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Enron Mail |
I appreciate the level of detail we are going to in the analysis of how to=
=20 manage offshore products to mitigate US taxation risk but I believe the=20 reality is that we are going too far. If we are actually concerned about th= is=20 level of detail then we should not do operate in this fashion at all. If=20 someone really wanted to come after Enron's US income in relationship to th= is=20 structure and the manner in which we are operating daily there are plenty o= f=20 other arguments they would make first.=20 I would propose a better analysis would be regarding the precedent cases in= =20 which Argentina has gone after US income tax noting the details,=20 circumstances and number of times. This would allow us to advance in making= a=20 solid commercial decision on the risks we bear vs covering every contingenc= y=20 in an emerging market.=20 =20 The reality is that I do not expect to operate in this fashion as a primary= =20 business with hugh volume. I believe it is still better to face the facts a= nd=20 bring the business onshore and deal with the issues in Argentina while also= =20 isolating the risk via a local structure. In addition it still is not prove= n=20 we have a risk until we see the performance of the system and the acceptanc= e=20 of such by the market.=20 It might be more expedient to move forward and deal with any issues as they= =20 arise knowing we can always adjust or stop the activity. Your comments would be appreciated and thanks for expediting things so far. MFG=20 =20 ---------------------- Forwarded by Michael Guerriero/SA/Enron on 11/23/200= 0=20 04:27 PM --------------------------- Patrick Hansen 11/23/2000 12:36 PM To: Michael Guerriero/SA/Enron@Enron cc: Andrea Calo/SA/Enron@Enron=20 Subject: Argentine Financial Power Mike, Regarding the implementation of an Argentine Financial Power product in=20 EnronOnline, where the Enron entity transacting is ENA, certain issues need= =20 to be clarified and then communicated. Whoever will run the Stack Manager for this product has to be physically=20 located in US?. Does that person who runs the Stack Manager need to be an ENA employee or c= an=20 a ESA employee execute the transaction on behalf of ENA?. Can Julian sitting in Buenos Aires have read only access to that product on= =20 the Stack Manager?. Once these issues are clear by Legal and ENA, and the person who will run t= he=20 Stack Manager is identified (Alberto Carre=0Fo?), we need to communicate al= l=20 this to Dave Forster in order to get the EnronOnline staff involved in=20 implementing the product. The Product Description is ready and the GTC is in Brent's hands to be=20 finalised. Once the (i) devaluation language, (ii) collateral arrangement a= nd=20 (iii) Index language are added to the GTC, it should be finalised; so I=20 understand. The other thing that we need from legal is the Confirmation=20 Template, which will have to be sent from Houston to the counterparts (Scot= t=20 Mills team need it).=20 I would appreciate your help in getting these issues in place ASAP, so that= =20 we can get our product online by December 4th. Thank you. Patrick
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