The SX5E Index was created by STOXX Limited, a joint venture between Deutsche Boerse AG, Dow Jones & Company and SWX Swiss Exchange and was first published on February 26, 1998. The SX5E Index contains 50 component stocks of market sector leaders from within the Dow Jones STOXX 600 Supersector Indices, which includes stocks selected from the Eurozone. The SX5E Index contains stocks that have a high degree of liquidity and represent the largest companies across all market sectors defined by the Dow Jones Global Classification Standard. The SX5E Index is quoted in U.S. dollars. For further information about the SX5E Index, you may read the section called “Underlying Indices and Underlying Index Publishers Information— The Dow Jones Euro STOXX 50 Index” 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 SX5E Index for each quarter in the period from January 1, 2001 through August 25, 2006. The index closing value on August 25, 2006 was 3,781.17. We obtained the information in the table below from Bloomberg Financial Markets, without independent verification. The historical values of the SX5E Index should not be taken as an indication of future performance, and no assurance can be given as to the level of the SX5E Index on the Index Valuation Date. The payment of dividends on the stocks that comprise the SX5E Index are not reflected in the level of the index and, therefore, have no effect on the calculation of the payment at maturity.

SX5E Index	High	Low	Period End

2001
First Quarter	4,787.45	3,891.49	4,185.00
Second Quarter	4,582.07	4,039.16	4,243.91
Third Quarter	4,304.44	2,877.68	3,296.66
Fourth Quarter	3,828.76	3,208.31	3,806.13
2002
First Quarter	3,833.09	3,430.18	3,784.05
Second Quarter	3,748.44	2,928.72	3,133.39
Third Quarter	3,165.47	2,187.22	2,204.39
Fourth Quarter	2,669.89	2,150.27	2,386.41
2003
First Quarter	2,529.86	1,849.64	2,036.86
Second Quarter	2,527.44	2,067.23	2,419.51
Third Quarter	2,641.55	2,366.86	2,395.87
Fourth Quarter	2,760.66	2,434.63	2,760.66
2004
First Quarter	2,959.71	2,702.05	2,787.49
Second Quarter	2,905.88	2,659.85	2,811.08
Third Quarter	2,806.62	2,580.04	2,726.30
Fourth Quarter	2,955.11	2,734.37	2,951.24
2005
First Quarter	3,114.54	2,924.01	3,055.73
Second Quarter	3,190.80	2,930.10	3,181.54
Third Quarter	3,429.42	3,170.06	3,428.51
Fourth Quarter	3,616.33	3,241.14	3,578.93
2006
First Quarter	3,874.61	3,532.68	3,853.74
Second Quarter	3,890.94	3,408.02	3,648.92
Third Quarter (through
August 25, 2006)	3,800.10	3,492.11	3,781.17

License Agreement. “Dow Jones EURO STOXX^SM” and “STOXX^SM” are service marks of STOXX Limited. These service marks have been licensed for use by Morgan Stanley. The PLUS are not sponsored, endorsed, sold or promoted by STOXX Limited, and STOXX Limited makes no representation regarding the advisability of investing in the PLUS.



	*Preliminary Terms No. 98*
	*Registration Statement No. 333-131266*
	*Dated August 28, 2006*
	*Rule 433*

Issuer:		Morgan Stanley
Underlying Index:		Dow Jones EURO STOXX 50 Index (the “SX5E Index”)
Issue Price (Par):		$10
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 300% x Index Percent Increase
Maximum Payment at Maturity:		$11.70 to $11.90 (117% to 119% of the Issue Price)
Initial Index Value:		The closing SX5E Index value on the Pricing Date
Index Valuation Date		October 18, 2007
Final Index Value:		The closing SX5E Index value on the Index Valuation Date, subject to adjustment for certain market disruption events
Bloomberg Page:		SX5E
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 “EJS”, 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:		61747S652
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. 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:		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

•	300% participation in the upside performance the SX5E 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 SX5E Index, subject to the Maximum Payment at Maturity.
		•	Willing to forgo upside in the SX5E Index above approximately 117% to 119% 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 inclusions 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 SX5E 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+.



	PLUS due October 20, 2007
	Mandatorily Exchangeable based on the Value of
	the Dow Jones EURO STOXX 50 Index

•	Issue Price:	$10
•	Initial Index Value:	3,800
•	Leverage Factor:	300%
•	Maximum Payment at Maturity:	$11.80 (118% of the Issue Price)

•	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 issue price of each PLUS by an amount proportionate to the decrease in the value of the SX5E Index.

•	Appreciation potential is limited. The appreciation potential of PLUS is limited by the Maximum Payment at Maturity of $11.70 to $11.90, or 117% to 119% of the Issue Price. Although the leverage factor provides 300% exposure to any increase in the value of the SX5E Index at maturity, because the payment at maturity will be limited to 117% to 119% of the Issue Price for the PLUS, the percentage exposure provided by the leverage factor is progressively reduced as the Final Index Value exceeds approximately 105.66% to 106.33% 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 SX5E 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 SX5E Index. Investing in the PLUS is not equivalent to investing in the SX5E 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 SX5E Index.

•	Adjustments to the SX5E Index could adversely affect the value of the PLUS. The publisher of the SX5E Index may discontinue or suspend calculation or publication of the SX5E 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 SX5E 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 dealer discounts, 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.

	secondary market or if such market will be liquid or illiquid. We do not expect to announce whether the PLUS will meet such requirements prior to the pricing of the PLUS.

•	No affiliation with STOXX Limited. STOXX Limited is not an affiliate of the Issuer, is not involved with this offering in any way, and has no obligation to consider the interests of investors in making adjustments to the SX5E Index that might affect the value of the PLUS. The Issuer has not made any due diligence inquiry with respect to STOXX Limited or the stocks that underlie the SX5E Index.

•	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 SX5E 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 SX5E 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 SX5E Index prior to maturity and, accordingly, the amount of cash an Investor will receive at maturity.


	MORGAN STANLEY


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