know the answer: that is just how
connected he, a private citizen, was!)

but this is not just republic , Or national; see the texas story,
the texas AG, the USA'S who are recusing; and remember the california CC
REPORT last spring regarding enron et al and money out there to the
democratic governor and every legislator but one; not to mention the far
more pervasive patterns of involvement by the accounting firms, boards of
directors, lawyers, CPO"S, investment companies, analysts, the SEC,
etc,...NONE of whom appear to have fulfilled their independent
fiduciary/self regulatory roles/responsibiiti «+» because of the money, the
profits, the good times, the bandwagon, the de-regulatory philosophy, etc.

and, would anyone have cared, in the end, if it were not for the

t

01200000001495


QLogic (QLGC), a $0.78 gain.

Dell Computer (DELL) gained $0.01.

And then Broadcom (BRCM) losing $0.68,

Oracle (ORCL), tenth in volume, was up $0.36, Narrow movement on that board.

Napro Biotherapy (NPRO) had a good day, up $2.11. The company says yesterday's appeals court ruling against
Ivax's (IVX) generic version of Pactataxol (ph) will not prevent marketing approval of its own version of that
cancer drug.

And Genencor International (GCOR) was up $2.18. The company received a five year contract from Procter &
Gamble to provide enzymes for laundry and dish detergents.

And Nanogen (NGEN) down $1.34, UBS Warburg downgraded it from "buy" to just 2 “hold.”

The American Exchange Index (XAX) up just over 4 1/2 points. Ivax rebounded $1.95. The company thinks
yesterday's appeals court ruling will not keep it from marketing its generic form of Taxol.

And Sifco Industries (SIF) down $0.83, sharply lower third quarter earnings, $0.03, down from $0.19 the year
before.

And finally, the Index Shares all fractionally lower, but not by much.
That's the Wall Street Wrap Up, Susie?

GHARIB: Paul, the Tokyo Auto Show wrapped up today. The four day extravaganza showcased some of the
most unusual cars ever to hit the road.

But as Lucy Craft reports, some of the out of the box designs were so unusual they seemed to belong in a home
builders exhibition.

LUCY CRAFT, NIGHTLY BUSINESS REPORT CORRESPONDENT: Wacky, outrageous and bizarre, just
another day at the Tokyo Motor Show, where Japanese auto makers have refined the so-called concept car to a
high art.

CHRIS RICHTER, AUTO ANALYST, HSBC SECURITIES: I's a little bit akin to having a meeting and
brainstorming and throwing out every impractical idea that you might have,

CRAFT: How's this for impractical, a car with a tail that cries when it needs more gas or flashes red in anger
when driven recklessly? In fact, Toyotas’ (TM) pet like Pod concept car, based on robotics technology from
Sony (SNE), is a bundle of color-coded emotions aimed at keeping its owner amused as well as safe.

STEVE USHER, AUTO ANALYST, J.P. MORGAN: I think the Pod was a perfect example of sheer creativity.
I don't think that Toyota or Sony have any immediate plans to commercialize the vehicle, The idea, though, is to
say OK, this is where we can go. This is what can be done with a vehicle. How it ultimately manifests itself on a
commercial offering is going to be a very different issue. But it's just, you know, testing the edge of the
envelope.

CRAFT: Like replacing the steering wheel, brake and gas pedals with a single control, a drive by wire joy stick,
or installing Intemet connected consoles, allowing drivers and their passengers to surf for the weather, 2

00800000000923


The Financial Timea (p.2) also reports, noting that a Western diplomat said the
government's recent progress in pushing through some of the 15 emergency
economic reform laws sought by Dervis should create a more ‘receptive atmosphere
for discussion additional funding within and outside the IMF."

UN HANDS ARREST WARRANT FOR MILOSEVIC TO BELGRADE.

Officials from the UN war crimes tribunal yesterday formally presented Yugoslav
authorities with an arrest warrant for Milosevic, reports the Financial Times
(p.3). Arriving in Belgrade, the officials cautioned that the tribunal had
primacy over domestic proceedings. “Transfer is a non-negotiable obligation and
must happen immediately," said Jean-Jacques Joris, political advisor te the
chief prosecutor,

The visit by tribunal officers came amid signs that the US and its Buropean
allies have softened their resistance to Yugoslav demands to try Milosevic in
Belgrade for offences allegedly committed against his own people. On Monday, EU
foreign ministers are expected to issu statement that avoids making future
aid to Belgrade conditional on the extradition of Milosevic.

“We will, however, continue to insist to the authorities in Belgrade that we
want to see Milogevic end up in The Hague," a senior BU official is quoted as
saying.

The European Commission is set to give the go-ahead to $133 million of
assistance to Serbia in the coming weeks as part of a larger aid package this
year. However, it has not yet been decided when the remaining funds will be
released, An international donors conference planned for later this year could
be used as leverage,

AIDS DRUG PRICES CUT FOR POOREST COUNTRIES AFTER ANNAN MEETS FIRMS.

The UN Secretary-General Kofi Annan won agreement from six major drug companies
yesterday to keep cutting prices of AIDS treatments for the world's poorest
nations, reports the Independent (UK, p.12). “The companies have agreed to
continue and accelerate reducing prices substantially, with a special emphasis
on the it developed countries," Annan said after meeting officials of the
companies in Amsterdam,

The firma had also agreed *to continue to offer affordable medici
developing countries, on a country-by-country basis," he added. y
have dealt with the needs of the developing world in recent years is simply not

adequate."

UN officials said Annan could not divulge financial details of the agreements
because the companies were worried about accusations of anti-trust violations.
Annan had met senior executives of Pfizer, GlaxoSmithKline, Abbott,
Bristol-Myers Squibb, Hoffman-Laroche and Boehringer Ingelheim. Merck, which
had participated in the meeting last year, was said to have been invited to join
the new program but declined.

Annan said the companies' new commitments furthered the progress they had made
in reducing prices since last May, when five drug companies signed a joint
statement of intent with the UN. The agreement reached yesterday “represents a
contribution to the global response to the epidemic, going much further than any
of us could have predicted 12 months ago,” Annan said.

Noting that more than 40 pharmaceutical firms are taking the South African

government to court over its plans to promote the import or local manufacture of

generic AIDS drugs, the story quotes Annan as saying, "Intellectual property is
2

00500000000402


Page | of 2

Fisher, Peter

From: Soot Hershberger [shershberper¢2commonceuse or

Sent; Tuesday, January 01, 2002 11:04 AM

Subject: FW: MetroWest Daily News Editorial of January 30

happy new year, my friends. | look forward to seeing and hearing from you early and often in 2002.

= Message----~
From: Common Cause Massachusetts [mailto:coma@commoncause.org}
Sent: Monday, December 31, 2001 1:18 PM

To: Seth Amgott; Jeff Cronin; Scott Harshbarger

Subject: MetroWest Daily News Editorial of January 30

See the extensive references to “Soft Landing.”

Editorial: Rejoin the fight for campaign finance reform
Sunday, December 30, 2001

Campaign finance reform was one of the victims of Sept. 11, As a show of unity in the
face of a national threat, reformers in Congress put their push on bold.

It was an unselfish gesture for those who had worked long and hard to change the
rules of the game in Washington,

The targets of their efforts, the selfish interests who use campaign contributions to
leverage favorable treatment, had no such compunctions, While rescuers searched for
survivors, lobbyists for the airlines, the insurance companies, tourism and defense
industries leaned on Congress for handouts.

‘The debate over an economic stimulus package sparked an even less restrained
free-for-all. Corporations pushed for tax breaks, unions for more unemployment
compensation, farmers for more federal subsidies, All have greased their policy
arguments with lavish contributions to both Republicans and Democrats.

‘The campaign finance system played a role in other Washington stories this year.
Microsoft, which had spent $16 million between 1997 and 2000 on lobbying and
campaign contributions, saw its investment pay off with a friendlier Justice Department
and a less painful antitrust settlement. High-flying Enron, which came to the capital as
the biggest single contributor to the Bush presidential campaign, was in on the secret
mectings that set the administration's energy policy. Enron's campaign cash in California
paid off with a deregulation plan that generated millions of dollars of profit when prices
soared - and a bail-out after the system crashed that left consumers paying the bills.

But the year’s biggest story had a campaign finance angle as well. With better airport
security, Sept 11 might have been just another day. But according to a new report from
Common Cause, airlines have for years resisted tougher security measures in an effort
10 save money.

Before Sept. 11, airlines industry lobbyists weakened legislation that would have

required background checks of all airport screeners, Affter Sept. 11, airlines lobbyists

slid a $15 billion bailout bill through Congress, including $5 billion in taxpayer dollars to

compensate for the post-Sept. 11 shutdown that cost airlines, by one informed estimate, only a third that much.
‘Within days of the

bailout, the airlines laid off 70,000 workers and canceled hundreds of flights, further fattening their bottom lines.

il Gece Then the lobbyists pushed through an airport security bill that puts most of the expense on passengers, not airlines,
not

include one reform the airlines have long resisted: extending from international to domestic fights a requirement
W172

01200000001506


diagnosed with prostate cancer the two treatments that are generally
available now are either the radiation treatment or surgery. <br> <br>
What is your sense, is it on a case-by-case basis? Or are these both
equally appropriate in your opinion? <br> <br> MILKEN: Well,
there's many forms of radiation therapy, and it is improved
dramatically over the last eight y I had radiation therapy myself
back in 1993, and it is far better today than even when I had it. <br>
<br> Surgery is very effective when it's confined to your prostate.
But there are other things. There are some men with very low-grade
prostate cancer, confined, who are just undergoing nutrition and stress
therapy today with some very interesting results. <br> <br>

BLITZER: All right, we're going to take a quick break. <br> <br>

We have a lot more to talk about including your phone calls. Stay with
us.<br> <br> (BEGIN VIDEO CLIP)<br> <br> GEORGE W. BUSH,
PRESIDENT OF THE UNITED STATES: For the first time in human history,
we can say with some reasure of confidence that the war on cancer is
winnable.<br> <br> (END VIDEO CLIP)<br> <br> BLITZER:

President Bush speaking on Friday at the White House gathering of
participants in Saturday's Race for the Cure. He pledged more federal
support for breast cancer research.<br> <br> Welcome back to LATE
EDITION. We're continuing our discussion about cancer with Susan G.
Komen Breast Cancer Foundation founder Nancy Brinker; Dr. Steve
Rosenberg of the National Cancer Institute; and cancer activist and
philanthropist, Michacl Milken.<br> <br> Dr. Rosenberg, here are a
couple of numbers: 1.2 million new cancer cases were diagnosed in
2000, according to the American Cancer Society. And it's estimated,
$52,000 people will die of cancer this year -- about 1,500 people a
day. Those numbers are staggering.<br> <! ROSENBERG: It's a
devastating problem. One in every three Americans now alive will
develop an invasive cancer at some time during their life. And unless
we find better ways to treat the disease, one in every six Americans
now alive will die of cancer.<br> <br> BLITZER: What should
someone do? He or she goes to the doctor, and the doctor says, *You
have cancer," and you get scared immediately. Sut what is the
immediate advice that you should give thene people who are diagnosed
with gome form of cancer?<br> <br> ROSENBERG: Well, the
devastating impact of a cancer diagnosis is, of course, 1. But it's
important for people to realize that if they receive the appropriate
care, they have about a 50 percent chance of being cured by modern
eatmente that exiet today. So a diagnosis of cancer is not a death
sentence at all. Half the people can be cured and live out their
normal life spans. <br> <br> The greatest advice I could give to
someone, of course, is to not smoke cigarettes; 100,000 of those
$20,000 deaths that will cccur thie year are completely preventable it
we could only convince people to stop amoking. Lung cancer now exceeds
breast cancer as a cancer killer of women. Lung cancer in women was
almost unheard of 50 yeara ago. But hecause of thie relentless
campaign to convince women to smoke, it's now become the createst
cancer killer of women -- a totally preventable disease.<br> <br>
BLITZER: And as far as smoking and breast cancer, there's a link
there, toe, right?<br> <br> BRINKER: 1 think there's a link
between smoking and everything. <br> <br> But the real issue,
another iseue, Wolf, which you gort of alluded to is, we have spent --
though, as Michael and I agree, we haven't spent enough money in this
country in this fight against cancer -- but also, some people don't
even believe that we've made the progress we have.<br> <br> And we
have to do a better job of communicating what is in the clinic today,

00800000000563


From: Carleton, Norman
Sent: Friday, December 14, 2001 10:15 AM
To: Bair, Sheila; Berardi, Steve; Bitsberger, Timothy; Eichner, Matthew; Gabilondo, Jose; Gross,

Jared; Hammer, Viva; Lori Sanatamorena (E-mail); Nickololl, Peter; Novey, Michael;
Pietrangeli, Fred; Roseboro, Brian; Sctwitheiss, Heidilynne; Whaley, Jean; Wiedman, Mark;
Bieger, Peter; DeMarco, Edward; Dorsey, Karen; Ellett, Martha; Ellis, Dina; Huffman, Lucy;
Hughes, Gerry; McGivern, Tom; Mcinerney, Roberta; Salladin, Anne; Smith, Amy; Sutton,

Gary; Tishuk, Brian
Subject: Enron = Dec. 11 ABI Website
Enron Bankruptcy Update

Enron Japan, Affiliates Seek Bankruptcy Protection

Enron Japan Corp., a wholly-owned subsidiary of failed U.S. energy giant Enron Corp. announced
that it and its three Japanese affiliates filed for bankruptcy yesterday, Dow Jones reported. The move
follows Enron's Dec. 2 chapter 11 bankruptcy filing in New York. “Enron Japan Corp., Enron Japan
Marketing Corp., Enron Japan Funding Corp. and E Power Corp. filed for bankruptcy...in accordance
with the Japanese bankruptcy law,” Enron Japan said.

Enron Court Hearing Pushed Back to Dec. 20

An Enron Corp. hearing has been rescheduled for Dec. 20 from Dec. 14, Doe Jones reported. The
hearing, the second since the energy-trading company filed for chapter 11 bankruptcy protection on
Dec. 2, will pertain to Enron's request to continue paying utility companies for electric bills, Judge
Arthur Gonzalez, who is presiding over Enron's case will also hear an interim request at this time to
retain Blackstone Group as financial adviser in Enron's restructuring.

600 Enron Employees Got Bonuses

Nearly 600 Enron Corp. employees deemed critical to running its prized energy trading business
received more than $100 million in bonuses last month as the company faced a merger and then
bankruptcy, according to the Associated Press. About half of those bonuses, given to 75 traders in
early November when Enron was planning to merge with smaller rival Dynegy Inc., may have to be
repaid because the merger collapsed, said Todd Zywicki, a law professor at George Mason
University.

Enron spokesman Mark Palmer said the $50 million given to traders before the merger crumbled
“was done in discussions with Dynegy to protect and preserve the value of the trading organization
through what we thought was going to be a fairly long merger process." Dynegy spokeswoman
Debbie Fiorito said that Dynegy didn't approve or endorse those bonuses. Enron distributed an
additional $55 million to 500 employees two days before filing for bankruptcy as an incentive for them
to remain with the company while Enron works to emerge from chapter 11.

01200000001292


Prom: Daniel Iercael

To: Doml3.00PO8.REDIPERL, Doml3,DOPOS.BERGK, Doml3.DOP...
Date: 12/23/98 8:38am
Subject: Wall St. Journal Story

Wasted Energy:

How U.S. Companies

and Suharto's Circle

Electrified Indonesia

Power Deals That Cut In

First Family and Friends

Are Now Under Attack

Mission-GE Sets the Tone

By Peter Waldman and Jay Solomon
Staff Reporters of The Wall Street Journal

JAKARTA, Indonesia -- It looked like one of commercial diplomacy's finest
hours: $40 billion of business agreements signed between Indonesian and U.S.
companies on a single day, honchoed personally by President Clinton and
then-Secretary of Commerce Ron Brown.

The date was Nov. 16, 1994, at the Asia-Pacific economic summit here. Among
those deals, U.S. companies especially cleaned up on one of the world's most
coveted emerging-market opportunities at the time: Supplying electric power to
Indonesia's booming economy. Winners included Unocal Corp., Calfnergy Co. and
a $2.5 billion joint venture led by Edison International’s Mission Energy unit
and General Electric Co.

"As markets expand, as information flows,” said a beaming Mr. Clinton to
Jakarta's business elite after the signings, “the roots of open societies will
grow and strengthen and contribute to stability."

Today, of course, Indonesia is struggling to stave off anarchy. Far from
being a force for stability, most of the power deals have only contributed to
the chaos here. They underscore how American companies operated in President
Suharto's Indonesia -- and how, critics say, they cut overpriced, politically
influenced deals that undermined the Indonesian economy. In the end, the deals
may prove costly for many of the American companies, as well.

Most of the billions of dollars of U.S. electric-power investments in
Indonesia went through cronies and relatives of Mr. Suharto, who was ousted in
May after 32 yeara of dictatorship. Nearly all the Suharto relatives involved
in the power projects got shares in joint ventures from their American
partnera without investing money of their own. The Mission-GE megaproject,
Indonesia's first private-power venture, set the tone: It bagged one of the
richest private-power contracts of the 1990s when its local partner, a
relative of Mr. Suharto by marriage who received sha: in the project
essentially free, sealed the deal by getting Mr. Suharto himself to weigh in
in favor of Mission-GE at a key juncture in price negotiations.

Now, because of Indon ® economic crisis, the country's state-owned
e@lectric utility, called PLN, is $2.6 billion in debt and is effectively
broke. Yet the utility -- and through it, ordinary Indonesians -- are on the
hook for decades to come for high-priced power that, even in the go-go years
when the projects were proposed, many of its own technocrats and foreign
consultants argued Indonesia neither needed nor could afford. Only one of
Indonesia's 26 private-power contracts was competitively bid -- one reason the
average contracted cost of privately produced power here ia 30% higher than in

01000000000958


None of this has had the slightest effect on O'Neill‘s
predicament. Because the people who determine O'Neill's
fate are unable to express the slightest dissatisfaction
without communicating total despair, the people who
interpret what they say ignore everything but the bad news
and assume that any support expressed for the man ig a case
of What else are they going to say? A treasury secretary --
or any other senior cabinet member -- will always
officially be doing a great job right up until the moment
he is fired. There's a signaling problem between the White
, and in the Bush White House it is
because the Bush people don't speak to
the press in anything but the official tone of voice.
They've shut down the sneaky little off-the-record chats
through which the truth finds its way into print.

And so the White House's communications strategy has had
the reverse of the intended effect. I've never had so many
important people express such confidence in another human
being as senior Bush people expressed to me about Paul
O'Neill, but for all I know he'll be gone by the time you
read this.

When he left his job as chairman of Alcoa, the world's
biggest aluminum manufacturer, and became treaaury
secretary, O'Neill moved from a world in which he exerted
near total control over his environment -- and on which he
was able to impose his own sense of reality -- to a world
in which he was virtually hostage to other people's
perceptions of him. And he knew it. Yet despite knowing it,
he bulled ahead anyway with his own idea about how things
should be done. He may not be the first corporate big shot
who has refuned to acknowledge the difference between his
old job in business and his new job in government. Sut he
ig the only one I can think of whose refusal is perfectly
intentional. You can laugh at him, but if you do, you'll
migs the whole point of him.

THE O'NEILL RESUME

O'Neill was offered the job in a hurry in December 2000.
His name, pushed by Dick Cheney, was a surprise, as he had
done nothing to help Bush be elected -- hadn't even given
him money. But Bush was unhappy with the list of Wall
Street big shots he was given. The red-map/blue-map
distinction is more of a cultural phenomenon than a
financial one; there are red-map rich people and blue-map
rich people. Wall Street people are blue-map Americans.
O'Neill is a creature of red-map America, about as far as
you could get from Wall Street and still be in the land of
the rich, which Bush liked. It also didn't hurt that
O'Neill wae a friend of Alan Greenspan's,

O'Neill proves that there ig more than one species of Main
Street chamber of commerce Republican. He began his career,
oddly enough, ae an employee of the United States
government. He was studying computer systems at Fresno
State University in the mid-1950's when, as a lark, he
followed a friend into a California post office and applied
for a government internship. Three hundred thousand other
people applied for an internship, 3,000 were invited to
take a standardized test, 300 were granted interviews and
30 were given jobs. O'Neill was one of the 30. Had he not
wandered into the post office, O'Neill says, he would have
wound up in the construction business back in Alaska, where
2

01200000001481


Hughes, Gerry

From: Carleton, Norman
Sent: Tuesday, December 18, 2001 10:46 AM
To: Wiedman, Mark, Bair, Sheila; Bieger, Peter; Bitsberger, Timothy, DeMarco, Edward; Dorsey,

Karen; Elfett, Martha; Ellis, Dina; Gabilondo, Jose; Gross, Jared; Huffman, Lucy; Hughes,
reall McGivern, Tom; Mcinerney, Roberta; Nickolotf, Peter; Roseboro, Brian; Saladin,
Anne; Schultheiss, ; Smith, Amy; Sutton, Gary; Tishuk, Brian
Subject: ABI Webbe (12/17): Sensenbrenner Still Wants Netting Language to Be Part of Bankruptcy

Sensenbrenner Still Wants Netting Language to Be Part of Bankruptcy Bill

House Judiciary Chairman James Sensenbrenner (R-Wis.) is standing firm in his desire to move so-called
netting language as part of a comprehensive bankruptcy reform bill, a spokesman said, CongressDaily reported,
On Thursday, Sensenbrenner met with House Financial Services Chairman Michael Oxley (R-Ohio) and
Federal Reserve Chairman Alan Greenspan to discuss the possibility of passing netting legislation this year
separate from the beleaguered bankruptcy bill. Federal financial regulators and Financial Services Committee
lawmakers have renewed their calls for that action, in light of the recent collapse of Enron. The netting
provisions are designed to enable quick resolution to complex financial contracts in the event a party in the deal
went bankrupt. However, the netting provisions are one of the few consensus areas in the underlying
bankruptcy bill, which is currently in conference, and proponents are not apt to separate them out. “There was
agreement between everyone that the netting provisions [are] very important,” a Sensenbrenner aide said. “He's
trying to get the bankruptcy bill moving, and that's where we are right now.”

01200000001291


MR. FLEISCHER: Well, it has yet to be attached on the floor, It passed in
the committee with the extraneous spending that the President has said goes
beyond how much is necessary to immediately take care of the needs we have on
the homeland. And so let's see what happens on the Senate floor.

It's unclear yet whether or not this proposal will actually make it through
the Senate floor, But the President has sent Congress a8 direct @ message as
you can about the need to pass a defense bill that can get quickly signed into
jaw so our troops can have the resources they need.

e Ari, in front of the Senate Judiciary Committee yesterday, Senator
Hatch said that he saw an element of partisanship in the oversight hearings that
are taking place over the way the Justice Department is carrying out its
investigation. oes the White House share that view that partisanship is
creeping into the Congress's oversight role on the investigation?

MR. FLEISCHER: Well, the President understands very clearly and welcomes
Congress's legitimate oversight of all the activities that the Executive Branch
engages in. That is how our Constitution is built, and the President is keenly
respectful of it. And I don't think it should surprise anybody that the Senate
will exercise that review. But I think the President has also noted that there
have been some positive statements by many Democrats about the actions that the
President has taken on the home front, military tribunals, et cetera, to fight
and to win the war on terrorism.

Now, clearly, the American people are overwhelmingly with the President on
this. But there very well may be people who represent a small minority and they
have that right to do so.

Q Just to follow up. Do you think that there are people that are trying
to score political points against the Attorney General or against the President
in their criticism of his handling of the situation?

MR, FLEISCHER: You know, there very well may be. But that doesn't bother
the President. The President understands that -- he came to Washington from a
very different background than many people who have been here for a while. The
President came from a state government where you'll see -- not only in Austin,
Texas, but throughout many of the states -- less partisanship, less strife, And
that's the spirit that the President has been trying to bring to the Congress.

I think many people accept that new spirit that has come to Washington. There
may be some who won't.

Q Going back to Holy Land Funding, there are many other groups who are
raising funds from this country and sending overseas, including many groups in
Kashmir and funding terroriste' activities. Do you think the President is going
to go now after all those groups who are raising funds from this land?

MR. FLEISCHER: Well, yesterday's announcement was one announcement in a
veries of announcements the President has been making on the financial front in
the war on terrorism. And I really urge you to look at this as a front ina
war. And given that fact -- and that's the President's approach to it and
that's the message that he has given the Secretary of Treasury and the
government investigators and the law enforcement community -- you need to look
at this as an ongoing series of events designed to protect this country by
drying up the moncy that's available to those who would do us harm or engage in
terroriam around the world. So, as the President has always said, there very
well may be more actions to be taken.

@ Just to follow, because the Prime Minister of India when he was here
at the White House and met with the President, and also, the Foreign Minister of
India, they all said that there are groups here who are funding terrorist groups
in Kashmir. And they urged the President and this administration to take action
on this --

MR. PLEISCHER: And I think the President is putting groups on notice that
no one is going to be safe, no one is going to be immune; if they practice
terrorism, the war will be brought to them on a number of fronts.

00800000000838


Wheelock, Robert § bert 8, Rober S Wheelock @abe com]
Thurs 2002 3:06 PM
rt.

ichole@o.
‘Subject: RE Secretary on Fouvens “Your World with Cavuto” at 4.00p Today

d be available tomorrow to talk

s Financing
onomy, taxes, budget

1 left a message with your office and have a call into Adam Levine at the
WH as well.

Thanks

ginal Messege-----
From: Rob hier

treas.gov)

jent: Thu A
Subject: tary "Your World with Cavuto" at 4:00p Today
Tmportanc at

Rob Nichols

Deputy Assistant Se
Department of the Tr
(202) 622-29:0

etary for Public Affairs
sury

nh an interview on FoxtlewsCil "Your World
J. Topices of discussion will be the economy and

0080000000423


(KByme, 2-2054)
((b)(5)}

01200000001419


BLITZER: On these taxes, I just want to tie up two ends. Specifically,
you sound a little bit different today than you did during your
confirmation hearings on the economic stimulue benefite of these kinds
of tax cuts.<br> <br> I want you to listen to what you said on
January 17, during those confirmation hearings, on the stimulus impact
of what was then envisaged as a $1.6 trillion across-the-board tax cut.
Listen to this. <br> <br> (BEGIN VIDEO CLIP)<br> <br>

O'NEILL: Would I do it with an expectation that this is somehow --
provides a boom economy? No, I would not do it for that reason. <br>
sbr> (END VIDEO CLIP)<br> <br>

BLITZER: You still agree with that assessment? <br> <br>

O'NEILL: Well, Wolf, let's put this into perspective for your viewers.
At the time I was asked the question, the amount of stimulus that was
going to be provided in the year 2001 was $5 billion, Do I think that
was a huge amount of money in the context of a $10 trillion economy?
No. Do I think that $50 billion is a significant amount of money to a
$10 trillion economy? Yes, Ido. So, I don't think what I‘ve said is
anything but consistent. <br> <br> And, you know, if people
expected me to say something I thought was untrue at the time, that $5
billion dollars was a lot of money, I'm not in the business of
dissembling. I tell people the truth whether they like it or not.
<br> <br>

BLITZER: On that issue, though, the stimulus portion this year, most
of that coming from the tax rebate, that was really a Democratic
proposal to have the tax rebates, as opposed to keeping some of that
money spread out over long-term income tax reductions. <br> <br>

O'NEILL: JI think the thing that's really interesting about where we
are is that the president was able to organize a bipartisan majority.
25 percent of the senators voted for this legislation. And I'd be
willing to bet you something: There will not be a single member of
Congress that will send a letter to their constituents saying, “I'm
sorry you're going to get tax relief." <br> <br> This, I think, is
evidence that there is bipartisan support for doing the things the
president believes are principled, that they are right thing for the
American people. And so I think this is a great victory for the
American people because principle is winning. <br> <br>

BLITZER: The next chairman of the Senate Budget Committee, Kent
Conrad, wrote an editorial this week, this Thursday, in one of hie
newspapers in North Dakota. He said that the tax cut that has now been
approved and sent to the president, to his desk, is in his words,
quote, ‘irresponsible. Unless we pay down our debt and strengthen
Social Security and Medicare now, our surpluses will turn into deficits
within the next decade." Do you accept his criticism? <br> <br>

O'NEILL: No, I'm sorry, I really don’t. And I think soon-to-be
Chairman Conrad knows that we have dedicated every dollar of Social
Security and Medicare money to come in to pay down the public debt so
that we are honoring the idea that Social Security and Medicare money
should only be used for those purposes. <br> <br> And we can well
afford this tax reduction and take care of Social Security and
Medicare. The Social Security, Medicare money is what is called locked

00800000000557


Nickoloff, Peter

From: Info @atm [info@atmarkets.org] -
Sent; Thursday, January 17, 2002 3:38 PM

To: Info @atm

Subject: @Markets Newsletter

@Markets Newsletter
@Markets Association News
Vol. 2, Issue 1

Industry News

Online Chemicals Exchanges Merge

On January 10, ChemConnect announced plans to acquire CheMatch, a
rival online chemical marketplace. The combined companies handled $4
billion in transactions and over 10 million metric tons of product in
2001. ChemConnect features auctions, reverse auctions and price
negotiation while CheMatch is primarily a spot market for chemicals.
CheMatch also trades futures on benzine and mixed xylenes through its
partnership with the Chicago Mercantile Exchange. While still subject to
shareholder approval, the deal should be completed by the end of April,
and the new company, called ChemConnect, expects to achieve profitability
by the end of the year. ChemConnect's CEO, John Robinson, will continue
to serve an CEO for the combined company, which will move ite headquarters
from San Francisco to Houston. This is the second major acquisition by
ChemConnect, which bought Envera, a transaction hub for the chemical
industry, in June of last year.

More info:

shttp://www.chemconnect .com/about/press_releases/Jan10-02.html>

UBS Warburg Takes Over Enron's Trading Platform

On Friday, January 11, UBS Warburg, a division of Swiss banking giant UBS
AG, was selected to acquire Enron Corp.'s trading business, beating out
Citigroup Inc. UBS and Enron will file for approval of the deal with the
Pederal Trade Commission and the Justice Department within five business
days, according to documents filed Tuesday, January 15 in U.S. Bankruptcy
Court in Manhattan. UBS Warburg will not pay any cash up front to
purchase the operation. According to the details of the deal, Enron and
its creditors will get 33 percent of the new business' pretax profits for
at least two years. It is a 10-year deal, but UBS Warburg will have the
option of buying one-third of Enron's profit-sharing rights after three
years, and buying the rest of its ¢ in subsequent yea UBS will
bring to the trading operation a AA+ credit rating in hopes of rebuilding
what generated about 90 percent of the Enron‘*s $101 billion in revenue
last year. However, the deal does not include existing contracts Enron
has to supply power, valued at between $6 billion and $7 billion.

In separate but related news, accounting firm Arthur Andersen has
responded to criticism about their involvement with Enron. Recently,
Andersen revealed that "thousands" of documents involved in the Enron
audit were destroyed in October after regulators began gathering
information about Enron's collapse. Andersen Managing Partner and CEO,
Joe Berardino, stated that the company has "recovered many of these
documents from electronic sources and have provided the government with
them." Also, Andersen has fired the lead auditor involved in the Enron
audit and placed three other partners on leave.

Enron Announces Successful Bidder For Wholesale Trading Operation
<http://wew.enron.com/corp/pressroom/releases/2002/ene/011102releaseltrht
ml>

Enron Releases Detaile of UBS Warburg Agreement
<http://wew.enron.com/corp/pressroom/releases/2002/ene/01152002Release. htm

01448

01200000000804

VVVVVY VV VV


Nancy, in 2000, according to the American Cancer Society, 182,800 women
were diagnosed with breast cancer. You organized this incredible event
yesterday, this Race for the Cure, and you've been involved in this for
a leng time. <br> <br> How close do you think the community is to
resolving this issue of breast cancer? <br> <br> NANCY BRINKER,
SUSAN G. KOMEN BREAST CANCER FOUNDATION: Wolf, I think we're getting
closer, and I just want to build on what Dr. Rosenberg said. <br> <br>
The fact is, today we have over 400 compounds in the pipeline ready to
be delivered to the patient. Twenty years ago maybe we had a 100. The
translational research piece of this ia going to be extraordinarily
important all the way down the line: overcoming disincentives for
patients to access care, payment issues, integrating science and
knowledge, making sure that we have enough physicians all the way down
the pipeline -- pathologists, nurses -- so we really can translate the
care from the lab to the bedside. <br> <br> That's when we're
going to see incredible progress, because many of these drugs and
compounds are tailor-made. And as they become more effective, our
technologies are going to have to move through the system faster --
faster FDA approval, all of those issues. <br> <br> BLITZER: But
you've seen some dramatic developments over the past few years. Are
you cptimistic that there can be a cure for breast cancer within, let's
gay, our lifetime? <br> <br> BRINKER: I am extraordinarily
optimistic that within the next few yeare we will have a real
management process for this disease, that it will become, in essence,
more chronic. We at the Komen Foundation understand this is probably
going to be built on stages rather than using the word “cure” right
away. <br> <br> The fact i if we can learn how to prevent the
disease, treat it in ite earliest stage, give people sore quality of
life through quality of care, people will live longer with ‘t. And
then, hence, maybe some day we will have a cure soon. <br> <br>
BLITZER: Michael Milken in Los Angel I know you've been very active
in dealing with prostate cancer. Breast cancer primarily affects, not
exclusively, but primarily affects women; prostate cancer, of course,
men, <br> <br> Give us your sense where we are right now in the
battle against prostate cancer. <br> <br> MICHAEL MILKEN, CANCER
SURVIVOR: Well, we've made a lot of progress, Wolf.<br> <br> And I
want to say hi to Nancy and Steve, we've known each other a long time.
This is actually my 29th year of supporting breast cancer. I'm kind of
a new arrival, only eight years in prostate cancer. <br> <br> But
I think the most telling thing would be that 70,000 less American men
have died in the last eight years from prostate cancer than was
originally projected -- 70,000. That's the same number of people that
saw the Super Bowl in Tampa this year. And so we have had a lot of
progress.<br> <br> Like breast cancer, there has been a growth,
maybe 80 to 100 different things for men with advanced prostate cancer,
that are in clinical trials, and that's probably up from zero 10 years
ago. So there's been significant progress.<br> <br> But Wolf, for
many of us we got introduced to you in the Gulf War 10 years ago. That
was a $61 billion effort that carried over eight months, involved 30
nations and more than a half million people. Tha’ more than has been
invested in the war on cancer in the last 30 years. So it takes
capital. It takes human capital like Dr. Rosenberg, and it takes
commitment in technology. <br> <br> All those things are available
today, and we at CAPCARE, the Association For the Cure of Prostate
Cancer, are looking forward to going out of business in 2003. And
hopefully by that time we'll have prostate cancer under control.<br>
<br> BLITZER: And Michael Milken, I know that when a man is

00800000000562


would be significant public

> participation in the peer review and disciplinary systems for members and firms auditing
SEC registrants.

>

> The new disciplinary and peer review system for members and firms auditing SEC
registrants would be managed by a Board,

> a majority of whom would be public members.

>

> The new peer review system would enhance the reviews for the largest firms, requiring a
more rigorous and continuous

> form of monitoring the quality of the audit process, The reviews would be administered
by the staff of the new Board.

>

> On Thursday, January 17, 2002, SEC Chairman Harvey Pitt will hold a press conference
regarding these matters. As 4

> result, we expect stories to run in all national and trade media. The developments over
the next few weeks and months

> will no doubt be rapid. We will keep you updated through Http://www.AICPA.org aa
solutions are solidified.

>
> The AICPA has been and will remain actively engaged in developing a new model for those
conducting SEC audits and in

> demonatrating leadership and responsibility to the public interest.

James G. Castellano, CPA
Chair of the AICPA Board of Directors

Barry C. Melancon, CPA
AICPA President and CEO

vvuvvVV Vw

H, Pred Mittelstaedt

Professor of Accountancy

374 Mendoza College of Business
University of Notre Dame

Notre Dame IN 46556-5646

E-mail: mittelstaedt.i@nd.edu

Phone: {219) 631-5087
PAX: (219) 631-5255

01200000001505


{(b)(5)]

01200000001134


up in the lockbox, and we have another trillion dollars on top of that.
<br> <br> There is plenty of money to do these things and let the
American people have the fruits of their own labor instead of hauling
it into Washington so it can be turned into more wasteful Washington
programs, <br> <br>

BLITZER: How worried should Americans be right now, Mr. Secretary,
about a recession? <br> <br>

O'NEILL: Well, you know, I'm an optimist, and I think that sost
Americans are optimistic. And so long as we do the things that we know
from economic history are right -- monetary policy that eases and
provides the interest rate that Chairman Greenspan has provided, fiscal
policy that lets people spend their own money, and then the American
people out there, individually and together, working hard to improve
productivity -- cur economy is going to be a continuing fabulous
economy. It's the envy of the whole world.<br> <br> And we are
going to have 3.5 percent real growth rates going forward. We're going
to produce more money that can be gent back to the people than most
people can imagine. <br> <br>

BLITZER: 3.5 percent growth rate this year? Is that what you're
predicting? <br> <br>

O'NEILL: No, no, no, I didn't say this year. I said, it is the
natural tendency, I think, of our economy to be able to grow in the
rate of someplace between 3 and 4 percent real growth. We've got the
fundamentals in place to achieve that. We have the technology, we have
the energy and spirit to make these things happen. We're going to be
fine. «<br> <br>

BLITZER: On that note, I'm going to thank you very much, Mr.
Secretary, for joining us.

