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Letters show warmth between Enron's Lay, Bush

Ken Lay, former chairman of bankrupt energy giant Enron Corp, often sought President George W Bush's support for business projects and legislation when Bush was governor of Texas, according to correspondence released on Friday.

The documents, which include a number of notes and letters released by state archivists, show a close personal relationship between the two men as well as an alliance built on common political and business interests.

"I wish to thank you for your efforts to find a middle ground on the debate regarding electricity industry restructuring in Texas," Lay wrote to Bush in a June 5, 1997 letter on Enron stationary.

"Of course we would have liked to have accomplished more, but realistically, the issue would not have moved nearly as far as it did without your involvement, and for that Enron is deeply grateful."

The documents were released to news organizations and public interest groups who filed freedom-of-information requests to see Bush's Enron-related papers. A spokesman for consumer group Public Citizen, which provided the papers to Reuters, said more would be released next week.

Lay's relationship with Bush has become a political issue since Enron, once the nation's largest power trader, collapsed in the biggest bankruptcy in US history in December amid a widening financial scandal.

Lay, who resigned from the company in disgrace earlier this month, was a long-time Bush ally and a generous donor to his political campaigns. He was part of an elite group known as the "Bush Pioneers" who gathered at least $100,000 in donations for Bush's 2000 run for the presidency.

High-level members of the Bush administration said Lay called asking for help while he fought to keep Enron out of bankruptcy, but they said they did nothing and that the president knew nothing about it.

WHITE HOUSE DISMISSIVE

The White House on Friday dismissed the letters.

"It's old news. The governor, like any other governor, received thousands and thousands of letter from people across Texas with diverse views on a variety of issues. And as governor, he (Bush) always made his decisions based on what was in the best interest of all Texans," said White House spokesman Scott McClellan, adding that Bush has "always acknowledged that Lay was a supporter."

In recent public statements, Bush has steadily distanced himself from Lay and Enron, but the letters released on Friday show their relationship was a warm one.

They exchanged Christmas presents, expressed concern about each other's health and sent birthday wishes.

"Dear George, I was very sorry to read that you will be going through arthroscopic knee surgery in a few days. But I also want you to know that at least one jogger got past 50 without surgery," Lay wrote in a January 13, 1997 handwritten note.

"Dear Ken: One of the sad things about old friends is that they seem to be getting older -- just like you! 55 years old. Wow! That is really old," Bush said in a April 14, 1997 letter.

But when the joviality and warm regards were finished, the letters indicate that the Lay-Bush relationship was about business.

While Bush lobbied for such things as electricity deregulation and tort reform, both Enron pet projects, Lay called upon Bush to meet visiting dignitaries from countries where Enron was going into business.

In an April 3, 1997 letter, Lay arranged a meeting between Bush and Uzbekistan's US ambassador, pointing out that "Enron has established an office in Tashkent and we are negotiating a $2 billion joint venture to develop Uzbekistan's natural gas."

In a June 11, 1999 note, Lay tells Bush that the prime minister of Romania wants to meet him.

"Enron has recently finalised a gas marketing joint venture with Petrom and staffs an office in Bucharest. We are committed to participation in the Romania energy and water markets. Warm personal regards, Sincerely, Ken."

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