[Congressional Record Volume 142, Number 12 (Tuesday, January 30, 1996)]
[Senate]
[Pages S555-S559]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mrs. FEINSTEIN (for herself, Mr. D'Amato, and Mr. Inhofe):
  S. 1547. A bill to limit the provision of assistance to the 
Government of Mexico using the exchange stabilization fund established 
pursuant to section 5302 of title 31, United States Code, and for other 
purposes; to the Committee on Banking, Housing, and Urban Affairs.
  S. 1548. A bill to provide that applications by Mexican motor 
carriers of property for authority to provide service across the United 
States-Mexico international boundary line and by persons of Mexico who 
establish enterprises in the United States seeking to distribute 
international cargo in the United States shall not be approved until 
certain certifications are made to the Congress by the President and 
the Secretary of Transportation, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.


                           mexico legislation

  Mrs. FEINSTEIN. Mr. President, last week, President Clinton opened a 
new front in America's war on drugs with his appointment of Gen. Barry 
McCaffrey as the Nation's new drug czar. In doing so, President Clinton 
has once again demonstrated his commitment to put the full weight of 
his office and the American Government behind efforts to stem the tide 
of drugs flooding America's streets, and I commend him for that.

  The measures my colleagues and I are introducing today are meant as a 
shot across the bow to the Government of Mexico. This legislation by 
the chairman of the Senate Banking Committee and myself, a Republican 
and a Democrat, will hopefully send a strong message that this Congress 
is prepared to back up the President's efforts in the strongest 
possible terms if Mexico's actions do not match their words in this war 
on drugs.
  One year ago, the United States provided $20 billion in loan 
guarantees to Mexico in an unprecedented economic assistance package. 
That loan guarantee agreement expires next month with the option to 
extend it for another 6 months.
  Today, based on the seriousness of the drug problem, the volume of 
drugs flowing into the United States, and the ineffectiveness of 
Mexico's efforts, I am joining with Senator D'Amato in introducing 
three pieces of legislation, two bills and one sense-of-the-Senate 
resolution, which, among other things, would link extension of the loan 
guarantee to Mexico to specific actions that Mexico must take to 
demonstrate greater cooperation with the United States and 
international anti-narcotics efforts.
  Let me explain for a moment the depth of this problem. The Drug 
Enforcement Administration estimates that 60 to 70 percent of all the 
illegal drugs that enter the United States are smuggled through Mexico; 
75 percent of the cocaine and 60 to 80 percent of all foreign-grown 
marijuana in the United States originates in Mexico.
  DEA testified that it has become commonplace to have 727 cargo-style 
jets each carrying 10 to 20 tons of cocaine at a time fly into Mexico 
and return to Colombia with $20 to $30 million of United States 
currency aboard. Colombian drug cartels are using Mexico as a safe 
haven to store as much as 70 to 100 tons of cocaine to be smuggled into 
the United States.
  The United States Customs officials estimate that almost 70 percent 
of those arrested for drug smuggling at border stations in the United 
States are Mexican nationals.
  Mexican drug cartels have taken over the methamphetamine drug trade. 
This is a very dangerous drug, also known as crank or speed. The DEA 
estimates that 90 percent of the precursor chemical, ephedrine, used to 
make methamphetamine is smuggled into the United States from Mexico, 
much of it originating from China.
  Methamphetamine is an exploding problem in the United States, and 
particularly in California. The California Bureau of Narcotics 
Enforcement figures show that from 1991 to 1994 seizures jumped 518 
percent in just these 3 years.
  In 10 years, from 1983 to 1993, methamphetamine abuse has skyrocketed 
in some California counties by more than 1,000 percent. Hospital 
emergency rooms admissions from amphetamine abuse have jumped by 366 
percent.
  California is infested with literally hundreds of clandestine and 
highly mobile methamphetamine labs. State drug officials indicate that 
these labs are most often run by Mexican nationals who are here 
illegally.
  Mexico's efforts to date are simply not good enough. The recent 
arrest of Juan Garcia Abrego is a step in the right direction, but 
overall Mexico's efforts have simply not been enough.
  The United States currently has 165 extradition requests pending with 
Mexico, 56 of those involving Mexican nationals. The United States has 
had an extradition treaty with Mexico since 1978, yet Mexico has not 
allowed the extradition of a single Mexican national to the United 
States for prosecution as any close ally would.
  Juan Garcia Abrego was not extradited. He was deported as a U.S. 
citizen. He held dual citizenship.
  The drug cartels still operate in Mexico with impunity. Leaders of 
two of 

