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FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC 6304
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE

UNCLAS SECTION 01 OF 04 MEXICO 001688 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
PLEASE PASS TO CODEL THOMPSON 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PINR SMIG SNAR MX
SUBJECT: SCENESETTER FOR CODEL THOMPSON, 10-11 APRIL 2007 
 
THIS CABLE IS SENSITIVE BUT UNCLASSIFIED. PLEASE HANDLE 
ACCORDINGLY. 
 
¶1.  (SBU) Summary: Ambassador Garza and Mission Mexico 
welcome you to Mexico City.  Since his December 1 
inauguration, President Felipe Calderon has taken several 
bold actions to confront the public security challenges 
facing Mexico:  he has launched major military-backed surge 
operations against drug traffickers in nine of the most 
conflictive states; he has begun work on his campaign pledge 
to overhaul the structure of Mexico's national police, 
including by unifying several autonomous federal police 
forces; he is advancing the long process to achieve justice 
reform, including oral trials; and his administration has 
extradited to the United States 37 wanted criminals, 
including 4 drug king-pins.  Calderon's initial actions in 
office reflect his commitment to continue and even intensify 
security-related cooperation with the United States, and his 
willingness to incur political risk in doing so. 
 
¶2.  (SBU) Summary continued: Your visit will demonstrate our 
support for bold Mexican leadership, reaffirm our 
security-related priorities with the new administration and 
our continued commitment to the Security and Prosperity 
Partnership (SPP) framework, and build on our relationship 
with Calderon's national security team.  Given local 
sensitivities, it will be important to convey that we 
understand and appreciate that Mexico is engaging in security 
cooperation both for its own national interests and as a 
responsible neighbor.  End summary. 
 
Immigration 
----------- 
 
¶3.  (SBU) Immigration remains by far the most sensitive issue 
in our bilateral relationship, one on which no Mexican 
politician can afford to be seen as capitulating.  The 
Mexican public draws little distinction between documented 
and undocumented immigrants, seeing both as ordinary, 
hard-working people who have been driven to the United States 
by economic adversity.  Many Mexicans perceive the U.S. 
concern with undocumented immigrants as hypocritical, since 
they fill jobs Americans are unwilling to take.  For his 
part, President Calderon recognizes that immigration reform 
is a U.S. domestic matter that is largely out of his hands 
and dependent upon U.S. congressional action.  He places 
great emphasis on creating opportunities and jobs for 
Mexicans inside Mexico.  In your meetings with your Mexican 
interlocutors, we encourage you to address the prospects for 
immigration reform in the U.S., explain U.S. domestic 
political factors affecting the issue of migration, and help 
your Mexican interlocutors maintain realistic expectations. 
 
Border Security 
--------------- 
 
¶4.  (SBU) The protocols addressing border violence that we 
entered into with the GOM last year on a trial basis in two 
sites have been successful.  Informally, these protocols have 
been extended to cover the entire border in California and 
Arizona, and we would like to see them extended along the 
remainder of the border.  Through these protocols, joint 
Border Violence and Public Safety working groups meet locally 
on a monthly basis to discuss incidents of and mechanisms to 
address cross-border violence (incidents of which are 
mounting). 
 
¶5.  (SBU) The SRE is quick to posture on incidents of 
violence against undocumented aliens: on February 8, it 
issued a press release calling for an investigation into the 
attack earlier that day by unidentified persons on a group of 
aliens near Tucson, that resulted in the deaths of three 
persons.  Likewise, the occassional cases in which Border 
Patrol agents (often acting in self-defense) injure or kill 
undocumented aliens inevitably provoke a sharp reaction here. 
 Your visit can reinforce our message that we are concerned 
by the violence that is an unfortunate bi-product of illegal 
migration and that we need to work together to ensure safe, 
orderly and legal border crossings, while stemming the flow 
of illegal migrants. 
 
¶6.  (SBU) The proposed border fence is an extremely sensitive 
issue, and in public settings, GOM officials frequently 
posture on it.  In this regard, minor incidents on the 
border, associated with infrastructure development, can 
quickly become public disputes.  In early March, the SRE 
issued a press release condemning an "incursion" when U.S. 
border agents briefly entered Mexico to extinguish a brush 
fire that quickly spread from the northern side of the 
border. Should the issue arise, we believe it is useful to 
 
MEXICO 00001688  002 OF 004 
 
 
emphasize that improved border security measures are part of 
a broader immigration reform effort that is taking shape in 
the U.S. 
 
