MEXICO CRITICIZES COVERT U.S. STING

WASHINGTON (AP) Mexico told the United States on Tuesday that cooperation
in the war on drugs was "severely strained" by a covert U.S. money
laundering sting last spring and that more is needed to repair the damage.

Mexico's attorney general, Jorge Madrazo, used the opening of the sixth
annual meeting of U.S. and Mexican drug-control officials to say his
country intends to again raise the "events, circumstances, presumptions,
indefinitions or insufficiencies" that led to the undercover operation.

He said the operation "severely strained our cooperation" and gave heart to
those inside Mexico who would prefer confrontation over cooperation with
the United States. If unaddressed, the problem "could jeopardize our
respectful bilateral cooperation" in the war on drugs.

But Madrazo acknowledged efforts have been made to prevent the situation
from happening again. He cited a recent meeting between U.S. and Mexican
investigators that showed they could operate jointly "without suspicions or
strains."

Attorney General Janet Reno, U.S. drug czar Barry McCaffrey and other
federal officials repeatedly stressed respect for Mexico's sovereignty and
the need for cooperation to stem the tide of drugs along U.S. borders.

"It is clear to us that we must deal with Mexico with the same commitment
to their sovereignty as we would (extend) to Canada or France," McCaffrey
told reporters.

Drug cooperation between the United States and Mexico often has been marked
by hostility and suspicion. Many U.S. officials see Mexican law enforcement
agencies as corrupt. For its part, Mexico views the United States as
hypocrites when it criticizes Mexican anti-drug efforts while continuing
its role as the world's largest drug-consuming nation.

Shortly after the sting operation was disclosed last May, President Clinton
told Mexican President Ernesto Zedillo that the United States never should
have kept Mexican authorities in the dark.

Mexico lodged a formal complaint with the U.S. government over how the
three-year investigation was run. Operation Casablanca resulted in 160
indictments, including of at least two dozen Mexican bankers. Many of them
were lured to the United States, where they were arrested.

At the anti-drug meeting's opening session, Rosario Green, Mexico's
secretary of foreign relations, said the willingness of the Mexican
government to cooperate in combating drug traffic is unwavering.

"However, President Zedillo has very clearly stated that international
cooperation regarding this matter must be based on the respect for our
legal framework as well as for our sovereignty," Green said.

Attorney General Janet Reno said she is confident the two countries will
resolve their problems.

"Whatever differences exist between our systems should not be viewed as
stumbling blocks to cooperation, ... they should be viewed as building
blocks," she said.

Checked-by: Mike Gogulski