Re: Response to Carol Balassa Question No. 7

---------------------- Forwarded by Richard Shapiro/HOU/EES on 03/27/2000
05:15 AM ---------------------------

Mark Schroeder@ECT
03/27/2000 03:56 AM
To: Joe Hillings/Corp/Enron@ENRON
cc: Richard Shapiro/HOU/EES@EES
Subject: Re: Response to Carol Balassa Question No. 7

WRONG - We would find monopolies in supply and generation intolerable.
thanks mcs

Joe Hillings@ENRON
24/03/2000 20:43
To: Mark Schroeder/LON/ECT@ECT
cc:

Subject: Response to Carol Balassa Question No. 7

---------------------- Forwarded by Joe Hillings/Corp/Enron on 03/24/2000
02:49 PM ---------------------------

"Robert C. Fisher" <RCFisher@HillsandCo.Com< on 03/24/2000 02:53:01 PM
To: "Brian T. Petty (E-mail)" <75361.622@compuserve.com<, "Chris Long
(E-mail)" <Chris_Long@enron.com<, "Christina Bolton (E-mail)"
<CBCapStrat@aol.com<, "Don Deline (E-mail)" <don.deline@halliburton.com<,
"Joe Hillings (E-mail)" <Joe_Hillings@enron.com<, "Lora Sullivan (E-mail)"
<Lora_Sullivan@enron.com<, "Steve Burns (E-mail)"
<Stephen_D_Burns@enron.com<, "Tim Richards (E-mail)"
<tim.richards@corporate.ge.com<
cc: "Carla A. Hills" <CAHills@HillsandCo.com<, Erin Endean
<EMEndean@hillsandco.com<, "Edward A. Casey, Jr." <EACasey@HillsandCo.com<

Subject: Response to Carol Balassa Question No. 7

To all -- Below is a proposed response to Carol Balassa's question,
which gets at the impact of the energy services effort on government
monopolies for the ownership and provision of energy. As I have
received various comments from a variety of people, I have tried to
reflect what I see as a general consensus. The response is drafted as
coming from USTR, not from the ESC.

We should be prepared to discuss this on Monday [Tim, I know you will be
away, so if you have any comments, I'd welcome them before you head
out.]

Regards to all -- Bob

7. What impact would such a description of "energy services" have in a
country where the government retains a monopoly over the ownership and
provision of energy?

"The United States welcomes and supports the efforts of countries that
are privatizing and deregulating their energy and energy services
sectors. It believes such actions are in all parties' economic
interests.

However, as part of WTO negotiations on energy services, we seek neither
to require governments to privatize ownership of energy resources or the
provision of energy or to break up existing monopolies.

Our goals are market access commitments and a regulatory framework that
ensure that energy services firms are able to compete with all suppliers
in the provision of energy services on a fair, non-discriminatory basis,
under a timely, transparent and independent regulatory framework,
including access to transmission and distribution networks. We want to
ensure that where monopolies exist, that they do not abuse that
position."