Counter-Terrorism and WMD 
------------------------- 
 
¶7.  (SBU) President-elect Calderon fully understands the 
depth of our concerns about international terrorism and the 
transformational effect of the 9/11 attacks on USG policy; 
his commitment to work with us to preempt terrorist activity 
or entry through our shared border is unwavering.  With a 
strong foundation for joint counter-terrorism cooperaton 
established, the GOM's commitment to the issue should be 
recognized.  We are now making progress with the GOM in 
developing information sharing mechanisms.  With respect to 
WMD, the GOM -- on its own initiative -- has requested our 
assistance in strengthening its detection capacities. 
 
Drugs 
----- 
 
¶8.  (SBU) Mexico is a central partner in USG efforts to 
combat drug trafficking and other trans-border threats.  The 
2000-mile border, with its high-volume ports of entry, and 
Mexico's maritime waters and airports, are vulnerable to 
criminal penetration.  As much as 80 percent of all the 
cocaine consumed in the United States transits Mexico. 
Mexico is a major source of heroin, methamphetamines, and 
marijuana, and the primary placement point for criminal 
proceeds from the U.S. into the international financial 
system.  While taking aggressive measures to tackle the 
problem at home, President Calderon has also publicly urged 
the United States to boost our own efforts to drive down 
demand for narcotics and improve controls on arms, cash, and 
precursor chemicals smuggled into Mexico. 
 
¶9.  (SBU) A still-evolving draft bill in the Mexican Congress 
would, (i) authorize state and municipal police to enforce 
Mexico's drug laws, which until now have been the subject of 
exclusive federal jurisdiction, (ii) stiffen penalties on 
drug dealers, and (iii) codify existing practice not to 
prosecute some first-time offenders found in possession of 
single-use quantities of drugs for personal use, on the 
condition that they obtain counseling.  While we believe the 
first two provisions are extremely useful law enforcement 
tools, the third provision has generated some concern.  On 
the other hand, it has been GOM practice not to prosecute 
those found in possession of small quantities of drugs for 
personal use, and the draft bill would make it clear that 
such an exemption from prosecution would only apply to first 
time offenders. 
 
Facilitating Legal Trade 
------------------------ 
 
¶10.  (U) Legitimate two-way trade in goods and services 
between the U.S. and Mexico reached more than USD 368 billion 
in 2006, over one billion dollars a day. Much of this trade 
passes through overtaxed facilities along our common border. 
Numerous studies and trade groups, including the private 
sector North American Competitiveness Council, have stressed 
that border facilities and procedures should be improved 
significantly to accommodate current trade flows and expected 
future growth.  We can accomplish this by, inter alia: 
extending and/or synchronizing operating hours at U.S. and 
Mexican facilities at the same border crossing; sharing best 
practices among ports of entry; cutting back on redundant 
inspections; employing new technologies to track and speed 
the secure movement of cargo; identifying critical 
infrastructure investments needed on both sides of the 
border; and involving the private sector to make the North 
American supply chain more secure and efficient.  At the 
March 2007 summit between President Bush and Calderon, both 
governments agreed to increase efforts to facilitate 
legitimate trade across the border.  In response, the U.S. 
and Mexican governments already have each formed a senior 
level working group to make progress by the August 2007 
Security and Prosperity Partnership (SPP) summit. 
 
The Southern Border 
------------------- 
 
¶11.  (SBU) Mexico's southern border remains extremely 
vulnerable to illegal immigration, trafficking in persons, 
and the smuggling of all manner of contraband, including 
drugs/precursors.  It is an issue of great concern to the 
GOM, which attributes its lack of success in dealing with the 
problem to the difficult local terrain; the lack of 
enforcement infrastructure; the historically  informal nature 
 
MEXICO 00001688  003 OF 004 
 
 
of the border, particularly among local residents; and the 
inadequate border security efforts of its southern neighbors, 
Guatemala and Belize.  Nevertheless, progress in securing 
Mexico's southern border is of vital importance in achieving 
our own security objectives.  Calderon recently announced 
plans for a Safe Southern Border Program, designed to 
strengthen Mexico's law enforcement efforts in the south, 
improve treatment of illegal immigrants, and create a guest 
worker program for Central Americans.  In your meetings, you 
may wish to inquire about the status of Mexican efforts to 
develop a comprehensive strategy to secure the southern 
frontier. 
 