O'NEILL: My pleasure. Thanks very much. <br> <br> (END
VIDEOTAPE) <br> <br>

BLITZER: And up next, the wait for justice in the Timothy McVeigh
case. Now that the Oklahoma City bomber is asking for a stay of
execution, what dees his request mean for a final revolution to the
case? We'll ask two men who spent hours talking with McVeigh, authors

Lou Michel and Dan Herbeck. LATE EDITION will continue right
after thig.<br> <br> (COMMERCIAL BREAK) <br> <br> BLITZER:
Welcome back to LATE EDITION. <br> <br> This past week, Oklahoma

City bomber Timothy McVeigh asked his lawyers to seek a stay of his
scheduled June 11 execution. He made the request after the Justice
Department announced it was turning over more previously unreleased
files related to McVeigh's case.<br> <br> With us now from Buffalo,
New York, to offer some insight into this story are two guests:
Buffalo News reporters Dan Herbeck and Lou Michel. They conducted
extensive interviews with Timothy McVeigh. Those interviews were
chronicled in their book, the book they co- authored, entitled,
“american Terrorist: Timothy McVeigh and the Oklahoma City

Bombing. "<br> <br> Gentlemen, welcome to LATE EDITION.<br> <br>
And I want to begin with you, Lou. Is it your sense right now that
Timothy McVeigh no longer wants to be executed, wants to fight this
execution as much as he can? <br> <br> LOU MICHEL, CO-AUTHOR,

00800000000558


Ellis, Dina

From: Carleton, Norman
Sent: Tuesday, December 18, 2001 10:46 AM
To: Wiedman, Mark; Bair, Sheila; Bieger, Peter; Bitsberger, Timothy; DeMarco, Edward; Dorsey,

Karen; Ellett, Martha; Ellis, Dina; Gabilondo, Jose; Gross, Jared; Huffman, Lucy; Hughes,
Gerry; McGivern, Tom; McInerney, Roberta: Nickoloff, Peter; Roseboro, Brian; Saladin,
Anne; Schultheiss, Heidilynne; Smith, Amy; Sutton, Gary; Tishuk, Brian

Subject: = Website (12/17): Sensenbrenner Still Wants Netting Language to Be Part of Bankruptcy

Scnsenbrenner Still Wants Netting Language to Be Part of Bankruptcy Bill

House Judiciary Chairman James Sensenbrenner (R-Wis.) is standing firm in his desire to move so-called
netting language as part of a comprehensive bankruptcy reform bill, a spokesman said, CongressDaily reported.
On Thursday, Sensenbrenner met with House Financial Services Chairman Michael Oxley (R-Ohio) and
Federal Reserve Chairman Alan Greenspan to discuss the possibility of passing netting legislation this year
separate from the beleaguered bankruptcy bill. Federal financial regulators and Financial Services Committee
lawmakers have renewed their calls for that action, in light of the recent collapse of Enron. The netting
provisions are designed to enable quick resolution to complex financial contracts in the event a party in the deal
went bankrupt. However, the netting provisions are one of the few consensus areas in the underlying
bankruptcy bill, which is currently in conference, and proponents are not apt to separate them out, “There was
agreement between everyone that the netting provisions [are] very important,” a Sensenbrenner aide said. “He's
trying to get the bankruptcy bill moving, and that's where we are right now.”

01200000001647


From: Davis, Michele
Sent: Thursday, January 10, 2002 4:10 PM
To: Bair, Sheita; Fisher, Peter; Holahan, Betsy; Nichols, Robert; Gross, Jared
‘Subject: Text of PResident’s announcement today
4 “ |
Home </index.htmi> > News & Policies </news/> _s/news/releases/2002/01/print/20020110-1.ntmi>
</new: ii fe. >

For Immediate Release Office of the Press Secretary January 10, 2002 President Calls for Review of
Pension Regulations and Corporate Disclosure Rules REMARKS BY THE PRESIDENT IN MEETING
WITH HIS ECONOMIC TEAM REMARKS BY THE PRESIDENT IN MEETING WITH HIS ECONOMIC TEAM The
Oval Office 9:42 A.M. EST THE PRESIDENT: Thank you all for coming, I met with my economic security
team last week to talk about ways to create jobs. We're meeting again with the components of the team
to talk about one part of economic security, and that's pension security. One of the things we're deeply
concerned about is that there have been a wave of bankruptcies that have caused many workers to lose
their pensions, and that’s deeply troubling to me. And so I've asked the Secretary of Treasury, Secretary
of Labor and Secretary of Commerce to convene a working group to analyze pensions, rules and
regulations, to look into the effects of the current law on hard-working Americans, and to come up with
recommendations how to reform the system to make sure that people are not exposed to losing their life
savings as a result of a bankruptcy, for example. As well, Secretary of Treasury, along with the SEC, the
Fed, and the CFTC, are going to convene a working group to analyze corporate disclosure rules and
regulations. In light of the most recent bankruptcy, Enron, there needs to be a full review of disclosure
rules, to make sure that the American stockholder, or any stockholder, is protected. And so, I think this is
an important part of, obviously, other investigations that are ongoing. The Justice Department announced
and informed us late yesterday that they're in the process of investigating aspects of the Enron
bankruptcy. The administration is deeply concerned about Its effects on the economy. We're also deeply
concerned about its effects on the lives of our citizenry. I'll be glad to answer a few questions.

01200000001528


MR. FLEISCHER: Let me take another one, then I'll come right back to that.

Q ari, does the President believe Osama bin Laden has been making 4
dirty bomb? And, if so, does he think it has been smuggled into the United
States? Defense Secretary Rumofeld is not sure.

MR. FLEISCHER: As you know, the President, himself, several weeks ago
raised this very issue. And he said that Osama bin Laden has said it's a
religious duty of his adherence to develop such weaponry and to use ie if they
can. So it is something that the President is concerned about and takes
seriously and every precaution is being in place. And that's one of the reasons
it's so important to fight and to win this war against the terrorists. So it's
a source of concern,

On your question about the Hudson River, EPA Administrator Whitman and the
EPA are moving forward on this cleanup of the Hudson River. The Administrator
has made it clear the EPA will continue to have an open process that involves
all the interested parties, including the people in the affected communities.
So that's really the only information I have on it. You may want to talk to

EPA. But they are moving forward.
-i9-

MORE #116-212/05
-~19-

Q She has not said yet, she is waiting to hear from those who are
protesting?

MR, FLEISCHER: she's listening to the various parties as she moves
forward, and you may want to get more specific information from her.

Thank you.
END 12:36 P.M. EST

00800000000841


Bradshaw, Tara

From: Bradshaw, Tara

Sent: Tuesday, October 23, 2001 6:45 PM

To: Weinberger, Mark; Davis, Michele; Smith, Chris; Nichols, Robert
Subject: AP wire story wi! O'Neill quote re: Baucus bill

Attacks-Economy, tst Ld-Writethru, 20750,770
House stimulus bill would give billions to huge companies; Senate

Democrats present alternative

Eds: INSERTS new grafs 14-15, But Treasury ..., to UPDATE with
O'Neill comment

By CURT ANDERSON=

AP Tax Writer=

WASHINGTON (AP) General Motors, IBM and Kmart are among
corporations that would receive billions of dollars in tax refunds
under 3 $100 billion House Republican economic stimulus package.
Democrats say it is far too generous to companies and does too
little for individuals.

Seven companies would get a total of $3.3 billion in refunds of
alternative minimum taxes they paid as far back as 1986. The tax,
which the House legislation also would repeal outright, is intended
to ensure a basic minimum income tax is paid by companies and
individuats that claim numerous deductions and credits,

BM would get a $1.4 bélion refund, according to the
nonpartisan Congressional Research Service, while GM would get $832
million, Kmart $102 million and General Electric $671 million.

Others specified for big refuncs include energy giant Enron, at
$254 million; US. Steel, $39 milion; and grocery chain Kroger, $9
million.

In addition, the study found that Ford Motor Co. would get a
refund that could total $2.3 billion, while Chevron's could reach
$314 million.

Counting repeal of the tax, corporations would get more than $25
billion in tax relief from these minimum tax provisions in 2002
alone. in addition, the bill would make permanent a temporary tax
break for financial services firms doing a lot of overseas
business, providing them $21 billion in tax relief over 10 years.

‘The generous corporate tax breaks are among the most contentious
items in the House GOP measure, scheduled for a floor vote
Wednesday. Democrats say the measure is certain to change once it
reaches the Senate; the Bush administration also has signaled that
5100 bation is too costly.

“it's Clear the House bill cannot pass the Senate as itis,”
said Sen. John Breaux, D-La.

For individuals, the House legislation includes a new round of
tax rebate checks for workers who didn't get them this summer and a
cut in the current 27 percent income tax rate to 25 percent in
2002, four years earlier than under the just-enacted tax cul. The
measure also reduces capital gains rates from 20 percent to 18
percent for most taxpayers, enhances business equipment write-offs
and allows companies to deduct current losses against taxes paid
five years earlier.

‘The primary sponsor, Ways and Means Committee Chairman Bill
Thomas, said in a newspaper opinion piece published Tuesday in USA
Today that the legislation ''is a shot of adrenaline” that wil
help restart the economy while not triggering inflation,

“Businesses generate jobs, and jobs are the core of a strong

1

00800000000927


POWELL; And f'11 make a different -- 1°11 make a lot of judgments as
te whether or not it ie appropriate for me to visit China in the very
near future. I'm looking forward to it, haven't been there in 16
years, and I'm looking forward to visiting at some point in the future
when it's appropriate to visit.<br> <br> BLITZER: And as far as
the president's visit, that’s still set for later this year?<br> <br>
POWELL: It is still on hie calendar, and we haven't had any
discussions recently about changing his calendar, <br> <br>

BLITZER: You have a full calendar, a full agend. «<br> <br>

POWELL: Yes. <br> <br> BLITZER: Mr. Secretary -- General Powell,
it‘s hard for me to still call you "Mr. Secretary,” I'11 call you “Mr.
Secretary,* though. Thanks for joining us. <br> <br> POWELL:

Well, thank you very such, Wolf, <br> <br> (END VIDEOTAPE) <br>
<br> BLITZER: And just ahead, with Democrats expected to take
control of the Senate, there's a new question that has come up: Will
another Republican change sides?<br> <br> We'll talk about the
impact of the new power shift with two leading senators, Utah
Republican Orrin Hatch and Nevada Democrat Harry Reid.<br> <br>

LATE EDITION continues right after this.<br> <br> (COMMERCIAL
BREAK} <br> <br> (BEGIN VIDEO CLIP) <br> <br> SEN. TOM DASCHLE
(D-SD), MINORITY LEADER: We will be providing for 51 place settings in
our caucus, beginning on Tuesday. Fifty-one place settings is, I
think, ample precedent for the one-vote majority that we'll expect to
have in all of the committees.<br» <br> (END VIDEO CLIP)<br> <br>
BLITZER: South Dakota Democrat Tom Daschle discussing the Senate
reorganization scheduled for this Wednesday. Senator Daschle will
assume the title of U.S. Senate majority leader.<br> <br> Welcome
back to LATE EDITION. <br> <br> Joining us now to talk about the
change and its impact on the legislative agenda are two leading members
of the Senate, Here in Washington, Utah Republican Senator Orrin
Hatch. As a result of the power shift, he'll be the ranking wember of
the Judiciary Committee. And joini is from his home state of Nevada,
Senator Harry Reid. He's the Sena second ranking Democrat and will
assume the title of majority whip.<br> <br> Senators, good to have
you back on LATE EDITION. <br> <br> I want to get right to power
shift and all of that, but I want to begin quickly, Senator Hatch, are
you satisfied with the way the Bush administration has been trying
conduct ite policy between the Israelis and as the Palestinians?<br>
<br> SEN. ORRIN HATCH (R), UTAH: I think General Powell, Secretary
of State Powell summed it up pretty well. I think they're doing their
very best. It's a serious set of problems that's gone on for
centuries, as you know. And I believe that he knows that there is a
point where they have to get involved, but both sides have to be at
that point. <br> <br> My heart goes out to these families that
ilost their kids over the weekend. And there is no question Arafat, in
making that statement, made a good statement, but now it's time to show
that he means something. <br> <br> He let all of those terrorists
go last fall. I think he has to arrest those responsible, and he's got
to put them in jail. <br> <br> BLITZER: Senator Reid, is it time
for the U.S. to step up its involvement in the effort to the resume
peace negotiations?<br> <br> SEN, HARRY REID (D), NEVADA: Wolf,
one thing I've learned is that we have 535 secretaries of state. Every
member of Concress thinks they could do a better job than whoever is
secretary of state, <br> <br> I have the philosophy that we kind
of to leave this in the hands of those that are doing the foreign
policy. Secretary Powell is in on a lot of confidential information
that I'm not party te. I have confidence in him. I think he should be

00800000000552


Health Care/Pharmaceuticals- Down 10.27% YTD
Techs- Down 23.018 YTD

Transports- Down 2.53% YTD

Utilities- Down 34.03% YTD

tee

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obtain appropriate written documentation where necessary.

01200000000946


Weekly Activity Report, Federal Finance Policy Analysis, December 10, 2001

[OUTSIDE SCOPE , (b)(5)]

{((b)(5))

01805

01200000000461


http: //wew. investorguide.com/cgi-bin/daily.cgi?05623

Senator Kennedy called yesterday for postponing $350 billion in
scheduled tax cuts for Americans making more than $130,000 a year,
becoming the most senior Democrat to propose a rollback of the tax cut
that was the signature accomplishment of President Bush's first year.
(source: Washington Post)

http://www, investorquide.com/egi-bin/daily.cgi?osé2z4

Analysis:

The aftershocks from the collapse of Enron, a Texan energy-trading
firm, in history's biggest corporate bankruptcy, may yet destroy the
firm's auditors, Andersen, reducing the Big Five of global accountancy
to the Big Four. The survivors might find themselves facing a harsher
regulatory climate. (source: The Economist)

http://www. investorguide.com/cgi-bin/daily.cqi?0s625

A recent report by Sweden's central bank examines 52,000 forecasts
made by 250 institutions for inflation and economic growth in the
U.S., Japan, Great Brit Italy and Sweden during the period
1991-2000, The most pot i
inflation are significantly mor
Investors who engage in short-term market timing might do best trading
on forecasts of CPI and ignoring or trading against those for GDP.
(source: Forbes)

http: //wew, investorquide.com/cgi-bin/daily.cgi?0s626

The U.S. government has been quietly taking some giant steps forward
over the past few weeks in the fight against cybercrime. In November,
the Department of Defense awarded a $86 million contract to Computer
Sciences Corporation to train cybercrime fighters. According to
Jupiter Media Metrix, at least 25 cente of every $100 spent online is
lost to online fraud. (source: Ecommerce Times)

http://www, investorguide .com/egi-bin/daily.cgi?0S627

If you have any friends or colleagues who would appreciate getting
this news every day, follow this link (or if you prefer, simply
forward thia issue to them):

http://www. investorguide , com/cgi-bin/recommenddaily .cgi

You can research companies mentioned in today's news by following

these lin!

Apple http://www. investorguide.com/cgi-bin/r.cai?name-AAPL
Comp. Sciences http://www. investorguide.com/cgi-bin/r.cgi?name=CSC
Compaq torquide.com/cgi-bin/r.cgi?name=CPQ
Enron http://www. investorguide.com/cgi-bin/r.cgi?name-ENRN
Ford http://www. investorquide .com/egi-bin/r.cgi?name=F

General Electric
IBM
Microsoft

http://www. investorguide.
http://www. investorguide,
htep://wew. investorguide.

com/cgi-bin/r.cgi?name=GE
com/eqi-bin/r.egi?name=I5M
com/egi-bin/r.cgi?namesMSFT

You can research any publicly traded company by following this link:
http://www. investorguide,com/research.html

earnings

Barning News:

Microsoft's profits are expected to exceed estimates when it reports
quarterly results on Thursday, lifted by a better-than-expected PC
market and cost-conscious companies that turned to its enterprise
software as a cheaper option in a tough economy. However, the software
giant's profits are expected to fall about 9 percent from a year

2

01453

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Page | of 1

Fisher, Peter

From: Wiedman, Mark

Sent: Friday, January 11, 2002 6:15 PM

To: Roseboro, Brian; Gross, Jared; Fisher, Peter

Subject: Sec O'Neill's comments on Presigential directive on corporate disclosure review
From a television interview Thursday night, | think . . .

On what President George W. Bush has asked him to do today:

“"The president tasked me to one, head a committee that
includes Don Evans and (Labor Secretary) Elaine Chao to look at
the Enron case and other bankruptcy cases to pay special attention
to the question of whether we need to amend the rules that govern
pension plans and 401k plans to provide a greater deal of
assurance to individuals who have a stake in pension plans and
401k plang,'* he told CNN. “"That is driven by the president's
concern about the individual employees. The president said to me
we need to see if there is something we need to do so that we
learn from this. If there is a weakness in our rules let's fix the
rules.''

“*and the second committee the president asked me to convene
is one that's a standing committee, the president's economic
committee. That includes myself and Alan Greenspan, the head of
(the Commodities Futures Trading Commission} and Harvey Pitt of
the SEC. The charge the president's given us is to look at the
Enron case and other cases and see if we need to adjust the
disclosure rules so that shareholders and employees have all the
information they need to make intelligent decisions. This ia not
about Enron, this is about making sure the rules that govern the
way our economic system works are worthy of the conditions that
we're dealing with these days to assure that individuals are not
hurt because of a weakness in our rules.''

1/17/02 .
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DEPARTMENT OF THE TREASURY
WASHINGTON

ASSISTANT SECRETARY

November 10, 1999

The Honorable Senator Charles Grassley

The Honorable Robert G. Torricelli

Subcommittee on Administrative Oversight and the Courts
Committee on the Judiciary

United States Senate

Washington, D.C.

Dear Chairman Grassley and Senator Torricelli:

I am writing regarding proposed amendments to title IX of S. 625, the “Bankruptcy Reform Act of
1999,” Title LX includes financial contract netting provisions, the primary purpose of which is to
reduce systemic risk in the event of the insolvency of a financial firm with obligations that could
create a ripple effect throughout the financial markets. We strongly support passage of title IX.

We understand that proposals may have been sent to you to amend title IX by changing the
definition of “swap agreement” and by expanding the automatic stay provisions. Staff of the
agencies that comprise the Working Group on Financial Markets have reviewed these proposed
amendments and discussed them with industry representatives, As a result of our review, we
Support some of the proposed changes but oppose others because they would not reduce systemic
risk, may prefer one creditor over another with no apparent justification, and would reduce legal
certainty.

Proposed amendments to the definition of “swap agreement.” One of the proposals we reviewed
would expand the definition of “swap agreement” in S. 625 to include instruments based on an
economic “or other” index or measure of economic risk or value. This change would provide
financial contract netting treatment for those financial instruments that are not based on economic
indices, e.g., a weather derivative contract. We do not oppose this change. It adds to the list of
instruments covered in the definition an important category of risk-shifting tools. Providing netting
treatment to such instruments would provide additional support for the development of markets for
these products.

A second proposal would change the definition of “swap agreement” by adding to the list of the
types of agreements covered “a weather swap, weather derivative, or weather option.” We believe
these weather-related instruments are included in the definition of swaps currently in the bill, and in
particular would be included following the proposed change noted above to include in the definition
instruments based on an “other” index. Thus, we believe the proposed language on weather-related
instruments is unnecessary but do not oppose its inclusion.

A third proposal would change the definition of “swap agreement” by eliminating the requirement

that contracts be “regularly entered into in the swap market.” We strongly oppose this proposal.
We reiterate that the primary purpose of the financial contract netting legislation is to reduce

01000000001444


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00800000000829


The capital hosts a race for the cure. How close are we to beating
cancer? we'll get perspective from Breast Cancer Foundation founder
Nancy Brinker, Dr. Steve Rosenberg of the National Cancer Institute,
and cancer activist Michael Milken.<br> <br> Plus our LATE EDITION
roundtable: Steve Roberts, Susan Page and David Brooks.<br> <br>

And Bruce Morton has the “Last Word" on the president's fiscal
fairytale.<br> <br> Welcome back. We'll get to our discussion
about cancer and the possibility of a cure in just a moment, but first,
let's go to Donna Kelley in Atlanta for a check on the hour's top
stories. <br> <br> (NEWSBREAK) <br> <br> BLITZER: We turn now
to the fight to cure cancer. Joining us, three guests: Nancy Brinker
is the founder of the Susan G. Komen Breast Cancer Foundation and Race
for the Cure. The foundation is named in honor of her sister, who died
of the disease. Or. Steve Rosenberg is chief of surgery at the
National Cancer Institute. And joining us from Los Angeles is
philanthropist and cancer activist Michael Milken.<br> <br> Thanks
to all of you for joining us on LATE EDITION.<br> <br> And, Dr.
Rosenberg, I want to begin with you. The war on cancer, how winnable
ie it? <br> <br> DR. STEVE ROSENBERG, NATIONAL CANCER INSTITUTE:
It's important to keep the problem of cancer in perspective. We can
teday cure about half of all people who develop the di by the
application of conventional treatments such as surgery, radiation
therapy and chemotherapy.<br> <br> And so, in many ways, cancer is
a@ very curable disease. The problem is, the incidence is eo high, over
1,200,000 cases in the United States each year, that the half of people
that cannot be cured amount to almost 600,000 deaths. <br> <br>

Sut we're learning a great deal about the scientific basis of cancer,
its cause, how it progresses, how it spreads through the body. And the
more we understand, the more likely we are to develop good rational
treatments. And I think we're seeing substantial progress based on
this scientific explosion of information. <br> <br> BLITZER:

Well, one of the dramatic developments that's been widely reported the
lant few weeks is this pill, Gleevec, that deals specifically with a
rare form of leukemia that seems to have this incredible success rate.
It goes after only the bad cells. It doesn't go after the gocd cells
like chemotherapy and radiation does. How encouraged should we be by
this development?<br> <br> ROSENBERG: It's a wonderful example
that concerns how increased scientific understanding can lead to a new
treatment. This disease, which ia uncommon, acute myeloid leukemia, is
the result of two chromosomes that break and join together in a very
unique way. And in joining together they form a molecule that can be
the target of attack. And a small-molecule drug has been developed
that can attack that new molecule that exists only in patients with
this dis and only in the bad cells. <br» <br> And so it's an
example of how, the Sore we understand scientifically, the more likely
we are to develop effective treatments. And so I think it bodes well
for the future. <br> <br> BLITZER: Ia it the sense in the
community, among the experts -- and you're one of them that this
breakthrough in this rare form of leukemia, with thie pill, could be
used in other forms of cancer?<br> <br> ROSENBERG: This drug
itself will only be effective in patients with this one unique kind of
leukemia and some other rare diseases..,.<br> <br> BLITZER: But the
concept?<br> <br> ROSENBERG: But the concept is what's critical.
And that is, if we understand the molecular basis of the cause of
cancer and its progression, we can develop rational therapies to combat
the disease. And I think it bodes very well for the application of this
scientific information to patients with cancer.<br> <br> BLITZER:

00800000000561


{(b)(5))

01200000001315


unrest, yet it was milked for huge markups by politically linked suppliers and
contractors,

So the advisers urged caution. Mr. Jezek, the government power consultant,
recommended starting with geothermal and small gas-fired planta that could be
expanded once PLN tackled its many problems. He and others also argued for
competitive bidding. Instead, Mr. Suharto, Mr. Ginandjar and Research and
Technology Minister 8.J. Habibie, now Indonesia's president, hand-picked
developers to lead the charge into big, high-risk, coal-fired power stations,
Mr. Jezek and other advisers say.

"Ginandjar told me Indonesia had nothing to learn from the private-power
experiences of Pakistan, the Philippines and Latin America, because Indonesia
wasn't a banana republic,” says Mr. Jezek.

Mr. Ginandjar says he doesn't recall that conversation. He says he doesn't
dismiss other developing countries’ private-power experiences, and in fact
commissioned studies of them. He notes that the World Bank and other
multilateral agencies were pushing big power projects.

At Paiton One, cronyism reared up from the start. According to Paiton One
Project documents, Mr. Suharto, after a personal appeal by then-Vice President
Quayle, first chose closely held Intercontinental Electric Inc., Hingham,
Mass., along with the president's second son, Bambang Trihatmodjo, to build
the first Paiton plant. (Mr. Quayle declines to comment.) The $1 billion in
debt the project required put Indonesia over its self-imposed limits on
foreign debt at the time. Not only had Mission-GE lost cut on the first Paiton
deal, but it couldn*t do other power projects in the country because they
would further bust Indonesia‘s debt limits.

Me. Habibie came to the rescue. In a December 1991 letter, he instructed
Mission-GE to circumvent Indon s debt restraints by creating an offshore
company to finance Indonesian power projects. It’s not clear how that would
have overcome the debt limits; in fact, many project advisers think it was
pure artifice. Still, Mission-CE agreed to the plan, praising Mr. Habibie’s
“innovative and creative approach” in a letter back to him, (Eventually,
Indonesia allocated Paiton One enough borrowings so that the offshore
mechanism wasn't needed.)

The Bambang-Intercontinental deal fell apart because of various
disagreements over terms. Mission-GE won the contract on the rebound -- with
conditions. The government ordered Mission-GE to negotiate a possible link
with Mr. Bambang's consortium, and to purchase Paiton One's boilers <= among
the costliest components in any power plant -- from ABB Combustion
Engineering. Mr. Habible was chairman of Combusticn’s state-owned Indonesia
affilia according to a report by government-consultant Lahmeyer. Mr.
Bambang was ABB Combustion's
commercial agent in Jakarta, the company confirms.

Extra cost of the mandated boilers, over boilers Mission-G& had wanted: $20
million,

An ABB Combustion spokesman says it sold boilers to Paiton One after winning
bidding, but doesn't know other details of the bidding process. Mr. Bambang
and Mr. Habibie declined to comment for this article, as did Mr. Suharto.

Talks on Palton One's electricity tariff dragged on for months. The
Mission-GE consortius was asking 10.3 cents per kilowatt-hour of electricity,
nearly double the government's bid of 5.2 cents. Indone advisers disputed
Mission-GE"s cost justifications, particularly its estimates for construction
costs, coal prices and return on equity. Mission-GE argued ite projections
reflected unexpected delays, extra construction demands by the government and
power venture.

The logjam broke in mid-1993, Indonesia's chief negotiator shocked his team

01000000000963


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To unsubscribe send a blank email to lea

joe.engelhardédo.treas.gov
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00500000000416


1997 in response to the country’s economic crisis.

Meanwhile, AFP reports a World Bank unit promoting direct foreign investment in
developing countries said yesterday it was ready to resume activities in
Indonesia after the country agreed to reimburse the agency 15 million dollars.

The news comes as Lee Kuan Yew, Paul A. Volcker, Nobuo Matsunaga and Ulrich
Cartellieri write in an op-ed addressed to President Wahid in the IHT {p.6) that
the IMP and the World Bank are not alone in expressing concern about the pace,
consistency and transparency of efforts by your government to speed asset
disposals by the Indonesian Bank Restructuring Agency, recapitalize the banking
system and remove barriers to foreign investment.

Close IMF surveillance of those programs should be welcomed as a counterweight
to political or special interests that tend to impede or frustrate evenhanded
treatment of investors and rapid recovery of asset values.

INDONESIAN NIKE WORKERS ALLEGE SEXUAL HARASSMENT: REPORT. The FT (p.1) reports
a study into conditions at Indonesian contract factories used by sport shoes
group Nike has uncovered allegations of sexual harassment and physical and
verbal abuse. Interviewees claimed two employees in different plants had died at
work having been denied medical attention. Workers in one factory claimed female
recruits were encouraged to "d managers to ensure promotion.

Nike, which will release the report today, said the findings were “disturbing".
It promised to implement a detailed “remediation plan* involving harassment
training, grievance systems and stronger workplace policies.

The 104-page report was produced by the Global Alliance for Workers and
Communities, a group of not-for-profit foundations, international institutions
such as the World Bank and corporations including Nike and Gap.

In a separate story, the FT (p.4) reports Rick Little, chairman of the operating
couneil of the Global Alliance for Workers and Communities, says:
“Unfortunately, it's a story that could be told about hundreds of major brands
and companies, in many countries." The main thrust of the Global Alliance's
report is not about such controversial imsues as harassment or abuse. The
alliance’s stated mission is to “improve the lives and future prospects of
workers involved in global production and service supply chains.*

The WSJE (p.1) and the New York Times (p.C2) also report.

LOAN TO ZAMBIA WAS ENTIRELY APPROPRIATE: IMP. Far from ignoring indications of
irregularities in Zambian cobalt sales, the IMP was the first to raise the issue
with the Zambian government, writes IMP African Department Associate Director
Ernesto Hernandez-Cata in a letter to the editor of the Financial Times. The
government agreed to the commissioning of an independent, outside audit as a
condition for Fund lending and debt relief, and immediately launched the audit,
Hernandez-Cata notes.

It was an IMF economist who discovered the discrepancy between the marker price
of cobalt and the actual return under the contract signed by Zambia Consolidated
Copper Mine (ZCCM) two years ago, Hernandez-Cata adds. As a result, the June
30, 2000 letter of intent for the IMF's concessional loan to Zambia indicated
that the audit of the cobalt arrangement would be launched.

It was precisely Zambia's agreement to proceed with the audit that allowed the
IMP loan and the subsequent debt reduction accord to go ahead. With that
agreement in place-and because ZCCM is no longer a government entity and has new
management-it was entirely appropriate to move rapidly to help a country facing
a heavy debt burden and severe poverty.

EUROPE THREATENS MUGABE WITH END TO AID PACKAGE. Europe is to take the
6

00500000000412


_
TREASURY CLEARANCE SHEET NO.

Date: aber 10, 1999.
MEMORANDUM FOR: © SECRETARY © DEPUTY SECRETARY © EXECUTIVE
D ACTION © BRIEFING INFORMATION (0 LEGISLATION
COPRESS RELEASE © PUBLICATION OC REGULATION 0D SPEECH
0 TESTIMONY 0 OTHER
FROM: Tom McGivern
THROUGH:
SUBJECT: Lemer to Senators Grassley and Torricelli regarding proposed changes to the financial

contract netting provisions (title IX) of the S, 625, the “Bankruptcy Reform Act of 1999"

REVIEW OFFICES (Check when office clears)
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O Financial Inetetons

D Unter Secremry for Endorsement
OATF

| INITIATOR(S)
| McGivern
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by phose
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110/99
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01000000001443


McCall, Neal

or perder 14, 2002 4:38 PM
To: Beware” Edward: McCal
Subject: FW: for Secretary's spon one TOMORROW

This may help in terms of the TPs you are doing

Sheita

-——-Oniginal Message-—

From: Baw, Sheila

Sent: Monday, January 14, 2002 4:35 PM
To: Carts, Michele

RE: for Secretary's speech TOMORROW

I'm sorry | diin't get back to you. f've been in meebngs all afternoon, In any event, you obviously didn't need me. This is
great

| would slightly rework the second para as follows

{(b)(5)]

one Original Message---~

From: ams, Michele

Sent: Lee nay 2002 1:41 PM
To: Bair, Sheila

Subject: for Secretary's speech TOMORROW

What do you think of these few paragraphs?

{(b)(5))

01200000001170


them to fluctuations in Enron stock. The company coordinated their pension plan and their employee
stock ownership plan, so that the value of their ESOP accounts permanently erased benefits in their
pensions.

That is because Enron had a “floor-offset” a ment, which has been used by many companies,
including Hewlett-Packard Co. and Airborne Inc. These arrangements are intended to provide
participants with the "better of" the two plans, the savings plan (either an ESOP or a profit-sharing
plan) and the pension.

In a simple floor-offset arrangement, if an employee leaves the company and his ESOP account is
worth, say, $60,000, the company figures out how much this would be worth if it were converted to an
annual pension in retirement. In this case, the ESOP’s equivalent value might be $6,000 a year in
retirement. If the employee has already earned a pension worth $50,000 a year in retirement, the
employee wouldn't get $56,000 a year -- the combination of the two — but just $50,000. (The $6,000
annual ESOP value is subtracted the penton, so the person ends up with an annual pension of
$44,000, plus the $6,000 a year from his ESOP account of $60,000.)

If the ESOP performed really well, and was worth, say, $70,000 a year if converted to a pension, the
employee would simply keep the ESOP, and not get the pension. If the ESOP didn't rm weil, the
pension would serve as the “floor” benefit. In other words, even if the ESOP fell to zero, the
employee would still have his full pension of $50,000 a year.

But it didn't work this way at Enron, even though the ESOP accounts have become virtually
worthless because of the decline in Enron's stock. In an unusual arrangement, Enron calculated the
ESOP “offsets” based on the price of the stock from 1996 to 2000, when it was trading between
$37.75 and $43.44. It then used the locked-in value of the ESOP accounts to permanently offset the
value of pensions that employees had earned between January 1987 and January 1995.

\n other words, Enron has reduced the amount of the pension by subtracting the former -- and far
higher -- value of the ESOP, even though the ESOP today has virtually no value and thus can't make
up for the difference.

Employees might have been all right if Enron stock had continued to rise, because gains in the
accounts could eventually have made up for the permanent offset. (The increases would have
povenect completely on stock appreciation, because the company stopped contributing to the ESOP
in *

“It was as if someone assumed the stock would never drop,” says Stephen Bruce, a pension lawyer
in Washington, D.C. "It was a bad deal if the stock dropped,” he says, because this precluded
employees from ever making up for the permanent offset.

Employees will still receive their pensions -- albeit at the reduced values. How much employees lost
eens on ie size of the pension they had earned, and the value of their ESOP accounts from
1 to je

Employees did have some opportunity to protect themselves from the subsequent exposure to Enron
stock in their ESOP. One time each year from 1996 to 2000, employees could transfer one-fifth of the
value of their ESOP accounts into a 401(k) or an Individual Retirement Account and diversify out of
company stock.

Separately, Sens. Barbara Boxer (D., Calif.) and Jon Corzine (D., N.J.) said Tuesday they will
propose limits on the amount of company stock employees can hold as part of their 401(k) retirement
plans.

The proposed legislation would limit employee 401(k) investments in company stock to 20%, and it
would limit to 90 days the period of time an employer can require its workers to hold a matching stock
contribution before divesting themselves of it.

-- Bryan Lee contributed to this article.

01200000001173


Hughes, Gerry

From: Carleton, Norman

Sent: Wednesday, December 19, 2001 3:43 PM

To: Wiedman, Mark; Bair, Sheila; Bieger, Peter; Basberger, Timothy; DeMarco, Edward; Dorsey,
Karen; Ellett, Martha; Ellis, Dina; Gabilondo, Jose; Gross, Jared; Huffman, Lucy; Hughes,
Gerry; McGivern, Tom; Mcinemey, Roberta; Nickolotf, Peter; Roseboro, Brian; Saladin,
Anne; Schultheiss, Heidilynne; Smith, Amy; Sutton, Gary, Tishuk, Brian

‘Subject: Converation with Frank Hampton and ABI Website: House Leaders Continue to Push Netting
Provisions

According to Frank Hampton of TBMA, Dick Armey is also pushing the netting legislation. However,
Sensenbrenner hopes to acheive a compromise on the larger bankruptcy legislation by February and is opposed
to passing the netting legislation separately. In the Senate, Grassley is also opposed to a separate netting bill
and is reportedly avoiding a meeting with Greenspan to discuss this,

Norman Carleton

ABI Website news:

December 19, 2001

House Leaders Continue to Push Netting Provisions

House leaders are trying to nudge forward legislation that seeks to prevent systemic financial crises by allowing
creditors to “net out” their derivatives losses with major counter parties that have filed for bankruptcy, The
American Banker reported. It is still unclear, however, whether even they will be successful in overcoming the
political obstacles that have stalled it for more than a year - especially considering that Congress is expected to
adjourn for the year as early as this week. Majority Whip Tom DeLay (R-Texas) “believes that it’s important to
get the netting provisions done, either within the context of bankruptcy reform or elsewhere,” a spokesman said,

Such highly technical bills rarely attract the attention of top House or Senate leaders, but the recent collapse of
Enron Inc. has given the netting legislation newfound relevance. Federal Reserve Board Chairman Alan
Greenspan und Treasury Secretary Paul O'Neill say markets are at risk until a law is enacted that allows
contracts to be quickly and easily netted out without the approval of slow-moving bankruptcy courts. Holding
it up. however, is House Judiciary Committee Chairman James Sensenbrenner (R-Wis.), who heads the House-
Senate bankruptcy legislation conference committee. The netting legislation is a part of the bankruptcy reform
legislation. Sensenbrenner and some Senate Judiciary Committee members, including bill sponsor Charles
Grassley (R-lowa), oppose passing the netting authority separately because they still hope that the relatively
uncontroversial provisions will propel the bankruptcy package.

