EXHIBIT  99.2

[E-MAIL  AND  LETTERHEAD  OF  PHILLIP  FLAHERTY]

Gentlemen:

After  extremely careful consideration, consultation, and extensive reflection I
have  come  to  the  decision to resign from all positions and capacities that I
occupy  in  CathayOne, Inc. along with any positions and/or capacities I hold in
any  of  its  subsidiaries  and/or  joint  ventures.  My resignation will become
effective  at  the  start  of  business  in  New  York  on  June  13th,  2001.

As  I  am not a signer on any of the accounts and the by-laws allow for forms of
back  up  to  the  various positions my exodus should prove no imposition on the
company.

It  has been an educational experience, and I wish you all nothing but the best.
Further,  I  look  forward  to  whatever new interactions our mutual futures may
hold.

Though I am currently resigning, should the majority of the shareholders, during
the  annual  meeting,  desire  my  return to the Board I would be honored in the
consideration.

My  very  best  regards  and  wishes  to  you  all.


Phillip  L.  Flaherty