MEXICO AND U.S. HOLD 240 AND SEIZE 13 TONS OF COCAINE

WASHINGTON, July 31 - The federal authorities announced today the arrests
of more than 240 people in the United States and Mexico and the seizure of
nearly 13 tons of cocaine in what they described as a major dent in one of
Mexico's biggest drug-smuggling operations.

Attorney General John Ashcroft hailed the arrests as "a significant victory
against the purveyors of illegal drugs, death and violence," and officials
said they believed that the arrests could cripple major cocaine operations
in Arizona, the Northeast and Southern California.

The reported leader of the operation, Ismael Zambada García, and all but
one of his top lieutenants remained at large in Mexico, officials said.

American law enforcement officials said the suspects' tight security and
their ties to Mexican military officials and local police forces had made
them difficult to catch.

An indictment unsealed in federal court here charged Mr. Zambada García and
two top aides with conspiracy to import and distribute millions of dollars
worth of cocaine in the United States.

Mr. Zambada García, who is believed to be in his mid-50's and living on a
ranch in the state of Sinaloa, is considered one of the five biggest drug
traffickers in Mexico, American officials said. Mr. Ashcroft described the
gang as "one of the largest, most powerful and ruthless drug trafficking
organizations in Mexico," with links to other Mexican drug cartels.

The investigation into Mr. Zambada García's operation began in December
2001 after more than 10 tons of cocaine were seized from a fishing vessel
off the Pacific coast of Mexico. That seizure and the connection to
American distribution outlets prompted the American authorities to initiate
a national investigation into Mr. Zambada García's operations, coordinating
80 local investigations in the last 19 months.

The authorities said they had arrested 240 people in the investigation,
almost all in the United States. The authorities recently stepped up their
arrests and said they expected the tally for the week to reach 176. That
would send the total arrested in the inquiry over 350.

The arrests spanned the country from New York and Buffalo to Phoenix, Los
Angeles and Salt Lake City. The authorities said they believed that many of
the arrested suspects had important roles in running distribution "cells."

A top lieutenant, Manuel Campas-Medina, was arrested this week in Mexico,
the officials said.

The arrests were announced jointly by officials in the United States and
Mexico, who had worked together.

Although relations between the two countries have sometimes been strained
over drug and law enforcement issues, the director of the Office of
National Drug Control Policy, John P. Walters, said the investigation
included interaction between the United States and Mexico on a scale rarely
seen in past investigations.

An investigator with the Drug Enforcement Administration, Steve Comer, said
the arrests would "decimate" Mr. Zambada García's operations in the United
States.

"This definitely cripples him domestically," Mr. Comer said.

Investigators said the ring dealt in a variety of drugs besides cocaine.
The authorities said they had also seized more than 24,000 pounds of
marijuana, 108 pounds of methamphetamine and $8.3 million in cash.