[[Page S556]]
the most powerful Mexican drug cartels, Amado Carillo-Fuentes and the 
Arellano-Felix brothers, have outstanding United States warrants for 
drug trafficking. They have been seen in public repeatedly with no fear 
of arrest, and there apparently has been no serious effort to apprehend 
them.
  Money laundering. Mexico has become a haven for money laundering. 
Under Mexican law, money laundering is not a crime. No reporting 
requirements for large cash transactions exist. Jose Antonio Ramirez, 
director of Mexico's Association of Exchange Houses, has said it is 
common for cartel operatives to show up at unregulated money centers 
with literally suitcases stuffed with cash. The centers then write 
money orders or wire the funds to Colombia.
  I understand that the Mexican Congress has asked the National Banking 
Commission to examine ways of preventing money laundering, but whether 
any concrete changes will result remains to be seen.
  Let me give you some examples of government corruption:
  Colombian jets unloading tons of cocaine in remote desert areas with 
the possible cooperation of Mexican Federal Police.
  Reports that in a single weekend last November, 20 tons of cocaine 
destined for the United States were flown into Mexico in two large 
cargo plane shipments.
  And the investigation involving connections between the drug cartels, 
Swiss bank accounts, and the brother of former President Carlos Salinas 
de Gortari only serves to reinforce the belief that drug-influenced 
corruption may reach the highest levels of Government.
  Based on Mexico's efforts to date, Senator D'Amato and I believe that 
extraordinary measures are required. The legislation coauthored by 
Senator D'Amato and myself would do the following:
  One, link extension of the loan guarantee to Mexico with cooperation 
in antidrug efforts. The United States-Mexico loan guarantee agreement 
expires next month. But the parties share an option to extend the 
agreement for an additional 6 months. And most likely they will be 
renewed after that.
  This bill would prohibit the extension of the repayment terms for any 
of the currently outstanding loans to Mexico. It would prohibit the use 
of any of the remaining loan guarantees not obligated unless certain 
conditions with respect to antidrug efforts are met.
  Second, we are introducing a sense-of-the-Senate resolution that 
Mexico should not be certified under the Foreign Assistance Act as 
fully cooperating with the United States and international 
antinarcotics efforts. Failure to certify as cooperating with these 
efforts would jeopardize Mexico's eligibility to receive foreign aid.
  Sanctions for failure to be certified are mandatory, requiring that 
the United States withhold 50 percent of all foreign aid, with the 
exception of humanitarian and drug enforcement funds.
  The third bill prohibits the approval of applications from Mexican 
trucking companies applying for cross-border permits under NAFTA until 
the Secretary of Transportation can certify that the trucks meet United 
States safety standards, the President certifies Mexico is taking 
sufficient steps to combat international narcotics trafficking, and the 
Congress approves the applications via a joint resolution.
  These are strong steps, but I truly believe that this problem is so 
serious that strong steps are required.
  Evidence that would show Mexico's commitment to address these issues 
would include action such as the following:
  One, compliance with all outstanding requests for extradition by the 
United States.
  Two, enactment and implementation of effective money laundering laws.
  Three, action to prevent Mexico's drug profiteers from taking 
advantage of plans to privatize formerly public assets such as banks.
  Four, enactment of effective laws to inspect and license trucks, 
cars, and aircraft as well as their owners and operators to assist drug 
crime enforcement.
  Five, enactment of effective laws to curtail the importation and 
export of major precursor chemicals for methamphetamine production and 
other narcotic production.
  Six, specific action to effect the arrests of Mexican drug cartel 
leaders and other individuals involved in organized crime.
  Seven, adoption of a comprehensive program for drug enforcement and 
assistance to United States law enforcement to take effective action.
  Eight, specific action dedicated to detecting and halting the large-
scale air transportation of narcotics.
  Nine, specific action to prosecute graft and corruption among 
civilian, government, and military officials that assist drug 
production and smuggling.
  And, finally, passage of asset forfeiture laws which enable the 
confiscation of property derived through narcotics trafficking or 
fraudulent use of the loan guarantee funds.
  Without tangible evidence that Mexico is willing to work toward these 
goals, I am prepared to support the strong steps I have outlined.
  Mr. President, earlier Senator D'Amato and I, at a press conference, 
indicated our joint action to press forward with these bills. Mr. 
D'Amato indicated that his Banking Committee would be holding hearings 
on these bills in March. We earnestly and sincerely invite other 
Members on both sides of the aisle to cosponsor this legislation.
  Mr. President, I have seen firsthand a major tunnel under the Mexican 
border that goes from a warehouse in Mexico, to a warehouse on the 
California side, that was air-conditioned and electrified to facilitate 
the smuggling of drugs from one country to another.
  Mr. President, not too long ago in Rialto, CA, San Bernardino county, 
an arrest was made with the seizure of 4.5 tons--4.5 tons of 
cocaine. That amount of cocaine did not come across the border in 
backpacks.

