ALBRIGHT: PROSECUTING US AGENTS INVOLVED IN MEXICAN DRUG STING

WASHINGTON (AP) -- Secretary of State Madeleine Albright placed limits
Thursday on U.S. cooperation with a Mexican investigation into whether U.S.
undercover agents on an anti-narcotics sting operation in Mexico violated
that country's laws.

Albright said the United States would cooperate ``as possible'' with the
Mexican probe, but added that Mexican attempts to prosecute or extradite the
agents would be ``counterproductive.''

Albright spoke at a news conference at the conclusion of two days of talks
that involved more than a dozen cabinet officials each from the United
States and Mexico.

The sting operation, codenamed ``Operation Casablanca,'' netted 150 arrests,
some of them Mexican bankers who were lured into the United States under
false pretenses. In addition, $110 million was seized and three Mexican
banks were indicted in the United States.

Initially welcomed by Mexican authorities, the operation touched off an
uproar in Mexico after it was disclosed that U.S. agents carried out the
sting without informing Mexican officials.

Mexican officials have indicated a willingness to prosecute the U.S. agents
and to seek their extradition to face criminal charges.

But Mexican Foreign Secretary Rosario Green, who appeared at the news
conference with Albright, sought to tone down the dispute, noting that the
two countries' justice ministers are working on guidelines to improve
cooperation and communication.

As for Operation Casablanca, she said only, ``The investigation has to be
pursued according to law.''

Her non-confrontational approach contrasted with remarks on Monday by
Mexican President Ernesto Zedillo, who demanded that the United States
respect Mexican sovereignty.

No nation, he said, should feel ``entitled to violate another country's for
the sake of enforcing its own.''

Much like Green, Albright sought to put a positive cast on the overall
relationship, saying she was overwhelmed by the good will demonstrated by
the two sides in grappling with an array of cross border issues during the
two days of discussions.

She said she and Green agreed to install hotlines to permit instant
communication with each other.

Some Republican lawmakers indicated Thursday they are not sympathetic to the
Mexicans' complaints.

At a House Banking Committee hearing, Rep. Spencer Bachus, R-Ala., called
Mexico a ``money-laundering black hole'' and said keeping its officials
uninformed about the sting was necessary to protect U.S. Customs agents.

``Mexico can no longer remain in a state of denial about the complicity of
its financial institutions with the drug trade,'' Bachus said. ``While their
shock is predictable ... it is truly outrageous for the government of Mexico
to threaten to seek extradition of our law enforcement agents.''

Sen. Charles Grassley, R-Iowa, who appeared as witness before the panel,
questioned whether Clinton administration officials have been too apologetic
toward Mexico, specifically citing comments in recent days by Albright and
Gen. Barry McCaffrey, the top White House drug control official.

House Banking Committee Chairman Jim Leach, R-Iowa, said Mexico's
sovereignty concerns are legitimate. But he added that many Americans
``can't understand why sovereignty should be invoked in protest of a
legitimate law enforcement operation that had as its ultimate targets the
narco-traffickers who have wreaked such devastation on communities and
families in both of our countries.''

Checked-by: Melodi Cornett