Pubdate: Sat, 05 Jun 1999 Source: San Jose Mercury News (CA) Copyright: 1999 Mercury Center Contact: http://www.sjmercury.com/ Author: Ricardo Sandoval DRUG-CORRUPTION ALLEGATIONS STRAIN U.S. - MEXICO MEETINGS PRI Officials Deride Leaked D.C. Reports As Smear Campaign MEXICO CITY -- Insinuations that drug corruption has reached into the offices of Mexican President Ernesto Zedillo Ponce de Leon all but drowned out Friday's public claims of friendship between high-ranking officials from the United States and Mexico, overshadowing new cooperative agreements on issues from drugs to trade. U.S. Attorney General Janet Reno, a last-minute substitute for U.S. Secretary of State Madeleine Albright because of the Kosovo peace deal, and Mexican Foreign Minister Rosario Green spoke Friday of cross-border friendship and cooperation during the 16th annual Binational Commission. Washington reports Behind the tranquil scene of the annual day of private talks between White House policy-makers and their Mexican counterparts, U.S. officials scrambled to put out a fire started by two Washington reports linking drug traffickers to two ranking members of Mexico's ruling Institutional Revolutionary Party (PRI). Angry Mexicans vented frustration over what officials here say are attempts by enemies in Washington to discredit Mexico during the high-level meetings. One report, based on Mexican and U.S. investigations into alleged drug-money laundering, said U.S. officials are worried because Mexico dropped an examination of an informant's claims that Zedillo's personal secretary, Liebano Saenz, had won payment from drug cartels to protect their business. The other report, by the U.S. government's National Drug Intelligence Center, outlined links between drug cartels and Carlos Hank Gonzalez -- a former Mexico City mayor, influential PRI leader and patriarch of one of the country's richest families. Green asked U.S. officials to hand over any evidence of Mexican government corruption and to punish officials who leaked draft reports. "If there is no direct information," Green said, "please publicly denounce the information." The Mexicans' ire had U.S. officials backpedaling. "I don't have any evidence about Mr. Saenz that would lead me to go to Rosario Green and say, `We've got a problem with this guy,'" said U.S. drug czar Barry McCaffrey, who said he had not read the leaked report on Hank González. "(And) I object to being put in a position of endorsing or clearing foreign officials." U.S. Drug Enforcement Administration sources who didn't want to be identified expressed doubt Friday that Hank Gonzalez was involved with drug dealers. The report also alleged that Hank Gonzalez's sons were linked to money-laundering schemes in Texas and to helping the powerful Arellano-Felix drug cartel of Tijuana. In an interview, McCaffrey said the leaks were unprofessional and curiously timed to the start of the binational conference. "There's a little bit of gamesmanship going on here," McCaffrey said, echoing charges by Mexican officials that they were victims of a smear campaign by "right wing" forces in Washington. "It is bad to be accusing people without evidence of something so grave," said PRI Chairman Jose Antonio González Fernandez."Everything listed in the (Hank González and Sáenz) reports is circumstantial, yet the charges damage relations and damage families." Moving on Despite the strained reaction, Mexican and U.S. officials said the furor wouldn't interfere with agreements concluded Friday or with plans for cooperation in the drug war. "I don't think we ought to be ever remiss about confronting each other with hard-edge realities," McCaffrey said, saying the two governments had survived many such controversies. "We'll do it in private, not in public." Friday's closed-door sessions between Mexican and U.S. secretaries of commerce, transportation, urban development and the environment yielded cooperative plans on forest-fire suppression in border states, hazardous-waste fills and health studies of border residents. The two countries will also switch on a fiber-optic cable line along the San Diego-Tijuana border to facilitate law enforcement communications among several agencies. - --- MAP posted-by: Jo-D