  Mr. President, I have been to the border. I have seen trucks going 
back and forth with very little or no inspection in the line-release 
program. For the past year, I have advocated a tightening of that 
program.
  Now, under NAFTA, an even greater number of trucks would be able to 
cross the border with no inspection. What is the guarantee, when we 
know there is up to 100 tons of cocaine stored on the other side of the 
border awaiting transfer across this border, that it will not come in 
these trucks?
  In every city, whether it is New York City, whether it is Los 
Angeles, or whether it is San Francisco, we have all seen people dying 
in the streets from drugs and drug deals gone awry. We have all seen 
the evolution of gangs around the trafficking of narcotics. We have all 
seen the street prices of cocaine drop and the problem get worse. We 
have seen the major spread of methamphetamine labs throughout the 
largest State in the Union, California.
  The time has come to say, Enough is enough. To the Government of 
Mexico, close ally of the United States, we say ``This is $20 billion 
in loan guarantees plus other guarantees from the Monetary Fund--you 
must work hand in hand with us.'' We must stop the 727 cargo jets from 
landing on Mexican soil, from offloading drugs which then disappear 
before onloading United States currency for transport back to Colombia.
  We must see that cartel leaders are extradited, that American 
extradition requests are honored, and that there are effective laws on 
the books to preclude money laundering in Mexico. In general, we must 
see that there is vigorous enforcement in Mexico to abate and stop the 
large flow of chemicals, cocaine and other contraband substances into 
the United States.
  Mr. President, I ask unanimous consent that the following letters be 
printed in the Record: One letter signed by Senator D'Amato and myself, 
dated January 26, to the Secretary of State urging denial of 
certification; a letter sent by myself on December 6 to Ambassador 
Kantor pointing out problems in cargo trucks coming from Mexico; 
another letter to Ambassador Kantor, Secretary of State Christopher, 
Secretary of Treasury Rubin, and Attorney General Reno addressing 
continuing problems with drug enforcement that are presented by Mexico.
  There being no objection, the letters were ordered to be printed in 
the Record, as follows:


[[Page S557]]