Though industry sources said they have received commitments from House leaders that netting will be enacted
by year-end or soon thereafter, they are not expected to force a vote without the support of Sensenbrenner.
Even after a meeting last week with Greenspan, Sensenbrenner maintained that he was “going to try to keep it
in the bankruptcy package.” his spokesman said.

01200000001290


Sent Pray, November 02,2001 Sa PM

To: Michele. davis@do.treas.gov
Subject: Comerstone schoo!
Comersare Cwetren
aha Michele -

I forgot to hit you up for this yesterday.
Best,
Pat

PS I need your fax number.

<<Cornerstone Christmas 2001.doc>>

This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain
confidential and privileged material for the sole use of the intended recipient (5). Any
review, use, distribution or disclosure by others is strictly prohibited. If you are not
the intended recipient {or authorized to receive for the recipient), please contact the
sender or reply to Enron Corp. at enron.me: ing.administration§enron.com and delete all
copies of the message. This e-mail (and any attachments heretc) are not intended to be an
offer {or an acceptance} and do not create or evidence a binding and enforceable contract
between Enron Corp. (or any of Lts affiliates) a: the intended recipient or any other
party, and may not be relied on by anyone as the basis of a contract by estoppel or

oo

.

00800000000322


Page | of 3

From: Cetina, Jill

Sent: Friday, December 07, 2001 4:45 PM
To:

_DL_Market Group; Andrew Sacher; ClayLowery; Enc Otto; Griffiths; Hoffman; MegLundsager;
Paul Reid; PMalmgren; Wayne

Subject: Market Weekly Report, Dec 3-7
((b)(5)}

01/16/2002

01200000001413


Weekly Activity Report, Federal Finance Policy Analysis
December 21, 2001 — January 11, 2002

[OUTSIDE SCOPE , (b)(5)}

{(b)(5)]

01807

01200000000463


different epoch. Before us, in the middle of a 19th-century
pile of stones, which everyone pretty much assumed could
never be changed, is a cube farm. Light pours in from tall
windows. It is clean and neat and open and straightforward
and hopeful. It is, in fact, a replica of an Alcoa cube
farm.

*'Look at all that light,'’ he says. ''Isn't it
wonderful?''

REASON NO. 3: 'TAKING THIS JOB IS GOING TO COST ME $250
MILLION’

In 2000, hie last year as chairman of Alcoa, O'Neill made
$25 million. When he left the company, he had almost 4
million stock options and 2,37 million shares, worth
another $80 million. The O'Neill fortune was different from
the fortunes accumulated by the other pooh-bahs in the Bush
administration. Powell made his tens of millions mainly
speaking about leadership to businesspeople who wanted to
rub shoulders with him. Rumsfeld and Cheney made their tena
of millions as stewarde of, and arrangers for, businesses
they had no great effect upon. And Bush of course himself
made his millions through connections.

O'Neill was truly different. If you asked a seriously
competent American C.E.0, -- that is, one you have never
heard of, because he doesn't hire people to get his name in
the papers -- whom in the Bush administration he admires as
a@ businessperson, the only name he would come up with would
be O'Neill's. Only O'Neill made his money by transforming 4
business and making it more productive.

Taking the Treasury job meant walking away from the bigger
part of his Alcoa-based fortune. He could sell the stock,
but he assumed, at least at first, that he would have to
give up his stock options. Interestingly, he calculated the
value of these options at $250 million. Well-established
pricing models value these options at roughly $25 million.
O'Neill got to his number using financially naive
assumptions about how high Alcoa stock was likely to go in
the next 10 years, Whatever. It was a lot of money, ‘'It
wasn't my money ultimately,'' he says. ‘'It was my
children's, So I talked to them before I went to this
lunch'’ -- with Bush and Cheney -- ‘‘and I told them that
it's not my money, I have more money than I'll ever use,
it's your money, And they said, If this is the price of
your doing it, fine. They didn't give a damn.'*

His daughter Julie recalls less being consulted by her
father than her father calling her and her siblings
together to inform them of his decision -- which is maybe a
tiny sign that when O'Neill makes important decisions he is
less interested in a flat management structure than he
would like to think.

In any case, the kids honestly didn't care about the
millions, and O'Neill liked that they didn't care. Then
things got complicated: Treasury lawyers told O'Neill that
he could exempt himself from decisions that might affect
Alcoa's stock and keep his Alcoa stock options. He decided
te try it. He couldn't imagine anyone accusing him of
ethical lapses because no one ever had, with reason. Por
the first three months on the job, he woke up every morning
to find another jab in the newspapers about his potential
conflicts of interest, as both a huge Alcoa shareholder and .
i

01200000001490


On other issues, the New Democrats are developing a comprehensive energy policy
because they said the West Coast's energy problems are threatening the ability for future

high-tech growth in the region.

01200000000971


Page 5 ol 5

(()(5)]

01/16/2002

01200000001415


<br> <br> BLITZER: All right, Michael Milken, unfortunately we
have to leave it right there. We could go on and on but we don't have
the time. <br> <br> Michael Milken in Los Angeles, thank you very
much. <br> <br> Dr. Steve Rosenberg, always a pleasure to see you
here. <br> <br> Nancy Brinker, you're getting ready to be
confirmed ag the next U.S. ambassador to Hungary. Good luck overseas
once you get that confirmation. Thanks.<br> <br> And thanks for
all your excellent good work to all of you.<br> <br> BRINKER:
Thank you, Wolf.<br> <br> BLITZER: And just ahead, did President
Bush score any points on energy and the environment with his visit to
California? We'll go ‘round the table cn that and much more with
Roberts, Page and Brocks. <br> <br> LATE EDITION will be right
back. <br> <br> (COMMERCIAL BREAK) <br> <br> BLITZER: Time now
for our LATE EDITION roundtable. Joining me, Susan Page, Washington
bureau chief for USA Today; Steve Roberts, contributing editor for U.S.
News and World Report; and David Brooks, senior writer for the Weekly

Standard, <br> <br> Thanks for joining us.<br> <br> Steve, the
McCain-Daschle get together this weekend in Arizona, what's your take?
<br> <br> STEVE ROBERTS, CNN COMMENTATOR: Well, I think clearly

John McCain loves all the attention we're giving him, He's gone arcund
saying, “No, no, no, I'm really not leaving the Republican Party,” and
I don't think he is contemplating leaving the Republican party. <br>
<br> But I do you think he is intending to work more closely with
Democrats on certain specific issues. Already done this on campaign
financing, HMO reform, certain gun control matters.<br> <br> You
know, and Trent Lott ys, "We're going to war, and we're going to" --
it's like he's not 1 ening. He tried to bully Jim Jeffords. Look
where it got him. He's trying to bully John McCain, and I don't think
it's going to work. <br> <br> I think McCain's got a let of
leverage, he's going to work with Democrats. I think he's going to
stay in the Republican Party, but he's going to be a pain in the neck
for Trent Lett and for George Bush. BLITZER: You know, we heard
Senator Hatch, David, say that, yes, McCain agrees with the Democrats
on a whole host of issues, but on many, many more he agrees with the
Republicans, Is that accurate? <br> <br> DAVID BROOKS, CNN
COMMENTATOR: That is true. <br> <br> BLITZER: He does? <br> <br>
BROOKS: Yes. I mean, he's conservative on abortion. He's
conservative on budget issues, way more conservative than George Bush.
He's conservative on defense, way more conservative than Bush, wants to
mds a lot more money.<br> <br> There are two issues here.

# the one that is the McCain issue, and then there's the third-
party issue. McCain, I know for a fact, was upset yesterday when The
Washington Post headlined a story that he was considering leaving the
party. He generally does not want to leave the party. He doesn't
think he’s coing to rum for president. He thinks he's going to be tco
eld in three years. We thinks Bush is going to be running again. <br>
<br> But then there's the third-party issue. The Republican Party
has moved a little te the right. The Democratic Party, I think, has
moved way to the left. There is room there for a third party. J don't
think McCain will leave it. But I think it's possible that we could
see something over the next couple of years if the Bush presidency goes
down the tubes. <br> <br> BLITZER: Should the Republicans be at
all nervous about the possibility that John McCain could follow in Jim
Jeffords’ footsteps and, at a minimum, become an independent?<br> <br>
SUSAN PAGE, CNN COMMENTATOR: Well, one thing to remember is that it
wouldn't have the kind of cataclyamic effect that Jeffords did, because
the Senate's already been tipped to Democratic contro] .<br> <br>

00800000000567


Weekly Activity Report, Federal Finance Policy Analysis, December 3, 2001

[OUTSIDE SCOPE , (b)(5)]

01804

01200000000460


Q Ari, despite philosophical differences between Democrats and
Republicans on the economic stimulus package, it's already December 5th, Does
the President feel he will get an agreement?

MR. FLEISCHER: He just doesn't know, No one can say what Congress will
do. It's up to Congress, finally. The President will continue to be helpful,
but obviously, the Senate was not even e to pass a bill. Unlike the House of
Representatives, which was able to pass a stimulus bill, the Senate could not.
Now the administration is going -- taking the extra step of working with the
Senate in a way that really is unprecedented, it's not common that one branch of
the Congress passes a bill -- or one House in the Congress passes a bill, the
other doesn't, But the President thinks it's 80 important to help the economy
that a new an entirely new procedure has been put in place to help the Senate
te complete its work.

Q Let me ask you about fast track authority, which, as you said, is an
uphill fight, hasn't been approved for a President since 19% Dick Gephardt is
the leader of the House, a Democrat. He opposed it then, he hasn't stopped
opposing it. What makes the President believe that this time he'll get the
votes? He needa at least 30 Democratic votes.

MR. FLEISCHER; Well, that's why I make no predictions about how votes will
go. This has been in modern times a very difficult issue. But because the
President believes in it so strongly, because of the points I made earlier about
its ability to create jobs on the home front and give the President the
authority he needs when he meets with heads of state and others to negotiate
trade agreements, the President is hopeful that the power of reason and the
principle behind free trade will convince enough members of Congress to put it
over the top. We'll see.

"

Q Ari?
MR. FLEISCHER: Lester?

Q All nine Republican members of the Senate Judiciary Committee have
charged that Chairman Patrick Leahy has used what they termed, quote,
“misleading statistics,” to try to defend what they charge is a disgraceful
effort to block President Bush's judicial nominees. And my question: Does the
President agree with these nine fellow Republicans, and what does he think of
Leahy's objections to military tribunals?

MR, FLEISCHBR: You're asking two questions, one on judicial nominees and
the other on tribunals,

Q Make it one. (Laughter.} Does he agree with the other Republicans?

MR. FLBISCHER: T'm not sure how to make that one. Well, military
tribunals, 1 think you've heard that directly from the President himself, and as
I said earlier, the President is respectful of those who represent the minority
point of view, but that is their right. The President clearly disagrees.

Q He disagrees with Leahy, doesn’t he, and he agrees with the nine
Republicans?

MR. PLEISCHER: I would ask you for further amplification. Mischievous
two-part, one question.

Q U.S. Attorney for the southern district of New York, Mary Jo white,
was assigned the criminal investigation of last January's Clinton pardons. But
she is now retiring, and there has not been even a report after 11 months. And
my question: Can you assure us, Ari, that the President is neither considering
a Jerry Ford-type pardon of the presidential predecessor, nor planning that this
criminal investigation, so long out of the news, will just expire and kind of
let bygones be bygones?

MR, PLEISCHER: Lester, I have no information for you on any presidential
pardons. And anything dealing with 4 matter that's under investigation by the

u

00800000000839


Dermen ek ka ee che ee S51 SN Ol

ENRON

1775 Eye Street, N.W.
Suite 800

Washington, D.C. 20006
Tel: (202) 466-9156
Fax: (202) 331-4717

vo: _LLzebath Feuact DATE: Pal F=O/

_ G2 2259s
FROM: John Hardy, Jr. paces: 7
MESSAGE:
De.

IMPORTANT: THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIOUAL OF ENTITY TO WHICH IT IS
ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED. CONFIDENTIAL, ANO EXEMPT FROM

DsSCLOSURE, THON, THIS TION:
IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS FACSIMILE TRANSMISSION IN ERROR, PLEASE IMMEDIATELY
NOTIFY THE SENDER BY TELEPHONE SO THAT WE CAN ARRANGE FOR ITS RETURN.

00500000001150


NOv-28-2281 12:28 CASIA IT!

222 622 339: P.a2

Enron Global assets and Services

339 Clay Stovet, Site 2200
Mewsten, TX 77002-7367
7146-7000

(7) PO. Bex ee
Heweben TH 7725-1

November 27, 2001

David Katz

Director, Bilateral Investment Affairs
USTR

Washington, D.C.

Fax: (202) 395-3891
Dear David:

As we discussed last week, Azurix Corp. which is a subsidiary of Enron, is
involved in a half a billion dollar investment dispute with the Province of
Buenos Aires. Attached is 2 confidential briefing paper that provides a
history of the dispute; our efforts to resolve it amicably; the lack of good
will on the part of the Provincial authorities to find a resolution, and some
suggestions to break the impasse to the benefit of all parties concerned.

John Garrison, President and CEO of Azurix Corp., and I would be available
to be in Washington on cither December 10 or 11 to meet with government
officials who are handling U.S. foreign policy relations (State and NSC)
with Argentina, as well as economic/investment relations (USTR and
Treasury), 1 would like to take advantage of your kind offer to organize 2
meeting at USTR with the various offices that have various levels of
involvement in this type of investment dispute. T'll give you a call to discuss
how you want to proceed. Meanwhile, I can be reached on (713) 345-5956

or kejth.miceli@enron.com.

Sincerely,

cith L. Miceli
Senior Director
International Public Relations
Enron Corp

Endless possibilities."

20'4 @Z:0T WO 4z ACN SLOL-SVS-E12:*2S Bd TONOTLENSELNE

01000000000945


NOU-18-199S 16:43 ENGON INTERNATIONAL 222 T4717 Paves
in the Dominican Republic. All this has been made possible by the creation of a proper
climate for new investments based on political stability and economic growth. These
encouraging devclopments in the investment profile of the Dominican Republic can only be
adversely affected by the prevailing crisis that affects all generators in the system.

Our company understands that your staff is searching for several mechanisms to provide the

IPPs with payments for all the outstanding debts. We urge Your Excellency to direct your
staff to immediately implement one of these available mechanisms. SECLP also respectfully
requests you to instruct the CDE to comply with the Definitive Agreement by providing the
Distribution Companies orders to pay into the Escrow Account all monies due to CDE. The
Escrow Account is now operational, but as late as Monday, the CDE informed a group of
IPP's that CDE does not intend to comply with the Definitive Agreement during the
Transition Period.

We are committed to continue to help CDE and your Government with the successful
transition to a new clectrical sector, but are in dire need of your attention to the payment issue
and the negative effects on generation. Enron is more than willing to contribute our human
resources to analyze the cash flows needs of the system, as well as any other associated
technical issues. Please count on our continued assistance in the search for creative solutions
that will promote the success of the capitalization reform.

With the hope that you understand our necds and immediate pressures, we remain at your
services.

Yours Truly,

Dus Wd, Hulse

David Shields
Senior Vice President

ec: Temistocles Montas
Alejandrina German
Tony Isa Conde
Rhadames Segura
Marcos Cochon

TOTRL P.83

00500000000075


Department of Justice needs to be --
Q Will it continue? Who is going to continue it? She's leaving.

MR. FLEISCHER: Anything involving investigations with the Department of
Justice are sensitive matters that need to be addressed to the Department of
Justice.

Q On trade promotion, as the President meets with members of the House
who are on the fence, is he prepared to do some horse trading?

MR. FLEISCHER: Well, again, as I indicated, the President believes that
trade is right on principle and that is the -- in all the meetings that I have
been in, that has been the argument that he's been making with members of
Congress, about the need to address trade because on principle, he thinks it
helps create jobs.

Having said that, there are certain elements of trade that are always up
for discussion; that there are valid points that members can make that typically
do get discussed. And there is a lot of consultation that goes on in the trade
process; many members of Congress, in exchange for giving up their right to
amend an agreement that is gubmitted to them, seek an additional role in the
negotiations. And so that is not an uncommon request from members of Congress.
So the President will continue to at on principle as he works with members of
Congress and listens to their ideas.

Q Ari, the President is going to be announcing a new Party Chairman this
afternoon. How active is the President going to be in next year's campaigns?

MR, FLEISCHER: Well/ I think that the President will make his
determination about that. But politics, elections are an ongoing part of a
democracy, even a democracy that's at war, So I think as the President sees
fit, he will increasingly play 4 role au the election year rolls around and
we'll duly report that.

Q Ari, can I follow on that? Some Democrats are raising the question it
Governor Racicot will continue in his role as a lobbyist next year, 4s he heads
the Republican Party. What is the President's position? Does he believe that
the Governor should no longer be a lobbyist next year as he heads the Party?

MR. FLEISCHER: Well, again, I think the President has made no such
announcement yet. So I think until an announcement is made, it's a premature
discussion, But there has been an ample history on both the Democrat and
Republican aide of chairmen being involved in other lobbying or having outside
sources of income; that's not an uncommon practice for both parties.

Q ari, on the principles the President outlined in the stimulus package
back on October Sth, it seoms there is progress being made on all of them,
except accelerating individual tax rates. You said this morning that you
consider that one of the more stimulative aspects of a package. Does that mean
that the President will not sign a package if it does not contain individual
acceleration rates?

MR. FLEISCHER: Well, the President has been very clear about what he
thinks Congress needs to do. and one of the centerpieces of what Congress needs
to do is accelerate the tax cuts so that it can have an impact on the economy,
#0 people have more money to spend and so that the economy can get the boost
that it needs, That is a core component of what the President has proposed.

Q But is it a deal-breaker?

MR. FLEISCHER: No, the President is right now in the middle of discussions
with members of Congress about how to reach agreement, not how to reach
disagreement. So he'll focus on that.

Q What can you tell us about the BPA decision to force GE to engage in,
1 think, a $500 million cleanup of the Hudson River?

n

00800000000840


third quarter loss of $0.34, excluding one time items. That's versus earnings of the previous year. The Street
estimate was for a bigger loss, though, of $0.55,

British Airways (BAB) up $2.67. The CEO says the company’s cash position is stronger than a lot of analysts
have been thinking.

Intemational Game Technology (IGT) up $4.25. Yesterday it had higher fourth quarter earnings, $0.73 versus
$0.66. Today Merrill Lynch upgraded it from “accumulate” to "near term buy,”

Polo Ralph Lauren (RL) up $1.01. Second quarter earnings higher, $0.52 versus $0.50, and the company
reaffirmed its third quarter estimate in the range of $0.42 to $0.46, ABN Amro Brokerage repeated a "buy."

Symbol Technologies (SBL) up $1.15. ABN Amro there upgraded it from "hold” to "buy.”

And Waste Management (WMI) up $1.63. Third quarter earnings higher, $0.36 versus $0.33 despite a seven
percent drop in revenues. Standard & Poor's repeated an "accumulate" rating.

Lands’ End (LE), the big catalog retailer, had a good day, up $6.41, Third quarter carnings $0.41, way up from
$0.15 last year, and the Street estimate was only $0.18. Goldman Sachs upgraded the stock from "market
perform” to “outperform.”

AmeriCredit (ACF) up $2.30, It's involved in auto financing, of course, and the CFO today said the company
had a very solid October.

Aquila (ILA) up $2.56, Utilicorp United (UCU) is going to back -- buy back the 20 percent it doesn't already
own for about two thirds of a share of its stock. Today that would be worth about $19.75 to Aquila shareholders.

Vesta Insurance (VTA) tumbling $5.83, Third quarter operating earnings only $0.04, down from the Street
estimate of $0.26.

And Alpharma (ALO), the big intemational pharmaccutical, third quarter eamings lower, $0.35 versus last
year’s $0.45, The company sees a fourth quarter loss of $0.15. The Street was expecting earnings of $0.40.

And AON (AOC), this is another insurance company, down $4.21, Third quarter earnings lower, $0.37 versus
$0.47, and the company says weakness in the stock market could be hurting the fourth quarter.

NASDAQ trading, a gain of nearly 2 1/2 points. Volume just over two billion shares. 1640 up and 1889 on the
down side.

QUALCOMM (QCOM) topped the active list. It closed up $0.38, although it traded as low as $51.19 after
reporting after the close yesterday earnings below expectations by $0.02 at $0.23 a share,

Cisco (CSCO) was up $0.46.

Microsoft (MSFT) fell $0.53, some light profit taking.
Intel (INTC) edged up $0.04 a share.

And Sun Microsystems (SUNW) gained $0.20.
Juniper Networks (JNPR) was up $0.59.

00800000000922


NOU=16-1999 16:47 ENRON INTERNATICNAL 202 331 4717 P,e2-es

David W. Shields
Maneping Duector
Caribbean Region

Up Enron Caribbean Basin
e, PO. Bex 1188
Houstem, TK 77253-1288
713-666-4575
Fax 713-546-7768
Deval ShieldsBenron.com

November 10, 1999

His Excellency

Dr. Leonel Fernandez

President of the Dominican Republic
National Palace

Santo Domingo, D.R.

Honorable Mr. President:

The purpose of this letter is to explain to you the precarious financial situation in which
Smith Enron Cogeneration, Ltd. ¢“SECLP”) finds itself and the causes that have motivated
SECLP to send a shutdown notice to CDE, in conformity with our PPA Contract. For Enron,
it has been a difficult decision since we understand the tenuous nature of an incipient
capitalization process and your personal commitment to making such a vital reform of the
electrical sector successful.

However, SECLP and Enron, as its largest sharcholder, have contributed substantially to help
sustain the energy production in the last five months since June without receiving any
payments from CDE. Current debt arrears have reached an unprecedented and unsustainable
level of USS 38 million. SECLP is in an extreme situation with no working capital that would
allow it te continue to generate. Among the more pressing obligations are in past due fuel
payments to its supplier of USS 34 million, a forthcoming payment to its creditor pool of
banks in early December of USS 13 million, plus the normal cperational expenses to run the
plant. At present, SECLP has lost its credit with its fuel supplier, despite Enron's credit
support until payment is received,

We trust Your Excellency understands that Enron has made all of the necessary efforts to
develop  pesitive and supportive relationship with the CDE and the Government. In effect,
during 1998 and 1999, SECLP and CDE successfully renegotiated the PPA Contract
providing improved terms to the Dominican Republic, terminated in good faith the arbitrage
litigation and collaborated jointly to better our nonnal working relationship.

The importance of these aforementioned successes is further supported by Enron's
development of new businesses in your country. Enron has demonstrated its faith in the
future of the Dominican Republic and its economy, by participating as the lead investor in the
Haina Consortium. Ons other business opportunity currently being developed is a LNG
terminal and gas distribution system that would significantly reduce the cost of energy supply

Endless possibilities.TM

00500000000027


Weekly Activity Report, Federal Finance Policy Analysis, November 19, 2001

[OUTSIDE SCOPE , (b)(5)]

{(b)(5)]

[OUTSIDE SCOPE , (b)(5)]

01803

01200000000459


10-year notes up 20/32.

30-year bond up 1 2/32.

And the Lehman Brothers Long-Term Treasury Bond Index up 12.14.

I'll be back shortly to show you where the action was on Wall Street today, Susie,

GHARIB: Paul, retuming now to today’s developments on the financial battle against terrorism, Treasury
Secretary Paul O'Neill says the focus of US action today was the AJ-Barakat financial organization. In an
exclusive interview with "NIGHTLY BUSINESS REPORT,” Washington bureau chief Darren Gersh asked
O'Neill how easy will it be for the terrorists to replace these financial networks.

O'NEILL: It's not easy to create an effective organization overnight to replace one that took 12 years to
develop and involved operations in more than 40 countries, including several operations in the United States.
These are not easy things to replace, especially if you're lurking in the shadows of illegality. So | would say
what we did today is a significant action.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Given that hundreds of millions of
dollars were flowing through these organizations and you blocked tens of millions of dollars, are you beginning
to get a sense of the size of the overall organization's cash flow? Can you sort of say this is how big this
organization was? We think we have an idea.

O'NEILL: I don't think we have enough information yet to draw a firm conclusion about how large this activity
is in its totality. But with each new discovery of individual and organization, we're creating a map if you will of
a spider web set of connections and it's growing every day.

GERSH: There has been a lot of reporting that bin Laden gets a lot of his funding from wealthy Saudi
businessman. Have we been able to trace any of this money back to individual Saudi businessmen?

O'NEILL: Let me say we are looking at every allegation and every individual that's suspicious without regard
to their nationality, I think it's significant that a lead was taken today in going after Al-Barakat by the people of
Dubai where there seem to be a nexus of Al-Barakat operations, a hub of their financial operations and with
regard to the Saudis, I would say as the president did earlier today in his remarks, they have responded to our
request, I don't think there are any direct connections of Al- Barakat to Saudi Arabia. There are 40 countries and
yes, maybe a minor connection, but I think the evidence is that terrorism is a worldwide threat, that there are
many organizations, not just bin Laden's and Al Qaeda that have to be brought to the ground and we're going to
do that.

GERSH: Let me ask you about our economy, You have a lot of experience in the auto sector, With the zero
percent financing, there's a lot of concem that that’s just sort of taking sales from the future. Do you think that
that's sustainable and if it's not, what's going to happen to the economy?

O'NEILL: Well, I don't know if it's sustainable. From past evidence, one would have expected some increase in
aggregate sales activity for automobiles but what happened is way beyond what anyone would have expected,
And so I think we don't know the degree to which we're borrowing from the future.

Thad a meeting in this room this morning with eight or nine CEOs of major companies, including one of the
auto companies. And we talked about this very issue. And what they're finding is that their inventories are very
much in control, As a matter of fact, they're very much lower than they were at the beginning of 2001, Their
sales have skyrocketed. They haven't added anything to production plans for the rest of the year and if things
continue as they are, they're going to be short of product.

3

00800000000920


conducting political business that we just don't scream in
outrage at what's going on around us.''

From the moment O'Neill took office, he set a different
tone, or tried to, Maybe the biggest break he made with
local conventions was in his attitude toward his own
thoughts. He found it useful to air them in a fairly
straightforward manner for public consideration -- and
never mind what a treasury secretary is and is not meant to
say. The list of things O'Neill has said that have
undermined the confidence of the financial markets, or
created the impression with reporters that he is
undermining market confidence, which may amount to the same
thing, is now so long that it cannot be fully appreciated
in a single paragraph.

The smaller category of O'Neillian indiscretion arises from
his tendency to express certainty about inherently
uncertain situations. Examples of this include his
prediction not long after he took office that the Treasury
wouldn't need to raise the debt ceiling before 2008 (it
asked Congress to raise it Dec. 12), his prediction that
the Bush administration, unlike the Clinton administration,
wouldn't be bailing out third world countries that failed
to repay their debts (four months into the job, he agreed
to send $10 billion to Argentina) and his prediction after
Sept. 11 that the stock market would hit new highs within
18 months. Even the people on Wall Street who get paid to
predict where the stock market will be in 18 sonths don't
know where the stock market will be in 16 months. When the
treasury secretary pretends to know, he earns their
disdain,

But by far the larger category of O'Neill's indiscretions
are the many things he has said that are true, and that
most people know to be true, but that treasury secretaries
are not supposed to say. Included here are [a) hi
observation that despite decades of treasury secretaries
suggesting otherwise, the United States government dors not
pursue a ''strong dollar policy’' and that in any case the
Treasury has no ability to affect the level of the dollar;
(b) chat the most recent House Republican economic-stimulus
package is ''show business''; and (c) that the real trouble
in Argentina is that ''they don't have any export industry
to speak of. . . . And they like it that way.'* It's hard
for sane people to see any problem with any of this. Some,
for example, will point to the convulsion in the market for
Argentina's bonds that followed that last remark. So what?
It's now clear that the bonda would have convulsed anyway.

But that isn't the point. To the financial-establishment
mind, O'Neill's approach to Treasury Department
big-shot-dom is a travesty. It violates the central tenet
of Washington financial life: never the English
language to convey meaning. The idea is that the economy
benefits when important financial policy makers preserve
their mystique and that they do this only when they avoid
saying what's on their minds. The assumption underpinning
this behavior is that the financial markets need to feel as
if there is someone somewhere who knows something that they
don't and who can, in a pinch, fix things. Greenspan has
made a living by saying nothing in the most complicated
possible ways and letting other people infer his genius.
O'Neill's immediate predecessors, Robert Rubin and Lawrence
Summers, took a slightly more direct approach but still
stopped well short of saying anything worth discussing. And
5

01200000001484


2

systemic risk. If a swap instrument is not “regularly” entered into, we fail to see how a default of a
counterparty on this instrument creates systemic risk. Before favoring one class of creditors over
another, as this proposal would, there must be a public policy justification. No such justification
exists for this proposed change.

A fourth proposal would change the definition of “swap agreement” by replacing the phrase “swap
market” with the phrase “swap participants.” As support for this change, proponents state that swap
transactions take place over-the-counter as opposed to on federally-regulated markets. While this is
true, is does not provide support for this change. ‘Swap transactions are agreements between parties
that are negotiated in what generally is described as the OTC “market.” The proposed change
would broaden the definition of swaps to include any agreement that may be characterized as a
swap, regardless of the nature of the agreement, as long as one of the parties was a swap participant.
We also strongly oppose this proposed change. Again, there is no evidence that this proposed
change would reduce systemic risk. In addition, by taking such agreements out of the bankruptcy
estate, this change could harm other creditors whose debts are incapable of being characterized as
swaps, such as local businesses who supplied valuable inputs to the debtor,

Proposed exceptions to the operation of the automatic stay. S. 625 would amend the automatic
Stay provisions found at section 362(b) of title 11 by excluding from the automatic stay the setoff of
claims against the debtor for margin or settlement payments against the cash, securities, or other
property held by, pledged to, and under the control of, or due from the debtor. Excluding these set-
off rights from the automatic stay would permit netting against obligations of the insolvent party
and thus reduce systemic risk. .

We understand that you may have received a proposal to expand the exclusion from the automatic
stay to include set-offs of any payment or transfer due from the debtor, as opposed to claims against
the debtor for margin or settlement payments. It is not clear what payment streams other than
margin or settlement payments need to be protected for commodity contracts, forward contracts, or
Securities contracts, nor how this proposed change would reduce systemic risk. This proposed
change also would decrease legal certainty because “margin payments” and “settlement payments”
are defined in title 11, while the phrase “any payment or transfer” is not defined. Thus, we strongly
oppose this change.

Thank you for you attention to these issues, We would be happy to respond to any questions you

have on this subject.
Si ly, 7 4 P
+ y ‘
Lh
ca

Lee Sachs
Assistant Secretary for Financial Markets

01000000001445


508 also requires that individuals with disabilities, who are members
of the public and who are seeking services or information from a
federal department of agency, have access to and use of information
and data that is comparable to that provided to the public without
disabilities.

Topica covered in the final rule include applicability of the
regulations, exceptions to the requlations, what is meant by an undue
burden, and related issues. for more information, interested parties
should contact the PAR Secretariat at (202) 501-4755 for information
pertaining to status or publication schedules. For clarification of
the content of the rule, interested parties should contact Linda
Nelson, Procurement Analyst, at (202) 501-1900.

BUSH TO NOMINATE FOUR TO SERVE IN HIS ADMINISTRATION

President Bush recently announced his intention to nominate four more
individuals to serve in hie administration, including secretaries of
the Army, Navy and Air Force, respectively.

Bush announced his intention to nominate James G. Roche to be
Secretary of the Air Force, He is presently corporate vice president
and president of the electric sensors and systema sector of the
Northrop Grumman Corporation. He has served with Northrop Grumman
Corporation since 1984 in a variety of posts, Before joining the
private sector, Roche served as democratic staff director for the
U.S. Se Committee on Armed Services from 1983 to 1984 and served
at the State Department as principal deputy director of the policy
planning staff.

The President intends to nominate Thowas E. White to be Secretary of
the Army. He is currently the vice-chairman of Enron Energy Services.
Ke haa served ao chairman and CEO of Enron Operations Corporation and
as chairman and CEO of Enron Power Corporation since joining Enron in
1990. After 23 years, White retired from the U.S. Army as a Brigadier
General, He served as executive assistant to General Colin Powell
while he served as chairman of the Joint Chiefs of Staff from 1989 to
1990 and served as director of the armor/anti-armor special task
force in the Office of the Chief of Staff of the U.S. Army.

Bush said he intends to nominate Gordon England to be Secretary of
the Navy. He is presently the executive vice president of General
Dynamics. He has served with General Dynamics since 1980, excepting
four years when he served as president of Lockheed Fort Worth, as a
program manager for Amecom (Litton Industries) and as CEO of GRE
Consultants. He has held several positions at General Dynamics
including director of Avionics, president of the land systema
division and president of General Dynamics Fort Worth.

The President also said he intends to nominate Richard Henry Jones to
be ambassador extraordinary and plenipotentiary of the U.S. to the
State of Kuwait. A career member of the Senior Foreign Service, he
has held the post of U.S. Ambassador to Kazakhstan since October of
2000, He served as ambassador to Lebanon from 1996 to 1998 and served
as the director of the Office of Egyptian Affairs from 1993 to 1996.
He has held a variety of posts both at the Department of State and
abroad and has received several awards including a Distinguished
Service Honor Award.

Visit the “FPMI Insight" articles At
http: //wew. fpmi .com/Fedtews /WeeklyInsight/home, shtml]

FRMI'a Conference Page For Complete Details Of All Our Conferences;
http: //WKW. FPMI.COM/cont/

3

01000000000674


Bitsberger, Timothy

From: Byrne, Kathleen
Sent: Wednesday, November 28, 2001 1:08 PM
To:

_DL_Market Group; Andrew D. Sacher (E-mail); David Griffiths; EA. Wayne; Eric H. Otto (E-

mail); J.P. Reid; Jay Hoffman; Meg Lundsager; Philippa Malmgren; TJ. Sheviin
Subject: Market Noon Report, Nov 28th

[(b)(5))

01200000001418


Page 2 of 2

((b)(5)}

01/16/2002

01200000001421


Marchall of the DLC have gotten together to talk about national
service, to really find ways to get people, especially young people,
reengaged in public life. <br> <br> BLITZER: How...<br> <br>
PAGE: Pavid makes a good point in talking about the Democratic Party,
as well as the Republican Party, because I think the Democrats do have
a problem. <br> <br> PAGE: It's going to be a real task for
Daschle not to have them run off to the left and not to have all of
this pent-up demand for kind of identifiable, liberal, Democratic
positions, because that is going to be no more popular, no more
sustainable than it is for Republicans to pursue only conservative
positions and conservative bills.<br> <br> BLITZER: All right.
We're going to talk about that shift in the Senate and some other
issues, including Timothy McVeigh, but we're going to take a quick
break.<br> <br> When we come back, got more of our LATE EDITION
roundtable. <br> «<br> (COMMERCIAL BREAK) <br> <br> BLITZER:
Welcome back to our roundtable.<br> <br> Steve, on Wednesday,
Wednesday morning at the end of the businesw day, Tuesday there will be
a new majority and a new minority in the U.S. Senate. Trent Lott will
be the minority leader; Tom Daschle will be the majority leader. <br>
«br> Listen to what Trent Lott was quoted as saying in the
Washington Times earlier this week on Thursday. He said this: “There
is something liberating about being in the minority. You're not as
consumed with trying to move the train. You're freer to advocate
positions and amendments you really think should be adopted.*<br> <br>
ROBERTS: Absolutely, it's true. You know that when are you in the
minority, you throw hand grenades. When you're in the majority, you
have to catch them. [t's a much higher-risk occupation. <br> <br>
But this shift ie going to be important, It's not going to be that
important in terms of the Democratic agenda, because there is still a
veto power in the Republican House. <br> <br> But there are two

« to watch. I was talking to Orrin Hatch about this, and he
mentioned thia when you talked to her earlier. Already we see judicial
nominations that are not being made because if they're perceived as too
ideological they won't get through, <br> <br> And also, this
hasn't received a lot of attention: the power of hearings, the power
to use the Senate. You take an issue like energy, and the whole
involvement of big energy companies in the Republican Party and
spending money. We saw this week Enron (ph), a big energy company -
half the Bush team has got stock in this company. That's the kind of
thing that Democrats in control of the Senate can hold hearings on,
make life very uncomfortable, A very important part of this shift.
BLITZER: How worried should Trent Lott be about remaining the
Republican leader in the Senate? When he became the majority leader
aix years ago I think there were $$ Republicans. Now there are 49
Republicans in the Senate Ile there crumbling going on there? <br>
<br> BROOKS: There's a lot of grumbling, but no opponents. There
are people who aren't thrilled with the way he has behaved or the way
he'd led the party. But there's no one person who everyone else can
rally around. There's lots of talk about Senator Nickles, and five or
gix other senators get mentioned, but none of them have the votes to
challenge Trent Lett. So I think Trent Lott is reasonably secure.
<br> <br> And one of the interesting things about this hearings
thing, you know, whea the Republicans took over and Clinton was in
office, I remember Republicans would say, "Oh, we've got hearings
power. We're going to just dominate the agenda.* It didn't work. The
presidency is still the dominant player in town, and I can't imagine
the Democrats...<br> <br> (CROSSTALK) <br> <br> ROBERTS: But

00800000000569


already are some data which are somewhat convincing. <br> <br> But
IT would say that I still think and believe, as a breast cancer survivor
myself, and as someone who's lost someone very dear to me, that the
best route really is still to understand, look at the literature, take
a long look at it.<br> <br> Patients today have a better chance
than ever of being advocates for their own care. You know, check with
the National Cancer Institute, do all the research in the world you
want to do. But it's still a combination of some very, very good
conventional therapy. <br> <br> And, if you want to try some, make
sure whatever you do doesn't conflict with the therapy you're having.
That is the real problem we get into.<br> <br> BLITZER: Dr.
Rosenberg?<br> <br> ROSENBERG; Good medicine is based on evidence.
And certainly in breast cancer there is wonderful evidence that
conventional chemotherapy can prevent the recurrence of breast cancer,
following initial treatment of a primary disease, that it can prolong
life even after the disease has spread.<br> <br> And so, although
we'll take any treatment that works, whether it's called complementary
or conventional, certainly people should use treatments that have been
proven to be effective. And certainly many of the conventional
treatments in breast cancer have been shown to be very effective. <br>
<br> BLITZER: Michael Milken, you know that there are a lot of
people looking for that magic pill out there, that bullet to deal with
their cancer, but that's obviously very, very unrealistic.<br> <br>
MILKEN; Well, ! have explored, myself, both what we might call
alternative -- Indian, Chinese -- medicine, as well as traditional
Western medicine. And I believe some day there will be that pill.<br>

<br> But being a cancer patient takes courage, It takes courage to
undergo the treatments, And it's not always an easy course, and many
people don't have that courage. <br> <br> The promise is that, as

Dr. Rosenberg has said, many of these things are totally successful
today. And when we see people like Scote Hamilton, who had testicular
cancer, Lance Armstrong, who had cancer spread throughout his entire
body, they are living symbols of the commitment of Western, modern
medicine and its advances. And I think this is what the future holds,
if we have the commitment, <br> <br> But I think a combination of
both the best that Western medicine has to offer and alternative
medicine -- and many of these medicines are 5,000 years old. They're
mot just started last week. <br> <br> BLITZER: All right. <br>
«<br> We're going to take another quick break, but we still a lot
more to talk about, including your phone calls for Nancy Brinker, Dr.
Steve Rosenberg and Michael Milken.<br> <br> LATE BDITION will be
right back, <br» <br> {COMMERCIAL BREAK)<br> <br> BLITZER:
Welcome back. We're continuing our discussion about cancer with Susan
CG. Komen Sreast Cancer Foundation founder Nancy Brinker, Dr. Steve
Rosenberg of the National Cancer Institute, and cancer activist and
philanthropist Michael Milken.<br> <br> We have another caller from
New Jersey. Please go ahead with your question.<br> <br> QUESTION:
Yes, hi. I'd like to address it to Mr. Milken, Mike. I'm undergoing
right now under chemo, I'm a cancer patient. And I can’t tell you how
devastating this is losing your hair and everything else. But is there

anything I can do to fight this crazy disease? <br> <br> MILKEN:
I think there's a lot of things you can do, and one of the things you
can do ia participate in your own treatment. <br> <br> But I think

the other thing is to look at this period of time where you're losing
your hair -- I've lost my hair a long time ago -- as a short period of
time in your life, And you're leoking forward to that period of time
in life when you're healthy, you're spending time with your children

00800000000565


The pegged currency rate was a key element of a three-year $4 billion stand-by
deal with the IMF that Turkey began implementing in December 1999 to primarily
reduce its chronic inflation. The statement, which came after a 13-hour
emergency meeting chaired by Prime Minister Bulent Ecevit, asserted that "the
government is determined to strictly follow the economic program."

