MEXICO DRUG EFFORTS HAILED

U.S. DELEGATION NOTES IMPROVED COOPERATION

President Clinton offered a strong hint Monday that he will certify Mexico
as a reliable ally in the difficult struggle against drugs, saying
cooperation "has clearly improved" under President Ernesto Zedillo.

Despite Mexico's disappointing record on extraditions and a drop last year
in cocaine and heroin seizures, Clinton found positive things to say about
Mexico's efforts. He welcomed a plan announced two weeks ago to invest up
to $500 million in a new anti-drug initiative and declared, "The United
States is ready to do all we can to support you."

Clinton also went to work rebuilding his tarnished presidency Monday,
saying "everything will be fine" if Republicans and Democrats put aside
bitter differences and work on the nation's business.

And he fueled speculation that his wife, Hillary Rodham Clinton, might run
for a U.S. Senate seat from New York.

"She would be terrific," Clinton said.

By law, the president has to judge Mexico's performance on drugs by March
1. Mexico would be hit with economic penalties if Clinton gave it a failing
grade.

Clinton and Zedillo conferred at a hacienda in the middle of Merida's Mayan
archeological zone and then addressed 1,400 people in the domed Peon
Contreras Theater in downtown Merida. Hundreds of people lined the narrow,
tree-shaded street leading to the theater.

Secretary of State Madeleine Albright, Attorney General Janet Reno,
Transportation Secretary Rodney Slater, drug policy coordinator Barry
McCaffrey and Export-Import Bank chief James Harmon signed a series of
agreements with their Mexican counterparts.

The key initiative was a two-year, $4 billion line of Ex-Im credit for
Mexican businesses that "buy American."

In addition, a civil aviation accord will liberalize flights between the
United States and Mexico, estimated to be worth hundreds of millions of
dollars to airlines.

Another accord was aimed at promoting border safety and human rights,
addressing Mexican complaints about the deaths of illegal immigrants.

Reno said she was impressed with Mexico's anti-drug commitment,
"recognizing that it can't happen overnight but that sometimes there are
more frustrations than there are victories . . . I think they can succeed,
given time."

Similarly, McCaffrey said "it's a much changed atmosphere" from four years
ago when the United States was highly critical of Mexico's efforts.

"This is a new world we're dealing with, in my view," he said.

Clinton won applause when he noted that Mexico is the largest Spanish-
speaking country in the world and added, "Before long, the United States
will be the second largest Spanish-speaking country in the world."

Clinton said that he and Zedillo "made progress in areas today where, to be
charitable, we have not always agreed. Not long ago, we could not have had
a conversation about drugs without falling into an unwinnable argument
about who is to blame. That has changed."

"The American people recognize we must reduce our demand for drugs," the
president said. "The Mexican people recognize that ending the drug trade is
a national security and public health imperative for you."

Three days after his impeachment trial concluded with a solid acquittal,
Clinton signaled his interest in moving on. It was clear he wanted to take
some questions from reporters to begin clearing the air after months of
tension, and White House officials expressed satisfaction afterward.

"This is a time for reconciliation and renewal," Clinton said, repeating
the hope he expressed after the Senate's vote Friday.