[Congressional Record Volume 141, Number 22 (Friday, February 3, 1995)]
[Extensions of Remarks]
[Page E269]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                            MEXICAN BAILOUT

                                 ______


                        HON. PETER J. VISCLOSKY

                               of indiana

                    in the house of representatives

                        Friday, February 3, 1995
  Mr. VISCLOSKY. Mr. Speaker, I rise today in adamant opposition to 
President Clinton's unilateral decision to bailout the Government of 
Mexico. In response to the President's actions, I am joining a number 
of my colleagues in introducing today a resolution calling for a full 
investigation of this matter by the U.S. Comptroller General.
  I am extremely disappointed that the President decided to circumvent 
Congress and provide billions of dollars in United States-backed loan 
guarantees to rescue Mexico from a financial collapse without first 
receiving congressional approval. The taxpaying citizens of northwest 
Indiana are absolutely opposed to this United States-funded bailout of 
the Mexican Government.
  While I recognize and appreciate the problems associated with a 
devalued peso and illegal immigration, I do not believe these arguments 
are compelling enough to justify a nearly $50 billion bailout of the 
Mexican Government. As someone who adamantly opposed NAFTA, I strongly 
believe that the United States aid package designed to prop up Mexico's 
unstable economy is the wrong course of action to take at this time. 
Mexico's problems are far more serious than a short-term currency 
shortage. This crisis clearly shows that NAFTA has failed to deliver on 
its promises of a strong and stable Mexico.
  Mexico's problems are social, political, and economic in nature. The 
present crisis was precipitated by the Chiapas rebellion, as well as 
the assassination of key leaders. Mexican society is unstable, as 
evidenced by the recent elections, which contained extensive voter 
fraud. Mexico is also continuing its policy of repressing worker rights 
and labor standards in order to attract United States factories and 
foreign investors. New economic reforms proposed by the Mexican 
Government would reduce the average Mexican wage by at least 5 percent 
over the coming year, making cheap Mexican labor even cheaper.
  Mexican's reforms have not gone far enough and they are now going the 
wrong direction. The Mexican Government is going to reduce wages of the 
ordinary worker, including the minimum wage, in order to help balance 
the Mexican budget and control the economy. Punishing the ordinary 
Mexican worker because of the irresponsibility of the Mexican elite is 
typical of a country with such a large gap between the rich and the 
poor.
  Finally, we are setting a bad precedent by helping Mexico. It is 
entirely possible that Mexico will face a similar or worse crisis in 
the near future. United States taxpayers should not have to put up 
billions of dollars every time Mexico is unable to maintain fiscal 
stability. After all, 38,000 taxpaying citizens of northwest Indiana 
lost their jobs in the late 1970's and 1980's. The U.S. Government 
certainly did not step in to provide loan guarantees for those with 
home mortgages, credit card debt, or car loans.
  I urge all Members to take a strong stand on this issue by supporting 
the resolution introduced by Representative Gene Taylor requiring that 
the U.S. Comptroller General provide a detailed explanation about the 
legality of the President's decision.


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