“Structural reforms will continue as scheduled and all necessary steps will be
taken speedily for the privatization of Turkish Airlines and the Turkish
Telekom," two priority pledges to the IMF, the statement said.

"The financial policies will be implemented meticulously,” it added. The
statement said that letting the exchange rate free would provide more revenues
from exports and tourism, ‘*The government will continue to protect the working
Classes against inflation,” it said.

The decision followed a cash crunch on Turkey's volatile markets, sparked by
fears of political instability after Ecevit and President Ahmet Necdet Sezer
clashed in an unprecedented row on Monday over ways to fight corruption.

The turmoil yesterday sent interest rates on the interbank money market up to an
average of 2,056 percent, while overnight repo interest rates shot to an average
of some 4,000 percent, hitting 7,500 percent in some transactions. The Istanbul
stock market national index, meanwhile, slumped by 1,587 points, or a massive
18.1 percent, to close the day at 7,180 points.

The crisis hit the markets at a time when they had just began recovering from a
severe liquidity squeeze last December with some $10 billion of rescue aid from
the IMF.

Meanwhile, Anatolia News Agency says that Stanley Fischer, the IMP first deputy
managing director, said on Tuesday that the economic programme, implemented by
Turkey, was a broad one, and that it covered $11 billion loan,

The Wall Street Journal (p. Al6} also reports, noting Kohler said the IMF would
start work with Turkey thia week on necessary changes to the program in order to
continue disbursements “within the coming weeks,” including possible extra
resources to cover “increased fiscal costs of bank restructuring.*

All major US and European newspapers also report.

WORLD BANK BACKS NIGERIA ECONOMIC REVIVAL PLAN,

The World Bank and the IMF yesterday gave the thumbs-up to Nigeria's economic
revival plans and pledged support for ite efforts to eradicate poverty in the
oil-producing country, Reuters reports.

World Bank President James Wolfenschn told a news conference in the Nigerian
capital after meeting President Olusegun Obasanjo that the Bank wao expanding

ite program of financial support with the provision of $400 million during the
current fiscal year ending June 2001.

“We are delighted by the progress Nigeria is making since its return to
democratic governance less than two years ago,” Wolfensohn said. The World Bank
and IMP would work with the government to get the Nigerian economy going again,
Wolfensohn added.

Koehler told the news conference Nigeria should shelve its persistent demand for
debt cancellation and concentrate on getting relief on its huge foreign debt. He
said demand for debt cancellation could injure Nigeria's credibility in the eyes
of foreign investors. "I do believe that more debt relief is necessary for
Nigeria,” Koehler said. “But you are asking for debt cancellation, and if you go
too far it will be an obstacle," he added.

00500000000408


BLITZER: Democratic leader Tos Daschle speaking a week ago about the
economy's uncertain future.<br> <br>

Welcome back. <br> «<br> Earlier today I spoke with the U.S.
Treasury Secretary Paul O'Neill about the tax cut and what he thinks
ita impact will be on the economy. (BEGIN VIDEOTAPE) <br> <br>
BLITZER: Mr. Secretary, thank you so much for joining us. <br> <br>
I want to begin right way with the issue a lot of Americans are
anticipating, those tax rebate checks, $600 for married couples, $500
for single parents and $300 for individual taxpayere who pay $6,000 in
federal -- who have income of $6,000 in taxable income. <br> <br>
When specifically will those checks start arriving? <br> <br>

PAUL O'NEILL, U.S. TREASURY SECRETARY: We're going to mail out a
letter to all the taxpayers -- all the federal income taxpayers on the
12th of July, and that letter will tell people when their check is
coming and how much it's going to be for. The following week, in fact
on the 20th of July, we'll send our the first 11 million checks, and
then each week after that we'll send out another 11 million checks. And
we'll finish up the last mailing on the 28th day of September.<br> <br>
And so, the money's going to be flowing, and we're anxious to get it
out there to people. <br> <br>

BLITZER: One group here in Washington estimated that 34 million
taxpayers won't be eligible to receive any

O'NEILL: T quess <I would say this: All people who paid a federal
income tax in the year 2000 are going te get a rebate. There are going
to be some people who didn't file by the 15th of April that are going
to have a little delay in when they actually get their money.<br> <br>
And for people who didn’t pay any taxes in the year 2000, they will get
4 refund when they file their 2001 taxes, so there will be ataging in
this. But the great bulk of 100 million people are going to see a
check before the first of October. <br> <br>

BLITZER: Do you believe this will do the job to stimulate the economy,
which some have described as stalled these past several months? <br>
<br>

O'NEILL: Well, T think this will be, You can't look at thie first
atage of tax relief though it stands alone, because it doesn't stand
alone. There's a phase-in of rate reductions over the next five years
er so. And so this is the beginning of a return of people's money to
them, which they can count on going forward into the future. <br> <br>
And I think it is clearly true that, as a result of the rate reductions
that people are going to get and the other provisions of this tax bill,
we're going to see a relatively higher level of economic performance
than we would have had without this tax reform.<br> <br> I think
the president has done a fabulous job of staying focused on the target
of, let's get this done, let's get it done quickly. It's a record in
terms of actually being able to turn a policy prescription into
legislative action. And the money's going to flow faster, = think,
than anyone could have imagined, except maybe for the president and a
few of us who were determined that we needed to get this done. <br>
<br>

00800000000556


Buffalo, or just cutside of Buffalo. <br> <br> What made him snap?
What convinced him to begin this warfare, if you will, against the U.S.
government? <br> <br> DAN HERBECK, CO-AUTHOR, “AMERICAN TERRORIST":
Well, I wish I had an easy answer to that question, Wolf. But I think
that the real changes in his life that really put him over the edge
took place in the army and immediately after his army service, because
in the army, he learned -- and I am not blaming the bombing on the army
--but he learned that killing can be used to accomplish a goal.

And then after being in the army, he got more and more ingrained in the
gun culture, and he felt that the U.S. government was treating gun
owners unfairly. <br> <br> And then, I think, if you want to find
any real turning point, it would be the day that he saw the Waco siege
on television in Terry Nichols' living room -- James Nichols' living
room, and stood there and watched the Waco compound burning. I think
if there was any one turning point, McVeigh has told us that was it.
<br> <br> BLITZER: Let's take a quick caller from Georgia. Please
go ahead with your question.<br> <br> CALLER: Thank you, Wolf.<br>
«brs Do you think that the death penalty deters crime? And do you
think that McVeigh ought to be executed June 11, or do you support che
delay? <br> <br> BLITZER; What about that, Lou? <br> <br>

MICHEL: I don't think that the death penalty does deter crime. I think
police chiefs, police commissioners, law enforcement, judiciary who
have been queried over the years, have found no change in the death
penalty. In fact, in some states where they have the death penalty,
particularly down South, you have a higher murder rate. <br> <br>

So I think capital punishment sends a subtie message of pushing
violence further and further in our society. We are so enmeshed in it,
from our entertainment to the way we live. <br> <br> BLITZER:

Dan, we only have a few seconds left, but there has been scae
speculation in t days, fresh speculation, about a John Doe number
two. Bo you believe that McVeigh is possibly concealing evidence, is
trying to protect someone else who may have been involved in this
conspiracy? <br> <br> HERBECK: TIT really don't, Wolf. And if
anyone wants to find out more about it -- and I don’t mean this as an
ad for our book -- but read the book. And it lays out step by step
what was done to assemble this bomb and deliver this bomb.<br> <br>
Then after reading the book, I would ask people to ask themselves if
there was John Doe number two, if there were all of these other so-
called conspirators, what were their jobs? What was there for them to
do? You'll you s in the story that there really wasn't any need for

other people. <br> <br> And if there were other John Does, what
have they been doing for the last six years? It just doesn't make
sense. <br> <br> BLITZER: All right. On that note,

unfortunately, we have to leave it. Lou Michel and Dan Herbeck, I want
to thank both of you for joining us on LATE EDITION. <br> <br>

MICHEL: Thanks, Wolf. HERBECK: Thanks you.<br> <br> BLITZER:
Thank you, and we have to take a quick break. <br> <br> For our
international viewers, World News is next. <br <br> For our North

American audience, stay with us for the second hour of LATE EDITION.
We'll have a conversation about the fight against cancer, How close
ace we to a cure? <br> <br> Plus, cur LATE EDITION roundtable and
Bruce Morton's "Last Word." It's all ahead in the next hour of LATS
EDITION. <br> <br> (COMMERCIAL BREAK)<br> <br> BLITZER: This
is the second hour of LATE EDITION, the last word in Sunday talk.<br>
<br> (BEGIN VIDEO CLIP)<br> <br> PRESIDENT GEORGE W. BUSH: I
hope, I believe and I pray that we are on the verge of great victories
against cancer.<br> <br> (END VIDEO CLIP) <br> <br> BLITZER:

0800000000560


their normal flow of funds, But I'm not going to be satisfied until their forces in the field melt away because
they can’t afford to pay them anymore because they don't have the money to pay them anymore.

GHARIB: The Treasury secretary's comments came as part of an exclusive and wide-ranging interview with
“NIGHTLY BUSINESS REPORTTM on the status of the economy. We'll have that full interview a bit later in the

program. Paul?

KANGAS: It was a mixed opening on Wall Street today, with the Dow Industrial Average falling 28 1/2 points
by 10:00 a.m. on profit-taking pressures after it rose 267 points, or 2.9 percent, since the week began. The
NASDAQ Index, however, posted a six-point gain at the outset as investors continued to look for high-tech
bargains. The report of an unexpectedly strong 2.7 percent rise in third quarter US productivity helped the blue
chips join the NASDAQ in positive territory as morning trading continued and a firm bond market reacting to
low interests extended the gains into early aftemoon.

By 1:30 p.m., the Dow was up 31 points. NASDAQ up 25. Unimpressive market breadth and the desire by
some traders to take some more profits caused a general downtum for the rest of the session. The Dow
Industrial Average closed with a loss of 36 3/4 points at 9554.37 and the NASDAQ Index saw its gain trimmed
to only 2.45, putting it at 1837.53.

Big board volume did move up a touch to 1.42 billion shares and about a 4 to 3 margin of down volume over up
volume.

The Dow Transport Index up 16 1/3 points.
Utilities however, fell just over 3 points.

The Closing Tick just barely bullish at +146.
Standard & Poor's 500 down just over 3 points.
A 2 2/3 point drop in the 100,

The MidCap 400 edge up .15,

Bridge Futures Price Index gained 1.08.

A loss of 1.81 in the New York Composite.

A 5/100 loss in the Value Line.

Russell2000 was down nearly 2 points.

And the broadly based Wilshire $000 lost almost 25 1/4 points,

The bond market, still riding high after yesterday's 1/2 percent rate cut, was further bolstered by news that third
quarter US productivity rose 2,7 percent when only a 1.8 percent increase was expected.

This certainly helped lift tax-free and corporates to closing gains of 3/8 to 5/8 on average and it gave the
Treasury market a strong close.

The 5-year notes up 9/32.

00800000000919


[(b)(5))

01200000001138


From: Hart, Susan
Sent: Tuesday, June 12, 2001 4:54 PM
To: Ellis, Dina; DeMarco, Edward

Moran Urges Support For Opt-Out Privacy Plan, Commission
by <maikn:bvakia@inati

The privacy position of the new chairmen of the Senate Commerce and Judiciary
committees poses a concern to the high-tech community, Rep. James Moran, D-Va., co-
chairman of the New Democrat Coalition <http://www,ndol,org/ndol_ka,cfm?kaid=103>,
told high-tech lobbyists Tuesday.

"As elated as I am at the change in the leadership of the Senate, the chairs of the Judiciary
and Commerce committees have sponsored opt-in bills ... that will mean a difficult
situation on the [Senate] playing field,” Moran told the lobbyists who had gathered to
hear a preview of the New Democrat Coalition's "e-genda 2001," scheduled for release
Wednesday afternoon.

The opt-in approach to privacy would put the burden on online businesses to obtain
consent from consumers before using their personal information for marketing purposes
or selling it to third parties. Moran instead urged the lobbyists -- from Microsoft, Cisco
Systems, AT&T, Hewlett-Packard, VeriSign, Enron and other high-tech companies —- to
consider supporting the opt-out approach that would put the burden on consumers.

Sens. John McCain, R-Ariz. and John Kerry, D-Mass., introduced the leading opt-out
privacy bill, S. 2928 <hitp://rs9.loc.gow/cgi-
bin/xiquery/z2d106:SN02928:@@@L&summ2=mé&>, in the 106th Congress. Moran
also urged the lobbyists to support a bill, H.R, 583 <hitp://rs9.loc.gov/cgi-

i 1A ; @ >, that he co-sponsored. It would
create a 17-member commission to study existing privacy laws, conduct field hearings
and make legislative recommendations to Congress within 18 months,

Moran said the House Govemment Reform Committee could consider his bill soon --
before its leading Republican co-sponsor, Asa Hutchinson of Arkansas, leaves the
House to head the Drug Enforcement Administration for President Bush.

Sources close to the Senate Commerce Committee have said new Chairman Ernest
(Fritz) Hollings, D-S.C., plans to hold several hearings on privacy policy in July. The
hearings likely will focus on various aspects of the opt-in privacy bill, S. 2606, that
Hollings sponsored in the 106th Congress, but Hollings does not plan to reintroduce his
bill until after the hearings, industry sources said.

On other high-tech related issues, Californian Calvin Dooley, co-chairman of the House
New Democrat Coalition, told the lobbyists that new legislation to renew presidential
trade-negotiating expected to be introduced in the House this week is "dead on arrival"
with Democrats if it does not include language related to labor and environmental
standards.

Dooley has been trying to craft a compromise bill that would include enforcement of
labor and environmental provisions. Many Republicans want to leave those issues out of
trade deals.

New Democrats, however, are optimistic about House passage of legislation to renew
normal trade relations with China. Although Congress voted last year to approve
permanent normal trade relations with China, the country has yet to join the World Trade
Organization, hence forcing another annual vote on the issue.

01200000000970


key to bringing forward new medicines, vaccines and diagnostics urgently needed
for the health of world's poorest people.*

Health experts from around the world are preparing to discuss drugs for the poor
at a gathering in Norway next weekend jointly organized by the WTO and the WHO,
the story notes.

The Los Angeles Times (p. A4) and the Wall Street Journal (p. A2) report the
same story, adding that Merck declined to attend the meeting, citing concerns
about US antitrust laws, but the company has offered a 90% price cuts for two of
its AIDS drugs in Africa. The Wall Street Journal also adds that the eix drug
companies won a crucial concession because Annan promised that the UN won't join
the escalating crusade to strip the industry of the patents that are its
lifeblood.

Meanwhile, researchers the US and India are embarking on a bold experiment to
gee if reasonably priced AIDS vaccines can be tested and manufactured in the
developing world without violating patents in the developed world, notes the
Wall Street Journal in a separate article (p. 81). The nonprofit International
AIDS Vaccine Initiative, or IAVI, is negotiating a deal that would let an Indian
drug company use patented vaccine-making technology developed by the small
American biotechnology firm Therion Biologics Inc.

In a related development, the US Senate agreed last nigh that the United States
should double current spending on the global battle against HIV/AIDS to more
than $1 billion within the next two years, the Washington Post (p. A6) reports.
In an amendment to the Senate's nonbonding budget blueprint passed by voice
veto, lawmakers added $200 million in fiscal 2002 and an additional $500 million
the following year. This year's budget for international AIDS programs is about
$460 million, three-quarters of which is dispensed through the Agency for
International Development. Secretary of State Colin L. Powell has asked for a 10
percent increase in the department's global AIDS accounts.

KABILA FOSTERS DIPLOMATIC DRIVE TO END DR CONGO WAR.

New President Joseph Kabila of the Democratic Republic of Congo (DRC) arrived in
Germany yesterday to promote diplomatic efforts to end « two-year civil war that
has sucked in the armies of six neighboring states and devastated an already
fragile economy, reports the Financial Times (p.9). “It is high time the region
an a whole benefits from peace and is not involved in stupid wars," he is quoted
as saying.

Just hours before, notes the story, Kabila had dismissed his entire cabiner.
Congolese officials say a new team is likely to be appointed within a week,
although the president made no commitment to include opposition forces. "The
government [the late President Laurent Kabila] was leading is considered to have
been not operational," Kabila said,

The new president pledged an audit of state companies, regional administrations
and government ministries, saying donors had offered to support the process.
“We have a body that will do that, but we also have contacts with the IMF and
the World Bank, who will give us technical assistance," he said.

Western governments have been anxious to show support for the new president,
encouraging his efforts to revive a peace process that had flagged under
Kabila's late father, notes the story. This week, Zimbabwe, which with Angola
and Namibia backs the Congolese government, pulled the first 200 of its
estimated soldiers out of Congo as part of a UN-brokered disengagement process.
Rwanda and Uganda, which backs rebels opposed to Kabila, have also begun to
disengage.

The UN mission in Congo says it is broadly satisfied that most parties in the

00500000000403


Hart, Susan

From: Michael Sondow [msondow@picilu.org)

Sent: Tuesday, January 15, 2002 4:58 PM

To: Hague list

Subject: [Hague-jur-commercial-taw] Enron & self-regulation

"Attacking the company and its greedy executives may be easy, but it is
a sideshow. Enron’s demise is largely due to the complicity of
Washington's leading political, monetary and financial authorities in
subverting proper regulation of our liberal market democracy in a wide
range of are: a persistent refusal to regulate properly the
derivatives market, a reluctance to fund the Securities and Exchange
Commission adequately so as to increase investor protections against and
executive accountability for securities’ fraud, and political cowardice
in refusing to tackle the accounting profession’s blatant conflicts of
inte: which, in recent years, have prevented genuinely independent
audits. Enron raises broader questions about the wisdom of industry
self-regulation, the current integrity of public company financial
reporting, and the overall competence (and judgement) of Washington’s
leading policy makers." (Marshall Auerback, investment analyst &
portfolio manager)

Hague-jur-commercial-law mailing list
Hague~jur-commercial-lawélists.essential.org
http: //lists.essential.org/mailman/listinfo/haque-jur-commercial-law

01200000000984


what people can do about diagnosing your disease earlier, listening to
the messages that we tell them, and then making it easier for them to
access care when they finally get to treatment.<br> <br> These
issues are huge and will make, I believe, the discernible difference
between living with cancer and living a longer life with it if we
execute them properly.<br> <br> BLITZER: Very quickly to you,
Michael Milken -- I know you want to jump in, But if somebody is
diagnosed with prostrate cancer, what advice do you have immediately?
What is the first thing that they should do?<br> <br> MILKEN: I
think they ought to make sure they see a good urologist and an expert
in the area rather than their local doctor. You know, I‘ve been very
active in autrition and what that can do. And I think they should have
a positive attitude since there are so many things capable for them to
do today.<bre <br> However, I want to come back to one quick point
here: There is enormous progress and hope that's been made. The
public awarene: particularly, of organizations such as CNN, has
dramatically changed the public's view of cancer. <br> <br> It was
less than five or six years ago when you hardly ever saw this in a
public arena, Prostrate cancer alone, we've gone from maybe 2,000
stories to 18,000 stories a year. <br> <br> And I think it's this
awareness -- but we need human capital, scientific capabilities,
cooperation. We still only have 3 to 5 percent of adults in clinical
trials versus maybe 75 percent for children.<br> <br> So there is a
significant difference today in what we can do. We just need to get
participation, And I think that requires cooperation of patients, for-
profit, monprofit. And it's this cooperation that's allowed us to
actually win wars, whether it's World War II, Gulf war and others, and
be successful. And we have the technology today to do it, and let's
get on with it.<br> <br> BLITZER: We have a lot of viewers who
want to ask the three of you questions. Let's take a caller, first of
all, from Illineis. <br> <br> Please go ahead with your
question.<br> <br> CALLER: Hi, Wolf, I'm 13 years old. And I was
wondering what kind of cancer education programs there are for biology
students such as myself.<br> <br> BLITZER: All right, let's ask
De. Rosenberg.<br> <br> ROSENBERG: The National Cancer Institute
has many booklets and programs that are available. There is a number
that the people can call -- 1-800-4CANCER -- that is sponsored by the
National Cancer Institute that will supply, not only patients with
cancer, but their families, with information about a whole variety of
topics related to cancer. And so that is certainly one way to do
it.<br> <br> BLITZER: I know, though, Nancy, there was a lot of
commotion when Suzanne Somers went on Larry King a few weeks ago.<br>
«<br> BLITZER: And she was diagnosed with breast cancer. And then
he then came up and defended an alternative approach, not the standard
traditional approach. I want you to listen to what she said on Larry
King Live.<br> <br> (BEGIN VIDEO CLIP) <br> <br> SUZANNE SOMERS,
ACTRESS: We're all looking for all the alternatives. You know, I
straddle the fence between Western, Eastern and holistic medicine.

And, if IT can heal first with Eastern and holistic, I'd rather go there
than take chemicals. I'm very antichemical. That's what my books are
about.<br> <br> (END VIDEO CLIP)<br> <br> BLITZER: Now, she
could obviously influence a lot of people out there. Is that wise,
what she's saying, to try some alternatives before you go with the
recommended procedures? <br> <br> BRINKER: I don't want to comment
on anyone's treatment. I mean, what she's decided, we each have a free
choice to make on that issue. And I agree with Michael, there are some
conventional people locking at complementary medicines, and there

00800000000564


The 30-year bond no longer maintains a position of significance in the financial
markets, Its role and its liquidity have been significantly impaired by the substantial
reduction of issuance that has occurred over the last decade. But the markets have
functioned smoothly during this period while both activity and attention have shifted to
our 10-year offerings.

As long as we have borrowing requirements to finance, the Treasury will seck to
maintain the liquidity and depth of the instruments we issue as a means of achieving the
lowest cost of borrowing for the taxpayer over time. At this time, the best means for us
to do this is to suspend issuance of the 30-year bond and concentrate our borrowing needs
on our other instruments.

Adjustment of the buyback program

In response to the altered budget outlook for this fiscal year, we are also making
adjustments in our buyback program, Beginning in February 2002, our decisions on
whether to conduct buyback operations, and on the amount and timing of any purchases,
will be made at the time of our regular quarterly refunding announcements and will be
based upon three factors:

© first, our projections of the federal government's annual, unified surplus or
deficit position;

* second, our projections of that three-month period's cash position; and,
© third, our analysis of how best to minimize borrowing costs over time.

In making the transition to these new procedures, our buyback operations for the
remainder of this calendar year will continue in line with our prior announcements. In
August we stated that we would be purchasing approximately $9 billion during the fourth
calendar quarter. So far we have purchased $2.5 billion and the remaining $6.5 billion
will be purchased in November and December. Due to the holidays in November and
December, however, the timing of our specific announcements will be altered from recent
practice, We will make announcements of the specific amounts and maturities of our
purchases on November 14 and 28 and on December 12 and 19 for operations to take
place on the following day.

We will make no buyback purchases in January 2002. Beginning with our
February 2002 quarterly refunding, we will include the details of any buyback operations
to be conducted in the subsequent three months in our regular refunding announcements.

In light of the information that we now have, market participants should
understand that there are likely to be periods in which we do not conduct buyback
operations and that there are likely to be other periods in which we do conduct such
operations, consistent with the ebb and flow of our cyclical cash position. But the

00200000000274


Bitsberger, Timothy

From: Wiedman, Mark

Sent: Friday, December 21, 2001 1:28 PM
To: Bitsberger, Timothy

Subject: RE: Enron Talking Points

am doing this right now

co Origunad Message.
From: Bitsberger, Timothy
— Friday, Oecember 21, 2001 11:31 AM

Wiedman, Mark
Subject: RE: Enron Tailong Points
can you please review and make comments to me first

Original Message-——

From: Carleton, Norman

Sent: Friday, December 21, 2001 9:47 AM
To: Btsberger, Timothy; Wiedman, Mark
Ce: ‘Schulthess, Heidiynne; Nickolof!, Peter
‘Subject: Enron Talking Potts

<< File: Enron talking points,doc >>
Attached are draft Enron talking points for Peter Fisher.

01200000001340


Institutions are like that. I'd like to turn this into a
place where people get fulfillment out of what they do with
their life -- and it'll really be hard for subsequent
people to take it away. Because it becomes a right.''

It's « blessing, but also a curse, that our government
resiste people who want to change its shape. Much of what
O'Neill has done as a boss has been aimed at eliminating
indignities from the work lives of ordinary people. Small
wonder that he has so little patience for indignity
himself. But there is an aspect to being treasury secretary
that is inherently undignified -- especially to a former
C.£.0. who never had to worry one bit what people who
didn't know him thought of him. It's the democratic part of
his current job that requires saying what you don't really
mean or believe, or at the very least remaining silent
about what you actually think, all to make a shallow
impression on a lot of people who don't know you. O'Neill
has mostly ignored this part of the job. He has refused to
sell himself to the financial marketea. It should not come
as a huge surprise that the financial markets haven't
bought him.

No one can say with authority whether O'Neill will be
staying or asked to go. O'Neill himself may not know. On
some level, the White House political people must realize
that if they fire their treasury secreta they will
implicitly be taking the blame for the stalled economy. But
if he is still around as you read this, Le neon ite aa
because, in hiring O'Neill, Bush and Cheney know:
signed on for an unusually interesting ride. If ee asa,
now they've got it.

Michael Lewis, a contributing writer for the magazine, is
the author of ''The New New Thing'' and, most recently,
‘"Next.'*

hetp://www.nytimes.com/2002/01/13/magazine/13ONEILL. html 7ex~1011666964hei“16

en=ldcsdd21scc3ch4f

Copyright 2001 The New York Times Company

01200000001494


McCall, Neal

ing Paday January 11, 2002 5:17 PM

To: Demarco, Eaward dward, McCall, Neal

Subject: Pw Enon Panes and Other issues
“Original Message-—-

From: Sweetnam, Bil Jr

Seat Traxaciy, Dory 10, 2002 6:56 Pe

for

Ce: nacor W W Thomas

Subject: Enron Paper and Other Issues

Attached is a paper on issues arising from employer stock in tax qualified plans. We gave a of this to Mark
Weinberger this evening. sai

| also talked with Paul Zarawski, Asst. pretax Wie YN ans em 8 COptey) abn ie SAVEN Ss Simi
He told me that there were 4 slots for Treasury and he had not heard from Treasury on who was filling those slots. We
should determine who will fill those slots. I'd Fe ape 0s eae hel Pe Sind Ue Goes ot Sie are I'm not sure how
to fill the others. Paul has asked me to tell him how those people will be.

I'm sure that we'll be talking soon about Enron and other things.

Troesury Departmeat

rei

1800 Pennsyiana A Avenue NW

Washington DC 20220

Phone: 202-622-0170

Fax: 202-622-0646

McCall, Neal

Son Wied December 26, 2001 8:39 AM

To: DeMarco Caward. McCall, Neal

Subject: FW: WSJ: Enron Workers Face Losses On Pensions, Not Just 401(k}s

((b)(5))

voOngnal Message

From: Carleton, Norman

Sent: Wednesday, December 19, 2001 11:42 AM

To: Cetina, Jil; Bair, Shella; Gerardi, Steve; Bitsberger, Timothy; Echner, Matthew; Gablondo, Jose; Gross, Jared; Hammer, Viva; Lon
Sanatanavere (Esai; Michctol, Peter; Noeey, Michael, Rebangel, Ped: Resebora, Brian; Schulthess, Heidilynne; Whaley, Jean;

Subject: WS): Enron Workers Face Losses On Pensions, Not Just 401 (k)s

December 19, 2001

01200000001171


Q So are we to take the initial part of your response as an indication
that the President might get involved? You said --

MR. PLEISCHER: No, I just said to you -- you asked me and 1 told you, you
know where it stands, that the Department of the Army made the announcement made
this morning, and that's where it stands.

Q To follow up on Ken's question and the point he was making on the
Middle Bast, why can't you tell us as the White House spokesman, what, if any,
contacts White House officials -- Card, Karl Rove -~ has had on this inoue with
the Department of the Army?

MR. FLEISCHER: Oh, I thought you were asking about, again, Zinni and
Arafat. The Department of the Army?

Q Well, again, I'm asking you to tell us what contact --

MR. FLEISCHER: Ron, I'm not aware of any. If I had something to report, t
would report it.

Q Can you check to see whether or not there has been any contact or if
the White House is involved in this?

MR. FLEISCHER; I raised it this morning, and T had nothing to advise you
of. If 1 had something to advise you of involving the President or the White
House's involvement in this case at Arlington, I would advise you of it.

Q So you're saying the White House hasn't been involved as far as you
know? ”

MR. FLEISCHER: There is nothing that I've been made aware of.

Q Ari, two things, real quick. On Ann's question, is the President
planning, or has he talked to the families of those soldiers who were killed?

MR. PLEISCHER: I'll try to let you know. And as you know, the President's
habit has been to send notes to the families. But if there is anything, I'll
let you know.

Q And a second question, quickly. The President, since September the
lith, has showed extreme patriotism, brandishing hie flag, talking about this
country, the love of this country. What are his thoughts about the American who
has fought for the Taliban and his patriotism?

MR. FLEISCHER: Well, the President's first thought is that we need to
collect the facts about what has taken place. But I think until then, the
President hasn't really entered into the realm of conjecture. I think that -- I
would just leave it right there, until the facts can be ascertained about if
it's all true what we've read, and why somebody may have done this. But
beyond that, I don’t think it's fair to speculate.

Q From the initial facts, is it treason?

MR. FLEISCHER: 1 think Secretary Rumsfeld was asked that question
yesterday, and I'm not going to go beyond what he said.

Q I'm asking you, the White House.

MR. FLEISCHER: This is a matter for the people who were involved to ask
the appropriate questions, to gather the appropriate information. It's not a
time for people in the government to guess or to speculate, These are important
matters.

Q But he’s fighting against the American government, basically --
MR. FLEISCHER: I understand.

00800000000835


Jaskowiak, Mark

From: = * Jaskowiak, Mark

Sent: Monday, October 15, 2001 9:25 AM
To: ‘Robertson, Linda’

Subject: RE: Portfolio

= ’
Sorry = was away last week. I've got EBRD, GEF (Global Environment Facility), IFAD
(International Fund for Agricultural Development), NADBank and, to the the extent of
Treasury involvement (not much), the Global HIV/AIDS/TB/Malaria Trust Fund. Also a few
other responsibilities, including 150 A/C budgeting, some G-7 coordination, MDB anti-
corruption stuff, but these are the IFIs I worry about.

Cheers.

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

From: Robertson, Linda [mailto:Linda.Robertson@enron.com)
Sent: Thursday, October 11, 2001 7:00 PM

To: mark. jaskowlak@do.treas.gov

Subject: Portfolio

What IFIs do you have in your portfolio?

Povererrrerrrererrerer titi ti tt tier it ttt r itt terrier eters
This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain
cenfidential and privileged material for the sole use of the intended recipient [5). Any
review, use, distribution or disclosure by others is strictly prohibited. If you are not
the intended recipient (or authorized to receive for the recipient), please contact the
sender or reply to Enron Corp. at enron.messaging.administration@enron.com and delete all
copies of the message. This e-mail (and any attachments hereto) are not intended to be an
offer (or an acceptance} and do not create or evidence a binding and enforceable contract
between Enron Corp. (or any of its affiliates) and the intended recipient or any other
party, and may mot be relied on by anyone as the basis of a contract by estoppel or
otherwise. Thank you.

peepeerrrrrrererrct errr titi t titi trier iti

00500000000521


into trade agreements around the world, one, to help protect the economy
long-term; but, two, to help other nations around the world so they have
opportunities to grow and prosper.

Q with the people he's meeting today, are they leaners or how do you see
then?

MR. PLEISCHER: They fall into a variety of categories. Clearly, he won't
meet with people whose minds are already made up and there's no use talking to
them. So the President is going to meet with people where he thinks it can make
a difference.

I can report to you that the President has held, prior to today and not
including yesterday's flight, six meetings with mewbers of Congress, exclusively
on the topic of trade promotion authority. He's met with 41 mombers of the
House, 8 members of the Senate, 19 Republicans and 30 Democrats.

Q Are those large meetings, or one-on-one, OF =~

MR. FLEISCHER: A variety of forums,

Q Is this over recent, Ari, or -~

Q Has he been on the phone with them also?

MR. FLEISCHER: The President may be making some phone calls.
Q Spread over the last six months?

MR, PLEISCHER: Yes,!'if you recall, in anticipation of this, because the
President ia such a dedicated believer in the importance of free trade, the
President over the summer started having meetings with members of Congress to
talk about trade promotion authority. He had a few additional ones, and now, of
course, on the eve of a major vote, the efforts are accelerated.

Q This is over that whole period?
MR. PLEISCHER: That's correct.

Q Has the President talked to Sharon or Admiral Zinni? What has been
the President's activity in terms of the Mideast?

MR. FLEISCHER: Well, as you know, the President met directly with Prime
Minister Sharon here at the White House on Sunday. No, to my knowledge, the
President has not had any additional conversations.

Q Has the President had a chance to look at this new proposal by
Chairman Thomas that provides additional assistance to workers who lose their
jobs?

MR, FLEISCHER: TIA? ‘The President is aware of the proposal by Chairman
Thomas and the President is hopeful that as a result of a series of
conversations that are taking place, that members of Congress will agree to
grant the President the authority to enter into trade agreements around the
world.

Q Does he support the Thomas proposal?

