CLINTON HINTS AT MEXICO ALLY STATUS

MERIDA, Mexico (AP) 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."

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 with manicured gardens 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.

The president's trip was his first outing since his acquittal Friday
in the Senate's impeachment trial. Repeating his wish after the
verdict, Clinton said, "I think this is a time for reconciliation and
renewal. I think what we have to do is to serve the American people.
And if we keep that in mind I think everything will be fine."

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 change 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.

"All in all," McCaffrey added, "we think we are on track in the coming
two years to turn over a drug cooperation enterprise that is
significantly better than the one we found."

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."

In turn, Zedillo called Clinton and his wife, Hillary, "dearest
friends," and displayed a touch of nationalist pride when he said:
"For Mexicans, the commitment to fight drugs is first and foremost a
commitment to ourselves, to our children ... to our safety and to our
future."

The Mexican president said his people were "convinced and determined
to keep up the fight against drugs until we win."

Another Mexican priority, Zedillo said, is "a safe, clean and
productive border a source of pride for the communities that share
that border."