U.S., MEXICO IN TALKS TO BOLSTER DRUG FIGHT

Amid Plans to Increase Levels of American Aid and Intelligence,
Calderon Tries to Balance the Need for Security and Preservation of
His Nation's Sovereignty.

Mexico and the Bush administration are negotiating plans to greatly
increase levels of U.S. aid and intelligence sharing on narcotics
trafficking, presenting President Felipe Calderon with a politically
challenging balancing act as his nation tries to stem runaway drug
violence and assuage fears of a greater U.S. role in Mexican affairs.

If approved by Congress, the reported aid package to Mexico would be
well below the $5 billion Washington has spent fighting the cocaine
industry in Colombia over the last seven years. But politically, such
an agreement could mark a turning point in U.S.-Mexico relations,
which for decades have been marked by mutual suspicion despite closer
trade ties.

Already, Mexico is installing a surveillance system, funded by the
U.S. State Department, to enable eavesdropping on e-mails and cellphone calls.

Further details of the new aid have been kept secret, but officials
said Wednesday that proposals totaled hundreds of millions of dollars
and included more surveillance, a national radar system, as well as
communications systems, aircraft and training.

"We're talking about technology, training and equipment," said U.S.
Rep. Henry Cuellar (D-Texas). "The Mexicans want surveillance
equipment for wiretapping and that sort of assistance. And beyond
that, radar for better aircraft surveillance."

Cuellar said the White House should release details of the proposal
so that he and other foreign aid supporters could lobby congressional
colleagues. Mexico, he said, receives less than $69 million a year in
U.S. foreign assistance.

"We finally have a Mexican president who's willing to take brave
steps," Cuellar said. "But if we lose that opportunity, the window will close."

An aide to Sen. Patrick J. Leahy (D-Vt.), chairman of the
subcommittee controlling foreign aid expenditures, complained that
his office had heard nothing from the White House about a deal.

"Sen. Leahy believes that in Iraq and beyond, this administration is
accustomed to writing checks for hundreds of millions of dollars and
expecting Congress to cash them without consultation or question,"
aide David Carle said.

During a U.S. State Department briefing Tuesday, spokesman Sean
McCormack would not elaborate on the aid package but confirmed
negotiations between the countries were continuing.

"President Calderon has taken a brave and firm stance in fighting
these drug cartels," he said, "and we want to talk to them about how
we can support that."

Calderon has repeatedly called for more help from the U.S., the top
consumer in the cocaine, marijuana and methamphetamine commerce that
has led to increased violence in several Mexican states. The number
of drug-related homicides has surpassed 1,500 so far this year, well
ahead of last year's pace.

During a March meeting with President Bush, Calderon talked tough
about the U.S. role in Mexico's drug violence, comments that made
national headlines and drew favorable commentary.

"We're not asking the U.S. for charity, we're asking them to assume
co-responsibility of the situation," Calderon said later during a
European tour. "The U.S. government must do more to reduce
consumption and to halt gun trafficking to Mexico."

But the details of such help will probably leave Mexicans wary.

"Mexicans are very sensitive to anything associated with military
assistance or any type of U.S. technical assistance that would be
perceived as an infringement of Mexican sovereignty," said Armand
Peschard-Sverdrup, a Mexico expert with the Washington-based Center
for Strategic and International Studies.

"The Calderon administration, being a minority government with a
healthy and vocal opposition, needs to be that much more careful that
any type of cooperation pass the political smell test," he added.
"Calderon doesn't want to be seen as handing over the keys to the house."

The political smell test will include tough questions about
conditions placed on the aid and how much room Mexico would give U.S.
authorities to operate within its borders and be privy to
surveillance information. Sovereignty for Mexicans has traditionally
meant keeping the United States at arm's length.

Agents of the U.S. Drug Enforcement Administration working in Mexico,
for example, are forbidden to conduct independent operations, make
arrests or carry weapons. Any U.S. military presence in Mexico would
draw national protests.

Riding a wave of national popularity for taking on drug traffickers,
Calderon had hoped to complete negotiations with Washington before
word leaked out, said Calderon administration sources. The Mexican
newspaper El Universal quoted from a Washington Post article on the
aid negotiations Wednesday, and several other U.S. media have written
about the proposal.

None of the aides would speak for attribution, fearing any report
would hamper negotiations and alienate Mexican senators who have to
approve broad international agreements.

Calderon is simultaneously trying to rally support for a fiscal
reform package that will require support from other political
parties, some of which look askance at any U.S. involvement in
Mexico's internal affairs.

Calderon has shown a willingness to cooperate since taking office in
December. After winning a close and disputed election, he almost
immediately declared war on drug gangs responsible for thousands of killings.

In January, Mexico sent several high-profile drug suspects to stand
trial in the United States.

Both nations could benefit from closer cooperation, analysts said.
For the U.S., expansion of its intelligence reach into Mexico would
aid in the Bush administration's declared war on terrorism by
allowing better watch over its porous southern border. Mexico
benefits from advanced technology and the training to use it against
well-financed Mexican drug organizations, which smuggle an estimated
90% of the cocaine sold in the United States.

The U.S. Department of Energy this year promised Mexico radiation
detection systems to monitor shipping containers for weapons of mass
destruction at four seaports, part of a bilateral agreement that
includes information sharing between the countries. A new strategic
pact between the countries' customs agencies will be announced
Monday. But even with growing U.S. help, and the Mexican army on
patrol in nine states, Calderon's battle with drug smugglers has seen
few victories.

To gain popular approval for any new foreign aid agreement, analysts
said, Calderon must win White House acknowledgment of the role
Americans play in Mexico's troubles: buying drugs and selling weapons.

One sign of goodwill was a June visit to Mexico City organized by the
U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives The four ATF
bosses responsible for the border states met with Mexican federal
agents about expanding joint efforts in tracking weapons.

"Supposedly 90% of the guns here are from the United States," said
John A. Torres, head of the Los Angeles office and one of the
visitors. "ATF is already helping the Mexicans, but we want it to
grow. We're trying to develop more trust."

Still unclear is how much information and technology U.S. authorities
are willing to pass on to Mexico, where corruption has compromised
drug operations.

Mexico is already shouldering more responsibility in the war on drugs
because U.S. military surveillance of smuggling routes has fallen
during the war in Iraq.