MR, FLEISCHER: Well, the President does believe in TIA, the program of
trade adjustment assistance. He thinks it is a very helpful way to help people
who in individual sectors might lose their jobs as a result of trade agreements.
Having said that, the President, as you know, believes that trade agreements
create a net increase in jobs. But the President supports the program. The
President hopes that in negotiations and discussions they will be successful.

Chairman Arafat is saying that he can't get to General Zinni to return
any calle to him. Are you aware of that? Has that been a directive to General

s

00800000000833


((b)(5)]

01200000001142


office, saying how we're going to cut taxes, increase defense spending
and balance the budget? He did two out of three, but he and the first
President Bush ran up enormous deficits, most of the national debt we
have today.<br> <br> Consider: Roll Call, the Capitol Hill
newspaper, reports the Houge Appropriations Subcommittee on
Transportation -- that's roads, bridges, the good stuff -- has received
roughly 10 requests for special projects per congreasman, twice as many
as last year.<br> <br> Consider: A Colorado Republican denounced
spending: “This place is just a nut house when it comes to spending."
But the same day he asked for $6.6 million to buy the Beaver Brook
watershed in, of course, his district. He explained that this was an
especially worthwhile project, but of course, that's what they all say.
Nobedy stands up and says, “We don’t really need this, but give me the
money anyway."<br> <br> Conservatives like tax cuts because they
think they will hold down spending and the size of government.
Republican Orrin Hatch of Utah says, “If we don't cut taxes, they* --

the Congress -- “will spend every dime of it."<br> <br> The trouble
is, if you do cut taxes, they're likely to spend it anyway, every dime
and a little bit more.<br> <br> itm Bruce Morton.<br> <br> (END
VIDEOTAPE) <br> <br> BLITZER: Thanks, Bruce.<br> <br> Now, it's

time for you to have the last word. Senator Jim Jeffords’ decision to
leave the Republican Party generated the most response from you. <br>
<br> Pat writes this: ‘Blame should not be placed on President
Bush or the Republican leadership for “Turncoat Jeffords'" jurp. It's
time for the Republicans to move on and forget about Jeffords. te did
nothing to help the party. He is now where he belongs.*<br> <br>

But Dan from Michigan says, "I applaud Senator Jeffords for the courage
of his convictions it week. I now hold out great hope that the
Senate can work to restore the true bipartisanship and the voice of the
moderate, which our nation so desperately needs."<br> <br> Carlton
from Oklahoma says, “Others in Congress, both Democrat and Republican,
should follow his lead and do what's right, not what's popular, "<br>
«<br> But Bobby and Patty from Texas disagree, They say this, "When
@ person is elected as a member of a particular party, they should be
obligated to remain in that party until their term expires."<br> <br>
As always, I invite your comments. You can e-mail me at
lateedition@enn.com. And don't forget to sign up for my weekly e-mail

at cnn.com\email.<br> <br> When we return, we'll reveal what's on
the cover of this week's major newo magazines. Stay with us.<br> <br>
(COMMERCIAL BREAK) <br> <br> BLITZER; Beautiful day here in
nasnington.<bre <or> And now a look at what’s on the cover of this
week's major news magazines.<br> <br> "TIME" magazine welcomes you
to "Amexica: The border ie vanishing before our eyes, creating a new
world for all of us*, om the cover. <br> <br> “Newaweek" has a

special report: “Aids at 20. Can this man find a vaccine?" with Seth
Berkley (ph), founder of the International Aida Vaccine Initiative, on
the cover. <br> <br> And on the cover of "U.S. News and World
Report," "Sin City no more? Why Las Vegas is the face of America's
future." <br> <br> And that's your LATE EDITION for Sunday, June
3. Please join us again next Sunday and every Sunday at noon Eastern
for the last word in Sunday talk. <br> <br> And if you missed any
of today's program, you can tune in tonight, 7:00 p.m. Eastern, for a
one-hour replay of LATE EDITION.<br> <br> I'll see you tomorrow
night on Wolf Blitzer Reports, 8:00 p.m. Rastern. My special guest,
New York Mayor Rudy Giuliani.<br> <br> Until then, thanks very such
for watching. Enjoy the rest of your weekend. I'm Wolf Blitzer in
Washington.<br> <br>TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL

00800000000572


will not seek sanctions against poor countries overwhelmed by the AIDS epidemic
that try to force down the price of patented anti-AIDS drugs by legalizing the
importation or manufacture of generic versions. The administration, the
official said, will not try to punish such countries even if American drug
makers complain or American patent laws are being broken - as long as the
country adheres to the rules agreed under WTO treaties. The Chicago Tribune
also reports.

The news comes as WTO Director General Mike Moore writes in the International
Herald Tribune (p.6) that by promoting free trade we can make a difference.

Openness is essential for economic growth, which can help pay for better health
care and sanitation.

Meanwhile, reports the Wall Street Journal Europe (p.22) in a feature, Brazil's
acclaimed AIDS program involves more than just free distribution of local
knockoffs of patented drugs for people with HIV. Brazil also serves up an
uncenventional but potent mix of activists, the story says.

WORLD BANK UNVEILS WATCHDOG FOR CHAD/CAMEROON PIPELINE.

The World Bank yesterday announced the creation of a new panel to act as a
watchdog over the controversial Chad/Cameroon oil pipeline, Dow Jones reports.

The Bank said in a statement that the six-seat International Advisory Group will
be headed by former Senegal Prime Minister Mamadou Lamine Loum. This group will
is charged with guarding against misuse of public money pumped into the
$3.7-billion oi) project, and that the project developers fulfill their promises
of reducing environmental damage while sharing the benefits of the project with
the poor.

The IAG is one of at least three independent panele expected to oversee the
financing and construction of the pipeline that it designed to transport oil
from fields in Chad through Cameroon to a port on the Atlantic coast.

Last June, the World Bank approved §93 million in financing for Chad and
Cameroon and $100 million - through its IFC arm - for the pipeline developers
despite fierce opposition from non governmental organizations, concerned about
damage to environment and the social impact on local inhabitants.

Controversy flared within four months when it became known that Chad's President
Idriss Deby had authorized $4 million in weapons purchases out of a $25-million
bonus paid to his government by Chevron Corp. (CHV) and Malaysia's Petronas Gas
Bhd. (P.PGS).

This is the kind of activity the World Bank hopes the independent panel will
reveal and perhaps discourage to protect it from further criticism over what it
views as an enormous opportunity to alleviate poverty in the two countries.
“There is a risk that the projects will not achieve their poverty alleviation
objectives, could have negative impact on affected populations and result in
adverse environmental impacts," the World Bank said.

Accordingly, the IAG is expected to "identify potential problems as they arise,
concerning issues such as the misallocation or misuse of public revenues,"
ensure the involvement of NGOs, and scrutinize the project's record on
environmental and social mar

“The work of the IAG ia expected to continue for up to 10 years," the World Bank
said. "It will visit Chad and Camercon at least twice a year, and report
periodically to the president and board of directors of the World Bank group.”
IAG reports are to be made public the day they are presented to the World Bank
board, it added.

00500000000410


Nichols, Robert
———————

From: Nichols, Robert

Sent: Thursday, aay 10, 2002 4:28 PM

To: ‘Wheelock, s’

Subject: RE: Secretary on FoxNews "Your World with Cavuto" at 4:00p Today

we will contact you to discuss

Reb Nichols

Deputy Assistant Secretary for Public Affairs
Depertment of the Treasury

4202) 622-2910

enante| ‘Original Message-----

From: Wheelock, Robert S. [mailto:Robert.$.Wheelock@abc.com)

Sent: Thursday, January 10, 2002 3:06 PM

Te; *"Robert.Nichols@do.treas.gov’

Subject: RE: Secretary on FoxNews “Your World with Cavute” at 4:00p
Teday

any chance that the Secretary would be available tomorrow to talk
1) Enron

2) Terrorist Financing

3) Economy, taxes, budget

T left a message with your office and have a call into Adam Levine at the
WH as well.

Thanks

-Criginal Messa
From: Robert .Nichola@do.treas.gov [mailto:Robert .Nichols@do.treas.gov)
Sent: Thurscay, January 19, 2002 11:33 AN

Subject: Secretary on FoxNews “Your World with Cavuto” at 4:00p Today
Importance: High

Rob Nichols

Deputy Assistant Secretary for Public Affairs
Department of the Treasury

(202) 622-2910

The Secretary will appear in an interview on FoxNewsCH “Your World
with Cavuto" at 4:00p today. Topices of discussion will be the economy and
terrorist financing.

aT

00800000000478



{(b)(5)]

01200000001153


and your grandchildren and enjoying what you want to do. Sut you're
making that decision. <br> <br> We have a lot of people that have
gone to boot camp in our country's history to become better soldiers
and defend our country and defend democracy, who didn't like that boot
camp experience either. Sut they made them better men, better women.
<br> <br> And so, this is just a period of time that you have tc
make a commitment. And as we all know, sometimes life is not easy, but
it's a commitment you're making to living for you and your family.

<br» <br> Some day we all hope that we take a little pill or geta
Little shot like a polio vaccine, and I think that's what all three of
us on this show are focused on. <br> <br> That the American people

50 years ago, more than 70 percent of them thought we'd have a cure for
cancer by the year 2000. Very few of them thought we'd have a man or a
woman step on the moon by the year 2000. Well, both of those things
proved to be inaccurate. And I think it’s partly a fact that we have
not invested enough money or made it a high enough national priority or
brought the human resources.<br> <br> It wasn't that long ago,
Steve, you remember we were sitting in a table maybe 25 years ago, and
you were talking about, did you have enough money to rent a Winnebago
to take your three girls on vacation. And I think we've got to create
opportunities for our best scientists to work in the field of cancer

research. <br> <br> BLITZER: Dr. Rosenberg, is enough money being
funneled towards this problem right now, or should the U.S. government
come up with a lot more? <br> <br> ROSENBERG: We have today, I

believe, remarkable opportunities. The public often hears about cures
that they here in the media. But in fact the problems of cancer are
enormously complex, and one requires an enormous scientific base of
information if we're going to solve the problems. <br> <br> We
have available today good ideas, new technologies, but the funding of
grants to do research is quite low, and a good deal of good work is not
being funded, And so, there's no doubr in my mind that more funding
will result in more progress and bring us closer to the successful
treatment of many more patients with cancer. <br> <br> BLITZER:
Nancy, you've raised a lot of money for breast cancer research. Is
money still a problem, or there is enough money right now? <br> <br>
BRINKER: Money is always a problem. And, you know, I think that Steve
makes a great point, that even with the amounts of money we raise at
the Komen Foundation -- we've raised over $400 million since we began -
~ we can still only fund the top 25 percent of grants that we receive.
And the bittersweet day is in all those grants arrive in the office,
and we know that somewhere s mdipitously maybe in that stack of
grants is something we desperately need but don't have the funding to
go below that level, <br> <br> BLITZER: All right. <br> <br>
MILKEN: Wolf, f think even goes farther than that. Our best
scientists are spending sometimes 50 percent to two-thirds of their
time trying to raise money.<br> <br> BRINKER: Right.<br> <br>
MILKEN: We'd sure rather have them working in the laboratories trying
to find the solution to the problems than trying to figure out how to
get money. <br> <br> One of the heads of one of the major cancer
centers in America, a number of years ago, less than 10, when he said
he wanted to work in the field of prostate cancer research, he was told
that that was career suicide because there was no money to work in that
field. Well, I'm happy that is act the case today. <br> <br> But
we have to give a promise to our best and brightest that if they choose
te work in the field of cancer, and make available the technologies
that are available today to them, that there will be funds for them,
for their careers, for their families, and to conduct their research.

00800000000566


unprecedented step of delivering a final warning to Zimbabwe over its human
rights record in a move that could result in the ending of a multimillion dollar
aid package, reports the Independent (UK, p.14). The action reflects growing
international concern over the intimidation of the judiciary, harassment of the
independent media and the expulsion of foreign journalists.

Sweden, which holds the EU presidency, is planning to confront the Zimbabwean
authorities under the terms of a new treaty that governs relations between the
BU and developing countries. A meeting of officials in Brussels today is
expected to finalize details of how the EU will force a new "“dialcgue* with
Harare over ite abuse of human rights.

POOR COUNTRIES MOST VULNERABLE TO GLOBAL WARMING. Developing countries are
particularly vulnerable to the negative effects of global warming, says
Libération (France, p.4), also reporting on the latest UN report on the

jon, The so-called “big five" developing countries-China, India,
Indonesia, Brazil and Argentina-are big polluters but vulnerable, while the
least developed countries (LDCs), which are small polluters, are the most
vulnerable, an O&CD official points out. “The poorer they are, the more
difficult it will be for them to address [the effects of global warming], says
the official. "Who is going to pay so that a small island state can construct
dikes like those of The Netherlands?”

The OECD deplores the failure of last year's climate change negotiations in The
Hague. Efforta have come to a standstill despite the fact that the world is
faced with an unprecedented challenge, notes Francois Falloux of the World Sank,

The developing world, represented by the G77, is also divided on the issue of
carbon emissions trading, the story notes. The emissions trading market hao
been estimated to be worth as mich as $50 billion, which is almost as much as
all official development aid, the story says the World Bank has said.

The IMF says it is too early to work on the issue, the story notes, while some
NGOs say the solution cannot lie in the "technological pressure" of, for
instance, genetically modified organisms, but in “practical adaptations" in the
agrarian sector and in free access to natural resources, such as water.

Addressing the problems will take financial resources and patience, says the
story. It will also require fighting a certain fatalism in southern countries,
where it is said that climate change might indeed strike the day after tomorrow,
but hunger will kill people tomorrow, Falloux is quoted as saying.

CORRUPTION-HIT PERU PUTS STATE ACCOUNTS ON SHOW. Peru, mired in the worat
corruption crisis in ite history, said yesterday it was opening its state
accounts for unprecedented scrutiny in a drive for transparency and to stop
fraud in the future, Reuters reports.

“This is a weapon in the fight against corruption, We're going to make the
weapon as powerful as possible,” interim Economy Minister Javier Silva Ruete
told a news conference to present the ministry's new ‘economic transparency

portal".

International institutions such as the IMF and the World Bank, which Silva Ruete
has just tapped for fresh credits, are likely to be delighted by the open-doors
policy, which has reaped dividends elsewhere.

In Guatemala, for example, when the government published details of its
procurement contracts, competing companies were able to offer lower prices for
goods and services “so transparency is cost effective as well as salutary" a
World Bank source in Washington said.

73 PERCENT OF WORLD BANK PROJECTS HAD SATISFACTORY OUTCOMES: OED. Responding
to @ recent article that quotes Bruce Rich as saying that only every second
7

00500000000413


{(b)(5)}

01200000001140


Granat, Rochelle

From: FedNews OnLine [georgev@fpmi.com)
Sent: Friday, April 27, 2001 6:15 AM

To: *FedNews

Subject: FPMI's FedNews OnLine (tm)

FPMI's FedNews OnLine is a free daily news service from FPMI Communications.

To subscribe or unsubscribe just go to http://www. fpmi.com/FedNewa A
search engine for previous PedNews OnLine issues and a weekly
compilation of news items is available at http://www. fpmi.com.

Please go to http://www. fpmi.com/FedNews/DailyNews html to see
today's newsletter

with graphics/color and links to our Conference, Training,
Publications and Task Force sections of our web sites.

Editor: John Southerland (mailto: johne@fpmi.com)

Friday, April 27, 2001

In Today's Edition:

1) VOTING MACHINE PROBLEMS BEHIND AFGE ELECTION PROBLEM

2) ADMINISTRATIVE JUDGE GIVES TIPS ON MSPB HEARINGS

3) FINAL RULE OUT ON ELECTRONIC ACCESS FOR FEDS WITH DISABILITIES
4) BUSH TO NOMINATE POUR TO SERVE IN HIS ADMINISTRATION

VOTING MACHINE PROBLEMS BEHIND AFGE ELECTION PROBLEM

Mark Roth, the general counsel for the American Federation of
Government Employees, informed FedNews OnLine that the Department of
Labor is deliberating what should be done concerning an August, 2000
election in which a number of ballots weren't correctly counted in
the AFGE National Secretary Treasurer race.

Roth said a recent three-day manual recount of the original machine
count (and machine recount) revealed that former AFGE National
Secretary Treasurer Rita R. Mason ended up with about 34 percent of
the vote, compared to about 29 percent for sitting APGE National
Secretary Treasurer Jim Davis. According to the machine count and
recount, David Schlein finished a close third in the balloting with
just under 29 percent of the vote, Roth said,

However, a manual recount under the Department of Labor's supervision
revealed that a number of Schlein's votes were not counted, even
though they were filled out correctly, Roth said, Had the machine
counted the votes correctly, Schlein, a national vice president of
AFGE, would have been in a run-off with Mason for the national
secretary treasurer position.

Roth said it was the first time this particular machine had been used
and that the machine can be reprogrammed to eliminate mistakes in the
future.

Mason issued a press release April 16 calling attention to the
ake and asking that she and Schlein be put in a run-off to settle
the election and that Davis should not have even been allowed to

1000000000672


Hughes, Gerry

From: Carleton, Norman
Sent: Saturday, September 08, 2001 1:07 PM
To: Bair, Sheila; DeMarco, Edward; Eichner, Matthew; Eltett, Martha; Fisher, Peter; Gabilondo,

Jose; Gross, Jared; Hammer, Viva; Hughes, Gerry; Nickoloff, Peter; Novey, Michael;
Roseboro, Brian; Schultheiss, Heidilynne; Smith, Amy; Sutton, Gary
Subject: Retail Swaps Study Group Meeting -- September 6

On Thursday, September 6, the Retail Swaps Study group met at Treasury to discuss how to complete
the remaining work.

{()(5)]

01200000001314


a good secretary of state. I hope the president gives him full leeway
to de what Secretary Powell thinks is the best thing.<br> <br> So
I'm satisfied at this stage. I know that we need more attention there,
but I'm going to leave that attention to Secretary Powell. <br> <br>
BLITZER: All right. Let's talk about politics, here in the United
States, specifically in the Senate. <br> <br> As both of you know,
the Republican senator from Arizona, John McCain, has been hosting a
very important visitor at his ranch in Arizona over the weekend, the
new Senate Democratic majority leader Tom Daschle. <br> <br> He
issued a statement, yesterday, McCain. I want to read a little excerpt
from it. Among other things, he said thia: ‘I have not instructed nor
encouraged any of my advisers to begin planning for a presidential run
in 2004. I have not discussed running for president with anyone. As I
have said, I have no intention running for president, nor do I have any
intention of, or cause to, leave the Republican Party. I hope this
will put an end to further speculation on the subject." <br> <br>
Senator Reid, does that put an end to the possibility that Senator
McCain could bolt and follow in Senator Jeffords’ footsteps and become
an independent? <br> <br> REID: I came to Washington in 1982 with
John McCain, We served in the House together. We went to Senate
together. So I know John very well. And I know one thing about John
McCain: As popular as he is in Arizona and all over this country, no
one should predict what he is going to do. John McCain does what he
feels appropriate. He is an individual who has very strong views.

<br> <br> So I'm going to leave all of the predicting up to John
McCain. We'll what happens to John McCain, but no one -- no one --
should predict what he is going to do on any given day. <br> <br>
BLITZER: Are you ready to stop predicting what John McCain might do,
Senator Hatch? You know him quite well as well. <br> <br> HATCH:
I know him really well, and I predict that John will live up to what he
said, and that is that he is a Republican. He is going to stay a
Republican, and he will be an effective force in Republican Party, as
he has been.<br> <br> BLITZER: But you know that on so many
issues, he has lined up with Democra' I will give a few examples:

on campaign finance reform with Russ mgold. <br> <br> RATCH:
Right.<br> <br> BLITZER: On the issue of gun control, he's now
come out with Senator Joe Lieberman to tighten loopholes on gun show
sales. On patients’ bill of rights, he's teamed up with Senator Ted
Kennedy and Senator John Edwards for legislation that the president has
vowed to veto. He opposed the tax cut legislation that was recently
enacted and sent to the president. <br> <br> Wouldn't he feel more
comfortable, perhaps, in the Democratic Party?<br> <br> HATCH:
Well, you have named four issues out of the thousands and thousands of
issues that come before the Congress, most which of John votes with us

on on. And on those four issues, he has particular reasons why he has
voted in each of those cases and why he has led the fights in some of
these cases. <br> <br> So, you know, I don't have any problem with
that. We all have cur own way about doing things. I agree with Harry:
John McCain is going to be John McCain. And he is going to have my
friendship and the friendship of, 1 think, both sides. <br> <br>
HATCH: And he’s going to be effective as he wants to be. I
personally believe thar John going to continue to be a creat
Republican, and I expect him to. <br> <br> BLITZER: Senator Reid,
you were among the few Democrats that had those secret meetings with
Senator Jim Jeffords of Vermont, now the independent, that set the
stage for his leaving the GOP. <br> <br> Can you tell us that the
meeting, the vieit that Senator Daschle, your good friend, to Arizona

0080000000553


restaurant reservation or an online game.

RICHTER; The idea was it's not necessarily to say this is the future, but sort of to pack into a car everything that
might be the future and maybe start to get a little bit of gauge what bits of LT, technology consumers really
want in their car and what's merely decoration.

CRAFT: Some of the concepts on display seemed more like rec rooms on chassis, like Honda's (HMC) see
through Unibox (ph), equipped with its own set of built in motorcycles. Or take the Zen from Isuzu. Forget the
usual scuff resistant floor pads, This elongated car features delicate straw Tatami (ph) mat floors. Analysts say
there's a cultural rationale driving these radical designs. While Americans see cars primarily as transportation,
on Japan's overcrowded roads, cars and naturally evolved to become an extension of the living room.

MORGAN: It's important to remember that it's the Japanese, really, who have advanced ergonomics in vehicle
interiors -- cup holders, a very simple example -- but really were pioneered by the Japanese, a very obvious idea,
but an idea that had to come from people who spend an awful lot of time sitting in their car, not necessarily
driving their car, And the idea that you want to make the interior of the car more multi functional and much
more comfortable, I think, is an idea that by necessity has come out of the Japanese market.

CRAFT: Analysts say it's impossible to predict how badly the worldwide downtum will hurt car sales over the
coming months but there's no uncertainty about the fate of these concept cars. Most of the high tech gizmos on
display here, say observers, will never make it onto the road, destined to stay on the sci-fi dream list of their

designers.
Lucy Craft, NIGHTLY BUSINESS REPORT, Tokyo.

KANGAS: Tomorrow, what's ahead for the markets? We talk with Mario Gabelli (ph), Chairman of Gabelli
Funds.

GHARIB: Bridgestone/Firestone reportedly agreed late today to a huge settlement to head off lawsuits by states
preparing to sue over defective tires. According to published reports, the tire maker will pay $41.5 million, Each
state will get a half million dollars, Six and a half million Bridgestone/Firestone tires were recalled last year.
Those tires were linked to 271 deaths.

KANGAS: A major break, a major break for Exxon Mobil (XOM) today. A federal appeals court threw out a SS
billion punitive damage award Exxon was ordered to pay for the massive 1989 Exxon Valdez (ph) oil spill in
Alaska's Prince William Sound. It was the worst oil spill in U.S. history. The appeals court ordered a district
court to review the case and set a new, lower amount. Even so, Exxon Mobil's stock fel! $0.16, to close at
$39.08.

GHARIB: The Concorde is back. Two supersonic planes, one from Air France (ph), the other British Airways
(BAB), touched down within an hour of each other this morning at New York's JFK Airport. They're the first
passenger flights of the Concorde since a fatal accident 15 months ago near Paris, The Air France plane carried
92 passengers, including France's transport minister. The British Airways Concorde had 91, including rock star
Sting.

KANGAS: So far, 2001 is a year that most stock market investors would rather forget. But since launching last
December, Ameristock Focused Value Fund has not only been able to beat the market, it's achieved a retum
well into the double digits. In fact, for the year through yesterday, Ameristock Focused Value D Fund was up
more than 32 percent. That's a record exceeded by only a handful of funds. The fund's Co-Portfolio manager is
Howard Mah, who joins us now from San Francisco, And Howard, welcome to NIGHTLY BUSINESS
REPORT.

00800000000924


Page 2 of 3

{((b)(5)]

01/16/2002

01200000001414


Gross, Jared

From: Davis, Michele

Sent: Thursday, January 10, 2002 4:10 PM

To: Bair, Shela; Fisher, Peter, Holahan, Betsy; Nichols, Robert, Gross, Jared

Subject: Text of PResident’s announcement today

Home </index.html> > News & Policies </news/> ee
</ne 5

For Immediate Release Office of the Press Secretary January 10, 2002 President Calls for Review of
Pension Regulations and Corporate Disclosure Rules REMARKS BY THE PRESIDENT IN MEETING
WITH HIS ECONOMIC TEAM REMARKS BY THE PRESIDENT IN MEETING WITH HIS ECONOMIC TEAM The
Oval Office 9:42 A.M. EST THE PRESIDENT: Thank you all for coming. I met with my economic security
team last week to talk about ways to create jobs. We're meeting again with the components of the team to
talk about one part of economic security, and that’s pension security. One of the things we're deeply
concerned about is that there have been a wave of bankruptcies that have caused many workers to lose
their pensions, and that's deeply troubling to me. And so I've asked the Secretary of Treasury, Secretary
of Labor and Secretary of Commerce to convene a working group to analyze pensions, rules and
regulations, to look into the effects of the current law on hard-working Americans, and to come up with
recommendations how to reform the system to make sure that people are not exposed to losing their life
savings as a result of a bankruptcy, for example. As well, Secretary of Treasury, along with the SEC, the
Fed, and the CFTC, are going to convene a working group to analyze corporate disclosure rules and
regulations. In light of the most recent bankruptcy, Enron, there needs to be a full review of disclosure
rules, to make sure that the American stockholder, or any stockholder, is protected. And so, I think this is
an important part of, obviously, other investigations that are ongoing. The Justice Department announced
and informed us late yesterday that they're In the process of investigating aspects of the Enron
bankruptcy. The administration is deeply concerned about its effects on the economy. We're also deeply
concerned about its effects on the lives of our citizenry, I'll be glad to answer a few questions.

01200000001542


for deregulation -- or the ardor of Enron Conservatives who champion the
cause. Pat Wood, Ken Lay's handpicked choice to head the Federal Energy
Regulatory Commission, actually insists that the collapse of Enron “doesn't
seem to be tied too mich to deregulated energy markets." You know that
something is rotten in Washington when the top energy industry regulator is
sO unabashedly anti-requlation.

Rep. Joe Barton, chairman of the House Subcommittee on Energy and Air
Quality, another Enron Conservative who sees the energy giant's collapse
as an aberration, not a smoking gun. Indeed, dismisses Enron's demise as
“an in-house problem" and continues slaving away on a deregulation bill that
would make Ken Lay proud.

Then there's Lawrence Lindsey, the president's top economic adviser, and a
former advisor to Enron, who went so far as to claim that the Enron disaster
“{s a tribute to American capitalism." And 9-11 was a tribute to Islamic

ingenuity.

Not that long ago, Bush was vowing to battle domestic suffering with “armies
of compassion.* Instead, he and his cadre of Enron Conservatives are adding
to the carnage.

To subscribe or unsubscribe, or if you have any questions or comments,
please contact me at arianna@ariannaonline.com

01200000001498


public doesn't agree with us. CNN poll, 84 percent said this should be
a private matter, so it's an unpopular point of view, <br> <br> AY
this is a fact, not a rumor. They were cited. <br> <br> Secondly,
one of the daughters. Jenna, bas been cited twice in the last month.
<br> <br> Third, and most importantly, as what we just saw, Bush
himself used his daughters to deflect criticism. He said, "I'm not
going to talk about my own past because I want to be a good role model
for my kids.“ Fair enough. <br> <br> But he hae injected that
idea, he used them in the campaign, He is the one who introduced the
whole issue of hia daughter's behavior in the political campaign. It's
justified for us to cover it, and it's justified for us to expect as a
country for him to be talking about it now and setting a better example
than he's doing right now,<br> <br> BLITZER: David? <br> <br>
BROOKS: I'm for a little discretion here. They're 19-year-old kids.
They're behaving the way college kids do. Their chance now is to lead
a normal life so they can grow up normally, mature normally. And, you
know, they just turn into emotional freaks if they have to become
national celebrities like the British royal family.<br> <br>

BROOKS: You know, I'm generally a member of the leave-them-alone club
as a mother of two teenagers. You know, I understand that there's
things you do when you're teenagers you don't want subjected to
scrutiny. Sut I do think when the police are involved and it’s an
official police matter that the rules are somewhat different, and it's
hard to expect the newe media not te cover that.<br> <br> BLITZER:
On that note, we will obviously continue to cover it, but it's going to
be a source of a lot of controversy.<br> <br> Susan, David, Steve,
thanks for joining us, <br> <br> And up next, Bruce Morton ‘Last
Word,"<br> <br> (BEGIN VIDEO CLIP)<br> «<br> BRUCE MORTON, CNN
CORRESPONDENT (voice-over): Remember when Ronald Reagan came into
office saying, “We're going te cut taxes, increase defense spending and

balance the budget"?<br> <br> (END VIDEO CLIP)<br> <br>
BLITZER: The president's budget, can he and Congress stick to the
numbers? <br> <br> (COMMERCIAL BREAK) <br> <br> BLITZER: Time

now for Bruce Morton's “Last Word" on why, when it comes to the federal
government, sticking to a budget is easier said than done.<br> <br>
(BEGIN VIDEOTAPE) <br» <br> MORTON (voice-over): The House and the
Senate have approved President Bush's budget for the fiscal year that
starts October 1. History, though, suggests the budget ie about as real
as the Tooth Pairy.<br> <br> Under the budget, federal spending
would increase by 4 percent, half the previous year's rate. Does that
sound like Congreas to you?<br> <br> Pirst, the budget assumes the
projected $5.6 trillion surplus over the next 10 years will really
happen, even though a number of economists think maybe it won't. <br>
<br> The budget includes no money for the big new education bill --
the House version of that comes to $24 billion -- and no money for
whatever increases in defense spending Secretary Rumefeld may ask for
when he finishes his review of U.S. defens: <br> <br> Finally, to
believe in the budget, you have to believe that Congress really will
atick to that 4 percent spending increase limit. Uh-huh.<br> <br> A
White House spokesman says, *Our intention is to enforce the numbers in
the budget.* <br> <br> Democratic Senator Kent Conrad of North
Dakota says the budget is a fiction.<br> <br> (BEGIN VIDEO
CLIP}<br> <br> SEN. KENT CONRAD (D), NORTH DAKOTA: We don't have
the money for ites after item. And the reason is, when we get all of
those items together, what we'll find ia that the overall package does
not add up.<br> <br> (END VIDEO CLIP) <br> <br> MORTON: History
says, bet on Conrad.<br> <br> Remember when Ronald Reagan care into

0800000000571


HOWARD MAH, AMERISTOCK FOCUSED VALUE FUND: Thanks for having me on, Paul,

KANGAS: First, there are quite a few value mutual funds out there, but what exactly do you focus on in your
Focused Value Fund?

MAH: We focus on not having to really focus on any sector of the economy. Our focus is on holding 12 to 15
stocks that we like with the philosophy that holding a small number of good stocks with good up side potential
is better than holding a large number that has little or no potential up side,

KANGAS: Now, | understand that your fund's holdings tend not to be household names. Tell us some of these
stocks that you like and explain why you like them.

MAH: The first one is Media Arts, ticker symbol MDA. That's our favorite and our largest holding. They
manufacture, design and market the home-based art work of Thomas Kincaid (ph), which is a very popular
artist, currently trading a shade over $2, book value about $6. So there's a lot of up side potential there.
KANGAS: OK.

MAH: We also like Shopko Stores, symbol SKO. They operate up in the Midwest-Pacific Northwest.
KANGAS: Oh, yes. OK.

MAH: A discount retailer.

KANGAS: I know that one of Ameristock’s key policy is to have low tumover, meaning that you tend to hang
onto your stocks. But at what point would you sell some of your current holdings?

MAH: Our current holdings would be sold if they met our pre-designated sell price.
KANGAS: They get up to a certain price-earnings multiple and out you go, right?

MAH: When they get -- that's correct. When they get to a certain multiple that we deem to be a fair market
value then we just remove them from the portfolio.

KANGAS: Right. Now, looking ahead, do you see the economy and the stock market picking up any time soon?
MAH: Well, I was asked that question earlier this year and I said probably by the middle of next year but with
the events of September 11 I think that's probably pushed back to the following year, 2003. 1 would look for it
to pick up the first or second quarter of 2003.

KANGAS: OK, now looking into your own background, you were a tax consultant and financial adviser before
becoming a moncy manager. In light of the success that you've had, any advice to the smaller investor at this

stage?

MAH: My advice is for those investors sitting on the sideline, now is a good time to get back into the market.
I'm certain we have reached a buying opportunity and there's certainly a lot of buying opportunities in the small
and mid cap arena at this point in time.

KANGAS: OK, very good, Howard, thanks very much for being with us.

My guest, Howard Mah, Co-Portfolio manager of the Ameristock Focused Value Fund.

00800000000925


Nickoloff, Peter

From: InvestorGuide Daily [daily@investorguide,com]

Sent: Thursday, January 17, 2002 6:06 PM

To: peter nickoloff@do.treas.gov

‘Subject: InvestorGuide Daily - January 17, 2002

InvestorGuide Daily January 17, 2002
brought to you by

InvestorGuide (portal) hetp://wew. investorguide,com

InvestorWorda (glossary) http: //wew. investorwords .com

WebFinance Consulting http://www. webfinanceconsulting.com

If a friend forwarded you this message, get a free subscription by
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http://www. investorguide.com/Ameritrade.htm

Contents:
Market Summary
Business News and Analysis
Earnings
Word of the Day
On This Date
Notable Quotable

market summary

After a big tumble of the major indexes yesterday, investors put their
money back on the market following the positive earnings reports from
Compaq, Apple and General Electric, together with some encouraging
economic news. The Dow recovered nearly half of yesterday's loss
gaining 137.77 points and the Nasdaq managed to return to a positive
territory gaining 41.38 points,

Dow Jones Industrials: 9850.04 +137.77 *1.428
Nasdaq Composite: 2985.82 441.38 42.138
S&P 500: 1138,66 #11.32 1.008
30-year Treasury Bond: §.4088 +0.060

For more news and information on the market, investing, and personal
finance, please visit http://www. investorguide.com

business news and analysis

Jobless claims fell to their loweet level in six months for the week
ended Jan. 12, down 14,000, to 384,000. On average, economists were
expecting claims to rise to 438,000. (source: The Street)

01452

01200000000808


a man making decisions that could affect Alcoa's share
price, and another joke at his expense on the Democratic
National Committee Web site. ''They set up a Web site, and
they were having a ball,'' he says. ‘'And I realized I
should have walked away from al) of it and not listened to
the lawyers.'* On March 25, he walked away from a good part
of his fortune.

The whole mess still eats at him, however, partly because
it is much less fun not to have those millions than to have
them, but algo because of t implications of the debate
about his morals. ‘'If your standards are so low that you
would let your pergonal finances affect your decision, then
you have no business being here in the first place,'' he
gays. ‘''It should be grounds for nonconfirmation.'' But the
moment he chucked his list and took the Treasury job,
O'Neill became an artificial construct based only loosely
on the man he was before he took the job. He was finding
out that in public life as currently lived it doesn't
matter what's ''real.'’ All that matters is perceptions.

There's an analogy to this experience in O'Neill's attitude
toward the financial markets. Just as he refuses to accept

that there ia such a thing as ''an appearance of a conflict
of interest'' (either you are conflicted or you aren't), he
refuses to accept that the perceptions he creates with his

words matter all that much.

In this he couldn't be more different from his old friend
Greenspan, the other government official who can move
financial markets with a subordinate clause. One morning, ¢
was sitting in one of the deep, dark leather chairs in
O'Neill's office, beneath a portrait of Alexander Hamilton,
having spent two hours or so watching him confer with
several Treasury staff members who were trying to find him
better economic data. As the staff membera made to leave,
O'Neill began to talk to me about one of the high pointa of
each week, when he ate breakfast with Greenspan and argued
about economic data.

‘*Why don't you come along this Friday to breakfast?'’ he
said.

The thought of it clearly amused him. The two men share not
only a lot of history, having worked together in and out of
government, but also a hobby: no other human being on the
Planet can match their interest in General

Motors order books or the latest inventory numbers. Their
breakfast has become a ritual.

‘That'd be great,'! I said,

*'1'd better call Alan just
to make sure it's all right, but I can't see why he'd
ebject,'* he said.

O'Neill went off to call Greenspan, and as he did, I was
able to think of about 10 reasons he would object. For one
thing, Greenspan has always been the sort of guy who likes
reporters to know that he is talking about complicated
economic stuff with some treasury secretary over breakfast
but never permits them to judge for themselves the interest
of the conversation. A few hours later, I was back in
O'Neill's office when Greenspan returned the call. I sat in
the deep leather chair and listened to one end of a

R

01200000001491


Copyright 2002 by InvestorGuide.com, Inc.

