HANG LUNG DEVELOPMENT COMPANY LIMITED
28/F, Standard Chartered Bank Building
4 Des Voeux Road Central, Hong Kong, China
Telephone: (852) 2879-0111 Fax: (852) 2868-6036
E-mail: Ronnie_Chan@hanglung.com

To: Dr. Kenneth Lay Date: October 26, 2001
Company: Enron Corp.
cc: Mr. Norm Blake
From: Ronnie Chan (fax: 719-632-4180)
Dear Ken,
My flight this morning from Singapore arrived Hong Kong at 1:40am local time. Upon deplaning, I called Kelly Johnson but could not join the board meeting because I was unable to find a fixed line. I phoned Paula Rieker after getting home to receive an update of the meeting. Apparently the session ended right at the time I rang Kelly.
Two thoughts: to bring in either as a director or as an advisor a highly reputable financial person such as Bob Rubin is a good idea. If Bob (whom I saw last Friday in Shanghai) cannot do it, you may consider Felix Rohatyn. He was of course the person in 1975 who bailed out the financial crisis of New York City. Until recently, he was U.S. Ambassador to France. I know him personally but not well. However, another friend Peter Goldmark who is chairman, CEO and publisher of the International Herald Tribune knows Felix very well. Peter told me that he was excellent in crisis situations. Together with his financial savvy and reputation, maybe he can be considered by Enron at this time. Coincidentally, Peter was head of the New York Port Authority in the late 70's and early 80's.
At the October 24 board meeting, you told us about Jeff Skilling's phone call right beforehand. Could it be that knowing that the board would not invite him back, he was offering himself just to give the impression of not having left us in anticipation of the present problems? If so, then we should not turn him down right away. Perhaps we should somehow make him not want to come back. Maybe this is too convoluted.
Ken, these are difficult times but I am pleased that the board is acting in unison. After the problems are over, I still think that my suggestion to you during the last board dinner in Houston should be looked into, i.e. have a strategy retreat where the board can have thorough discussions on the many fundamental aspects of our business. Present difficulties only point to that need. But for now, let us get over the immediate hurdle first.
Sincerely,
Ronnie Chan
P.S. Since I have spoken to Norm about the strategy retreat, I am copying this letter to him.