1996-10-24 Local Press

Summary of Local Press Clippings from Mexico

October 24, 1996, Credit Lyonnais Securities (USA) Inc.

DEMOCRACY

Church-Government Debate Over Rights and Obligations

On Sunday, October20, Arch Bishop Noberto Rivera Carrera said that the Catholic church "can and should" get involved in politics, and that citizens have the right to obey authorities when the authorities try to violate their human rights or when "they are breaking the law." In response, the Secretariat of the Interior sent a note to the Arch Bishop, saying that "no one, under any circumstances, is exempt from respecting and obeying the rule of law" and that members of organized religions can not "get involved in politics". (La Jornada, 22 October).

Cordoba testifies and Provides No Information

 Jose Cordoba Montoya was called to give a statement to the Special Prosecutor's Office on Wednesday, October 16 about what he knows in relation to the assassination of Luis Donaldo Colosio in March 1994. During his 21 hour stay at the Prosecutor's offices, the former top advisor to President Carlos Salinas reportedly denied having phoned Colosio the night before his murder, and having any knowledge about interest groups within the government at that time. "I didn't belong to any political group, but rather to a government," he reportedly testified. Since last March, Cordoba has been asking the POR and the Colosio Commission in Congress to call him to testify, apparently in an attempt to clear his name. The POR continuously delayed calling him. It is interesting that when they finally did, it was done secretly. Neither the public nor the Congressional Commission knew that Cordoba had testified until he called a radio station two days later to advise them. (La Jornada, 19 October 1996)-

Garcia Abrego: Guilty

 Juan Garcia Abrego was found guilty of 22 counts of drug trafficking and money laundering in a Houston court on October16- Abrego, who is 52 years old, was the head of the Gulf Drug Cartel, and on the FBI's "Ten Most Wanted" list. He was accused of bringing 15 tons of cocaine into the US and of having laundered ten million dollars. The date of sentencing was not set yet. US Attorney General Janet Reno thanked the Mexican government for its help in capturing and "expelling" Garcia Abrego and said that both countries will continue to work together to bring drug traffickers to justice.

Meanwhile. Mexican Attorney General Antonio Lozano Gracia has less than four months to apprehend and extradite the Arellano Felix brothers if he wants to receive the United States' "certification" of good conduct in the war against drugs. Two of the three brothers have been formally accused of cocaine trafficking in the U.S. (El Financiero, 17 October).

 What's in a Name?

 In a luncheon with President Zedillo, the Federation of Mexican Private Higher Education Institutions (FIMPES) asked the President to take the name "public" out of the Secretariat of Public Education. According to FIMPES President Enrique Cardenas Sanchez, "there shouldn’t be distinctions between public and private universities... the agency should simply be called the Secretariat of Education, since its work is directed at all education in the county, and that would open more doors of cooperation between institutions." (La Jornada, 18 October).

"Atrocious" human Rights Record in Mexico

 Teresa Jardi, the director of Human Rights Studies at the Ibero-American University, noted that Mexico's "atrocious human rights situation" is illustrated by the fact that: on average, each day one cadaver appears with a bullet through the head; six of every ten crimes reported in Mexico City involve the participation of police or ex-police officers; and the law of Public Security is juridically similar to that of a "dictatorship". (La Jornada, 22 October). 

ECONOMY

Volatile Week in Currency Markets

The peso confronted several days of speculation and volatility last week, resulting in an overall 2 week devaluation of about 3.7%. At some banks on the northern border, the exchange rate reached S pesos per dollar on Wednesday, October 16. In response, the Bank of Mexico (Central Bank) adjusted interest rates-- leading to an increase of over 5 percentage points in two days, the largest increase in 1996. (La Jornada, 16-17 October).

 Zedillo administration spokespeople - and Zedillo himself - said that these speculative bouts are natural, and temporary and therefore not in; to worry about. (El Financiero, IS October).

 The High Cost of Money: Obstacle to Recovery

 Although active interest rates at commercial banks have fallen to about 45% (from around 65% at the close of 1995), the restriction of credit has continued to block the recovery of the productive plant's competitiveness. The cost of money in Mexico is up to four times higher than that in the United States. (El Financiero, 15 October).

 Unemployment Still a Big Problem

 Although the open unemployment rate has declined since 1995, unemployment is still 60% higher than it was before the crisis erupted in December 1994. According to the National Institute of Statistics, Geography and Information (INEGI), during the first nine months of 1996, an average of 2.1 million people were openly unemployed at any given time. (El Financiero, 18 October).