InvestorGuide Daily is designed to keep you informed of the latest
investing news. It includes a market summary, top news, IPOs, earnings
and more..,everything you need to invest better, every day. You can
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read here does so at their own risk and cannot hold WebFinance Inc.
(DBA InvestorGuide.com, Inc.) or its employees responsible. For the
complete disclaimer please see

http://www. investorguide.com/disclaimer.html

01455

01200000000811


pervedt-eedh = LLiGS Ne 222 351 4717) =P. Rave

{(b)(4)]

TOTAL P.84

00500000001153


((b)(5)}

01200000001152


Bitsberger, Timothy

From: Bymo, Kathleen

Sent: Thursday, November 29, 2001 7:59 AM

To: _DL_Market Group; ‘Andrew D. Sacher (E-mail); David Griffiths; E.A. Wayne; Eric H. Otto (E-
mail, J.P. Reid; Jay Hoffman; Meg Lundsager, Philippa Malmgren; TJ. Sheviin

Subject: Market Morning Report, Nov 29th

{(b)(5)]

01200000001417


~ NS

SPIT Tn eT,

Aa® Calle Clay 333, Pino 2700

FO. Bow 1158
Honaton, TX 77231-1186
Fax TSO 768
Cette TL-S62- Att
Dard SietdeBewro com

00500000000029


Page 2 of 2

that checked
baggage be matched to a specific passenger.

‘That kind of clout comes in large part from the $16 million in political contributions the airlines have made to
candidates of both

parties. As Common Cause president, and former Massachusetts attorney general, Scott Harshbarger said, “the
airlines’ ability to

fly the political money system like a 747 has meant unfriendly and unsafe skies for the rest of us,”

You can add the corrupting influence of big money on Washington decision-making to the list of things that
haven't changed since

Sept. 11. The year’s best hope for reform, the McCain-Feingold bill, passed the Senate but remains stalled in the
House, with two

‘More signatures needed to discharge it for 2 vote on the floor. It's time backers of campaign finance reform
resumed the fight.

Ken White

Executive Director

Common Cause Massachusetts

59 Temple Place, Suite 600

Boston, MA 02111

617-426-9600
hitp;/www,commoncause.org’states/massachusctts

1/17/02
01200000001507


{(b)(5)}

01200000001135


{(b)(5)]

01200000001143


((b)(5)]

01200000001149


puts at peril the agenda thar Republicans were given a mandate by the
american people to deliver," <br> <br> Is it appropriate for Trent
Lott to be speaking about Senator Jeffords engaged in a coup of one?
<br> <br> HATCH: Well, you know, he may have used different words,
but frankly what he's doing is rallying the Republicans, saying, “Look,
we're in the minority now. We have a different set of
responsibilities. We've got to live up to them, and we've got to try
and get this agenda of lower taxes, stronger defense, better education,
et cetera, pai . And so, we're going to have to really get tough and
do what's right.* <br> <br> BLITZER: Senator Reid, with you in
the majority, starting Wednesday morning, the business day in
Washington, what's going to be the major change? Are you going to be
trying to obstruct so much of the president's remaining agenda, or are
you willing to compromise with them? <br> <br> REID: Wolf, I was
very disappointed to see on the front page of the New York Times today
this memo that Trent has sent to his Republican colleagues. If don't
think this is the time to be passing blame and saying, *The war's going
to start now.” <br> «<br> I personally believe that on Wednesday we
should have an open dialogue. I believe that the president needs us;
we need him. I think we really need to do more than just talk about
bipartisanship. We have some important issues that we need to complete,

and we're going to do them right away. <br> <br> REID: We're going
to complete the education bill quickly. We're going go on then to the
patients’ bill of rights. <br> <br> And I think it's time that

President Bush realized that he doesn't have a mandate. He is the
president, and I support him as being the president. Sut I think it's
time that we really start being bipartisan. And Senator Daschle and I
are going to do everything within our power to make sure that we are
bipartinan and try to move legislation cut of the Senate. <br> <br>
BLITZER: Senator Hatch, you agree with that assessment?<br> <br>
HATCH: Well, I wish more Democrats were like Harry Reid, And Harry
does help move legislation on the floor, he does bend over backwards
from time to time to make things work between the two parties.
Unfortunately, a lot of the others don't.<br> <br> and I think -- I
want to compliment Harry, 1 think Harry has really tried to do a very
goed job. I know, myself -- in the majority, I've gone to Harry to
say, look, can’t we get this done? And he's worked it out, in many
cases. So if we had more Harry Reids, I think we'd get a lot more
done, <br> <br> BLITZER: Only one Harry Reid, and only one Orrin
Hatch.<br> <br> (LAUGHTER) <br> <br> BLITZER: I want to thank
both of you for joining us, Senator Hatch, Senator Reid, always good
to have you on LATE EDITION.<br> <br> REID; Orrin, Wolf,
thanks.<br> <br> BLITZER: Thank you.<br> <br> And just ahead,
some Americans will be receiving a tax rebate this year, but is the
country headed into a recession? I'll ask U.S. Treasury Secretary Paul
O'Neill in just a moment. Stay with us. <br> <br> (COMMERCIAL
BREAK) <br> <br>

BLITZER: Por many Americans, the check will be in the mail. But as
they look forward to a tax rebate this year, what about the long- term
future of the U.S. economy? We'll ask the treasury secretary, Paul
O'Neill, in just a moment. Stay with us.<br> <br> (COMMERCIAL
BREAK) <br> <br> (BEGIN VIDEO CLIF)<br> <br> DASCHLE: These
projections are no better than weather reports, and so we're very
concerned about the fragile nature of the surplus we have and the
fiscal position that we have today. <br> <br> (SND VIDEO CLIP) <br>
<br>

00800000000555


3. Variable products carry their own risks that are more related to consumer disappointment and under
funding for personal needs should investment results drop. For those depending on such investment
returns (retirees, for instance), poor performance can be devastating, possibly creating governmental
involvement / solutions.

4. People are living longer. Consequently private sector funding for post retirement is critical. Social Security
is not enough and retirement age is too young. People must work longer.
Global aging will be a substantial Private Sector / Public Sector issue worldwide.

5. Economic downtums increase bond portfolio credits losses. Will these be of greater magnitude this time
around, leading to substantial capital shrinkage? Are more Enrons out there? A long bull market can
create irrational exuberance in borrowing, just as in equities.

6. | think that the audience would be fascinated by any comments you might make regarding Long Term
Capital Management. As you know, gossip and tid bits go over well.

7. Absence of the Thirty year Treasury, serving as a benchmark and as an investment.

| hope these thoughts help. | would be happy to discuss / clarify anything written above. Obviously, you may
conclude that some of these are non-issues or are mitigated for various reasons.

Lastly, we are delighted, as we discussed, to host a small dinner for you on Tuesday evening, January 15. We
are in the process of organizing it and have invited about a dozen company representatives, some of whom
will be able to attend. At this point, we are planning for 7:00 p.m. in a restaurant that will be selected in the
next day or so. | shall call you then with the final logistics.

Sincerely,

Jacques E. Dubois

P.S. I trust you were able to get a copy of the ACLI Fact Book. If not, let me know and | will forward you one
from here,

JED:jd

01200000001511


nOU=19-1999 16146 ENRON INTERNATIONAL 2e2 331 4717 Pees

in the Dominican Republic. All this has been made possible by the creation of a proper
climate for new investments based on political stability and economic growth. These
encouraging developments in the investment profile of the Dominican Republic can only be
adversely affected by the prevailing crisis that affects all generators in the system.

Our company understands that your staff is searching for several mechanisms to provide the
IPP's with payments for al] the outstanding debts. We urge Your Excellency to direct your
staff to immediately implement one of these available mechanisms. SECLP also respectfully
requests you to instruct the CDE to comply with the Definitive Agreement by providing the
Distnbution Companies orders to pay into the Escrow Account all monies due to CDE. The
Escrow Account is now operational, but as late as Monday, the CDE informed a group of
IPP’s that CDE does not intend to comply with the Definitive Agreement during the
Transition Period.

We are committed to continue to help CDE and your Government with the successful
‘ransition to a new electrical sector, but are in dire need of your attention to the payment issuc
and the negative effects on generation. Enron is more than willing to contribute our human
resources to analyze the cash flows needs of the system, as well as any other associated
technical issues. Please count on our continued assistance in the search for creative solutions
that will promote the success of the capitalization reform.

With the hope that you understand our necds and immediate pressures, we remain at your
services.

Yours Truly,

Duar. Shane.

David Shields
Senior Vice President

cc: Temistocles Montas
Alejandrina German
Tony Isa Conde
Rhadames Segura
Marcos Cochon

TOTAL P.e3

00500000000028


discussions as to whether that is the case or not. And so it always
gomething of a problem when those kinds of weapons are used.
«brs <br> BLITZER: So you haven't specifically asked the Israelis,
don't use U.S.-made equipment?<br> <br> POWELL: We always examine
-- a good deal of their equipment is U.S.-made. I mean, there's always
that possibility. <br> <br> And I do take note of the fact that we
have not seen the use of F-1éa in some time since they were used a
couple of weeks ago. And I think it's better if that remains the case
in the future. <br> <br> BLITZER: Your call for an immediate
cessation of violence, a cease-fire is to be followed by what you
called a cooling-off period. How long should that cooling-off period be
before there's a resumption of real negotiations? <br> <br> POWELL:
That has to be decided between the two parties, but it would seem to me
some matter of weeks. And you need that cooling-off period so that
both sides can see the seriousness of the other side, and that you can
start to put in place security arrangesents.<br> <br> I have people
on the ground. The United States has people on the ground now -~
Ambassador Indyk, Ambassador Burns, Consul General Schlicker (ph),
they're all on the ground. We have other people on the ground, from
different agencies, that are prepared to convene security officials to
get together and start to structure this cooling-off period, structure
the cease-fire, as soon as the parties are ready to do so, and then
start us on a road toward the confidence- building measures. <br> <br>
We have people on the ground now with ideas with respect to the kinds
of timeline one should adopt, and steps along that timeline, to bring
into effect these confidence-building measures. And all confidence-
building measures outlined in the Mitchell Committee report are on the
table to be determined and to be ciscussed and to be decided how they
will be implemented.<br> <br> And then, at the end of the
confidence-building measure, we are prepared to help the two sides and
others interested -- who have been party to negotiations in the past --
get back together to get serious negotiations going toward final status
iseues.<br> <br> BLITZER: On the joint Israeli-Palestinian
security talks that had been successful over several years, many people
think it was in large measure successful because the United States
played a very direct role, the CIA in particular, including the CIA
director, George Tenet.<br> <br> De you want George Tenet now to
resume that active CIA participation in these Israeli-Palestinian
security talks?<br> <br> POWELL: That is an option, and we do have
it under consideration. George knows a great deal about this, and sc
we'll consider that.<br> <br> But it fs not so much who does it, as
to whether the sides are serious, I mean, we've had security meetings
for weeke now. I mean, we set in place two levels of security dialogue
between the two sides. Regrettably, until now, the two sides have just
come into the room and accused each other, and we didn't ¢ any action
going. <br> <br> And so, it is not so much who is in the room, but
are the people coming into the room serious about actually putting in
place new security arrangements that will help us separate the two
forces.<br> <br> To the extent that George could help with that
process more so than other people, we'll take that into consideration.
<br> <br> BLITZER: Are there are plans right now to send George
Tenet back to the region?<br> <br> POWELL: We are always looking
at what plans you might have, but I'm not prepared right now to say
George Tenet is on a plane heading back to the region this afternoon.

<br> <br> BLITZER: But he might be pretty soon. <br> <br>
POWELL: One never knows, <br> <br> BLITZER: All right, I'll take
that as possibly 4 yes. Dennis Ross, the past special envoy for

00800000000549


VVVVYY VV VY YOO

@Markets Magazine
Read the latest issue of GMarkets Magazine online at:
<bhetp://www.atmarkets.org/content/preview.asp>

@Markets@Expo

On Nov. 28-30, @Markets Association organized six panel discussions
on various aspects of online marketplace evolution as part of the annual
Expo conference in Chicago sponsored by the Futures Industry Association.
Audio files of the six sessions have been posted on the Web site, aa well
as summaries of the panels.
Por Audio Files, go to:
<http://www.atmarkets.org/content/@Markets@Expoaudio.asp>
Por Session Summaries, go to:
chttp://www,atmarkets .org/content/preview.asp>

If you would like this newsletter sent to others within your firm, please
contact David Bruderle at <mailto:dbruderle@atmarkets.org>

If you do not wish to receive the @Markete Newsletter from us in the
future, you may opt out by notifying us via e-mail at
mailto:optout@atmarkets.org or by writing us at 2001 Pennsylvania Avenue
N.W., Suite 600, Washington, DC 20006.

Comments and suggestions may be sent to David Bruderle at
«<mailto:dbruderle@atmarkets.org>

01451

01200000000807


200I“SE“002686 (COPY) ~"*

DATE: 34/01 4:47 PM
TO: : .

Attention: Nancy (Scheduler)
The Honorable Paul H. O'Neill
Secretary of Treasury

U.S. Department of Treasury
1500 Pennsylvania Avenue, NW
Room 3330

Washington, DC 20220
202-622-1100

202-822-0073 (fax)

FROM: Linda Robertson, Vice President, Federal Government Affairs

Lora Sullivan PHONE:

FAX: 202-828-3372

Number of pages: 1
Re: Request for a meeting with the Secretary on April 5 in the afternoon
Dear Nancy:
Jeff Skilling, President and CEO for Enron would like to schedule a meeting with the
Secretary to discuss West Coast eneray crisis issues. We would like to schedule a
short meeting sometime after Noon on Thursday, April §, 2001. meee
please call me at the number listed below.
Thank you for your assistance In this regard.

Lora Sullivan
Federal Government Affairs Representative

01200000001594


The Washington Times (p.All), SAPA (South Africa), Middle East Intelligence Wire
, and Xinhua also report on the Bretton Woods leaders' joint trip to Africa.

On March 31 the IMF will have to certify whether Nigeria's economic track record
is good enough to get substantial relief from the Paria Club of creditors on its
$23 billion debt, saya Reuters. The IMF has expressed concern over unchecked
capital spending by Nigeria as well as its inability to curb inflation, now in
double figures.

It also criticized Nigeria's implementation of privatization programs. But
Nigerian economic analysts say they believed the oil-producing country should
get the nod from the IMF, needed to turn the economy around. *For political
reasons, the IMP should give Nigeria the pass mark if only not to discourage
government's efforts so far to turn the economy around,* Bismarck Rewane,
Managing Director of Financial Derivatives said.

Separately, the FT (p.4) reports that democratic government has brought changes
to Nigeria's oil industry. The story reports on the control of cil income, and
Shell's efforts to improve its image.

Meanwhile, AFP reports the presidents of Nigeria and Ghana called yesterday for
their counterparts in Guinea and Liberia to “show restraint" in the border
dispute that has flared into fighting in the past six months. President Olusegun
Obasanjo of Nigeria and Ghana's President John Kufuor made the call as Kufuor
paid his first visit here since his election last month.

Speaking at a state banquet given in his honor, Kufuor called on ‘our brother
presidents of Guinea and Liberia to exercise restraint in the border region of
Mano River." He urged the two to “be mindful of the tragic consequences it
{their conflict) has brought to the residents of the two countries."

Both Obasanjo and Kufuor pleaded for greater cooperation and economic
integration in the West African region and Obasanjo praised the change of

government in Ghana last month as a sign of deepening democratic traditions in
the country.

KENYA AIDS HOSPICE TO IMPORT GENERIC DRUGS.

The charismatic Jesuit founder of a Nairobi AIDS hospice yesterday issued a
direct challenge to the multinational drug trade, announcing he would accept the
recent offer by Cipla, an Indian manufacturer of generic medicines, to supply
cheap antiretroviral (ARV) drugs, despite the threat of a confrontation with
Kenyan patent law, reports the Financial Times [p.4). “We've decided to go
ahead and order," said Father Angelo D'Agostino, a medical doctor from Boston
whose Nyumbani hospice cares for 70 AIDS orphans, but which can only afford ARV
therapy for 12 of them. "I am sick and tired of funerals." The Independent (UK,
p.15) also reports.

The move comes amid growing pressure by organizations such as Oxfam and Médecins
sans Frontiérea (MSF) upon an industry they argue is keeping prices too high,
while many regions of Africa are being decimated socially and economically by
AIDS and other diseases.

In a separate story, the PT (p.4) reports GlaxoSmithKline yesterday pledged to
improve access to HIV medicines by offering deep discounts to NGOs and employers
that could distribute them efficiently in poor countries. The Wall Street
Journal (p. Al9) also reports on GlaxoSmithKline's plans to strengthen efforts
te offer poorer nations discounted AIDS drugs.

In other news, the New York Times (p. A9) reports the office of US trade
representative said today that the Bush administration would not change the
Clinton administration's generous but contentious policy concerning AIDS drugs
for impoverished countries. The Bush administration, a trade official said,

3

00500000000409


conflict have complied with an agreement to withdraw 15 kilometers from
frontline positions.

COSTA RICA PROPOSES TO PARDON SOME NICARAGUA DEBT.

Costa Rica's government on Thursday presented a plan to pardon Nicaragua of
around 40 percent of the $540 million that it owes it, Reuters reports an
official from the president's office said on Thursday. according to the
Proposal, Costa Rica would pardon Nicaragua of some 40 percent of its debt
provided that industrialized nations lent or donated the remaining 60 percent of
the money to enable it to pay Costa Rica.

President Miguel Angel Rodriguez said the plan was a necessary measure to enable
Costa Rica to recoup at least some of the total, recognizing that Nicaragua was
unlikely to afford to pay back the full sum of ite debt, the story says.

Nicaragua has received debt relief from the World Bank and IMF under the Heavily
Indebted Poor Countries Initiative, aimed at eliminating debt in the world's
poorest nations.

Also in this edition: MALAYSIA SUBMITS ALTERNATIVE TO IMP ROLE IN ASEAN SWAP
PLAN. AfDB GIVES SIERRA LEONE $12.92 MLN POST-WAR AID.

MALAYSIA SUBMITS ALTERNATIVE TO IMF ROLE IN ASEAN SWAP PLAN. Malay: yesterday
proposed an alternative mechanism to prevent any IMF involvement in a Southeast
Asian currency swap plan aimed at averting future financial crises, reports AFP.
But senior finance ministry officials from the Association of Southeast Asian
Nations (ASEAN) said no agreement has been reached on the issue in preparatory
meetings.

Samsudin Hitam, secretary general of the Malaysian treasury who chaired the
meeting, told reporters an alternative surveillance mechanism was put forward
and debated. However, he declined to give details.

Malaysia opposes any role for the IMF in the plan known as the Chiang Mai
initiative, notes the atory. This aims to link the international reserves of
the 10 ASEAN nations with those from China, Japan and South Korea, and for Japan
to provide greater resources in future currency crises.

ASEAN finance ministry and central bank officials were holding talks before a
two-day ministerial meeting that begins tomorrow. Officials from China, Japan
and South Korea are not taking part in the current talks but will join their
ASEAN counterparts on Sunday.

Sathit Limpongpan, director general of fiscal policy in Thailand's finance
ministry, told reporters that there were various views on the IMF role but
“everyone agreed that there should be an ASEAN consensus. The bottom line is
that we want to achieve the bilateral swap arrangement but in any international

arrangement, we need a compromige, we need to negotiate with the other three
countries."

AfDB GIVES SIERRA LEONE $12.92 MLN POST-WAR AID. The African Development Bank
said on Thursday its soft-loan arm was lending Sierra Leone $12.92 million to
help fund economic recovery after a devastating civil war, Reuters reports.

The AfDB said it had joined the World Bank and the International Monetary Pund

in backing the government's national recovery program which focuses on restoring

security, stabilizing the economy and improving governance. A ceasefire has held

in the West African country since November and United Nations peacekeepers have
4

00500000000404


presence or absence of these operations will be clearly announced, in advance, as part of
our refunding process.

Terms of the November Refunding

I will now turn to the terms of the November Refunding. We are offering
$23 billion of notes to refund approximately $21.6 billion of privately held notes and
bonds maturing on November 15, raising approximately $1.4 billion. The securitics arc:

1. A new 5-year note in the amount of $16 billion, maturing November 15, 2006.
2. A re-opening of the 5% 10-year note issued in August 2001 and previously
reopened in October 2001, maturing August 15, 2011, in the amount of
$7 billion,
These securities will be auctioned on a yicld basis at 1:00 p.m. eastern time on
Tuesday, November 6, and Wednesday, November 7, respectively, The balance of our
financing requirements will be met through 2-year note and bill offerings.

As announced on Monday, we estimate that we will have a $35 billion cash
balance on December 31 and a $30 billion cash balance on March 31,

Our next quarterly refunding announcement will take place on Wednesday,
January 31, 2002.

0200000000275


http: //www,cfdebt.ccm/ctd.ntm). You want to divide the Total
Balance of the debt by the Minimum Monthly Payment. Write
the number you get in the Division Answer column. For
inatance, if you have a Visa Card with a $1000 balance

and a Minimum Monthly payment $25, you would divide the
$1000 by $25 to get a "40". You would write "40" in the
Division Answer coluzn. Do this exercise for rach debt.

Once you have a "Division Answer" for each debt, you want

to rank them from the lowest "Division Answer" to the highest,
To do this, find the lowest “Division Answer"; mark 4 "1" in
the Priority Payoff column. Fina the next lowest "Division
Answer"; mork a "2" in the Priority Payoff column. Continue
this for each debt that you have, Your sheet should look
similar to the following:

Debt Nane Current Balance Min. Monthly Payment Uivision Answer Priority Payoff
$25 2

1) Visa $1000 40

2) Mc $10,000 $380 26 1
3) Mortgage $150,900 5998 150 4
4) Auto $8,000 9150 33 3

You now have your Priority Payoff. You will attack the
Ast Priority payoff first. Once that is paid off, you
will attack the second and so on.

Please note, the “Division Answer” you get ts NOT the
amount of time it will take to pay off that debt. It
is nerely a tool to help prioritize your payoff priorities.

That completes Step 4. Next Thursday, we are going to
cover Step 5, Establishing The Power Payment. In this
step, we will cover some very important strategies you
should employ to save the absolute most money in interest
payments and get completely out of debt the soonest
possible,

Untal then, have an excellent holiday and a debt free week.

Sincerely,

James Agnew

Executive Vice President
ConsumersFirst

P.5. The links to the previous articles are:

Step tl: http://newsletrer,cfdebt.com/delault.asp?Article=stepl
Step 2: http://newsletter,cfdebt .com/default.asp?Articlesstep2
Step 3: http: //newsletter.cfdebt .com/default.asp?Article=step3

P.5.5. We have included a couple of extra articles, some
pertain to the holidays and spending.

2. You can now apply online!

Did you know we are one of the tenth largest broker groups in the
country? With our size we can provide the most competitive fees and
rates.

slick here to apply online and receive o free sortgage quote:

http: //waw.ctmortgage.com/forms/longmortgage.htm

01200000000959


Weekly Activity Report, Federal Finance Policy Analysis, November 5, 2001

{OUTSIDE SCOPE , (b)(5)]

{(b)(5)]

[OUTSIDE SCOPE , (b)(5)]

01802

01200000000458


development will allow the people of Afghanistan to take their country back, and
the President is very pleased by that. He's pleased by the multiethnic nature
of the agreement. He's pleased by the role that women will play in the future
government of Afghanistan. He wants to express his congratulations and praise
to Secretary General Annan, as well as to Ambassador Brahimi, for their hard
work in delivering this accord.

But mich more work remains ahead, This is an important development in the
future of Afghanistan, but it's only, in many ways, the beginning. A lot of
hard work remains for Afghanistan now to have a stable government that
represents and respects the people of Afghanistan. It still will be difficult
because Afghanistan is still a nation that is the middle of a war.

Q ari, on the Middle Bast, since last weekend's suicide bombings, has
Mr. Arafat done anything to impress the President that, in fact, he is making a
commitment to peace and to rooting out terrorists?

MR. FLEISCHER: I think if you listen to what the President said yesterday
-- now, it's about 16 hours after what he said -- it's too soon to say-
President will keep a very close eye on the events in the Middle East and on the
actions that Chairman Arafat takes, to make certain that Chairman Arafat ia
dedicated to the cause of peace and to making sure that he takes action against
the terrorists who are challenging not only the security of Israel, but the
authority of Chairman Arafat.

Q But what's the timetable here? Secause, I mean, day after day, the
President keeps calling on him to do something. I'm wondering when the
timetable, when the deadline is for Yasser Arafat.

MR. FLEISCHER: ‘The President has not established it in such a manner. I
think that, as always, the President wants to allow events to develop over tine
in a way that he hopes will be fruitful to convincing the parties in the Middle
Bast that their best interest is to work together, Chairman Arafat and Israel,
to forge meaningful peac And one of the best tests of that will be to see
whether Chairman Arafat will take meaningful, long-term, enduring action against
the terrorists who are operating out of Palestinian territory.

Q But for now the peace process is dead, is it not, in the President's
mind?

MR. FLEISCHER: I think you heard the President address that yesterday,
when he said that he has a dream that peace will be achieved in the Middle East.
And as I indicated earlier, the Middle East has historically been a cycle
between violence and hope. And even in the midst of the violence, the President
has not given up hope and he will remain committed to achieving peace.

Q what has President Bush been told about the death of the two Americans
in Afghanistan under friendly fire this morning and how it happened?

MR. FLEISCHER: Upon his arrival into the White House, shortly before 7:00
a.m. this morning, the President was informed about the deaths of the Americans
and the injuries in Afghanistan that affected people of Afghanistan, as well.
And the President offers his condolences to the families and the loved ones of
those who have been killed, and he regrets the loss of life very much and also
wishes that the injured will have a full and Speedy recovery.

Q and what caused it? Does he know anything about what went wrong?

MR. FLEISCHER: The Department of Defense will have more information about
any of the specifics, and I'll refer you over to DOD on it.

Q What do you think your chances are in the trade vote tomorrow?

MR, FLEISCHER: Well, I think it‘s risky business, always, to predict what
a congressional vote will be, It has historically been an uphill fight, at
least over the last some 10 years, for the President to be given this authority.
But the President thinks it is crucial that he be given the authority to enter
4

00800000000832


Fisher, Peter

Tuesday, January 08, 2002 3:04 PM

From: Hart, Anna
Sent:

To: Fisher, Peter
Subject: Dubois Letter

Mr, Peter Fisher

Under Secretary for Domestic Finance

Department of Treasury
1500 Pennsylvania Avenue
Washington, D.C. 20220

Telephone (203) 321-3001
Fax (203) 321-3232
Email Jacques_Dubois@swissre.com

Dear Peter,

January 7, 2002

In our conversation last Thursday, you asked if | might give some thought to themes for your remarks at the
ACLI Executive Round Table next week. Following your thinking that the asset side of the balance sheet
would be of interest to the audience, | have sketched out the following ideas, in no apparent order:

1. How do life insurers generate sufficient investment return on thelr existing non-variable product portfolios?
With interest rates as low as they are, this becomes difficult from the standpoint of portfolio reinvestment.

Investing In common stocks, lower quality

bonds, real estate, whole loans and derivatives to boost returns

each carry there own risks, The industry should have learned from the recent past that aggressive

investing can be disastrous.

2. By and large, life insurers use an AssetLiability matching strategy attempting to match cash flow
requirements on liabilities with cash flow from assets. This presupposes that liability cash flow
assumptions are not made inoperative by exogenous effects that dramatically alter cash flow requirements.
A severe spike in interest rates that persists leading to disintermediation is but one example.

01200000001510


World Bank project is sustainable, Robert Picciotto of the World Bank's
Operations Evaluation Department writes in a letter to the editor of Die Zeit
(Germany) that the most recent data, which his department just reported to the
Bank's shareholders, show that 73 percent of the projects that closed during
fiscal 1999 and the first half of fiscal 2000 had satisfactory outcomes.

Satisfactory outcome is the main measure of project success, Picciotto notes.

It means that the project was judged relevant to the country's needs, likely to
achieve ita stated goals, and efficient. Moreover, the satisfactory share seems
to be on an improving trend, because the projects most recently completed (in
the first half of 2000) have a 77 percent satisfactory outcome, he writes.

WORLD BANK DISCUSSES ENERGY REFORMS IN BULGARIA. A World Bank team this week
will discuss with Bulgarian officials energy law amendments which are needed for
reforms required by IMF funding rules, reports Reuters (Bulgaria, 2/21), Final
disbursement of funds under a three-year agreement with the IMF will hinge on
the country introducing the amendments to parliament by mid-March, IMP Bulgaria
team leader Juha Kaekoenen said last month.

Bulgaria's lag in energy sector restructuring and liberalization prompted IMF
criticism during its final review of the three-year program in January, the
story says, Last year Bulgaria pledged to begin restructuring ite state utility
monopolies and prepare them for privatization over the next three ye: » but the
process has fallen behind schedule. Improving viability of district heating
plants was part of this year's targets.

Bulgaria has so far received some $680 million under the deal and is due to get
two 1. tranches of around $60 million each, Other funding criteria include the
end-March financial performance based on reserves, incomes policy and
other fiscal indicatora. *The country had no problems meeting the fi 1
criteria, but the energy law amendments will involve extensive talks
government official who declined to be named told Reuters.

WORLD BANK TO HELP UZBEKS WITH SOUTHERN DRAINAGE PROJECT. The implementation of
another investment project financed by the World Bank will begin next month,
reports Pravda Vostoka (Uzbekistan, 2/15, p.8).

The project will help resolve the problems of drawing off water from the right
bank of the River Amudarya on Uzbekistan's southern border. Specifically, the
project will modernize the major drainage system of southern Karakalpakatan,
carry out work to improve the irrigation channels where there is a high loss of
water, build a channel linking the Sultandag and Dengizkul lakes, improve the
level of drainage water collected and strengthening the monitoring facilities.

The project will reduce the level of mineralization of the water in the River
Amudarya, and make it possible to drain more water from irrigated areas. It will
also pave the way for la: -scale upgrading of the major drainage within and

between economic entiti: which will help improve the quality of the river
water.

The total cost of the drainage improverent project is approximately $105
million, of which the Uzbek government will allocate $35million, and the World
Bank, $70 million. It will take about five years to carry out the project, the
piece concludes.

BRIEFLY NOTED...A joint IMF and World Bank mission has arrived in Moscow to
study the country's banking system, a representative of the IMF Moscow office

said yesterday, Reuters reports. The World Bank's local office confirmed the

mission would study development of the Russian financial sector...Russia faces

an unparalleled *people crisis," says the Christian Science Monitor (p.15) in a

report. Among other things, its population is collapsing, communicable diseases

are spreading, hospitals are overwhelmed, and environmental problems like heavy
8

00500000000414


Draft Speech
{(b)(5)}

01200000001139


00500000000076


{(b)(5))

01200000001137


From: David Gilmore [fxa@fxa,com|

Sent: Monday, January 14, 2002 8:06 AM
To: fxa@fxa.com

Subject: FW: NYTimes.com Article: O'Neill's List

Interesting piece from NY Times Sunday Magazine section on US Tsy Sec
O'Neill. Written before the Enron revelations, but hardly a threat to
O'Neill or his colleagues (Undersec Fisher) contacted by Enron officials and
Citigroup's Rubin seeking help for the firm with banks and credit rating
firma. The evidence so far shows that Enron officials were not successful
in enlisting the help of senior Treasury officials including O'Neill.
Article appears below,

David Gilmore
PXA

O'Neill's List
January 13, 2002

By MICHAEL LEWIS

By the time I first went to see Paul O'Neill this past fall,
a lot of people in Washington had written him off. He'd
been secretary of the treasury for less than a year, and in
that time he had received painfully bad press. The harshest
protests against him came in the conservative media. The
National Review had called for his resignation, The Wall
Street Journal had run a pair of front-page articles saying
that he was a boob whose mere presence undermined
confidence in the financial markets. The New York Post had
published a report that Vice President Cheney had met with
possible successors, specifically Donald Marron, chairman
of UBS America.

O'Neill himself, on CNBC, when told of the New York Post
report, said, '‘Hallelujah,*' The Treasury Department
spokeswoman, Michele Davis, said, '‘He meant it as a
joke,*' though she added tt she has long since given up
hope that people will take a nuanced view of anything her
boss says. His tendency to say things that treasury
secretaries never say had turned him into a figure of fun.

Dick Cheney poked his head out of his cave to tell me that
the reports in The New York Post were ''total garbage'’ and
that O'Neill was welcome to keep his job as long as he
wanted. President Bush's chief of staff, Andrew Card, told
me that ‘'the president is really pleased with the job Paul
is doing.'' O'Neill chief of staff, Tim Adams, told me,
with a knowing smile: ‘'The White House has never
complained about O'Neill. Not once. And I can guarantee you
that O'Neill won't be the firat to go. He won't be the
second or the third either.'' The White House even let it
be known that the president was sufficiently irritated by
the rumor in The New York Post of O'Neill's being on the
way out that he'd had the rumor tracked down to its
supposed source -- a public-relations person hired by . . .
Donald Marron.

01200000001480


permenmewws 444o cree ee S51 6a PF .beru

Smith Enron Cogeneration Limited Partnership (SECLP)
An Power Producer (IPP)
Puerta Plata, Dominican Republic
September 2001
Project Description

{(b)(4)]

0500000001151


McCall, Neal

From: DeMarco, Edward

Sent: Monday, December 03, 2001 12:40 PM

To: aces, Mario; Hughes, Gerry; McCall, Neal; Pedr, Melissa; Mcinerney, Roberta; Eliett,

Subject: FW: WSJ: Enron Failure Likely to Burden Insurers And Further Increase Soaring Premiums

FYI

os Oniginal Message

From: Carleton, Norman

Sent: Monday, December 03, 2001 12:31 PM

To: DeMarco, Edward; Bair, Shela; Berard, Steve; Bitsberger, Timothy; Cetina, Jil; Eicher, Matthew, Gatilondo, Jose; Gross, Jared;
Hammer, Viva; Loni Sanatamorena (E-mail); Nickotot, Peter; Novey, Michael; Petrangeli, Fred; Roseboro, Brian; Schultheiss,

Heiditynme; Sharer, James; Whaley, Jean; Wiedman, Mark
Subject: WS): Enron Faiture Likely to Burden Insurers And Further Increase Soaring Premiums

December 3, 2001

Enron Failure Likely to Burden Insurers
And Further Increase Soaring Premiums

By CHRISTOPHER OSTER
Staff Reporter of THE WALL STREET JOURNAL

Enron Corp.'s collapse is expected to cost insurance companies more than $3.5 billion and most
likely will further increase skyrocketing insurance rates.

About $2 billion of the losses is wooded to be shouldered by property-casualty underwriters, who
are expected to pay $40 billion to $70 billion in claims from the Sept. 11 terrorist strikes. Those
claims already have touched off a run-up in premium rates, The losses would make next year's price
increases among the biggest in recent history for insurers, if not the biggest, said Alice Schroeder, a
property-casualty insurance analyst at Morgan Stanley. Such losses work to siphon off capital from
the insurance market, reducing price competition.

The caters to individual property-casualty insurers Is “virtually impossible" to assess at this point,
but Ms. Schroeder said a "material impact” on the sector is likely. The losses are expected to result
from claims against directors-and-officers liability policies, surety bonds and financial-guarantee
coverage, Directors-and-officers liability policies protect a company from lawsuits stemming from the
actions of its executives and surety is are bonds that insure the completion of a transaction or a
project.

Life insurers, meanwhile, are expected to report that the values of their investment portfolios have
dropped by more than $1.5 billion, related to holdings of Enron debt, which has plunged in value in

recent weeks along with the company's stock price. Investors’ confidence in the company has sunk
amid earnings restatements and revelations al related-party transactions.

Nontraditional financial-guarantee insurance and surety bonds could prove the source of some of the
biggest losses, analysts said. Enron obtained coverage for such purposes as enhancing the value of
Enron's guarantee of certain debt of Enron-related projects as well as the company's guarantees on
the execution of certain derivative contracts. Analysts said the payments on the policies would be

7

01200000001174


he had gone to high school and met his wife.

He began at the bottom rung of the Veterans Administration
in 1961. For the next 20 years -- except for a year off to
acquire a master's of public administration at Indiana
University -- he climbed the ranks of the civil service,
until, in the Ford administration, he became deputy
director of the Office of Management and Budget {where he
met Cheney, Greenspan and Donald Rumsfeld). You can waste a
lot of time looking for foreshadowings of his current
problems back then. ‘'It was one of those jobs where you
were always on a hot seat,"' says Bo Cutter, who now works
as a venture capitalist but who, more than 25 years ago, as
Jimmy Carter's deputy director of O.M.B., was the Democrat
who succeeded O'Neill. ‘You were always having to make
tough decisions, and to deal with huge egos, to make sure
that politics didn't lead to bad decisions. I could see
that O'Neill hadn't been just good at it. He'd been
fantastic.'*

When Carter tock office, O'Neill, at the age of 41 and for
the first time in hie life, entered the private sector. His
subsequent success caused a lot of people to forget he had
ever had a career in the public sector. He had gone from
career civil servant to C.B.0. of a midsize company,
International Paper, inside of a decade. (He had been
elevated to that job from another one inside the company by
a board that included hia old friend Greenspan.) He wae
then brought into a giant company, Alcoa, and became the
first person to run it who hadn't worked there all his
life, When I asked senior Treasury officials what struck
them most about their new boss, several mentioned this
out-of-left-field quality to his rise. ''This isn't a guy
who went to Harvard or Yale and had life handed to him on a
silver platter,*' said David Aufhauser, the Treasury's
general counse This is a guy who went to Fresno State
and began as a career civil servant.''

