Human Rights Watch

I haven't seen any of the press reports (even though I am in London and I
hear that's where they were) but I thought this was a well drafted response.
The only additional rumours I have heard indicate that the police may have
been rough in their handling of demonstrators outside the fence at the plant
construction site. I remember hearing that there were times that the
construction workers feared for their lives because of the vehemence of the
protesters. I guess that didn't make it into the Human Rights Watch (ever
heard of them?) report.

Mark
---------------------- Forwarded by Mark - ECT Legal Taylor/HOU/ECT on
01/27/99 04:08 PM ---------------------------
From: Ken Lay and Jeff Skilling AT Master_po@CCMAIL on 01/25/99 02:20 PM
To:
cc:
Subject: Human Rights Watch

To: All Employees
From: Ken Lay & Jeff Skilling
Subject: Human Rights Watch

Over the next few days, you may see some press coverage of a report that was
issued by the Human Rights Watch which alleges human rights abuses in
relation to the Dabhol Power Company (DPC) project in India. As you know,
Enron is a 50 percent owner of the Dabhol project, which should be
operational next month.

We want each of you to know that this report is entirely without basis. We
are very disappointed that Human Rights Watch has chosen to listen to the
perspectives of the people who have opposed the project since the beginning.
As you are probably aware, project opponents filed more than 20 lawsuits
against the project in the Indian courts over the past four years. Every
lawsuit was dismissed, withdrawn or ruled in DPC's favor. The project is
clearly above reproach.

Enron was advised of the Human Rights report just a few days before it was
issued. The Dabhol Power Company, the Government of Maharashtra and our many
supporters were never even contacted.

DPC has worked hard to promote positive relations within the community. A
handful of people who oppose the project were interviewed for this report in
great detail. Unfortunately, the good relationships we have built with a
large percentage of the community were not reflected. Our community efforts
have included building a school and a hospital, planting thousands of trees
at the site, building wells for drinking water and conducting numerous job
training programs for area residents. Last year, Enron made a $500,000 grant
to CARE to be used for programs in the state of Maharashtra.

Our media statement on the issue is as follows:

Dabhol Power Company does not tolerate human rights abuses by its employees
or contractors. And, while we respect the work of Human Rights Watch and its
mission, this report is out of context at best and dredges up allegations
that have been put to rest over the past four years. Much of the report
deals with concerns over state police actions, over which we have no control,
and it is misleading by Human Rights Watch to allege so.

Please refer any media inquiries to the Enron International public relations
office at 713-646-6416.