                                                  U.S. Senate,

                                 Washington, DC, January 26, 1996.
     Hon. Warren M. Christopher,
     Secretary, Department of State, Washington, DC.
       Dear Mr. Secretary: We are writing to urge you to advise 
     the President to deny certification that Mexico has taken 
     sufficient actions to combat international narcotics 
     trafficking when he reports to Congress on the anti-narcotics 
     efforts of major drug producing and drug-transit countries on 
     March 1, 1996.
       As you know, Mexico is one of the most significant drug 
     producing and drug transit countries in the world, and the 
     bulk of the drugs moving through Mexico end up in the United 
     States, particularly in the state of California. The Drug 
     Enforcement Agency estimates that at least 75 percent of all 
     cocaine available in the United States originates in Mexico. 
     Further estimates are that 70 to 80 percent of all foreign-
     grown marijuana in the United States originates in Mexico. It 
     is well known that Colombian drug cartels are using Mexico as 
     a base from which to transport narcotics into the United 
     States. We have been told that Colombian cartels may store as 
     much as 70 to 100 tons of cocaine in Mexico at any one time 
     to await smuggling into the United States.
       These problems are bad enough, but they are made worse by 
     the Mexican government's failure to take serious actions to 
     address them. There has not been enough of a serious effort 
     to break up the drug cartels that operate with virtual 
     impunity in Mexico, or to arrest and extradite the drug lords 
     who run them. The recent arrest and deportation of Juan 
     Garcia Abrego is a positive development, but it contrasts 
     sharply with the actions of the Mexican authorities in many 
     other cases. To cite just two examples, the leaders of two of 
     the most powerful cartels in Mexico--Amado Carillo-Fuentes of 
     the Chihuahua Cartel, and the Arellano-Felix brothers of the 
     Tijuana Cartel--are reported to be regularly seen in public 
     with no fear of arrest.
       In addition, Mexico has become a haven for laundering drug 
     money, which is one of the most important aspects of the 
     cartels' operations. Mexican laws regarding money laundering 
     are inadequate, and banks and money exchange houses in Mexico 
     do not have the same reporting requirements for large 
     transactions as they do in the United States. Thousands of 
     exchange houses are openly flouting what little oversight the 
     Mexican government conducts, and millions of dollars are 
     flowing to Colombia via money orders and wire transfers.
       Finally, drug-influenced corruption continues unabated 
     within Mexican law enforcement agencies and the government 
     itself. One former cartel leader told U.S. prosecutors that 
     up to $50 million a month is used to bribe corrupt Mexican 
     officials to ignore, or even facilitate, drug-trafficking 
     activities. Drug money has clearly corrupted officials at 
     every level of Mexico's government and law enforcement 
     community, and--the investigations of the brother of former 
     President Carlos Salinas de Gortari notwithstanding--
     President Zedillo's government is not taking sufficient 
     action to root out this corruption.
       In light of these facts, we are sure you will agree that 
     Mexico is not deserving of certification as cooperating with 
     U.S. and international narcotics efforts when the President 
     issues his report pursuant to section 409A of the Foreign 
     Assistance Act. Furthermore, we do not believe that any vital 
     national interest warrants granting Mexico a waiver from 
     decertification. The illegal drugs that flow into the United 
     States from Mexico are tearing at our very culture, and as 
     such they themselves represent a fundamental threat to our 
     vital national interests. In contrast, the vital national 
     interests of the United States do not require us to provide 
     assistance to Mexico or to vote for multilateral development 
     bank assistance to Mexico, the two areas that would be 
     affected by Mexico's failure to be certified.
       Thank you for your consideration of this extremely 
     important matter. We look forward to your early reply.
           Sincerely,
     Dianne Feinstein,
       U.S. Senator.
     Alfonse D'Amato,
       U.S. Senator.
                                                                    ____



                                                  U.S. Senate,

                                 Washington, DC, December 6, 1996.
     Hon. Michael Kantor,
     Ambassador, Washington, DC.
       Dear Ambassador Kantor: I am writing to express my strong 
     opposition to the planned December 17 implementation of the 
     proposal to dramatically increase the number cargo trucks 
     from Mexico with direct access to delivery points in the 
     United States, under the North American Free Trade Agreement. 
     This opposition is based on two very serious concerns: first, 
     that inadequate provision has been made to ensure that this 
     will not result in increased drug smuggling across the 
     southwest border; and, second, that this will adverse impact 
     the safety of California's highways.
       It is my understanding that, beginning on December 17, 
     under NAFTA, cargo trucks crossing the border from Mexico 
     will no longer be restricted to delivery points within a 
     limited commercial zone along the U.S.-Mexico border, but 
     will be permitted to ship freight from origination points in 
     Mexico directly to delivery points throughout California, 
     Arizona, New Mexico and Texas. Estimates are that broader 
     access will increase land shipments across the U.S.-Mexico 
     border to approximately 6 million truckloads annually by the 
     year 2001.


