[Congressional Record Volume 141, Number 19 (Tuesday, January 31, 1995)]
[Senate]
[Page S1841]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                RESPONSE TO THE MEXICAN FINANCIAL CRISIS

  Mr. PELL. Mr. President, earlier today President Clinton announced 
that he was working to develop an alternative package for addressing 
the Mexican peso crisis. This comes as a welcome response to a 
situation that was worsening by the day, as financial markets reflected 
increasing pessimism that Congress would approve the loan guarantee 
package. It is unfortunate that we were unable to act more 
expeditiously to help stem the crisis, and I want to commend the 
President for recognizing that we would all suffer from further delay.
  While the details of the new package have not yet been clarified, as 
currently proposed it would include a $20 billion share from the United 
States Exchange Stabilization Fund, $17.5 billion in credits from the 
IMF, and a $10 billion short-term lending facility from the Bank of 
International Settlements. These aggressive but prudent measures should 
serve to shore up the Mexican peso as well as investor confidence in 
the Mexican economy as a whole.
  Mr. President, without immediate action on the part of the United 
States and the world community, the short-term debt crisis in Mexico 
threatens to escalate into a full-scale recession that would negatively 
impact on all of us. Perhaps lost in the debate over the details of the 
financing mechanism was the fact that the United States and Mexican 
economies are now closely intertwined, and what happens there cannot 
help but affect us. Mexico is our third largest trading partner; 
American jobs and exports rely on Mexico's financial stability and 
growing prosperity. Politically, neither our immigration problems nor 
our war on drug trafficking can be adequately addressed without 
Mexico's active cooperation. We have been fortunate that across our 
long southern border is a friendly and stable ally. It is in our own 
self-interest to help ensure that a short-term debt problem does not 
become a lasting source of economic, political and social turmoil 
across the hemisphere.
  I look forward to supporting President Clinton and urge my colleagues 
to do likewise.
  Mr. President, I yield the floor. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. BENNETT. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BENNETT. Mr. President, I ask unanimous consent that I be allowed 
to proceed for up to 10 minutes as in morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.


  

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