O'NEILL'S LIST OF REASONS NOT TO TAKE THE JOB

O'Neill had

just turned 65 and was resigning as chairman of Alcoa when
he heard from Cheney. Cheney recalls that when he offered
the Treasury job to O'Neill, O'Neill told him, flatly, no.
He had other plans. Of course, O'Neill must have known that
Cheney wouldn't leave it at that, Wd of course he didn't.
Cheney asked O'Neill to come to Washington from his home in
Pittsburgh to meet President Bush.

O'Neill prides himself on thinking analytically about big,
complex problems. He has spent all of his working life in
meetings with other guys in suits, and in these meetings he
is inevitably the one who has the moet data at his
fingertips and who has thought the most about the problem
under discussion. Or, if he ian't, he has everyone else
believing that he is. As his youngest daughter, Julie Kloo,
says, ''My father is the sort of person who can, like,
quote numbers from the 1977 federal budget.'’

Now the problem to solve was his own future, and so,
characteristically, he set about analyzing his aversion to
being Bush's treasury secretary. He wrote down all the
reasons he did not want to be and should not be. When he
was finished, the list came to three single-spaced pages.
Then he flew to Washington to eat a hotel breakfast with
Cheney and Bush.

01200000001482


for those shares, Mission, GE and Japan's Mitsui & Co., also part of the
Paiton One consortium, extended a $49,6 mililon loan to the Indonesians. The
loan was to be repaid from project dividends, the companies and the recipients
of the loan confirm, This so-called carried-interest arrangement was a staple
of Suharto crony capitalism. Mission and GE say extensive reviews by their
lawyers found no problems with making the loan. Many experts on U.S,
anticorruption laws

say carried-interest arrangements are generally legal, although others
disagree. The Foreign Corrupt Practices Act bars U.S. companies from paying
foreign officials for business favors, but not from assisting local partners.

Mr. Hashim 8 GE hectored him to sign “all sorts of forms assuring that
there would be corruption. The forms aren‘t required by law but are used by
some companies as protection against possible corruption allegations. Mr.
Hashim wouldn‘t sign. “I said, ‘Look, I'm an Indonesian citizen doing business
in Indonesi. he recalls. “I said, 'No, it's a deal-breaker.'" Finally,
after Mr. Hashim pointed out Mission "can live with this,” he says, “GE didn't
argue.*

In Stamford, Conn., a GE Capital spokessan said it did “extensive due
diligence" on Paiton One and its Indonesian partners and found nothing
improper. Mission Chief Executive Edward Muller says its dealings with Mr.
Hashim and cther actions in pursuit of the Paiton One contract were legal and
proper, adding that terms of the deal were “negotiated vigorously“ over years
by the Indonesian government and its “world-class advisers."

Faced with a similar issue, Entergy Corp., New Orleans, pulled out of
Indonesia, according to executives familiar with the case. They say Entergy's
partner, Siti Hediati Prabowo, Mr. Suharto’s second daughter and Mr. Hashim's
sister-in-law, flew into a rage when Entergy lawyers insisted she sign some
anticorruption documents. Entergy dropped the deal, executives say. An Entergy
spokesman declines to comment; Ms. Prabowo didn't respond to requests for
comment. Atlanta-based Southern Co., the biggest U.S. power producer in Asia,
also backed away from Indonesia because of concerns over cronylem and other
risks, its executives say.

CalEnergy, Omaha, Neb., linked up with Hr. Suharto's oldest son, Sigit
Harjojudanto, Indonesian officials and others say. Government records
available to anyone in Jakarta for 30 cents show Mr. Sigit is majority owner
of the Indonesian company that was CalEnergy's original partner in a
geothermal project in Bali. Indonesian officials and one former Calf=nergy
executive say they were well aware that Mr. Sigit was CalEnergy'’s partner.

CalEnergy says it didn't know that Mr. Sigit was a partner, and that it is
unaware that any of its Indonesian partners have ties to the Suhartos. It says
company policy mandated that Calfnergy not do deals with partners linked to
the family. Mr. Sigit didn’t respond to requests for comment.

Mission-GE's Paiton One project got political support on both sides of the
Pacific. In addition to a slew of U.S. congressmen and senators who wrote
letters for the project, Dan Quayle, Robert Rubin and Ron Brown all pushed for
Paiton One at various times while they were in government. Warren Christopher
and Henry Kissinger pushed for it Mission-GE lobbyists. To nail down the
deal, the U.S. Export-Import Bank and its sister agency, OPIC provided $805
million of loans and political-risk guarantees, one of their biggest joint
commitments ever.

In Jakarta, however, technocrats were alarmed by where the project seemed
headed. Indonesia's economy was growing 74 a year in the early 1990s; the
nation needed more electricity. But government planners knew PLN was in no
shape to handle big private-power initiatives. The utility's tra ion grid
leaked like a sieve. PLN was seldom allowed to raise rates for fear of social

1000000000960


{(b)(5)]

01200000001136


participate in the run-off.

Roth said that before anything can happen the Department of Labor
will issue a letter announcing what it intends to do concerning the
election. He said they have a “very flexible" deadline of June 9 to
insue a letter. Bven then, Roth also said Schlein hasn't announced
what he intends to do, if anything, to see about getting the matter
resolved.

“We are really at the beginning of thie. You could say we are at the
end of the beginning. There are still a lot of options for (the
Department of Labor) to consider,” Roth said.

The problems with the machine count occurred at AFGE‘s national
convention in Orlando, Fla.

ADMINISTRATIVE JUDGE GIVES TIPS ON MSPB HEARINGS

Administrative Judge Stuart Miller of the Atlanta office of the Merit
Systems Protection Board was the featured speaker at the April 26
meeting of the North Alabama Chapter of the Federal Bar Association.

He presented "13 Ways to Lose a Case Before the MSPB" The following
are the top five:

1, Be unprepared - many appellant's representatives are not prepared
for the pre-hearing conference thus losing the opportunity to provide
and gain valuable insight into their case.

2, Not know the burden of proof that applies to the case - this
occurs both as agency rep and appellant's representative.

3. Don't present case in civil way - not showing respect for the
judge and opposing counsel can lead to reducing your own credibility
in the eyes of the judge.

4. Pail to listen - some representatives are too busy talking they
fail to listen to what the judge or opposing counsel is saying.

5. Don't know or ignore MSP regulations - failure to observe
timeframes for submissions or requirements for discovery may lead to
procedural deficiencies you may not be able to cure.

FINAL RULE OUT ON ELECTRONIC ACCESS FOR FEDS WITH DISABILITIES

The Civilian Acquisition Council and the Defense Regulations Council
have agreed on a final rule amending the Pederal Acquisition
Regulation (FAR) to implement Section 508 of the Rehabilitation Act
of 1973, These regulations were published in the Federal Register of
April 25 with an effective date of 60 days after publication.
Subsection 508(a) (3) requires the FAR to be revised to incorporate
standards developed by the Architectural and Transportation Barriers
Compliance Board.

For other than indefinite-quantity contracts, this amendment applies
to contracts awarded on or after the effective date. For
indefinite-quantity contracts, it is applicable to delivery orders or
task orders on or after the effective date.

For background on thie rule, Subsection 508(a) (1) requires that when
federal departments or agencies develop, procure, maintain, or use
electronic and information technology {EIT}, they must ensure that
the EIT allows federal employees with disabiliti
and use of information and data that is compa:
and use of information and data by other federal employees. Section

01000000000673


We walked out of his office and into the dark corridor,
floored with black-and-white marble tiles and lined with
portraits of 70 former treasury secretaries. (Rubin's
picture hangs just outside O'Neill's door.) We left the
third floor -- where all the most important people sit --
and marched down the hall. We passed a cleaning lady who
had dropped her keys and spray cans. O'Neill stopped to
help her pick them up. If she knew who he was, or found it
remarkable in any way that this trim, taut figure in his
well-pressed shirt had stopped to help, she didn't show it.
Government workers, unlike, gay, Alcoa workers, haven't any
incentive to know who is boss. It takes an act of will to
promote them and an act of Congress to fire them.

The Treasury's halls are impossibly long, and as we walk
them we have plenty of time to talk.

‘'T really like building things that are the consequence of
ideas,'* O'Neill says.

His notion of building something that is the consequence of
good ideas ig Alcoa's Pittsburgh headquarters. The Alcoa
building has the added attraction of being a consequence of
hie ideas.

I tell him that when IT visited the Alcoa building in
Pittsburgh, I'd learned that pretty much everyone liked it
except the lawyers -- an ominous sign for a man now working
in a city run by lawyers. The lawyers, I was told, couldn't
stand the idea of working out in the open, where they could
be seen.

‘*The lawyers hated ic,'' he says. ‘With them, it's a
professional gene. I'd say: Tell me, why do you need
secrecy? I'm out in the open, and you're working for me.'!

So far as O'Neill is concerned, the Treasury building
represents pretty much everything that can be wrong with 4
building. Or, rather, the ideas that led to ite design are,
from the point of view of a modern American C.E.0. who is
trying to get things done, bad ideas. The reverence of the
past interferes with technical progress; the thick walle
disrupt communication; the huge offices with massive wooden
doors dissuade anyone outside them from imagining what
should go on inside them and hide those on the inside from
critical scrutiny. ‘'The idea of people working together is
really defeated by walls,'' O'Neill says, ''and even more
so by hierarchy.'*

By law and architectural design, our government is
resistant to change. Ita walls are some of the thickest in
the free world. But here O'Neill, for once, got lucky. He
arrived in the middle of the firat big renovation in a
century. One-quarter of the building was already under
repair. So, O'Neill says, as we curve up the semispiral
staircase, ‘'when they took all the walls down, I told them
they couldn't put them back up. They said I couldn't do
that. Their argument was that history was present. In the
walle. They were historical walls.'' He's smiling mow, ''So
x d, Which are the historical walls? And I let them keep
a couple of those.''

The Treasury halle are dark, the stairways even darker. In
Places, you have to squint to see who is passing in the
other direction. Then O'Neill throws open a door on a

10

01200000001489


Engelhard, Joe

From: Sevnews@worlebank.org

Sent: Friday, Apel 06, 2001 10:41 AM
To: Development News

Subject: Press Review Friday, April 6, 2001

This summary is prepared by the External Affairs Department of the World Bank.
All material is taken directly from published and copyright wire service stories
and newspaper articles.

For more news go to http://www. worldbank.org/developnentnews
To subscribe go to http: //wew.worldbank.org/subscriptions/

Headlines for Friday, April 6, 2001:

WORLD BANK DISCUSSING SUPPORT FOR TURKEY: LINN,

UN HANDS ARREST WARRANT FOR MILOSEVIC TO BELGRADE.

AIDS DRUG PRICES CUT FOR POOREST COUNTRIES AFTER ANNAN MEETS FIRMS,

KABILA POSTERS DIPLOMATIC DRIVE TO END DR CONGO WAR.

COSTA RICA PROPOSES TO PARDON SOME NICARAGUA DEBT.

Also in this edition: MALAYSIA SUBMITS ALTERNATIVE TO IMP ROLE IN ASEAN SWAP
PLAN. AfDB GIVES SIERRA LEONE $12.92 MLN FOST-WAR AID.

WORLD BANK DISCUSSING SUPPORT FOR TURKEY: LINN.

World Bank Vice President for Eastern Europe and Central Asia Johannes Linn said
today the Bank was ready to support Turkey in implementing a new post-crisis
economic program but was still discussing the exact amount of financial support,
Reuters reports. "At this point we do not believe it is necessary to go beyond
the $5 billion that has been agreed in the past,” Linn said following a meeting
with Prime Minister Bdlent Ecevit in Ankara. However, the Bank would try to
ensure that any financial support could be "properly structured" and available
for use in a timely fashion, he said.

Turkish Economy Minister Kemal Dervis said earlier this week he hoped to
a new economic program by the end of next week, notes Reuters in a
separate report.

Meanwhile, reports the Wall Street Journal Europe, angry demonstrations spread
yesterday to five towns in Turkey with shouts for the government to resign
because of price increases, economic stagnation, job losses and Ecevit's
handling of the six-week-old economic crisi Some 200 demonstrators were
detained after a number of police and pro’ vs were hurt in clashes in the
conservative central city of Konya. Turkey's president called for m, while
opposition leaders tried to catch the wind of protest, says the story.

One step forward was a law liberalizing the sugar market and sugar
beet-processing industry that was passed on Wednesday, says the story. It is
the first of 15 legal reforms Turkey says it needs to enact to win new backing
from the IMP. Dervis, notes the story, starts talks with Fund officials this
weekend on a letter of intent toward a new program to replace the disinflation
program abandoned on February 22. He has said the new reform program will be
announced next week. Any IMP decision would be made at a late-April bo

ard

meeting.

00500000000401


the rest of the world, according to Deutsche Bank AG. Adjusted for local
ing power, the contracted cost of private electricity is 60% more than

neighboring Philippines and 20 times as much as in the U.S.

The U.S. “power companies dictated terms to us because they had Indonesia's
first family behind them, 2 Djiteng Marsudi, PLN’s president from 1995S
until his dismiesal this summer after he complained publicly about corruption.
“Resisting them was like suicide.”

Government lawyers say they marshaling evidence of Suharto-linked
corruption to push for renegotiating electricity rates with private producers.
Many of the projects have been delayed. PLN is paying several electricity
Suppliers just 30% of their contracted ra’ + It haw told Mission-GE it
doesn't plan to buy any electricity at al rom the consortium'’s
1,230-megawatt coal-fired plant next year, when it is scheduled to go on-line.
That would cost the project hundreds of millions of dollars.

“Based on what I*ve seen, there's plenty of ammunition to wage war and get
the banks and sponsors to eat their share of the los: " gays Peter Jezek,
private-power adviser to Indonesia's ministry of mines and energy from 1990
through 1995. But he and others see a potential obstacle: Though Mr. Suharto
has moved on, many of the ministers who helped put together the deals are
still in power.

Mission, GE and other power companies say they did nothing improper to land
their contracts. Several power companies are taking PLN to arbitration to
force it to honor the pacts. They say the real problems are the collapse of
Indonesia's currency and the perennial mismanagement of PLN -- neither the
fault of power developers, most of whose plants haven't even come on-line yet,

“It's the exchange rate, stupid,“ says D. Reid Morgan, a managing director
of Chase Manhattan Corp., which syndicated $1.6 billion of loans for the
GE-Mission project, called Paiton One. The U.S. also has been pushing
Indonesia to stick to its commitments. George Munoz, president of the U.S.
Overs: Private Insurance Corp., a federal agency that has $665 million of
exposure to Indonesia, much of it from power deals, recently said in Jakarta:
“The contracts have to be honored."

Critics say corruption dogged the power deals from the start. When
government advisers from power consultant Lahmeyer International AG, Lazard
Freres & Co. and other Western firms complained about what they regarded as
exorbitant prices for coal in the Paiton One project, senior Indonesian
officials ordered the consultants to stop reviewing fuel costs immediately,
the advisers say. “We were slapped back so fast our heads were spinning,” says
one. The plant‘s coal costs 30% to 40% more than coal at other PLN plants.

The advisers say there’s no mystery about why they were shut out. Paiton
One"s exclusive coal supplier is a company co-owned by the Mission-GE group's
Suharto-clan partner, Hashim Djojohadikusumo, and Agus Kartasasmita, brother
of then-Minister of Mines and Energy Ginandjar Kartasaumita, who was a key
early booster of Paiton One. They got the coal contract without competitive
bidding.

Mr. Ginandjar, who is now Indonesia's top economics minister, denies
promoting Paiton One in any way. He emphasizes that many of the project's key
terms and contracts weren't finalized until after he left the ministry of
mines and energy. Hr. Hashim, whose family has been close to the Suhartos for
decades, says his coal is priced at a premium because of its environmentally
friendly low sulfur content; technocrats involved in the project say that
doesn't justify the high price.

In addition to the coal contract, Mr. Hashim, Agus Kartasasmita and some
partners received a 15% stake in Paiton One without investing any cash. To pay

01000000000959


The breakfast wasn't a great deal different in spirit from
the job interviews Bush had with most of the top shelf in
his cabinet. Ashcroft was his own peculiar story, but
Rumsfeld, Colin Powell and Cheney, like O'Neill, didn't
need the job. Lord, how they didn't need the job! Zach of
them had somewhere between $50 million and $300 million and
status to burn. All of them could plausibly approach their
government as if it needed them more than they needed it.

When he heard about O'Neill's list, Cheney had to be
pleased: if you don't want a job, you don't bother making a
three-page list of the reasons you won't take that job.
Besides, the vice president had put himself through exactly
the same exercise, ''Paul came loaded for bear with all the
reagons he didn't want the job,'' Cheney says. ''I'd spent
five years as the C.£.0. of a major company, so I knew
where he wan coming from. I had my own list, too.'' Of
course he did! The first requirement for a top job in the
Bush administration was a long list of the reasons you
didn't want it. (The only ambition Bush trusted was the
kind he couldn't see.)

Actually, when you boiled these lists down to their
essential ingredients, they weren't very long at all. They
all had the same few general objections. ‘'Cheney had the
same list I had,’' O'Neill says, ‘‘except his had three
heart attacks on it.'*

O'Neill's list served another purpose -- in addition to
giving Cheney and Bush a number of specific objections to
overcome. It allowed him to believe he was taking the job
on his own terms. O'Neill's list formed the basis of a
social experiment. Implicitly, it asked an interesting
question: what happens when a supremely successful
businessman tries -- as a matter of both pride and
principle -- to descend, rather than claw his way up, into
politics?

REASON NO. 1: ‘WASHINGTON HAS CHANGED POR THE WORSE SINCE 1
LEFT IT’

For many years, one of O'Neill's pet peeves has been the
coarsening of public life caused, in his view, by a
combination of bad journalistic incentives and what he
calls ''that awful sense in both parties of ‘We don't care
what's right or wrong, all we care about is getting more of
our kind elected.''' As a corporate big shot, he peppered
his speeches with off-the-cuff outrage on thie theme. For
instance, here he is, in May 1999, addressing a group of
his fellow business leaders:

'*I saw something over the weekend that suggested to me the
depths of the problem . . . about the vice president's wife
disclosing that because her son was nearly killed in an
automobile accident she was treated for depression. And the
reason -~ at least the reason given by The New York Times
-- for this disclosure is that it was important for her to
get it out before it was disclosed . . . in the midst of a
political campaign. And it made me think to myself -- we've
gotten so accustomed to what's going on, we're not even
shocked by the notion that someone not running for office,
but someone related to someone running for office, has to
pre-empt in order not to become a liability in a political
campaign. I, myself, find it just remarkable that we seem
to have been so sandpapered by our current way of

4

01200000001483


CONTRACTED TARRIFF (U.S. Cents/KWH): 6.6°
STATUS: In arbitration and completed

COMPANY (Project): CalEnergy (Sali Geothermal)

SUHARTO REGIME PARTNER: Sigit Marjojudanto, Suharto's son
CONTRACTED TARRIFF (U.S. Cente/KWH): 7.2

STATUS: Postponed

COMPANY (Project): El Pago Energy (Sengkang Gas-fired)

SUHARTO REGIME PARTNER: Siti Hardijanti Rukeana,
Suharto’s daughter

CONTRACTED TARRIFF (U.S. Cente/KWH): 6.5

STATUS: On-Lines**

COMPANY (Project): Enron Corp. (Pasuruan gas-fired)
SUHARTO REGIME PARTNER: Bambang Trihatmodjo, Suharto son
CONTRACTED TARRIFF (U.S. Cents/KWH): 5.8

STATUS: Postponed

COMPANY (Project): Duke Energy Corp. (Cilicap)

SUHARTO REGIME PARTNER: Bambang Trihatsodjo, Suharto son
CONTRACTED TARRIFF (U.S. Cents/KWH): 6.3

STATUS: Postponed

COMPANY (Project): Coastal Corp. (Palembang)

SUHARTO REGIME PARTNER: Martini Sulaiman, Suharto
half-sister**

CONTRACTED TARRIFF (U.S. Cents/KWH): 6.4

STATUS: Postponed

COMPANY (Project): Morrison Knudsen (Serang)
SUHARTO REGIME PARTNER: Sudwikatmono, Suharto cousin
CONTRACTED TARRIFF (U.S. Cents/KWH): 6.0

STATUS: Postponed

* Stepped tariff levelized over 30 years
Stake recently sold
Payments at reduced rupiah rate

Sources: the companies, Indonesian government

cc: Dom13.DOPOS.CHRISTOPULOS, Dom13.DOPOS.CRAWFORDT, D...

01000000000964


By Arianna Huffington

So now we know why the White House has spent the better part of a year
fending off congressional efforts to find out who Vice President Cheney met
with for input on his Energy Task Force. Turns out the VP and his staff had
at least six meetings with representatives from Enron -- including one with
Chairman Kenneth Lay -- the last of which occurred just six days before the
company revealed that it had vastly overstated ite earnings, signaling the
beginning of the end for the energy giant.

Since the Enron collapse, President Bush has been acting like Ken Lay was
just some good ol! boy who also happened to hail from Texas, This new
information proves otherwise: that Lay and his company's sizable political
contributions had bought what Rep. Henry Waxman has termed “extensive
access" to the epicenter of American political power, It's Teapot Dome, the
Sequel.

During his run for the White House, Bush fought long and hard to convince us
that he was a new breed of conservative -- a Compassionate Conservative. But
recent events make clear that he is actually the standard bearer of a far
more coldhearted breed. Call them the Enron Conservatives.

Enron Conservatives are people who use political money and connections as
levers to free themselves of all accountability to laws, regulations and
responsibility -- even to their own employees. Simply put, they are people
who consistently, shamelessly and aggressively put their self-interest above
the public interest. And when the lives of others are destroyed in the
process, they just look the other way and hope that the law does, too.

It probably is too much to expect the Federal Trade Commission to hop on the
Enron investigation bandwagon and look into whether Bush violated
truth-in-labeling laws during his campaign, when hia pledges of
compassionate conservatism were stump speech favorites. But it should.
Because we've heard precious little of them since Bush took the oath of
office.

“While many of our citizens prosper,” the freshly anointed president said in
his inaugural address a year ago, "others doubt the promise, even the
justice, of our own country." And those nagging doubts are only aggravated
by the behavior of Enron executives who continue to prosper even as
thousanda watch their jobs -- and their life savings -- disappear.

Candidate Bush waa so eager to paint himself as a Compassionate Conservative
he even dared to impugn the moral supremacy of the free market -- blasphemy
in the eyea of hia party's doctrinaire right wing.

“The invisible hand works many miracles,* said Bush during the summer of
1999, evoking Adam Smith's famous paean to market forces, “but it cannot
touch the human heart." This simple truth lies at the core of the need for
fair and rational government regulation of industry. All too often, after
all, the human heart is filled not with goodness, but with greed,
selfishness and a desire for profit-at-any-cost,

Too bad Bush left this noble idea behind on the campaign trail. Since taking
office, the hallmark of hie administration has been an unwavering belief in
the free market's invisible hand.

In the last year, the president and his anti-regulatory appointees have
(take a breath): abandoned a campaign promise to regulate carbon dioxide;
repealed workplace ergonomic rules designed to improve worker safety;
proposed reversing regulations protecting 60 million acres of national
forest from logging and road building; and canceled a looming deadline for
automakers to develop prototype high-mileage cars. And that's just a partial
list,

Not even the rapacious excesses of the Enron debacle have quelled the drive
3

01200000001497


about a couple weeks.''

It was a marvelous red-map moment: At Alcoa, O'Neill liked
to gay that he didn’t focus on the company's stock price or
even the bottom line but on the factors that led to the
bottom line. Indeed, one reason O'Neill is disinclined to
worry about the effect of his words on financial markete is
that he doesn't think words affect financial markets -- not
in any fundamental way. And even if they did, the financial
markets are really beside the point. The point is the real
down-to-the-ground stuff.

To that end, O'Neill has tried to create a new and better
view for himself of the U.S. economy by gathering more data
about down-to-the-ground stuff. Por instance, Treasury
staffers are now busy trying to elicit from the big
itomobile companies real-time information about the
effects of auto sales on auto-parts suppliers. Other
Treasury staffers are trying to persuade Visa and Amex to
give them real-time data on credit card purchases.

But knowing what is going on is not the same thing as doing
something about it. The odd thing about being treasury
secretary is that while people may pay attention to what
you say, you can't actually do very much. ‘'When you're
treasury secretary,'' says Bo Cutter, who, in addition to
serving in Jimmy Carter's 0.M.B., worked under Rubin in
Clinton's White House, ''you get to talk about the world
economy, but you can't actually do anything about the world
economy. By definition, you get invited to the meetings,
but you don't by definition get to control them.'' The sort
of power even the most exalted treasury secretary has is
only the power to persuade. He has, at best, the power to
manipulate public perception of big events and to infect
the mind of the president with his ideas.

This is an uncomfortable position for a person who has
grown used to holding the levers that control every detail
in hie environment. O'Neill has responded on the one hand
by trying to sell his view of the world to the White House
and on the other by yanking on what levers he has.

One afternoon, O'Neill took me on a litrle tour around the
Treasury. It was the day after Argentinians had first
rioted in the streets, responding indirectly to the
I.M.F.'s sudden tightfistedness. ''I hate seeing how this
gets translated into physical violence on the atreet,''
ONeill said. In refusing to supply further funds to
Argentina, the I.M.F, seemed to be following O'Neill's lead
on how to deal with the crisis. When the Argentinian
economy minister turned up in Washington last month to beg
for help, O'Neill's Treasury officials avoided meeting him.
The White House, too, seemed to be taking O'Neill's lead,
agreeing with him that you couldn't create confidence in
Argentina by pouring more money into it -- that before it
received any additional financial aid, the country needed
to change the way it approached the real down-to-the-ground
stuff. ''I think what we've been doing over the last 40 or
50 years in the World Bank and the 1.M.P. has to some
extent gone astray,'' O'Neill said. He knows a thing or two
about turning a failing enterprise into a thriving one, and
he 3: no evidence that the I.M.F. has a similar
understanding about ling country. ''We still don't
really understand in a straight-line way how to create
economic development,'' he says.

01200000001488


VVVV VV VY VV

New York Bankruptcy Court: Enron-Related Documents
<http://wew.nyab.uscourts.gov/enron.html>

Andersen CEO responds to Enron-related Events
<http: //wew.arthurandersen.com/resource2.nef/vAttachLU/AA_MediaCenter_Ande
rsenOpenLetterENGLISH/$File/openletter.pdf>

Andersen Dismisses Lead Enron Auditor
<http://www.arthurandersen.com/website.nsf/content/MediaCenterNewsReleaseA
rehiveEnronAct ions011502!OpenDocument>

Political Reaction to the Enron Collapse

The White House, responding to the scandal surrounding Enron, has
asked the four regulatory agencies that make up the President's Working
Group on Pinancial Markets to review corporate disclosure rules. The
Working Group consists of the Treasury Department, the Federal Reserve,
the Securities and Exchange Commission, and the Commodity Futures Trading
Commission,

“The Secretary of Treasury, along with the SEC, the Fed, and the
CFTC, are going to convene a working group to analyze corporate disclosure
rules and regulations," said President Bush in a Jan. 10 speech announcing
the review. “In light of the most recent bankruptcy, Enron, there needa to
be a full review of disclosure rules, to make sure that the American
stockholder, or any stockholder, is protected
Meanwhile, several Congressional committees a: investigating the causes
of Enron's troubles, a development that could lead to stricter accounting
rules and greater scrutiny of energy trading.

The Senate Government Affairs Committee, chaired by Sen. Joe Lieberman
(D-Conn.)}, announced on Jan. 2 that it plans to conduct a two-pronged
investigation of Enron's collapse and will hold a series of hearings on
the regulatory implications of the collapse, with the first one scheduled
for Jan. 24.

Speaking at a press conference held to announce the probe, Lieberman
gaid the full committee will look at three main areas-investing and
regulation of the financial markets, energy and derivatives trading, and
pensions and retirement savings-to see if “cracks need to be filled in the
regulatory system." He mentioned in particular the SEC, FERC, CFTC, and
the Labor Department, in that order, as targets for hie review.

While the full committee examines the overall impact of the
collapse, the panel's investigative subcommittee, chaired by Sen, Carl
Levin (D-Mich.), will concentrate on gathering and analyzing information,
with particular attention to the role of the board of directors, the role
of the auditor, and Enron's use of limited partnerships and special
purpose entiti As part of this investigation, the panel's
investigations subcommittee will file subpoenas to obtain documents from
top company officials and its board of directors, as well as its auditor,
Arthur Andersen, Levin said.

“The full committee will be looking at what the experts are saying
about the collapse and what role various federal agencies had in
overseeing Enron-that will be an outside view," Levin . “The
Subcommittee will be looking at Enron from the inside-what did Enron's top
officers and Board members know about the financial condition of Enron,
when did they know it and what did they do about it. Both of us will be
looking to identify the loopholes or failures in our current laws and
regulatory schemes that allowed this disaster to happen," he continued.
Senator Paul Sarbanes (D-Md}, Chairman of the Senate Banking Committee,
has requested that the General Accounting Office investigate the
investment of employee retirement funds in company stock. The Enron
collapse raises the question of whether employees are given sufficient
information by their employers about the risks of investing, Also,
Senator Sarbanes has asked the GAO to evaluate the governance of the
accounting industry focusing on the reporting of financial information.

An oversight hearing will be held on Tuesday, Feb, 12 to examine these
issues and will include testimony from five former chairmen of the SEC

Bush Statement on Pension Regulations and Corporate Disclosures (Jan. 10)

01449

01200000000805


Strickler, Marie

From: Harvey, Christy (Christy. Harvey@wsj.com)
Sent: Monday, January 14, 2002 10:01 AM

To: “Marie. Strickler@do.treas.gov’

Subject: One last question

Am i correct if i say there have been no other Treasury statements RE Enron
and Rubin? Is this all that's been said?

From: Marie,Strickler@do.treas.gov [mailto:Marie.Strickler#do.treas.gov]
Sent: Monday, January 14, 2002 9:46 AM

To: Harvey, Christy

Subject: Statements by Michele Davis

Importance: High

Here is the statement -- it is everything that Michele said on Friday.

Statement by Michele Davis, Assistant Secretary of the Treasury (Public
Affairs):

Following Ken Lay’s call to the Secretary, the president of Enron called
Undersecretary Fisher. Undersecretary Fisher spoke with president of Enron
6 to 8 times in late Octcber and early November.

The is were informational. The Undersecretary's job is to monitor the
effect of any major development on the capital markets. In that role, he is
in contact with people in the markets everyday te be aware of their
concerns.

As Enron's negotiations with its bankers for an extension of credit neared a
decision point, the president of Enron asked Undersecretary Fisher to call
its banks. Undersecretary Fisher inferred that he was being asked to
encourage the banks to extend credit. He made no such calls.

LATER STATEMENT

Robert Rubin of Citigroup called Peter Fisher on November 3 and askec Fisher
what he thought of the idea of Fisher placing a call to rating agencies to
encourage them to work with Enron's bankers to see if there is an
alternative to an immediate downgrade.

Fisher responded that he didn't think it advisable to make such a cali.
Rubin said he thought that was a reasonable position.

Fisher made no such call,

Marie Strickler

Public Affairs
202-622-2920

00800000000603


Zinni?
MR. FLEISCHER: I'd refer you to the State Department,

Q Ari, in light of the Army's decision to reverse itself on Captain
Burlingame, can you tell us how and when the President was advised of that
situation? Also, the President's thoughts on that?

MR. FLEISCHER: Yes. As I indicated this morning, this is a matter for the
Department of Defense, the Department of Army, specifically. And I don't have
anything beyond that -

Q Do you know if the President was at least aware of it?
MR. PLEISCHER: As I say, I don't have anything beyond that.

i?) Ari, why do we have to be referred to the State Department on that? I
mean why can't we -- can't we know if the administration is having conversations
with Yasser Arafat?

MR. FLEISCHER: Because I think you'll get -- well, if you ask me about the
President, I can report to you the President has not. If you ask about
Ambassador Zinni --

-- the Security Council? I mean, obviously, everybody around here
knows, don't they?

MR. PLEISCHER: Well, I don’t have a phone list of everything that Zinni is
doing. He's in the Mide

'

Q That's not the issue. Are there -- do you know of any contacts with
Yasser Arafat?

MR. PLEISCHER: His direct report is to the State Department, which is why
I said refer you to the State Department,

Q But everybody reports to the President, don't they? I'm asking you as
the President's spokesman why you can't comment on whether the administration
has contact with Yasser Arafat when they're in the middle of war over there.

MR. FLEISCHER: Well, if you ask me about the President, I'll give you that
answer.

Q Ari, following up on this situation at Arlington, we just spoke with
the spokesman for the Army Secretary who says there has been no reversal, that
they can bury this man in an exieting family plot, but not in a separate grave
as his family has requested. What are the prospects that the President might
get involved and overrule this?

MR. FLEISCHER: Well, again, i said thie is a matter for the Department of
Defense, the Department of Army. If there's anything further to be added to it,
you will know from the White House.

But these are always very sensitive and difficult matters. Arlington
National Cemetery is the final resting place where countless numbers of
Americans want to be buried. Arlington National Cemetery is also a place that
is running out of space. It makes for some of the most difficult emotional
issues for the families of loved ones who have been lost in any type of military
or any other type of action, having served in the military, also with a nation
that wants to honor its promises to people who will be able to be buried into
Arlington in the future.

It is always a very emotional and difficult issue, and the military has
very stringent rules that they try to comply with, because it makes it easier
for everybody to understand what the criteria are. So that's why the Department
of the Army is the one who is charged with this. They worked very hard at it,
and they understand the sensitivities involved.

6

00800000000834


fact that there are real victims?? -- the fact that there are around and in
our minds employees who lost their life savings because they had their
money ( generally thru no fault of their own) in 401k accounts with enron is
critical, since thi time the “losers” were not just those who “play” the
system, win some, lose some, etc. the "havesTM would have covered each
other; the trouble here is that the "haves" include major government players
AND major private sector players who have responsibility for avoiding these
kinds of economic disasters, or limiting them, by being aure people know
the facts, the truth, the info AND that there is a level playing field --
remember that generally the bia losers in the market here should have been
the competitors who did not get the money people invested in enron, did not
have the access and influence enron did, and did not get the "breaks" they
got, and suffered a competitve disadvantage when the ponzi scheme got the
dough and no one told others it was such a scheme.

i noted to the LA times the following: first, that the fact that
the AG recused himself reflected how serious this scandal was { and it is a
scandal, even if there's no criminal conduct or its just a pattern of
omission) and will signal to DOJ that this is to be taken
and, POR ALL THE HIGH LEVEL RECUSALS, DOJ has career profe:
around who can/will do this well, i believe, or at least we should so assume
for now; no reason to believe this will be cover-up, nor is a special
counsel needed, ( bring on la bella!! or top-flight white-collar prosecutors
from USA offices or even state AGS), ALTHOUGH IT DOES RAISE QUESTIONS About
ASHCROFT REMAINING UN-RECUSED PROM microsoft!

second, the criminal law enforcement effort is at the end of the
line, and should NOT be allowed or used to divert attention right now from a
comprehensive inquiry inte the systemic failures that occurred and/or what
really happened here, if we're not careful, we'll miss asking the far more
important questions about the role and responeibility of the private sector
self-regulators, the *independent" professions, the corporate officers and
what others knew, and what role the money and influence really played.... in
the public AND the private sectors.

AND was enron really an aberration/exception OR really just a more
visible, successful, dramatic example of business as usual in DC, state
capitols, AND wall STREETI7? AND THE ROLE OP THE LAW HERE MAY BE IMPORTANT
BUT IS INEVITABLY LIMITED, especially if there is little systematic
enforcement. law and law enforcement can't do it alone if there is an
"integrity/ethical” breakdown, or if, in fact, there ia a CULTURE that
really sees nothing wrong here at all; just a bad business break?

surely this is also at least equally 4 question of personal,
corporate, business and professional integrity, ethics and standards as
much as one of illegal or criminal conduct and we surely must try to see
if that is really the case, so we can as: then how pervasive, or
absent, the belief in, responsibility for, and committment to, the public
interest, the greater good, the "country" really is; AND it may explain why
we are really failing to see “true patriotism" in this time of national
crisis -- do most american leaders actually believe that advancing their
special interest(s) is either in the national interest, or is required of
them, even if it is not in the national interest?? and what kinds of
leadership and professional modelling are we providing to the next
generation, now in our business and law grad schools, let alone those who
graduated and entered enron, for example, in the "good times"?

it may well help us understand and explain why we need civic
engagement/education/ethics and national service/democracy skill building as
a central part not only of our mission but also for our true "homeland
security". AND not just for young peoplet!