                             Drug Smuggling

       My concerns with respect to drug smuggling are two fold. 
     First, that our infrastructure to interdict drugs may not be 
     able to keep pace with our efforts to facilitate increased 
     trade and commerce across our land borders. And second, as 
     trade and commerce barriers are reduced between Mexico and 
     the United States, our drug abatement efforts will become 
     increasingly dependent upon the enforcement efforts of our 
     Mexican counterparts.
       In a memorandum sent to me by Treasury Secretary Rubin last 
     March, his office noted that the number of arriving trucks 
     from Mexico increased last year at a faster rate than the 
     rate of truck inspections, resulting in a decrease in the 
     percentage of trucks being examined for drugs. Although he 
     declined to assume that the increasing cargo volume 
     automatically means an increase in contraband, he recognized 
     that the increase in cargo volume provides a window of 
     opportunity for smugglers.
       In fact, in spite of (or perhaps because of) the reported 
     success of a number of drug interdiction programs responding 
     to changes in drug trafficking patterns, including the 
     Customs Air Program and Border Patrol's Operation Hold the 
     Line, Secretary Rubin noted that the next logical step for 
     smugglers is to try to exploit the huge cargo volume crossing 
     the border each day.
       I concur with the assessment that drug smugglers will take 
     advantge of any relaxation of travel barriers between the 
     U.S. and Mexico, and fear that this greater access for 
     Mexican carriers under NAFTA will exacerbate what is already 
     a serious problem with drug interdiction.
       Specifically, my questions regarding implementation are: 
     How will Customs procedures change to accommodate the 
     increase in truck volume? How will this change impact the 
     Line Release Program? Will companies go through any form of 
     application process or background check, or will any truck 
     from any company in Mexico be given unlimited access to U.S. 
     delivery points in these border states? What is the process 
     for licensing individual drivers from the companies shipping 
     cargo? Will the individual drivers undergo background checks?
       According to officials from the Department of Justice, 
     cocaine smuggled across the California border with Mexico 
     accounts for at least 70 percent of the drug sent over the 
     entire Southwest border, so California has an enormous 
     interest in ensuring that drug interdiction efforts remain a 
     paramount concern as NAFTA is implemented.
       Another emerging drug threat in the United States, 
     particularly in California, is the explosive increase in 
     methamphetamine production and trafficking. California has 
     become the production capitol of the nation for this 
     dangerous drug, and the major source of methamphetamine and 
     the precursor chemicals to produce this drug are the Mexican 
     drug cartels.
       Mexican traffickers have established international 
     connections for supplies of ephedrine and pseudoephedrine key 
     precurson chemicals for methamphetamine which are controlled 
     in the United States but not in Mexico. Shipments of these 
     and other precursor chemicals are sent to Mexico from around 
     the world and then smuggled into the United States to 
     literally hundreds of clandestine laboratories in California 
     for production.
       Methamphetamine is fast becoming the crack epidemic of the 
     1990s, and law enforcement is already unable to keep up with 
     the problem. A greater volume of uninspected trucks and 
     relaxed trade barriers can only make this problem worse.
       Secondly, I am also worried about increasing our reliance 
     on Mexico to stop the probable increased flow of drugs across 
     our border. As I have spelled out in a separate letter to 
     you, I am gravely concerned about the adequacy of Mexican 
     efforts to restrict drug trafficking and the alarming level 
     of drug-influenced corruption within Mexican law enforcement 
     agencies and the government itself. This most certainly 
     impacts our efforts at drug abatement in the United States. 
     The news report this last week of a passenger plane loaded 
     with cocaine landing in Baja California Sur with the possible 
     cooperation of Mexican Federal Police is a shocking reminder 
     that our efforts to stop the flood of drugs on American 
     streets are only as strong as our weakest link.
       I respect the efforts the Clinton Administration has made 
     to reduce the flow of drugs into the United States and I know 
     you share my concerns about maintaining the integrity of our 
     drug interdiction efforts. I support increased trade and 
     commerce with Mexico, but only to the extent that efforts to 
     curtail the epidemic of drug use in our own country are not 
     diminished, and to the extent that Mexico is cooperating 
     fully with our efforts.


                             highway safety

       I also want to express my strong concern about the safety 
     implications of allowing large trucks from Mexico access to 
     California's roads.


                          hazardous materials

       The Attorney General of Texas, Dan Morales--who supports 
     NAFTA--reports that more than a fourth of the approximately 
     5,000 Mexican trucks which cross into Texas every day carry: 
     corrosives; chemicals; explosives; jet fuel; and pesticides.
     
[[Page S558]]

       This week's issue of Time magazine reports that in the past 
     few months, several Mexican trucks in the U.S. have exploded 
     or leaked toxins.
       With such dangerous materials, and evidence of a poor 
     record of truck safety in the United States, I fear that this 
     problem will escalate dramatically with the expansion of 
     Mexican truck traffic.


                                 brakes

       Another major area of concern is Mexico's request that the 
     Administration ease its requirements on front brakes. 
     According to the California Highway Patrol, in 1994 there 
     were 45 accidents involving large trucks for which faulty 
     brakes were found to be the cause. In these accidents, 77 
     people were injured and there was one fatality. There has 
     been a steady decline over the past ten years of accidents 
     involving large trucks, and I have grave concerns that the 
     increase in Mexican trucks on California's freeways and roads 
     will increase this number.


