AS DRUG VIOLENCE RISES, NUEVO LAREDO DECLINES

Mexico's failure to clamp down on the drug wars in Nuevo Laredo is
taking a growing toll on the border city's economy.

The Express-News reported this week that many businesses have closed
in Nuevo Laredo, and some are moving across the border to the relative
security of Laredo.

"The evidence is everywhere -- in boarded up office spaces and 'For
Rent' signs on the doors of once-popular night clubs such as Senor
Frogs," reported Mariano Castillo of the Express-News Border Bureau.

At least 40 Nuevo Laredo firms have closed, according to Nuevo Laredo
Chamber of Commerce officials, and unofficial estimates place the
number in excess of 100, Castillo reported.

The development is truly tragic for the city south of the border. As
Laredo booms, its sister city is withering.

The trend is sending Nuevo Laredo's fortunes reeling backward at a
time when the city should be enjoying the fruits of NAFTA and its
proximity to Texas' red-hot economy.

Nuevo Laredo desperately needs the drug war to end, and federal
officials must not allow the situation to deteriorate any further. The
corrosive effect of narco-violence is indisputable, and if Mexico is
to reach its full economic potential, the drug gangs must be crushed.

A prolonged economic downturn in the border town will exacerbate the
problem. The situation should be a top priority for law enforcement,
and U.S. authorities should provide all the help they can.