Source: Associated Press Pubdate: Fri, 5 Jun 1998 Author: Ken Guggenheim - Associated Press MEXICO SAYS U.S. ADVISED ON STING, BUT CONSENT NEVER GIVEN MEXICO CITY -- Mexican officials have admitted they had some advance knowledge of a major U.S. money-laundering sting that has inflamed relations between the two countries, but say they never approved it. The acknowledgment late Wednesday was a reversal of Mexican complaints in the past two weeks that U.S. officials carried out the investigation without notifying Mexico. But the admission did little to ease Mexico's criticism over the handling of the case. The investigation, ``Operation Casablanca,'' led to the arrests last month of 42 people -- including about two dozen Mexican bankers. Some of the undercover operations were apparently carried out in Mexico, Mexican officials said. On Wednesday, Mexico said that U.S. Customs Service officials had discussed the investigation with a Mexican deputy attorney general two years ago. But U.S. officials did not request assistance or reveal the case involved a sting operation -- illegal under Mexican laws. In a statement, the Mexican attorney general's office said the meeting ``in no way can be considered an authorization or a validation for undercover informants or witnesses in the service of the U.S. government ... to carry out actions on national territory.'' Mexican officials have filed a protest and officials say they will seek the extradition of U.S. agents who broke their laws. Charges could include inciting the commission of a crime, facilitating money-laundering operations and usurping Mexican powers. Attorney General Janet Reno said at a news conference Thursday in Washington that talk of extraditing U.S. agents to Mexico is premature. ``I'm sure that the Mexican government does not assume guilt until it has thoroughly investigated a matter,'' Reno said. - --- Checked-by: (Joel W. Johnson)