 Purchasing Power Continues its Decline

 According to Mexico's Labor Congress, the purchasing power of Mexican wages has fallen almost 50% over the past nine years, when the economic agreements between the government, business and official labor unions known as "pacts" were first established. During this period, the price of the basic goods increased 663.30%, while wages increased only 375%. This means that the purchasing power of workers on average has fallen 43.34% during this period. (La Jornada, 21 October).

Meanwhile, another study by the National Committee to Protect the Minimum Wage (Conanpros), shows that the basic basket of goods required for a family of five increased 140.9% during the first 22 months of the Zedillo administration while the minimum wage only increased 47.9%.  

This is how prices and wages have evolved (in pesos) 

In other words, the minimum wage doesn't even cover 40% of the basic basket of goods. Thus, Conanpros notes, "a worker would have to earn more than double the minimum wage to be able to acquire only the foods in the basic basket of goods, without including other necessities like clothes, housing, health care, transport and shoes." (La Jornada, 22 October).

Private Sector Supports Petrochemical Plan

 After initially balking at the government's plan to maintain control over 51% of Mexico's petrochemical plants (instead of fully privatizing them), the private sector came together to support the proposal. The leader of the Business Coordinating Council, Rector Larios Santillan, admitted that originally there "had been a negative perceptiont" of the changes, but that now the members of his association don't think that this reflects back-peddling oil the privatization.

 Meanwhile, pro-business National Action Party (PAN) suggested that if the private sector is hesitant to get involved in minority ownership ofthe plants, a mass (partial) privatization can be carried out like those that have been done in Russia and the Chech Republic, to sell shares of the company to individual Mexicans. (El Financiero, 17 October).

 CHIAPAS

 Decisive Moment for EZLN

 According to Sub-commander Marcos, the Zapatista Army for National Liberation (EZLN) is approaching a defining moment, since they have reached the "limit" of being an armed, clandestine force that "isn't fighting with arms nor is it politically engaged outside [of Chiapas]". Marcos announced that the government had made them an "offer" to allow them to participate in the 1997 mid-term elections through some sort of association (versus a political party). President Zedillo, he noted, "has recently come to understand" that a fundamental aspect of the conflict is the indigenous question on a national level. He said that Zedillo has recognized that there must be social and economic adjustments as well as adjustments in the relationship between the government and indigenous people, in order to resolve the problem. (La Jornada, 20 October). 

Hope for Renewed Dialogue

 After three days of talks with the EZLN in San Cristobal de las Casas, the Congressional Mediation Commission (Cocopa) went to Mexico City to "build consensus and definitive agreements with the Federal Government" with respect to establishing the conditions for renewing the peace talks. Cocopa said that there have been significant advances in resolving four of the five Zapatista conditions for re-initiating the dialogue. On the issue of the government delegation, Cocopa said that the EZLN isn't demanding the replacement of current delegates, but rather "a change in their attitude." Cocopa returned to San Cristobal on Monday, October 21 to continue the dialogue with the Zapatista delegation. (Reforma, 19 October).

 Northern Chiapas; A Social flme Bomb

 According to EZLN Advisor Luis Hernandez Navarro, one of the country's real trouble spots is the northern part of Chiapas. In the municipalities of Tila, Tumbala, Sabanilla and Salto de Agua, 353 people have be killed or have disappeared [ note: the article didn't specify during what period). These are independent figures, he noted, since the National Unman rights Commission has not carried out any work in the region. Hernandez and other NGOs in the region believe that "there is a latent civil war" in the region. Hernandez called on the legislative commission that visited the zone in 1995 to return with organizations of civil society, to launch initiatives that will achieve reconciliation, end the impunity of the paramilitary' group 'Peace and Justice' and establish the rule of law. (La Jornada, 17 October).

 Military Social Workers?

During their eighth day of "social work" in the Sierra Madre of Chiapas, the Mexican army invited reporters from different local media outlets to accompany them on their tour of the community of Nueva Palestina. During the tour, a group of peasants informed the army that militants of the Popular Peasant Union 'Francisco Villa' have threatened to kill those who don't support their agrarian demands. Because of this, the peasants said, they wanted the army to set up a permanent "military detachment". (La Jornada, 18 October).