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If Lorenzo comes back with the $10K Ormazabal compromise we think he will,
we need to figure out how to get out of Talgo. Here's my thought and I
think there still may be a small chance to do both. We call Talgo and say
that we haven't gotten back to them with comments on their revised contract
because CAF has recently approached us to help them with their Amtrak bid.
We ask them if our contract would allow us to do both. Should they likely
say No, we say that CAF's offer is too good for us to pass up especially
because we have the opportunity to help them on light rail as well. We also
say that we are concerned with the scope of work as they have already asked
us to lobby and we are not comfortable they understand what we can and can't
do. (Maybe we leave that out - but it is something for the quiver.)

Probably becomes tricky, but I wonder whether we also should suggest to them
that ultimately what Talgo needs are coalition partners of European
manufacturers who are collectively working together to locate U.S. based
suppliers here to get to 100%. We should leave open the possibility of
getting back to Talgo and working on that issue along with CAF. If the
blood is as bad as Lorenzo says it may not work, but also, let's remember I
am getting that info from Lorenzo who has been using every trick in the book
to convince us that we have to do CAF and doesn't want to do Talgo. Maybe
it is not as bad as we think.

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Eric D. Schwerin
Rosemont Seneca Partners
(202) 333-1880
eschwerin@rosemontseneca.co