PAITON POWER



ALL DOCUMENTS OBTAINED FROM THE U.S. COMMERCE DEPT. USING THE FREEDOM OF INFORMATION ACT (FOIA).


GE WORRIED ABOUT QUESTIONS ON SUHARTO BRIBE


Paiton Power

Several parties are concerned with the fate of this project -- Amb. Barry, XXX and Peter Jesek. Amb. Barry stated thjat the project is facing a potential collapse because of two problems: (i) the ADB financing may cave-in, and (ii) EXIM is quite slow. Regarding ADB, technical questions have been satisfied , but ADB is skiddish about involvement of Indonesia's first family (a minority shareolder is married to Pres. Suharto's daughter). Barry has been working with Exec. Dir. Linda Yang, who is "doing all she can." GE wants to emphasize the role of Mitsui in the project to ADB's president who is Japanese. Regarding EXIM, Barry said that he called Ken Brody on 9/27 to discuss the project because GE is concerned that EXIM has not hired financial advisors for the project yet (although Barrry understands that the advisors will be appointed on Monday or Tuesday of next week). Today, Bab LaRussa, Paul Rosenberg and I sent an E-mail to Jeff Garten, Ray Vickery and Lauri Fitz-Pegado urging Jeff to communicate to Ken Brody the need for Brody to contact Amb. Barry on this project immediately. We understand that the financial advisor is supposed to be XXXXXXXXXXXX and the legal advisor is suppose to be XXXXXXXXXXXXXXXXX hopes to EXIM will let these advisors go ahead and conduct the due dilligence review.

Although the ADB financing is only $50 million, GE views the ADB component to be important because it has a long-term interest in having a multinational bank support the project. Furthermore, if ADB rejected financing, EXIM and the commercial banks involved in the deal would ask questions.

According to XXX this is the first private structure deal and should be considered a "break-through deal" in Indonesia. XXX requests that Commerce adds its voice to catalyze EXIM to work with the other banks on securing the financing, so that in November during APEC President Clinton or Secretary Brown can deliver the EXIM financing piece. GE is most concerned with the lack of inertia at EXIM, not specific financing terms.


MISSION ENERGY CEO MEETS COMMERCE SEC. DALEY




BRIBE FOR SUHARTO'S DAUGTER

$50 MILLION DOLLAR NO-PAYBACK LOAN FOR INDO FIRST FAMILY

PAITON SEPT. 1994 NOTES
ADB RESERVATIONS ON SUHARTO BRIBE

PAITON SEPT. 1994 NOTES
.75% OF PAITON FOR SUHARTO'S DAUGHTER

DEAR RON - THANX FOR THE HELP
MISSION ENERGY CEO/DNC DONOR BRYSON



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