Pubdate: Sat, 05 Jun 1999 Source: Houston Chronicle (TX) Copyright: 1999 Houston Chronicle Contact: http://www.chron.com/ Forum: http://www.chron.com/content/hcitalk/index.html Author: Michael Riley UNPROVEN DRUG ALLEGATIONS REND US RELATIONS WITH MEXICO CITY Attorney General Janet Reno said unfounded reports of drug trafficking by high Mexican officials were unfair. MEXICO CITY -- A top-level meeting of Cabinet ministers that ended here Friday was originally intended to be a showcase of chummy U.S.-Mexican relations. But it illustrated instead how the two countries can't seem to get past the divisive issue of drugs. The day before several U.S. Cabinet members and their aides flew in for the meeting, The Washington Post and The New York Times ran separate front-page articles that accused one of Mexico's richest families and the private secretary to President Ernesto Zedillo of having suspected links to the country's drug cartels. Both stories cited unnamed U.S. government officials as their sources. The articles provoked a swift reaction here. Furious, Mexican Secretary of State Rosario Green told reporters that the stories were shadowy efforts to throw the meeting off balance. She demanded that the Clinton administration hand over any proof to support the charges. The incident once again illustrated how efforts to improve the United States' relationship with Mexico, its second-largest trading partner, has been consistently frustrated by suspicions in Washington of drug corruption in Mexico City. "Drugs obscure everything," said Delal Baer, an expert in U.S.-Mexican relations at the Center for Strategic and International Studies in Washington. "Can we work the positive elements of the agenda without becoming obsessed with the problems? It doesn't seem like we can," he said. The annual get-together of high-level Mexican and American officials, called the Bi-National Commission, was created several years ago as a confidence-building measure for officials of both countries and as a way to deal with increasingly complex issues facing both countries. This year's meeting took up items ranging from trade to immigration. In all, more than 600 officials participated, and the meeting was divided into 16 working groups. Although Secretary of State Madeleine Albright remained in Washington because of developments in Yugoslavia, Attorney General Janet Reno, White House drug czar Barry McCaffrey, and the secretaries of interior, transportation, commerce and housing and urban development attended the meeting. Key issues like immigration and health seemed to slip behind the shadow created by drugs. Green's angry press conference on Thursday displayed a frustration over what many Mexicans see as a consistent tactic: Before major meetings between U.S. and Mexican officials, stories appear in the American press that suggest drug corruption at the highest levels of Mexico's government and society. "It must be a strategy. It's a way of saying, `We're really concerned about these issues and want to bring them to the table,' " said Sigrid Arzt, a political scientist in Mexico City. "These are sensitive issues to bring up directly," she said, "but by the time the meetings begin, all the Mexican officials have been alerted to them through leaks in the press." The question of exactly who is behind the strategy is less clear, Artz and others here say. Green put it off to "conservative" elements on the U.S.-side of the drug debate. Some analysts say the leaks may be coming from American law enforcement agencies. But others say the Clinton administration is split between doves, who see cooperation with Mexico as the key to improved drug-fighting, and hawks, who believe Mexico ought to be taken to task for the impunity enjoyed by the drug gangsters who ship 70 percent of cocaine consumed in the United States. "This is really about a power struggle taking place inside the Beltway," Baer said. That division is fracturing U.S. policy towards Mexico and becoming an increasing embarrassment for the White House. The Washington Post article cited a National Drug Intelligence Center report that concluded the family of Mexican billionaire Carlos Hank Gonzalez -- a major financier of Mexico's long-ruling party, known as the PRI -- was so involved in money laundering and the distribution of drugs that its political and financial empire amounted to "a significant criminal threat to the United States." The New York Times reported that Zedillo's private secretary and de facto chief of staff, Jose Liebano Saenz, had been investigated on allegations of drug corruption. After his arrival here, McCaffrey, the U.S. drug czar, distanced himself from the media reports, telling reporters that he did not have any information on either the Hank Gonzalez family or Saenz that was worth taking to Mexican authorities. McCaffrey directed his ire toward the media. "If this was classified information around national security, we'd be out there polygraphing people and we'd prosecute," McCaffrey said, "because it would be jeopardizing U.S. national interest." Still, the New York Times report struck many here as especially unfair. Mexico's attorney general's office said it has already thoroughly investigated Saenz at his own insistence and cleared him. Mexican investigators said many informants who accused him of having links with the country's drug cartels turned out to be unreliable and that at least one failed a lie-detector test. For her part, Reno told reporters Friday, "I cannot conclude, based on information I have, that (Saenz) is guilty of any wrongdoing," She added, "It's unfair and just plain wrong ... to make judgments based on fragmentary reports." The two press reports, analysts say, point to an underlying problem with the drug-corruption allegations that Clinton administration officials have leveled against high-level Mexicans in recent years. Intelligence information from wiretaps and unnamed informants used in the allegations does not have to meet the same high standard of proof as evidence in a court of law, they say. They add that since the U.S. officials leak the allegations without allowing the media to identify them, the Clinton administration is losing credibility here. "This just does not push the ball down the court in U.S.-Mexican relations," Baer said. - --- MAP posted-by: Don Beck