The Nikkei 225 Index. The Nikkei 225 Index is described under the heading “Underlying Indices and Underlying Index Publishers Information—Nikkei 225 Index” in the prospectus supplement for PLUS.

License Agreement between Nikkei and Morgan Stanley. “Nikkei 225^®Index” is a trademark of Nihon Keizai Shimbun, Inc. and has been licensed for use by Morgan Stanley. See “Underlying Indices and Underlying Index Publishers Information—Nikkei 225 Index—License Agreement between Nikkei and Morgan Stanley” in the prospectus supplement for PLUS.

The following table sets forth the published high and low index closing values, as well as end-of-quarter index closing values, of the NKY Index for each quarter in the period from January 1, 2001 through November 20, 2006. The index closing value on November 20, 2006 was 15,725.94. We obtained the information in the table below from Bloomberg Financial Markets, without independent verification. The historical values of the NKY Index should not be taken as an indication of future performance, and no assurance can be given as to the level of the NKY Index on the Index Valuation Date. The payment of dividends on the stocks that comprise the NKY Index are not reflected in the level of the index and, therefore, have no effect on the calculation of the payment at maturity.

NKY Index	High	Low	Period End

2001
First Quarter	14,032.42	11,819.70	12,999.70
Second Quarter	14,529.41	12,574.26	12,969.05
Third Quarter	12,817.41	9,504.41	9,774.68
Fourth Quarter	11,064.30	9,924.23	10,542.62
2002
First Quarter	11,919.30	9,420.85	11,024.94
Second Quarter	11,979.85	10,074.56	10,621.84
Third Quarter	10,960.25	9,075.09	9,383.29
Fourth Quarter	9,215.56	8,303.39	8,578.95
2003
First Quarter	8,790.92	7,862.43	7,972.71
Second Quarter	9,137.14	7,607.88	9,083.11
Third Quarter	11,033.32	9,265.56	10,219.05
Fourth Quarter	11,161.71	9,614.60	10,676.64
2004
First Quarter	11,770.65	10,365.40	11,715.39
Second Quarter	12,163.89	10,505.05	11,858.87
Third Quarter	11,896.01	10,687.81	10,823.57
Fourth Quarter	11,488.76	10,659.15	11,488.76
2005
First Quarter	11,966.69	11,238.37	11,668.95
Second Quarter	11,874.75	10,825.39	11,584.01
Third Quarter	13,617.24	11,565.99	13,574.30
Fourth Quarter	16,344.20	13,106.18	16,111.43
2006
First Quarter	17,059.66	15,341.18	17,059.66
Second Quarter	17,563.37	14,218.60	15,505.18
Third Quarter	16,385.96	14,437.24	16,127.58
Fourth Quarter (through
November 20, 2006)	16,811.60	15,725.94	15,725.94

Issuer:	Morgan Stanley
Underlying Index:	Nikkei 225^®Index (the “NKY Index”)
Issue Price:	$10 per PLUS The PLUS will be issued at $10 per PLUS and the agent’s commissions will be $0.15 per PLUS; provided that the price to public and the agent's commissions for any single transaction to purchase between $1,000,000 to $2,999,999 principal amount of PLUS will be $9.975 per PLUS and $0.125 per PLUS, respectively; for any single transaction to purchase between $3,000,000 to $4,999,999 principal amount of PLUS will be $9.9625 per PLUS and $0.1125 per PLUS, respectively; and for any single transaction to purchase $5,000,000 or more principal amount of PLUS will be $9.95 per PLUS and $0.10 per PLUS, respectively. Selling concessions allowed to dealers in connection with the offering may be reclaimed by the agent, if, within 30 days of the offering, the agent repurchases the PLUS distributed by such dealers.
Stated Principal Amount:	$10 per PLUS
Interest:	None
Payment at Maturity:	If Final Index Value < = Initial Index Value $10 x (Final Index Value / Initial Index Value) If Final Index Value > Initial Index Value $10 + Leveraged Upside Payment *In no event will the Payment at Maturity exceed the Maximum Payment at Maturity*
Leveraged Upside Payment:	$10 x 200% x Index Percent Increase
Maximum Payment at Maturity:	$11.90 to $12.10 (119% to 121% of the Stated Principal Amount)
Initial Index Value:	The closing NKY Index value on the Index Business Day immediately following the Pricing Date
Index Valuation Date:	January 17, 2008
Final Index Value:	The closing NKY Index value on the index valuation date, subject to adjustment for certain market disruption events
Bloomberg Page:	NKY
Index Percent Increase:	(Final Index Value – Initial Index Value) / Initial Index Value
Risk Factors:	Please see “Risk Factors” on page 8

