IN THE UNITED STATES DISTRICT COURT

                     FOR THE EASTERN DISTRICT OF PENNSYLVANIA

IN RE: GRAPHITE ELECTRODES        (
         ANTITRUST LITIGATION               ( Master File No. 97-CV-4182
                                                 ( Filed: 03-03-00

               MEMORANDUM OF LAW IN SUPPORT OF THE GOVERNMENT'S
                  MOTION TO INTERVENE AND PARTIALLY STAY DISCOVERY

                                         I.  INTRODUCTION

        The United States of America ("the Government") submits this memorandum of law in support

of its motion to intervene in this action and to stay until the completion of the criminal trial in

States v. Mitsubishi Corporation, Criminal No. 00-033 (E.D. Pa., Judge Katz):

        (a)      all depositions except those relating to the production of documents; and

        (b)      all interrogatories except those relating to the production of documents.

In essence, the Government seeks a stay on discovery of all substantive matters while allowing the

parties to proceed with document discovery.

                                     II.  STATEMENT OF FACT

A.  The Indictment Against
      Mitsubishi Corporation

        On January 19, 2000, a grand jury in the Eastern District of Pennsylvania indicted

Corporation for aiding and abetting a conspiracy among graphite electrode producers to fix the

graphite electrodes in the United States and elsewhere from at least as early as March 1992 and

continuing until at least June 1997.  Mitsubishi Corporation is also a defendant in the civil

before this Court.  The issues of liability in the criminal case and the civil case are virtually

Accordingly, a limited stay is appropriate to economize judicial resources, limit the burden on

Mitsubishi Corporation in defending multiple actions, and prevent untimely disclosure of the



Government's case while still allowing the plaintiffs to proceed with their action.1

                          IN THE UNITED STATES DISTRICT COURT

                    FOR THE EASTERN DISTRICT OF PENNSYLVANIA

IN RE: GRAPHITE ELECTRODES (
        ANTITRUST LITIGATION ( Master File No. 97-CV-4182
                                              (

                      MOTION OF THE UNITED STATES TO RESCIND
                          THE MARCH 8, 2000 ORDER OF THE COURT

       The  Government moves the Court to rescind the March 8, 2000 Order relating to discovery in

In re:  Graphite Electrodes Antitrust Litigation.   The Government has just received Mitsubishi's

to Modify the Court Order dated March 8, 2000.  The Government agrees with the position set forth

by Mitsubishi that the Government should not obtain by civil discovery that to which it is not

through the Rules of Criminal Procedure, and, therefore, any order permitting limited discovery in

civil case should prohibit disclosure to the Government.  It remains the position of the Government

an order should be entered staying all discovery apart from possible production of documents.  With

respect to whether any discovery should proceed, the Government has no position except that should

the Court allow limited discovery to proceed, the Order should prohibit disclosure to the United

of material produced.

       The current situation arose when the Government was asked by Mitsubishi to join in a stay of

discovery in the civil action.  The Government declined to join in Mitsubishi's motion, but stated

as we had done in the course of the grand jury investigation, the Government would file a motion to

depositions and interrogatories on substantive matters.  Counsel for Mitsubishi did show the

Government its brief before it was filed.  The confusion seems to be over the following statements:

       24.     I have spoken with Robert E. Connolly, Chief of the Philadelphia office of the
               Antitrust Division of the Department of Justice, and he advised me that the



                Government will oppose any effort to take the depositions of cooperating
                witnesses.