DRUGS ARE THE LEAD TOPIC FOR MEXICO-U.S. TALKS

MEXICO CITY - Drugs - both Mexico's trafficking and government-corruption
problems and Americans' consumption of the illegal substances - are
expected to dominate talks Friday between Mexican officials and a team of
top Clinton administration policy makers led by Secretary of State
Madeleine Albright. Mexico's disdain for the get-tough policies of the U.S.
Border Patrol also are on the agenda, along with trade issues.

Mexican officials are predicting that new drug-war accords stemming from
this week's meetings will pave the way for joint economic-development plans
for the border region. A stronger economy along the border, they hope,
would diminish the tide of undocumented Mexican immigrants, a significant
point of discord between the nations.

The Mexican officials expect the meetings to be tranquil - especially
because of the recent resignation of U.S. Drug Enforcement Administration
director Tom Constantine, who was openly critical of Mexico's fight against
organized crime.

As DEA director, Constantine regularly complained to the U.S. Congress
about Mexico's lack of progress against drug cartels. With drug
confiscations down and Mexican drug gangs spreading their influence in U.S.
cities such as Los Angeles, Chicago and New York, Constantine reflected the
street-level DEA agents' concerns about Mexico.

Constantine resigned last week, saying he had been DEA chief long enough.

Mexico Not Crying

"We were happy to see him go," said a Zedillo administration official, who
spoke on condition of anonymity. Constantine "was never on the same page
with others in Washington, and it got in the way of our cooperation on this
issue."

Enough disagreement over drugs remains to keep observers girding for
sparks. One flash point could be U.S. worries about sluggish investigations
of drug-related corruption among high-ranking Mexican officials.

That concern is bound to be aired as U.S. drug czar Barry McCaffrey meets
with Mexican drug officials. Officially, the only drug issue that is
scheduled for discussion is a proposal for cooperative operations, with
police teams beefing up law enforcement at the border.

Albright's participation in the annual U.S.-Mexican Cabinet-level meeting
of the so-called Binational Commission is seen as reflecting the new
priority the Clinton administration is placing on Latin American relations.
She will meet with her counterpart here, Rosario Green.

'No Mexican Vacation'

"With all that's happening in the Balkans, she had a good excuse for not
making this trip," said Charles Gillespie, Latin America analyst for the
International Policy Forum in Washington. "Instead, she is preparing well
and plans to work in Mexico City. That this is no Mexican vacation is a
sign of how important relations are between the two countries."

The U.S. delegation is to include four other Cabinet secretaries: Bruce
Babbitt of Interior; William Daley of Commerce; Rodney Strong of
Transportation; and Andrew Cuomo of Housing and Urban Development.

Mexican officials have denounced the Border Patrol's recent campaign to
"squeeze" illegal immigrants away from urban crossing points in Texas and
California, which has resulted in more undocumented immigrants' trying to
get to the United States through the vast deserts in between.

However, U.S. officials don't seem ready to end the crackdown. Going into
Friday's talks, there are calls by U.S. lawmakers for assigning hundreds of
new agents to the border.

The absence of major controversy has officials in both countries praying
the talks will be uneventful.

However, said the Zedillo administration official, "History tells us
anything can happen in U.S.-Mexico relations."

What Happened Last Year

Last year's meetings were overshadowed by the arrest of dozens of Mexican
bank executives in the sweeping "Casablanca" drug money-laundering
investigation. Mexico accused U.S. drug agents of violating international
law by conducting the sting operation without its permission or
cooperation. U.S. Customs Service officials in Mexico City were threatened
with expulsion, but Mexican officials calmed down after the Clinton
administration pledged to improve cooperation on drug operations.