                             drivers hours

       As you know, truckers in the United States are limited to 
     ten hours of driving time. In Mexico, however, there is no 
     limit to the number of hours a driver may be behind the 
     wheel. Again, according to the California Highway Patrol, 
     there were 108 accidents in California involving a large 
     truck where the driver simply fell asleep. These accidents 
     were responsible for killing six and injuring 148.
       I am very concerned about the adequacy of truck safety 
     inspection at the border. I fear that U.S. Customs Service 
     agents, who already have their hands full inspecting vehicles 
     for drugs and trade treaty compliance features, are simply 
     not going to have the time or technical expertise to conduct 
     thorough safety inspections on trucks coming from Mexico.
       On behalf of the people of California, I urge your personal 
     attention to these issues.
       Thank you for your anticipated assistance.
           Sincerely,
                                                 Dianne Feinstein,
     U.S. Senator.
                                                                    ____



                                                  U.S. Senate,

                                 Washington, DC, December 6, 1996.
     Hon. Michael Kantor,
     Ambassador,
     Washington, DC.
       Dear Ambassador Kantor: I am writing to request that you, 
     along with Secretary of State Christopher, Secretary of the 
     Treasury Rubin, and Attorney General Reno, address a 
     continuing problem which is vexing our country, and my state 
     in particular--the grossly inadequate drug enforcement 
     ``effort'' by Mexico.
       Just last week, separate published reports demonstrated the 
     alarming, dramatic scale of this problem.
       The Los Angeles Times reported on the continuing 
     investigation of Raul Salinas de Gortari, older brother of 
     Mexico's former President, Carlos Salinas de Gortari--an 
     investigation which continues to yield appalling information 
     about the extent of drug-influenced corruption in Mexico. The 
     investigation is demonstrating that: The Mexican drug lords 
     have become partners with the Colombian cartels; these 
     cartels supply up to three-fourths of the cocaine in the 
     United States, according to U.S. officials; Raul Salinas de 
     Gortari was closely associated with the most powerful drug 
     lord, Juan Garcia Abrego; Raul Salinas de Gortari served as 
     an intermediary between the drug cartels and Mexico's 
     political and economic elite; Garcia Abrego and Raul Salinas 
     de Gortari used their respective fields of influence to 
     protect each other from law enforcement; Raul Salinas de 
     Gortari profited handsomely from this relationship, with 
     Mexican officials estimating that he may have stockpiled up 
     to $250 million in foreign bank accounts and other 
     investments; and perhaps worst of all, this web of corruption 
     and protection may have extended even to Raul's brother, 
     President Carlos Salinas de Gortari.
       This investigation was made public in Mexico last week, 
     prompting the unprecedented step of a unanimous vote by 
     members of all parties in Mexico's House of Deputies to 
     establish a congressional commission to investigate Raul 
     Salinas de Gortari and the sources of his wealth.
       Coupled with other evidence of drug corruption in Mexico, 
     much of which was laid out at a Senate Foreign Relations 
     Committee hearing this August, I am afraid that Mexico is in 
     serious jeopardy of becoming a drug-dominated narco-
     democracy.
       The New York Times, meanwhile, also reported last week that 
     an entire passenger jet loaded with tons of cocaine landed in 
     a dry lake bed in Baja California Sur on Saturday. Local 
     fishermen saw the cocaine unloaded by 20 men wearing black 
     Mexican Federal Police uniforms. These men arrived in a 
     convoy of four-wheel-drive vehicles. After unloading the 
     plane, they set about trying to destroy it, by dismantling 
     it, attempting to blow it up with explosive powder, and 
     finally bulldozing over it with desert sand.
       Despite widespread reports of Mexican police involvement 
     with allowing or even conducting drug smuggling, state police 
     who arrived on the scene allowed themselves to be talked out 
     of taking action by the uniformed men--demonstrating that the 
     state police were either duped, incredibly inattentive and 
     lacking in vigilance, or corrupt themselves.
       It comes as no surprise that investigators have traced the 
     airplane's serial numbers back to Colombia's Cali cartel. As 
     for the tons of drugs that were unloaded from the plane, the 
     newspaper reported that they have not been recovered. I would 
     appreciate your investigating and reporting to me what 
     happened to these drugs, and to the plane.
       For your convenience, I have attached copies of these 
     articles. What is especially dismaying is that there is 
     nothing new about airplanes loaded with multi-million dollar 
     shipments of cocaine flying from Colombia to Mexico. At a 
     Senate Judiciary Committee hearing in February, 1995, Drug 
     Enforcement Administration Director Constantine told me about 
     727s flying 10 to 20 tons of cocaine at a time into Mexico, 
     and returning to Colombia with 20 to 30 million dollars of 
     U.S. currency.
       At the Senate Foreign Relations Committee hearing in 
     August, we discussed this again. At that point, Ambassador 
     Gelbard interjected, ``based on an order from President 
     Zedillo, he has mobilized the Mexican Air Force to intercept 
     any such flights that do occur.'' And yet, we see now that 
     the flights do continue.
       Frankly, I am astounded and disgusted that the Mexican 
     government is unable or unwilling to stop massive cargo 
     flights, or incidents such as this latest one, involving an 
     airplane, heavy vehicles, explosives, bulldozers, and police 
     officers who turn the other way.
       It is no secret where these drugs are going: straight into 
     my State of California. At the February hearing, Director 
     Constantine confirmed that California has replaced Florida as 
     the major point of importation of cocaine into America. He 
     further stated that 75% of the cocaine in the United States 
     enters through the Southwest border from Mexico.
       Mr. Ambassador, I ask that you, together with Secretary of 
     State Christopher, Secretary of the Treasury Rubin, and 
     Attorney General Reno, really take a good, hard look at what 
     specifically can be done to compel Mexico to achieve a higher 
     level of cooperation and enforcement against drugs.
       The United States provides Mexico with a great deal of 
     assistance--such as the $20 billion loan guarantee earlier 
     this year. Yet this assistance seems to go to a country that 
     is utterly ineffective at stopping the infliction of the 
     scourge of drug trafficking on my state and our country--or, 
     worse, corruptly facilitates it. If Mexico will not summon 
     the will to help us in this effort, perhaps it is time for us 
     to reconsider our assistance to them.
       On behalf of the people of California, I urge your personal 
     attention to this issue.
       Thank you for your anticipated assistance.
           Sincerely,
                                                 Dianne Feinstein,
                                                     U.S. Senator.

