NEW U.S. ENVOY TO MEXICO SAYS DRUGS A SHARED PROBLEM

MEXICO CITY (Reuters) -- Mexico and the United States must accept the
billion-dollar flow of drugs across the border is a bilateral problem and
cannot be blamed on just one country or another, the new U.S. ambassador to
Mexico said.

Career diplomat Jeffrey Davidow, whose appointment was approved in June,
told the English-language Mexico City News in an interview published Sunday
relations were ``multifaceted'' but that trade, immigration and drugs would
top his agenda.

``I think Mexico is perceived as being extraordinarily important to the
United States,'' said Davidow, who is expected to take up his job later
this month after political squabbling in Washington had left the post
vacant for a year.

On drugs, Davidow said: ``What is important is that we see drugs as a
shared problem. I think to a degree this is happening.''

``Both countries have got to assume responsibility. Both countries have got
to cooperate with each other and with other countries, and confront the
problem at all levels.''

Davidow, a former ambassador to Venezuela who speaks Spanish fluently and
is currently assistant secretary of state for Inter-American affairs,
admitted U.S. officials made mistakes in a recent probe against
money-laundering by Mexican banks.

Operation Casablanca, a three-year sting that implicated officials at a
dozen Mexican banks for laundering money for cocaine cartels, provoked fury
among Mexican legislators and charges Washington had infringed Mexican
sovereignty.

``We have said, and I've said personally, that I think Casablanca was
useful in that it caught crooks,'' Davidow said. ''Yet, at the same time, I
think mistakes were made. I believe there could have been better
coordination between the government of the United States, the government of
Mexico.''

The U.S. diplomat said another area to focus on was making the North
American Free Trade Agreement (NAFTA) ``work'' and that he would pay a lot
of attention to Mexican concerns over immigration.

He also stressed the importance of looking after American citizens and
their problems in Mexico.

Included in that were concerns about surging crime in Mexico, which Davidow
described as a major problem.

``There are no easy answers, but it does seem to me that improving the
efficiency of police forces, improving the efficiency of judicial systems
so that when criminals are detained they are quickly judged, prosecuted and
sentenced (would bring results),'' he said.

On the issue of the 4-1/2 year conflict with Zapatista Indian rebels in the
troubled state of Chiapas, the new U.S. envoy said Washington did not
pressure Mexico.

``We believe that the problem in Chiapas is one that has to be resolved
through peaceful means. We believe that the government of Mexico is making
a serious effort to find a peaceful resolution,'' he said.

As well as being the United States' second largest trading partner after
Canada, Mexico is also considered a key diplomatic post because it is on
the front lines of the U.S. fight against illegal drugs and immigration.

Drug experts say around 70 percent of the cocaine sold in the United States
passes through Mexico.

Checked-by: Mike Gogulski