Listing:	Application will be made to list the PLUS on the American Stock Exchange under the ticker symbol “NIN”, subject to meeting the listing requirements. We do not expect to announce whether the PLUS will meet such requirements prior to the pricing of the PLUS. If accepted for listing, the PLUS will begin trading the day after the Pricing Date.
CUSIP:	61748A197
Minimum Ticketing Size:	100 PLUS
Tax Consideration:	Although the Issuer believes the PLUS should be treated as a single financial contract that is an “open transaction” for U.S. federal income tax purposes, there is uncertainty regarding the U.S. federal income tax

	consequences of an investment in the PLUS. Assuming this characterization of the PLUS is respected, the following U.S. federal income tax consequences would result: A U.S. Holder would not be required to recognize taxable income over the term of the PLUS prior to maturity, other than pursuant to a sale or exchange; and Upon sale, exchange or settlement of the PLUS at maturity, a U.S. Holder would generally recognize capital gain or loss equal to the difference between the amount realized and the U.S. Holder’s tax basis in the PLUS. Such gain or loss would generally be long-term capital gain or loss if the investor has held the PLUS for more than one year. Please read the discussion under “Risk Factors — Structure Specific Risk Factors” in these preliminary terms and the discussion under “United States Federal Taxation” in the accompanying prospectus supplement for PLUS concerning the U.S. federal income tax consequences of investing in the PLUS. The Issuer does not render any advice on tax matters. This material is not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under the U.S. federal tax laws. You are urged to consult your own tax advisors regarding all aspects of the U.S. federal tax consequences of investing in the PLUS, as well as any tax consequences arising under the laws of any state, local or foreign taxing jurisdiction.
Trustee:	The Bank of New York (as successor Trustee to JPMorgan Chase Bank, N.A.)
Calculation Agent:	Morgan Stanley & Co. Incorporated
Contact:	You may contact your local Morgan Stanley branch office or our principal executive offices at 1585 Broadway, New York, New York, 10036 (telephone number (866) 477-4776 / (914) 225-7000)

Key Benefits		Key Investment Rationale

•	200% participation in the upside performance of the NKY Index, subject to the Maximum Payment at Maturity.	You may be interested in the PLUS if you are:
		•	An investor who, consistent with your investment objectives, elects to purchase a security that provides enhanced upside index participation to the NKY Index, subject to the Maximum Payment at Maturity.
		•	Willing to forgo upside in the NKY Index above approximately 119% to 121% in exchange for leveraged upside exposure.
		•	Not concerned about principal risk.
		•	Not seeking current income.
Key Risks

•	No guaranteed return of principal.	*Please carefully review all the “Risk Factors” on page 8*
•	No interest payments
•	Appreciation potential is limited by the Maximum Payment at Maturity.
•	Secondary trading may be limited, and the inclusion of commissions and projected profit from hedging in the original issue price is likely to adversely affect secondary market prices.
•	The market price of the PLUS will be influenced by many unpredictable factors, including the value, volatility and dividend yield of the NKY Index.
•	The U.S. federal income tax consequences of an investment in the PLUS are uncertain.
•	Credit Risk to Morgan Stanley whose credit rating is currently Aa3/A+.

•	Stated Principal Amount:	$10
•	Initial Index Value:	15,725
•	Leverage Factor:	200%
•	Maximum Payment at Maturity:	$12 (120% of the Stated Principal Amount)

•	PLUS do not pay interest or guarantee return of principal. The terms of the PLUS differ from those of ordinary debt securities in that the PLUS do not pay interest or guarantee payment of the principal amount at maturity. If the Final Index Value is less than the Initial Index Value, the payout at maturity will be an amount in cash that is less than the $10 Stated Principal Amount of each PLUS by an amount proportionate to the decrease in the value of the NKY Index.