  Mrs. FEINSTEIN. I thank the Chair.
  Mr. President, I ask unanimous consent that Senator Inhofe be added 
as a cosponsor to the bills and the resolution I have just sent to the 
desk.
  The PRESIDING OFFICER. Without objection, it is so ordered.
 Mr. D'AMATO. Mr. President, the Mexican economic meltdown is 
over a year old and no one--not the Mexican people and certainly not 
the American taxpayers--have seen any signs of improvement or relief. 
Last year, the Clinton administration rushed in to bail out the Mexican 
Government with an ill-conceived, and legally tenuous, financial 
assistance package that spent billions of taxpayer dollars. The time 
has come to stop this financial hemorrhage.
  Since February 21, 1995, when the administration signed its Financial 
Assistance Agreement with Mexico, I have been saying that the Clinton 
bailout was an ill-conceived disaster. It is not just my opinion, it is 
the cold hard facts. You only need to look at the Mexican economic 
indicators, including 50-percent interest rates and staggering 
inflation, and the suffering of the Mexican people to realize that the 
plan is not working. Mexico's real economy is still in shambles: record 
numbers of Mexicans are out of work, interest rates are soaring, the 
people are starving, and the country is reeling under increasing social 
and political unrest. Christopher Whalen, writing in the January 21, 
1996, edition of the Washington Post, stated ``As in the 1970's, the 
Mexicans are again addicted to the debt that we have been spoon-feeding 
them, and they still can't pay it back.''
  Mr. President, the only people who have benefited from the Clinton 
bailout are the global investors, the currency speculators, Mexican 
business leaders, and high paid advisers retained by the Mexican 
Government. The Mexican bailout was doomed to disaster from the very 
beginning.
  Congress rejected Clinton's bailout scheme last year, despite the 
administration's doomsday predictions of an international financial 
crisis and waves of illegal immigration. The global financial crisis 
never materialized but hordes of illegal immigrants are still crossing 
our borders in an attempt to 