+----Original Message-----

Prom: Arianna Huffington [mailto:arianna@ariannaonline.com)
Sent: Thursday, January 10, 2002 11:56 AM

To: undisclosed-recipienta

Subject: Arianna's Latest Column

Compassionate Conservatives vs. Enron Conservatives

2 ‘

01200000001496


The IMF on Thursday commended the Colombian government for its economic
management, and advocated a range of additional reforms to promote further
recovery, Dow Jones reports.., Peruvians will vote for a new president Sunday,
and the eventual winner faces a tougher task than triumphing at the polls, the
Wall Street Journal (p.Al3) reports. He or she must find a formula to unify a
country divided by racial and class tensions and rebuild an economy that haa
been troubled since 1986, the story says...Argentina's new finance chief,
Domingo Cavallo, is snipping away at regulations and changing the nation's tax
structure in hopes of encouraging companies to rev up investment, the Wall
Street Journal (p.Al3) reports. But economists and government officials say
companies also need assurances that Argentina's consumers will start buying
their products again.

The World Bank is evaluating the possibility of lending fresh funds for the Sri
Lankan government‘s program to develop the private sector, Reuters reports an
official close to the Bank said yesterday, quoting the source as saying areas of
possible support included reforms in the power sector and liberalization of the
telecom industry and ports.

Banca Romanesca (the Romanian Bank) has announced it has signed an agreement
with the International Finance Corporation, AR Press reports. The funds will be
used for financing small investors in Romania... Ukrainian prosecutors have
reopened a case that the IMF has done its best to shut since 1998, accusing a
former central bank official of misusing Ukraine's international reserves in
1997-1998, reports the Financial Times (p.3). New revelation about the case,
which became a significant scandal last year, could be on the way, following the
arrest last month of Volodymyr Bondar, former first deputy chairman of Ukraine's
central bank.

The World Bank has cut emerging funding to Kenya's electricity supplier because
it had not completed an agreed restructuring program, throwing the power sector
into crisis, Reuters reports the East African Standard said yesterday.

Indonesia plans to review ite economic progress with the World Bank and the IMF
at the end of April to pave the way for its annual meeting with major donors,
Reuters reports an official said yesterday...The IMP said on Friday it would
send a long-awaited mission to Indonesia next week to review the country's
economic progress, Reuters reports. Indonesia's hopes for more money from the
IMF-delayed since late last year while the two sides battled over key reforms to
the damaged economy-hinge on the mission.

The IMF is expected on Friday to approve a program of loans totaling $385
million to support communist Vietnam's reform efforts, ite first lending to the
country in five years, Reuters reports. Dennis de Tray, the IMF's Vietnam
representative, said the IMP board would meet in Washington on Friday to
consider Vietnam's request for balance of payments support under the Pund's
poverty reduction and growth facility.

You are currently subscribed to devnews as: joe.engelhardédo.treas.gov
To unsubscribe send a blank email to leave-devnews-70870E@lists.worldbank.org

00500000000406


McCall, Neal

From: DeMarco, Edward

Sent: Thursday, January 17, 2002 10:17 AM

To: Cummings, Leslie. Green, Matthew, Hughes, Gerry: Jacques, Kevin; McCall, Neal, Pedri,
Subject: FW: Document Search

Please read the e-mail below and proceed as directed, If you search turns up nothing, please send me an e-mail saying

$0. Beca Kea Sorel Of ns secaiery 90% News cBbe of one sort or another, | eepect at lanet Horrie of you wl have

something. Note the distinction in 's instructions as to how to handle news clips versus how to handle news clips

with notes attached that reference the E word. Also note, personal e-mails are included in the request. Please be sure to

See Pann fou Mbox end your ot Bose Aside from e-mails, any paper records you may have also need to be gathered
submitt

Please do this ASAP.
Thanks,

Ed and Brian,

You both received Jared's e-mail regarding a document search for Enron. To be efficient, could both (and Pat) direct
your staffs to do an e-mail search for the word “Enron”? If any documents come up we are to them and save them to
disk for delivery to General Counsel,

If you receive the Congress Daily from Elizabeth Knack or Norman Carletons news clips - and they mention Enron - then
iene noes SOS Mere Ren if you happened to forward any of those e-mails to someone with text, then we
print those as

Each employee should place his/her e-mails in their own folder and submit them to you. The same disk can be passed
around each of your shops to make 8 easier. | know this seems onerous, but has told us that GC is demanding
this thorough approach to this matter. se have EVERY emoployee do this search, as | had more personal e-mails
mentioning Enron then | thought

After respective packages are together, bring them to me and | will have Sheda deliver them to Peter or GC - in

with the request
Any questions, let me know.
Thanks -
Michael

01200000001168


an even bigger coal-fired project won by Entergy with Ms. Prabowo as a
partner, struck a tariff of 5.8 cents, 32% lower than Paiton One's. (It was
later that Entergy dropped out of that deal after its disputes with Ms.
Prabowo over anticorruption forms, executives say.) A comparable coal-fired
project in Sual in the Philippines, also competitively bid, has a S.1-cent
tariff. But Paiton One set the pricing benchmark for most Indonesian
private-power deals that followed. An Indonesian power executive laments that
after Paiton One, banks “expected the same spectacular returns" or they
wouldn't lend.

Now the scramble is on to clean up the mess. It won't be easy. PLN, in
addition to being broke, has 1 flexibility than ever to raise the
electricity
rates it charges Indonesians. Those rates have fallen to the equivalent of two
cents an hour because of Indonesia's currency collapse. (Government subsidies
are supposed to plug the gap between what PLN charges and the substantially
higher tariffs it pays power suppliers.) The last time Indonesia raised energy
prices, in May, the ensuing riots helped lead to Mr. Suharto’s downfall.

A Harvard Business School consultant has advised the government to
renegotiate the power tariffs "to terms that would have emerged under
competitive bidding.” Mission's lawyer, former Secretary of State Christopher,
recently visited President Habibie to propose talks on a possible new tariff,
Mission says.

Other power producers are taking a tougher line. CalEnergy has taken PLN to
arbitration over nonpayment of tariffs and alleged contract violations.
CalEnergy's three geothermal projects in Indonesia owe local suppliers and
contractors about $30 million, which it isn't paying because, it says, the
Projects" bank loans have been frozen.

The standoff angers many Indonesians, who say the Americans should help pay
for the allegedly tainted deals they helped foster. Drilling contractor Samuel
Sahetapy has had to lay off workers because, he says, CalEnergy owes him more
than $8 million; CalEnergy confirms it owes Mr. Sahetapy's company money but
won't say how much. “Indonesians can't find food,” Mr. Sahetapy says. “And
this big American company won't pay its bills.~

All in the Family
Selected U.S. firms’ Indonesian power deals:

COMPANY (Project): Mission Energy & General Electric
(Paiton I)

SUHARTO REGIME PARTNER: Hashim Djojohadikusomo, Suharto's
relative; Siti Hediati Prabowo,
Suharto’s daughter; Agus
Kartasasmita, minister's brother

CONTRACTED TARRIFF (U.S. Cents/KWH): 8.6*

STATUS: Early 1999 startup

COMPANY (Project): Unocal Corp. (Salak Geothermal)
SUHARTO REGIME PARTNER: Mohamad Hasan, former minister &
Suharto family busine: partner**
CONTRACTED TARRIFF (U.S. Cents/KWH): Pha 1, 8.47; Phase
11, 4.9

STATUS: On-line***

COMPANY (Project): CalEnergy (Dieng Geothermal)
SUMARTO REGIME PARTNER: Retired Military Association

1000000000961


Joining Loum on the board will be: Jacques Gerin, a former Canadian deputy
minister of the environment; Jane Guyer, a profeasor and director of the program
of African studies at Northwestern University in the U.S.; Hilde Frafjord
Johnson, former Norwegian minister of development and human rights; Abdou £1
Mazide Ndiaye, president of Senegal's Forum of African Voluntary Development
Organizations; and Dick de Zeeuw, a “Dutch agricultural specialist" who served
on a similar oversight board in Laos.

STUDY SAYS QUICK ACTION KEY IN FINANCIAL CRISES.

Governments must act quickly to support banks facing liquidity problems during
financial crises, a atudy by academics and World Bank economists argues, the
Wall Street Journal Europe reports.

The soon-to-be-published paper warns that "unconditional support for unsound
intermediaries makes crises worse by facilitating locting and gambling for
resurrection," but argues that “prompt public intervention in all distressed
financial institutions limits the macroeconomic costs."

The study will be incorporated into a paper entitled “Is the crisis problem
growing more severe?" for publication in the April issue of the journal Economic
Policy.

The paper avoids offering de facto guarantees, arguing that liquidity support

shouldn‘t be used “to support insolvent institutions and delay the recognition
of financial distress." But it stresses that “waiting to intervene until after
the crisis has passed risks throwing good money after bad.”

The paper's authors are Michael Bordo, professor of economics at Rutgers
University; Barry Eichengreen, professor of economics and political science at
the University of California Berkeley; and World Bank economists Daniela
Klingebiel and Maria Soledad Martinez-Peria.

The authors support the foreign-exchange policy the US Treasury and the IMP have
generally endorsed since the Asian and Russian financial crises of 1997/98: Let
exchange rates float treely. "We find that banking crises are more costly in the
presence of pegged rates,* because official assurances of exchange-rat:
stability encourage the accumulation of unhedged exposures, the surve:
This ie “a lesson of the 19208 as well as the 1990s," the report states,

Also in this edition: MIGA AGAIN INSURES POLITICAL RISK FOR INDONESIA PROJECTS.
INDONESIAN NIKE WORKERS ALLEGE SEXUAL HARASSMENT: REPORT.

MIGA AGAIN INSURES POLITICAL RISK FOR INDONESIA PROJECTS. MIGA will resume
providing political risk insurance coverage for foreign direct investment in
Indonesia, Dow Jones reports MIGA said in a press statement yesterday.

MIGA, part of the World Bank, decided to offer the insurance after the
Indonesian government agreed to reimburse MIGA for a $15 million insurance clain
paid out to Enron on a canceled power project last year. "Indonesia's economic
environment has shifted significantly since Enron entered into this venture, and
the project was caught up by larger forces in the country's power sector that
affected other sponsors and insurers as well," Luis Dodero, KIGA‘'s general
counsel and World Bank Group vice president.

“While we understand the circumstanc that led to the project's suspension,
international law dictates that the cancellation be compensated,” Dodero said.

‘The claim was the first ever for MIGA. The project involved a 500-megawatt power
plant near Surabaya, Indonesia, one of many suspended by presidential decree in
s

00500000000411


“AMERICAN TERRORIST": Timothy McVeigh, at this point -- he was
surprised initially that the federal government did come forward,
although he had always professed that they had withheld evidence and
submitted tainted evidence, But he wants to see this through to the
end cow, He's just as curious as any other American on how this is
going to play out.<br> <br> But ultimately I do think that he wants
to die. He does not want to spend the rest of his life in prison.

But, Wolf, if per chance that Matsch granted a stay and ultimately it
went to a trial, he h ed in our book. But I think he would
see a necessity defense. fomething McVeigh has always wanted to
employ, but never got the chance under his former defense council,

<br> <br> BLITZER: Dan, the attorney for Timothy McVeigh, Robert
Nigh, emerged from the federal prison in Terre Haute, Indiana, Thursday
morning after their two-hour meeting, and he made this statement on
MeVeigh's behalf. I want you to listen to what Rob Nigh said in Terre
Haute. Listen to this. <br> «<br> (BEGIN VIDEO CLIP) <br> <br>
ROBERT NIGH, MCVEIGH DEFENSE ATTORNEY: Mr. McVeigh has asked us to say
that he understands and recognizes the impact that his decision may
have upon his family, the victims in the Oklahoma City bombing case,
the community of Terre Haute and others. Mis decision in no way stems
from a desire to cause these people any additional pain or trauma.

<br> <br> (eND VIDEO CLIP)<br> <br> BLITZER: In all of the
hours of interviews that you had with McVeigh, he never seemed to
express any remorse. Is he expressing remorse right now to a certain
degree through his attorney? <br> <br> MICHEL: Well, I don't know
if remorse is the right word, but I don’t think that he wants to
torture people in Oklahoma City or anywhere else any longer with this
thing. <br> <br> But at the same time, he really wants to put all
the mistakes of the federal government right back in their face, and I
think that's something he really wants to do. His only true sworn
enemy io the U.S. government. The other people, as he put it in our
book, were collateral damage. The one he really wants to battle with
is the U.S. government. <br> <br> BLITZER: On that iesue of
collateral damage, Lou, in your book American Terrorist, you write

thi: Quoting Timothy McVeigh based on one of the interviews you did
with him, he says this: ‘I didn't define the rules of engagement in
this conflict. The rules, if not written down, are defined by the
aggressor. It was brutal, no holds barred. Women and kids were killed
at Waco and Ruby Ridge. You put back in the government's faces exactly
what they're giving out."<br> <br> In effect, what he’s doing is
justifying what he's called collateral damage, the 168 peop. the 19
children, who were killed in that daycare center in the Murrah Federal
Office Building in Oklahoma City. How could anyone deal with a man
like this? <bre <br> MICHEL; Well, McVelgh sees himself as -- I
know some, tany will disagree -- a statesman and a political activisr
in an extreme that most of us would never dream of.<br> <br> But he
goes back to the fact that he tore a page out of foreign policy, U.8.
foreign policy, when we fly over to Bosnia or to Iraq and drop bombs or
send Tomahawk wissiles off of Navy warships. He was doing the same
thing. He called the Murrah Building a legitimate target. <br> <br>
In the same breath he cays, *I have nothing against the people of
Oklahoma City," though certainly they disagree. Sut he feels that his
target was the federal government and any federal building would have
made a legitimate target. He calla them command-and-control centers.
<br> <br> BLITZER: Dan, you spent a lot of time with Timothy
MeVeigh, talking to him. <br> <br> BLITZER: He grew up in western
New York, just as I did, where both of you are living right now, in

00800000000559


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01000000000957


[OUTSIDE SCOPE , (b)(5)}

00500000002348


DeMarco, Edward

From: Carleton, Norman
Sent: Tuesday, December 18, 2001 10:46 AM
To: Wiedman, Mark; Bair, Sheila; Bieger, Peter, Bitsberger, Timothy; DeMarco, Edward; Dorsey,

Karen; Ellett, Martha; Ellis, Dina; Gabilondo, Jose; Gross, Jared; Huffman, Lucy; Hughes,
Gerry; McGivern, Tom; Mcinemey, Roberta; Nickoloff, Peter; Roseboro, Brian; Salladin, Anne:
Schultheiss, Heiditynne; Smith, Amy; Sutton, Gary; Tishuk, Brian

Subject: a Website (12/17): Sensenbrenner Stil Wants Netting Language to Be Part of Bankruptcy

Sensenbrenner Still Wants Netting Language to Be Part of Bankruptcy Bill

House Judiciary Chairman James Sensenbrenner (R-Wis.) is standing firm in his desire to move so-called
netting language as part of a comprehensive bankruptcy reform bill, a spokesman said, CongressDaily reported.
On Thursday, Sensenbrenner met with House Financial Services Chairman Michael Oxley (R-Ohio) and
Federal Reserve Chairman Alan Greenspan to discuss the possibility of passing netting legislation this year
separate from the beleaguered bankruptcy bill. Federal financial regulators and Financial Services Committee
lawmakers have renewed their calls for that action, in light of the recent collapse of Enron. The netting
provisions are designed to enable quick resolution to complex financial contracts in the event a party in the deal
went bankrupt. However, the netting provisions are one of the few consensus areas in the underlying bankruptcy
bill, which is currently in conference, and proponents are not apt to separate them out. “There was agreement
between everyone that the netting provisions [are] very important,” a Sensenbrenner aide said. “He's trying to
get the bankruptcy bill moving, and that’s where we are right now.”

01200000001257


3. Christmas Bliss

“Tis the season to be jolly, 4 time of giving, a time of love, 4
time of family, friends, and wonderful memories. But, ‘tis also
a time of profit, long lines, annoyed shoppers, no parking, and
large credit card bills. So, this cheery article is dedicated
to the art of saving time and money during this Christmas season
so that you may enjoy it without having your pocketbook create
any unwanted holiday stress.

http: //newslettor.cfdebt.com/default.asp?Articlesarté4

4. Christmas Giving

"Tis the season to be jolly and al) through the house not «
creature is stirring especially not the mouse. People are out
and about and Christmas chcer is in the alr, but unfortunately
Santa Claus won't be stopping everywhere. Cur economy is sliding
downward and the Fed ls cutting rates, so people who are in need
are suffering gift-less, Christmas days. Aut you, dear friend,
are in a lucky spot, for you can give, and help, and give away
that which others have not. Read on to see how you can help.

http: //newsletter.cfdebt.com/default.asprArticlerarté?

5, Fall of a Giant

Have you ever noticed that life leads you like a wild roller
coaster ride? There are steep up hill challenges and long fast
down hill joy rides. Businesses go through similar ups and
downs. And, the bigger the up, the greater the potential down
can be, Our lives can be compared to businesses in many woys,
the most important being financial comparisons. Recently, Enron,
the energy giant fell from one of its tremendous ups. The fall
has been great and can be attributed to poor financial
decision-making. Read on to see how patterning your financial
life after the strategies of successful businesses can keep you
from suffering personal financial falls.

hetp://newsletter.cfdebt .com

Contact Us!
ConsumersFirst
800.291.2390
www. cfidebt.com

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1200000000960


En Joe

From: devnews@worldbank.org

Sent; Thursday, February 22, 2001 10:20 AM

To: Development News

Subject: Development News Thursday, February 22, 2001

This summary ia prepared by the Sxternal Affairs Department of the World Bank.
All material is taken directly from published and copyright wire service stories
and newspaper articles.

Por more news go to http://www.worldbank.org/news
To subscribe go to http://www.worldbank.org/devnews
To uneubecribe send a blank email to leave-devnews-32732U@lists.worldbank.org

Headlines for Thuraday, February 22, 2001:

WORLD BANK WELCOMES TURKISH LIRA PLOTATION.

WORLD BANK BACKS NIGERIA ECONOMIC REVIVAL PLAN.

KENYA AIDS HOSPICE TO IMPORT GENERIC DRUGS.

WORLD BANK UNVEILS WATCHDOG FOR CHAD/CAMEROON PIPELINE,

STUDY SAYS QUICK ACTION KEY IN PINANCIAL CRISES.

- Also in thia edition: MIGA AGAIN INSURES POLITICAL RISK FOR INDONESIA
PROJECTS. INDONESIAN NIKE WORKERS ALLEGE SEXUAL HARASSMENT: REPORT.

rae

WORLD BANK WELCOMES TURKISH LIRA FLOTATION.

The World Bank yesterday said it welcomed the Turkish government's decision to
float the lira following a financial crisis that caused it to abandon an
IMP-backed controlled-currency regime, Reuters reports.

Turkish officials said earlier today they would allow the lira to float freely
when markets open at 0800 GMT, and analysts said they expected the lira to drop
30 to 40 percent. "The World Bank today welcomed the decision by the Turkish
authorities to float the lira," said a statement faxed to Reuters from the Bank,

The Bank said it supported Turkey's decision to continue with economic reforms
and would work closely with the government and the IMF to ensure international
support. Key lending rates have topped 5,000 percent in recent days and the
stock market tumbled a record 18 percent yesterday after a public row between
Prime Minister Bulent Ecevit and President Ahmet Sezer this week terrified
markets.

Meanwhile on Thursday, CNN.com reports Turkey's lira tumbled by 23 percent in
early trade, plummeting to 650,000 against the dollar. On Wednesday, the central
bank's dollar purchase rate was 685,391 lira to the dollar.

Separately, AFP reports Turkey today scrapped a predetermined exchange rate
policy in the face of sky-rocketing interest rates amid financial turmoil, but
said it would stick to anti-inflation policies. Due to recent developments,
the foreign exchange rate will be left to float,” a statement from the prime
minister's office said, according to the NTV channel.

00500000000407


the hearings on campaign financing certainly embarrassed and distracted
the Democrats, the Thompson hearings. There are ways in which the
Republicans used that power. <br> <br> BROOKS: In a limited way.
<br> <br> What I would think is an interesting dynamic is how the
Bush team goes to the House and tries to use the House to get on the
offensive, rather than waiting for the Senate and the Democrats to be
on the offensive. <br> <br> BLITZER: But it's not as if they have
a huge majority in the House either. <br> <br> BROOKS: But they've
got a working majority. <br> <br> PAGE: Given House rules too,
you know, it's easier to use one or two votes to keep everybody in line
on the House side. I wonder if that's not going to -- it seems to me
that's not exactly a atrategy that's going to convince us all they are
on the offense. <br> <br> (CROSSTALK) <br> <br> BROOKS: We're
just going to get mishmoshed for a few years. <br» <br> ROBERTS:
Look, part of Lott's problem - Lott's biggest problem comes from the
right. It comes from the hardline conservatives who say he's being too
moderate when he formed this deal with Daschle to share power in the
Senate. He got tremendous heat from his own conservative wing. These
are the guys that can't count. <br> <br> BROOKS: This is your
fantasy about the Cossacks coming over the Caucasus and attacking Trent
Lott. He's got no problem with the right, I don't think.

BLITZER: And Susan, I want to just butten this up, judicial nominees.
That obviously - and Steve suggested it - they're going to have to be
careful, sending over moderates. If there is an opening, if Judge
Rehnquist, for instance, the chief justice, if he were to retire,
Antonin Scalia becoming the next chief justice, is that out of the
question now? <br> <br> PAGE: TI think that if the first Supreme
Court justice position to be filled, it would be filled by one of two
people. One would be an Hispanic judge, and there are a couple of
possibilities. And the other is the man who was on this show, Orrin
Hatch, because Senator Hatch is a conservative Republican, but he's a
senator with gocd relations with Democratic senators, And those are
the two nominations, the two types of nominations that could get
confirmed, I think, without very much trouble. <br> <br> BLITZER:
All right. I want to spend a little bit of time talking about the
media's coverage of the Bush twin daughters. It's been a subject
that's caused a lot of controversy. We've been flooded with e-mails
from both sides to a certain degree, but a lot of people think we
shouldn't even mention this subject, these 19-year-old girls who are
about to be sophomores in college. <br> <br> Some people say,
though, Sush himself, the president brought this on us by referring to
his own daughters. Listen to this montage of statements the president
said about his daughters and the issue that came up at the end of the
campaign on November 2 when it was revealed he was arrested many years
earlier driving under the influence of alechol. Listen to this. <br>

ebr> (BEGIN VIDEO CLIP)<br> <br> BUSH: I made the decision
that, as a dad, I did not want my girls doing the kinds of things I
did. <br> <br> (END VIDEO CLIP)<br> <br> (BEGIN VIDEO

CLIP) <br> <br> BUSH; I didn't want to talk about thie in front of
my daughters. I told my daughters they shouldn't be drinking and
driving.<br> <br> (END VIDEO CLIP)<br> <br> (BEGIN VIDEO

CLIP) <br> <br> BUSH: I'm a dad. I'm trying to teach my children

right from wrong. I chose the course that, to my daughters, I was
going to tell them they shouldn't drive and drink, and that's the

course of action I teok. <br> <br> (END VIDEO CLIP)<br> <br>
BLITZER: Ta this a story, shouldn't we be reporting when the girls get
cited for false ID or whatever? ROBERTS: Yen, and I know the

00800000000570


With yesterday's Chapter 11 filing by Enron, yet another victim was added to fabled "Spor... Page | of 1

O'Brien, Michael

From: Obrien, Kevin [kevin@pequotcap.com)

Sent: Thursday, November 29, 2001 3:06 PM

To: Andy LeFevour (E-mail); Dennis Joyce (E-mail); Jim Landi (E-mail); Jim Rizzo (E-mail); John Verni (E-
mail); Luke Pickett (E-mail), Marc Sulam (E-mail); Michael O'Brien (E-mail); Pat McGannon (E-mail);
Tim O'Brien (E-mail)

Subject: FW: SHAREHOLDER PERFORMANCE & SPORTS TEAMS STADIUMAC MORGAN (E-mia il)

As the topic is professional sports, | asked our research staff to put this together for you boyz.

-----Original Message---—-

From: Mehl, Jared

Sent: Thursday, November 29, 2001 3:00 PM

To: PV Team

Subject: SHAREHOLDER PERFORMANCE & SPORTS TEAMS STADIUMAC MORGAN (E-mail)

‘With yesterday's Chapter 11 filing by Enron, yet another victim was added to fabled "Sports Stadium Naming
Rights Jinx". Over the past 10 years or $0, professional sports franchises have been selling the names of their
‘stadiums to the highest corporate bidder. This trend has garnered much debate within the business community -
are companies paying for prime marketing real estate, or are they agitating traditional sports fans?

The following list makes a strong case for the latler argument. Here is a sampling of 15 corporations that have
bought professional stadium naming rights, and their stock price performance since the deal was announced:

Yearof Costof — Stock Price at Current — Loss
Venue Spor Team Deal = Deal Symbol Deal Price Since Deal
PSINet Stadium NFL Ravens = 1999 $106M_——PSIX $51 $0.01 -100%
Trans World Dome = NFL Rams 1995 $26M TWAIEO $12 $0.04 100%
Pro Player Stadium = MLB Marlins 1996 $20M FTLAQ.OB $35 $0.28 “9%

Enron Field MLB Astros 2000 =$100M ENE $36 $0.60 -B%
CMGI Field NFL Patriots = 2000» SII4M = =—s CMGI S45 $2 96%
Savvis Center NHL Blues 2000 $70M SVVS $9 $0.75 92%
3Com Park NFL 49ers 1995 $4M. COMS S40 s 90%
Conseco Fieldhouse NBA Pacers 1999 $40M CNC $30 Ss 87%
Corel Centre NHL Senators 19% $26M CORTO $i7 $3 82%
Amenca West Arena NBA Suns 1989 $26M AWA $10 80%

$2
American Airlines Arena NBA Heat 1999 $42M AMR $72 $20
Air Canada Centre NHL Maple Leafs 1999 S$40M  ACNAF s7 $2 “71%
Compaq Center NBA Rockets 1997 $6M cPeQ $30 $9
Adelphia Coliseum NFL Titans 1999 $30M ADLAC $70 $23
United Center NBA Bulls 1994 $25M UAL $42 $16 62%

This past January, Invesco bought the naming rights to Denver's hallowed Mile High Stadium invesco's parent,
Amvescap (AVZ), is down 40% since the deal was announced.

1/16/02
01200000000947


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01200000000803


Constantine, Eleni

From: Constantine, Eleni
Sent: Friday, March 16, 2001 1:48 PM
To: Paulus, Michael, Mcinemey, Roberta
Subject: RE: Enron Meeting Request
{(b)(5)]

---Onginal Message——-

Paulus,
Sent: ‘Thursday, March 15, 2001 6:02 PM.
To: » Bend

— Orginal Message-—-—

From: Gis, Ding

Sent: ‘Thursday, March 15, 2001 S:59 PM

To: Fisher, Peter; Pauls, Michael; Carteton, Norman
Jered

{(b)(5)

|

i

i

, Peter

p, Magch 15, 2001 5:31 PM
Pauls, Miche; Elks, Dina; Carieton, Norman

2 Gross, Jared

Subject: RE: Enron Maebrg Request

| also see no reason to object.

REg2
i

-—-Onginal Message——
From: Paulus, Michael
Sent: Thursday, March 15, 2001 5:27 PM

B

Cina; Fisher, Peter; Carleton, Norman
Jared
Enron Meeting Request

fi

#3
gf

President and CEO of Enron has requested a meeting with the Secretary for April 5 to discuss the
energy crisis. | see no reason to object. Thoughts?

00300000000008


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© 2001 by FPMI Communications, Inc. Permission is hereby granted to
forward FedNews OnLine in its entirety without alteration to members
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permitted without express consent of FPMI Communications, Inc.

1000000000675


CNN LATE EDITION WITH WOLF BLITZER
Colin Powell Discusses Mideast Situation; Paul O'Neill Discusses
Tax Cut's Impact on Economy;
“American Terrorist’ Authors Discuss McVeigh
Aired June 3, 2001 - 12:00

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS PINAL PORM AND
MAY BE UPDATED. </p><br>

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM
AND MAY BE UPDATED.<br>

WOLF BLITZER, HOST; It's noon in Washington, 9:00 a.m. in Los Angeles, 7:00 p.m.
in Tel Aviv and midnight in Beijing. Wherever you're watching from around the world,
thanks for joining us for this two-hour LATE EDITION.

We'll get to our interview with Secretary of State Colin Powell
shortly, but first, the hour's top story. We begin We begin in the
Middle East, where tensions remain very high following Friday's suicide
bombing in Tel Aviv that killed 19 Israelis and left dozens sore
injured, mostly young people.

NEWSBREAK)

BLITZER: Here in Washington, the White House is closely watching
‘the hour-by-hour, very tense situation in the Middle East. Secretary
of State Colin Powell canceled a weekend visit to Costa Rica to
personally monitor the crisis. I apoke with Secretary Powell earlier
today. <br> <br> (BEGIN VIDEOTAPE) <br> <br>

BLITZER; Mr. Secretary, welcome back to LATE EDITION, and thanks for
joining us.<br> <br> COLIN POWELL, U.S. SECRETARY OF STATE: Thank

you, Wolf, <br> <br> BLITZER: Do you believe that the Pal inian
Authority, President Yasser Arafat is now committed to a cease-fire?
<br> <br> POWELL: It's not so much what I believe, it's what we

all see. He spoke yesterday in very, very strong terms. He said things
I had not heard him say previously. He spoke about the unconditional
cessation of violence, which is called for by the Mitchell Committee
Report. He spoke to his people as well as speaking to the
international audience, <br> <br> And now we have seen him take
actions with respect to his security forces that are encouraging, and
there has been no serious violence in the last 12 to 18 hours. <br>

«br= So, it's not sc much what we believe -- and the Ieraeli's will
say this to you very, very quickly. It's not what we believe or read,
it'e what we see.<br> <br> And so, what Mr. Arafat has to do now,

what 1 encouraged him very strongly to do yesterday, was to show action
on the ground that everybody can see so that we can start to get into a
cease-fire and cooling-off period again, and then move into the
confidence-building measures called for by the Mitchell Committee
Report, and at the end of a long period of time, hopefully not too
long, get back into final status negotiations. So what is important
now is action on the ground, <br> <br> BLITZER: Well,
specifically on that action, do you want him to rearrest soma of those
Palestinian prisoners who were let go, allowed to leave prison over
these past eight months of this so called intifada? <br> <br>

00800000000547


Retirement Security Speech

Outline

{(b)(5)]

01200000001154


Bair, Sheila

From: Davis, Michele

Sent: Monday, January 14, 2002 1:41 PM
To: Bair, Sheila

Subject: for Secretary's speech TOMORROW

‘What do you think of these few paragraphs?
{(b)(5)]

01200000000861


by announcing the government would accept a tariff of eight cents. He offered
no detailed c. for the tariff, and the government's Western advisers
believed it was still economically indefensible. The advisers say they
concluded that deals were being cut behind the scenes.

They were. After heated negotiations in which participants say Mission
executives blew up at government officials for refusing to take Mission's
offer to Mr. Suharto, Mr. Hashim had gone to the president. Mr. Hashim's
father was one of Mr. Suharto's earliest economic ministers. Mr. Hashim's
brother-in-law was governor of Indon 3 central bank. His brother was one
of the fastest-rising army officers in Indonesian history -- and husband of
Mc. Suharto'’s daughter, Ms. Prabowo. (Through a partnership with Mr. Hashim,
Ms. Prabowo also got a carried interest in Paiton One.)

In a July 1993 letter to Mr. Suharto, Mr. him presented Mission-GE's
case. But the letter left out certain details. Comparing tariff proposals, Mr.
Hashim described a 0.59-cent variation in one component of the pricing as "not
4 big difference.” Actually, it meant $53 million a year more for PLN to pay.
Mr. Hashim followed up the letter with a private audience with Mr. Suharto
where the deal was struck, according to other project documents. In that
meeting, Mr. Suharto said Paiton One‘’s tariff shouldn't exceed nine cents, in
order to avoid “unrest and socio-political consequences,” another letter from
Mr. Hashim to Mr. Suharto says. Soon after that, Mission told its partners in
4 memo that nine cents was “the magic figure” and suggested ways to structure
a tariff of 8.99 cents by shifting more debt to OPIC, among other steps.

Three weeks later, the consortium submitted its “final offer:" 8.6 cents, on
average, for 30 years. The technocrats had no choice but to accept, officials
say. “It was a presidential decision,” says Nengah Sudja, a former head of
r arch for PLN. "Everybody knew it was nepotism, but we couldn't do anything
about it." Mr. Hashim acknowledges speaking to Mr. Suharto many times about
Paiton One, but says the president‘s own aides and ministers advised him on
tariffs and other issues.

The technocrats still hoped lenders would balk at the high price, especially
after the World nk and others started warning of looming overcapacity in
electric supply. But in those days, Asian power deals were hot. When Dianne
Rudo of the U.S. Ex-Im bank visited Jakarta to evaluate financing for Paiton
One, veral government and PLN officials told her they didn't want and
couldn't afford Paiton One, recalls an American industry expert who
accompanied her. This expert says political pressure in Washington in support
of Asian power deals for
U.S. companies made Ex-Im's backing inevitable.

Ms. Rudo, now with a different bank, declines to comment. A spokesman for
the Ex-Im bank says it wasn't under inordinate pressure, and that the project
looked viable when financing was approved in early 1995. “The bottom line from
our point of view was that we were supporting 25-plus U.S. exporters,” he
says.

Mr. Muller, Mission's CEO, says that Paiton One's tariff in part reflects
the fact that the consortium, at the government's request, built extra
infrastructure at the plant, including coal-handling and storage facilities
that serve other power projects too. He emphasizes that Mr. Hashi='s
involvement “in no way caused the tariff to be higher.“ GE sold much of its
stake in the project after financing and the tariff agreement were finalized;
4 spokesman says that was a typical move for GE, which often finances and
helps design big projects, then sells to take profits before the projects are
completed.

Today, Paiton One stands
decade -- anywhere. By contr.

one of the most expensive power deale of the
t, Indonesia's only competitively bid project,

01000000000962


the Middle East, who worked the eight years of the Clinton
administration, before that he worked in the Sush administration

..sbr> <br> POWELL: Dennis worked for me. <br> <br>

BLITZER: That's right.<br> <br> Re thinks that it's time that the
U.S., given the fragile situation right now, the potential for major
escalation, for the Bush administration right now to rethink ite
attitude towards these negotiations.<br> <br> Listen to what Dennis
Ross told us only over the past day or so, listen to this. <br> <br>
(BEGIN VIDEO CLIP)<br> <br> DENNIS ROSS, FORMER SPECIAL ENVOY TO
THE MIDDLE EAST: We had security representatives there on our side. I
think it would be wise for us to raise the level of those
representatives on our side, and I think those representatives should
go to those meetings with a kind of responsibility to help set the
agenda, <br> <br> (END VIDEO CLIP)<br> <br> BLITZER: Good
advice? <br> «<br> POWELL: We have representatives at a senior
level. <br> <br> POWELL: I have an ambassador, and I have consul
general, and we have other people.<br> <br> BLITZER: But
Ambassador Burns and Ambassador Indyk...<bre <br> POWELL: Let me
finish my conversation. <br> <br> Dennis has a different view, I
guess, that he thinks that these security diecuseions require a higher-
level person to be in the room. <br> <br> During the last eight
months or the months before we came into power on the 20th of January,
the highest-level people you could imagine in the United States were
working in the room at the highest levels imaginable, and we ended up
with a failed peace process and an Israeli government that essentially
lost an election. <br> <br> The issue right now is security. The
problem we have had -- and it isn*t a function of who is in the room
for security chats. It's whether the two sides were at a point in
their relationship where they were prepared to make those hard calls on
security. <br> <br> And America coming in and tabling various
ideas and positions, we are more than able to do that, but it wasn’t
going to be terribly useful if the two sides were not ready to come
into agreement. That's what caused the last administration to have
difficulty at end of the day. They created huge expectations as to
what might be possible, and then the two sides were not able to come
into the room and agree to what had been put on the table in the form
of the Taba Agreement, as it is called, and the whole process

collapsed. <br> <br> We had want to make sure that we will
intervene at a time and at a level when it is appropriate to do so and
we can see some progress. <br> <br> I think the Bush

administration has handled this well. You have to remember that for
the first six weeks of the Sush administration, we were watching
transition in the Israeli government: an election, the end of one
administration, and Mr. Sharon taking over on the 7th or 6th of March.
And he took over on the basis of "We're not going to start negotiations
until there is security, and I'm not going just accept assurances of
security. I have to see other side end the violence."<br> <br> The
security arrangements don't end the violence. The security arrangement
is what happens after political decisions have been made to end the
violence and now you're trying to knit together a structure that will
make sure that remains the case. <br> <br> So I don't think we've
done anything improperly here. And I don't disagree with Dennis. It's
just that we're not doing it quite the same way that he suggests we
should do it. Sut that's why there has been a change of
administration. <br> <br> BLITZER: You just came back from trip
to Africa and Europe. You were pretty close to the Middle East. You
could have stopped off and met with the Israelis and the Palestinians.

0800000000550