•	Appreciation potential is limited. The appreciation potential of PLUS is limited by the Maximum Payment at Maturity of $11.90 to $12.10, or 119% to 121% of the Stated Principal Amount. Although the leverage factor provides 200% exposure to any increase in the value of the NKY Index at maturity, because the payment at maturity will be limited to 119% to 121% of the Stated Principal Amount for the PLUS, the percentage exposure provided by the leverage factor is progressively reduced as the Final Index Value exceeds approximately 109.50% to 110.5% of the Initial Index Value.

•	Market price influenced by many unpredictable factors. Several factors will influence the value of the PLUS in the secondary market and the price at which MS & Co. may be willing to purchase or sell the PLUS in the secondary market, including: the value, volatility and dividend yield of the NKY Index, interest and yield rates, time remaining to maturity, geopolitical conditions and economic, financial, political and regulatory or judicial events and creditworthiness of the Issuer.

•	Not equivalent to investing in the NKY Index. Investing in the PLUS is not equivalent to investing in the NKY Index or its component stocks. Investors in the PLUS will not have voting rights or rights to receive dividends or other distributions or any other rights with respect to stocks that comprise the NKY Index.

•	Adjustments to the NKY Index could adversely affect the value of the PLUS. The publisher of the NKY Index may discontinue or suspend calculation or publication of the NKY Index at any time. In these circumstances, the Calculation Agent, will have the sole discretion to substitute a successor index that is comparable to the discontinued NKY Index and is not precluded from considering indices that are calculated and published by the Calculation Agent or any of its affiliates.

•	The inclusion of commissions and projected profit from hedging in the original issue price is likely to adversely affect secondary market prices. Assuming no change in market conditions or any other relevant factors, the price, if any, at which MS & Co. is willing to purchase PLUS in secondary market transactions will likely be lower than the original Issue Price, since the original Issue Price included, and secondary market prices are likely to exclude, commissions paid with respect to the PLUS, as well as the projected profit included in the cost of hedging the Issuer’s obligations under the PLUS. In addition, any such prices may differ from values determined by pricing models used by MS & Co., as a result of dealerdiscounts, mark-ups or other transaction costs.

•	The U.S. federal income tax consequences of an investment in the PLUS are uncertain. Please read the discussion under “Fact Sheet — General Information — Tax Consideration” in these preliminary terms and the discussion under “United States Federal Taxation” in the accompanying prospectus supplement for PLUS (together the “Tax Disclosure Sections”) concerning the U.S. federal income tax consequences of investing in the PLUS. If the Internal Revenue Service (the “IRS”) were successful in asserting an alternative characterization for the PLUS, the timing and character of income on the PLUS might differ from the tax treatment described in the Tax Disclosure Sections. For example, under certain characterization, U.S. Holders could be required to accrue original issue discount on the PLUS every year at a “comparable yield” determined at the time of issuance and recognize all income and gain in respect of the PLUS as ordinary income. The Issuer does not plan to request a ruling from the IRS regarding the tax treatment of the PLUS, and the IRS or a court may not agree with the tax treatment described in these preliminary terms and the prospectus supplement for PLUS.

•	Potential adverse economic interest of the calculation agent. The hedging or trading activities of the Issuer’s affiliates on or prior to the Pricing Date and prior to maturity could adversely affect the value of the NKY Index and, as a result, could decrease the amount an investor may receive on the PLUS at maturity. Any of these hedging or trading activities on or prior to the Pricing Date could potentially affect the Initial Index Value and, therefore, could increase the value at which the NKY Index must close before an investor receives a payment at maturity that exceeds the principal amount of the PLUS. Additionally, such hedging or trading activities during the term of the PLUS, including on the Index Valuation Date, could potentially affect the value of the NKY Index prior to maturity and, accordingly, the amount of cash an investor will receive at maturity.


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