[Weekly Compilation of Presidential Documents Volume 33, Number 3 (Monday, January 20, 1997)]
[Pages 48-50]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on Mexico's Repayment of Loans 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 

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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 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 Unit

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ed 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.