[[Page S559]]
escape their desperate living conditions. Their hardships are a direct 
result of inept Mexican economic policies and the harsh austerity 
measures the Clinton administration imposed upon the Mexican people as 
part of the bailout.
  Mr. President, Mexico has received over $25 billion and it has not 
solved anything. The Clinton administration bypassed Congress and sent 
billions of hard-earned American taxpayer dollars to a country reeling 
under narco-corruption and failed economic policies. Mexico's downward 
spiral is accelerating and the fallout is only beginning.
  According to the terms of the Financial Assistance Agreement between 
the administration and Mexico--Article 3, section 7--the agreement 
expires after 1 year, on February 21, 1996, and it may be extended by 
the Secretary of Treasury for another 6 months. Secretary Rubin has 
indicated that the Treasury Department intends to extend the bailout 
for another 6 months so now is the time for Congress to act.
  Mr. President, my colleague and friend, Senator Feinstein and I, are 
cosponsoring this bill which would place strong conditions on the 
administration to stop them from wasting more taxpayer dollars on the 
Mexican bailout, by preventing an extension of the Assistance 
Agreement, and stopping any additional rollovers of the money already 
owed to the United States, as of the first of this year.
  At the very least, if the President decides to continue squandering 
any more of the remaining $10.5 billion of U.S. taxpayer money already 
committed to Mexico, he should be required to certify that Mexico is 
doing all that it can to stop the massive flow of narcotics into our 
country. This should not be a simple certification--it should be tough 
and thorough. This bill will require Mexico to take strong action to 
fight the drug lords and narcotics kings who are becoming 
multimillionaires by importing drugs into our country.
  Our bill sets several pertinent conditions regarding the enormous 
amounts of drugs Mexico is sending to this country every day. In our 
bill, the President must certify that Mexico has satisfied each of 
these conditions before sending any more taxpayer money to Mexico. 
The Congress already passed a certification requirement related to the 
Mexican bailout last year in the Mexican Debt Disclosure Act, which 
required the President to certify normal business standards were being 
imposed on the loans and money sent to Mexico.

  A few key facts on the severity of the drug problem with Mexico 
vividly illustrate the need for immediate action:
  The Drug Enforcement Administration [DEA] estimates that over 70 
percent of the cocaine in the United States crosses the United States-
Mexico border. Using Mexico as storage for the cocaine, the Colombian 
drug organizations may be holding cocaine with a street value of up to 
$1 billion.
  According to the DEA, virtually all of the heroin produced in Mexico 
is trafficked in the United States.
  The DEA also reports that more than 50 percent of the marijuana found 
in the United States came from Mexico, either cultivated there or 
transshipped through Mexico from other localities.
  It appears that trafficking gangs in Mexico are also involved in all 
aspects of the methamphetamine trade: producing, trafficking, and 
distributing it as well as the chemicals used to manufacture the 
methamphetamines. Law enforcement officials have noticed an increase in 
its availability in the United States.
  The recent arrest of Juan Garcia Abrego, described as an 
international drug kingpin and said to have headed a billion-dollar 
drug empire, may hold the key to understanding just how big the Mexican 
drug organizations are and the volume of drugs they traffick into the 
United States. The information that he provides to U.S. law enforcement 
is a glimpse into the underground world of international drug 
trafficking. His arrest is merely the tip of the iceberg.
  Currently, the Colombian cartel and the drug trafficking gangs in 
Mexico are working in partnership to deliver and distribute multitons 
of narcotics into the United States. However, Assistant Secretary of 
State Robert Gelbard told the Senate Foreign Relations Committee that, 
with the arrest of leaders of the Columbian Cali cartel, Mexican drug 
trafficking gangs may be able to actively traffick these drugs 
themselves.
  No doubt, there will be an increase in the availability of narcotics 
as a direct result of the Mexican drug gangs' interest in narcotics 
distribution, and the ease with which they can transport it into the 
United States.
  Mr. President, this bill is an important first step in addressing two 
very serious problems affecting the American people. This bill will 
force the Clinton administration and the Mexican Government to make 
real and substantial efforts to halt the flow of illegal drugs into our 
country. The bill also sends notice to the administration that the 
Congress, and the American people, are tired of having hard-earned 
taxpayer dollars squandered. I urge my colleagues to support this 
bipartisan effort.

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