MEXICO-U.S. DRUG EFFORTS HURT BY STING, DISTRUST

WASHINGTON - Mexican officials complained Tuesday that an
undercover U.S. sting operation in Mexico and annual evaluations of
Mexican trustworthiness were not helping cooperation in the war on
drug traffickers. At the start of a drug strategy meeting, the
Mexicans also asked for steps to stop confidential information
exchanged by the two governments being leaked to the U.S. and Mexican
press.

Mexican Foreign Affairs Secretary Rosario Green said the efforts of
the two nations to fight the drug war has suffered ''significant setbacks.''

She was referring to Operation Casablanca, in which
U.S.

agents acting behind the Mexican government's back broke a
money-laundering ring involving Mexico's leading banks.

Mexican Attorney General Jorge Madrazo said the ``lack of
communication'' had ``severely strained'' cooperation between the two
countries.

``In our joint efforts, we demand respect and reciprocity,'' Green
told the meeting led by Attorney General Janet Reno and White House
Drug Policy director, Gen. Barry McCaffrey.

Mexico saw the three-year sting operation as a violation of its
national sovereignty and has mulled over the idea of seeking the
extradition of U.S. Customs agents who operated in Mexico without the
government's authorization.

Such an extradition request would likely lead to Washington
blacklisting Mexico in its annual evaluation of the anti-drug efforts
of countries that are major sources of narcotics.

Earlier this month, the Clinton administration listed Mexico among 27
nations, plus Hong Kong, that it considers major drug-producing or
drug-transit countries. It must report to Congress on these countries
anti-drug records by March 1.

U.S. officials believe that two-thirds of the South American cocaine
consumed in the United States come through Mexico, along with
marijuana and methamphetamines.

Mexico has never been blacklisted by Washington despite widespread
corruption among its police and the critical eye of U.S. politicians,
who fault Mexico for not doing enough to stop drugs flowing across a
shared 2,000-mile (3,000-km) border.

The Mexican government rejects the U.S. evaluation as a ''unilateral''
measure that only creates distrust and overlooks the U.S. role in
driving the drug trade as the world's largest consumer for narcotics.

``Bilateral cooperation cannot be hostage of unilateral judgements
that undermine what we have achieved and hinder our capability to
continue to progress toward common objectives,'' Green said.

Drug czar McCaffrey said the number of Americans using illegal drugs
has fallen by 50 percent to 13 million, though only 4 million are
addicts. However, Americans continue to spend $57 billion a year on
narcotics, he said. And, while the number of people taking cocaine has
dropped by 70 percent, the tonnage of cocaine consumed in the United
States has not.

Madrazo complained that press leaks had hurt investigations into drug
trafficking in Mexico and said both the United States and Mexico
should take steps to prevent sensitive information being leaked.

Major U.S. newspapers regularly publish allegations of corruption in
Mexico based on information provided by unnamed U.S. government sources.

In February 1997, the New York Times quoted U.S. officials saying that
the then governors of the states of Sonora and Morelos had taken
bribes to protect traffickers.

Madrazo's office last week denied it was investigating the two former
governors for alleged money laundering.

Sunday, the Washington Post, citing U.S. and Mexican officials, said
Quintana Roo, on the Yucatan peninsula and home to the Caribbean
resort Cancun, had become Mexico's principal ''narco-state.''

The newspaper reported that a Mexican army lieutenant who was trained
by the Central Intelligence Agency was kidnapped and tortured in June
for investigating links between the state governor Mario Villanueva
and the drug trade.

Madrazo said Mexican police were attacking the surge in trafficking
and laundering in Yucatan and seized three luxury hotels and other
properties there worth over $200 million.

U.S. politicians are looking at drug trade expansion in Yucatan with
concern and it could hurt Mexico's evaluation.

``The situation in Cancun is weighing heavily on people's minds,''
said a staffer for a Californian senator.

Checked-by: derek rea