    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book I)]
    [January 15, 1997]
    [Pages 37-39]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks on Mexico's Repayment of Loans From the United States and an
    Exchange With Reporters
    January 15, 1997

        The President. Good morning, and welcome. Ambassador Silva Herzog,
    Chairman Greenspan, Secretary Rubin, Deputy Secretary Summers and other
    members of the administration, Mr. McLarty, Mr. Berger, Congressman
    Richardson, Congressman Matsui, Congressman Frank, ladies and gentlemen.
    Just a few moments ago, President Ernesto Zedillo of Mexico called me to
    tell me that Mexico had issued instructions to repay the remaining $3.5
    billion of the $13\1/2\ billion the United States loaned to Mexico 2
    years ago in the wake of the peso's collapse.
        In 1995, when my administration put together this emergency support
    package, Mexico was in crisis. Today the United States is being repaid
    more than 3 years ahead of schedule. We have earned more than half a
    billion dollars on our loan. Our exports to Mexico are at an all-time
    high, and the Mexican economy is back on track.
        Two years ago, helping our friend and neighbor in a time of need was
    quite controversial. Some said that we should not get involved, that the
    money would never be repaid, that Mexico should fend for itself. They
    were wrong. Today the American people can be proud that we did the right
    thing by Mexico and the right thing for the United States and the right
    thing to protect global prosperity.
        The financial crisis in Mexico was also America's problem. We had to
    act to prevent the crisis from destabilizing our third largest trading
    partner, spreading to other emerging markets from Latin America to Asia,
    and threatening the sales of goods and services that generate jobs for
    American workers. By taking action, we protected a strong and growing
    market for American products that supports 700,000 jobs here. We helped
    Mexico to sustain its program of democratic reform and economic growth.
    And we helped to give the Mexican people renewed hope for a more secure
    future.
        I want to thank Secretary Rubin and his team at Treasury, Deputy
    Secretary Summers and Under Secretary Shafer, for the remarkable job
    they have done. I want to thank Chairman Greenspan for his support of
    this course of action and for the close cooperation that he offered the
    Treasury Department in working through this. Together they put together
    an emergency $20 billion loan support package that allowed Mexico to
    work itself out of the crisis while working itself back to financial and
    economic health. We also led an international effort to make available
    up to $50 billion in emergency support from international financial
    institutions.
        For its part, Mexico put in place a tough adjustment program to get
    its economic house in order. Today, in thanking President Zedillo for
    the good news we have received, I also want to applaud him and his team
    for the skill and courage they have demonstrated in sticking to their
    program of reform and reviving Mexico's economy. The Mexican economy
    grew by over 4 percent in 1996. The exchange rate has stabilized.
    Inflation has been cut nearly in half. Close to one million new jobs
    have been restored to Mexico since the crisis bottomed out. And Mexico
    has regained the confidence of international investors. This is a
    remarkable turnaround. Following its 1982 financial crisis, it took 7
    years--7 years--for Mexico to return

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    to the private financial markets. This time it took 7 months.
        After the 1982 crisis, Mexico imposed prohibitive tariffs, and U.S.
    exports fell 50 percent, not recovering for 7 years. This time Mexico
    continued to fulfill its NAFTA commitments, and our exports are already
    11 percent above pre-crisis levels.
        Mexico's immediate financial crisis was our first order of business,
    but our work didn't stop there. With our G-7 allies in the international
    financial institutions, we agreed at the Halifax summit in 1995 to long-
    term safeguards to prevent similar crises from occurring in the future
    and to deal with them effectively if they do. Mexico will face new
    challenges as it moves forward on economic and political reform, as it
    works to strengthen the social safety net and raise living standards for
    the poor and fights the scourge of drug trafficking. The United States
    will continue to support and encourage these efforts. And I want to
    underscore that our administration and this President are committed to
    strengthening our engagement throughout Latin America in the months and
    years ahead, just as we are committed to the need for American
    leadership because there are times when only America can get the job
    done.
        It now gives me great pleasure to invite Ambassador Silva Herzog and
    Secretary Rubin to sign a protocol that officially terminates the
    special loan agreement between the United States and Mexico and brings
    our emergency support program to a very successful conclusion.

    [At this point, Treasury Secretary Robert Rubin and Mexican Ambassador
    to the United States Jesus Silva Herzog Flores signed the protocol.]

    Possible Visit to Mexico

        Q. Mr. President, do you plan to visit Mexico to celebrate this?
        The President. The answer to your question is I do plan to visit
    Mexico and soon. We have not fixed a date yet, but I told President
    Zedillo that I would be there as soon as I could. And I think it will be
    actually quite soon.

    Mexican Economy

        Q. Mr. President, it seems just a few months ago the peso was in
    trouble once again. I'm wondering if you feel in your mind, do your
    advisers feel that that the Mexican economy is on very certain footing
    right now?
        The President. Do you want to answer that? [Laughter]
        Secretary Rubin. If the President is going to learn to do these
    things, then I'll answer your question. [Laughter]
        The President. I thought since you make so much more money than I
    do. [Laughter]
        Secretary Rubin. There is a point to that. [Laughter] The answer is
    that I think the accomplishments--or we think the accomplishments of
    Mexico have been enormous. President Zedillo, Minister Ortiz, and the
    others have really had enormous political courage in following the track
    they've been on.
        Having said that, while a great deal has been accomplished, there is
    also a great deal to do going forward, and we look forward to being
    helpful to, and working with, the Mexican Government.

    Speaker Newt Gingrich

        Q. Mr. President, what do you think about the political warfare
    that's sprung up around the ethics case of Speaker Newt Gingrich?
        The President. I want it to be over. I want it to be over. You know,
    the American people have given us larger responsibilities. I think in
    general, at least in my experience in my brief time here the last 4
    years, way too much time and energy and effort is spent on all these
    things, leaving too little time and emotional energy for the work of the
    people. So that's what I think. I want it to be over, whatever--the
    Speaker should do whatever is appropriate, and we should get on with it,
    put it behind us, and go on with the business of the country.
        Thank you.

    Note: The President spoke at 11:22 a.m. in the Roosevelt Room at the
    White House. During the exchange, Secretary Rubin referred to Foreign
    Minister Guillermo Ortiz Martinez of Mexico.

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