¶12.  (SBU) Note:  Historically, we have provided considerable 
assistance to help modernize and professionalize Mexican law 
enforcement institutions and operations throughout the 
country.  In the coming years, the USG will complement the 
GOM's efforts at strengthening its control over the movement 
of persons and goods north from Mexico's southern border.  We 
train thousands of Mexican federal and state police, 
prosecutors and investigators every year.  The USG also 
provides substantial material assistance, such as computers 
and cargo screening equipment, to improve Mexico's law 
enforcement infrastructure.  State Department/INL funding for 
these and other types of training and assistance programs 
will decline by 25% by FY08 from FY06 levels.  End note. 
 
Trafficking in Persons 
---------------------- 
 
¶13.  (SBU) Notwithstanding considerably increased GOM 
attention, trafficking in persons (TIP) remains a problem 
here: Mexico is a source, transit, and destination country 
for persons being trafficked for purposes of both labor and 
sexual exploitation.  A federal anti-trafficking law passed 
the Mexican Senate in December 2005 by a vote of 95-0, but it 
has been stalled in the lower house of Congress.  GOM 
officials and lawmakers have stated that passage of the law 
is a priority for the current congressional session.  State, 
ICE and USAID have active assistance programs here for 
organizations fighting TIP, and to assist states seeking to 
draft their own TIP laws.  In the last year, state 
legislatures passed anti-trafficking laws in Chihuahua, 
Guerrero and Michoacan.  Within four months of passing the 
legislation, the Chihuahua attorney general's office already 
has initiated investigations into two TIP cases. 
 
Consular Issues 
--------------- 
 
¶14. (SBU) One of the clearest indicators of the deep links 
between our two societies is our consular workload in Mexico. 
 About one third of all USG employees stationed in Mexico are 
dedicated to providing consular services.  An estimated one 
million American citizens reside in Mexico and about 12 
million visit every year.  Most Americans rarely encounter 
problems here, but each year hundreds are arrested, 
assaulted, die, fall ill, or become destitute, and seek 
assistance from consular employees.  More abductions of U.S. 
citizen children take place (in both directions) between the 
U.S. and Mexico than anywhere else in the world.  The 
migration of U.S. citizen retirees to Mexico has provided 
impetus to improving property rights protections in Mexico, 
including the introduction of title insurance offered by U.S. 
insurance companies.  The air phase of the Western Hemisphere 
Travel Initiative went into effect January 23 with few 
problems and 99 percent of U.S. citizen passengers bound for 
the U.S. carried passports.  The land and sea phase, which 
will go into effect before June 2009, will present a greater 
challenge due to the fact that there may be as many as 
700,000 U.S. citizens residing in Mexico without 
documentation who will need passports. 
 
¶15. (SBU) U.S. Consular Sections in Mexico processed about 
1.3 million nonimmigrant visa applications last fiscal year, 
including 114,000 temporary worker (H2) visas (71 percent of 
the world total), of which almost 35,000 were temporary 
agricultural workers (92 percent of the world total).  There 
are no numerical limits on temporary agricultural worker 
visas and Mission Mexico stands ready to process much greater 
numbers of these visas if U.S. agribusiness chooses to make 
greater use of this program.  All immigrant visas in Mexico 
are issued in Ciudad Juarez, where we processed about 86,000 
immigrant visa applications in 2006, of which 54,000 were 
issued.  This is the greatest number of immigrant visas 
issued to any one nationality in the world.  This fluid legal 
movement of Mexicans northward, along with long-standing 
documented and undocumented communities in the U.S., make the 
US $25 billion in remittances that Mexicans send home 
Mexico's second largest source of foreign exchange revenues, 
 
MEXICO 00001688  004 OF 004 
 
 
behind petroleum and now ahead of tourism. 
 
Political and Economic Backdrop 
------------------------------- 
 
¶16.  (SBU) President Felipe Calderon is off to a strong 
start, demonstrating leadership at home and abroad in a 
manner much appreciated by Mexicans: although he won election 
with a bare 36% plurality in a three-way race, a recent 
opinion poll showed that 58% of Mexicans approve of his 
performance to date.  From the beginning, he has shown 
himself eager to build on an already strong U.S.-Mexico 
relationship.  Calderon faces significant domestic challenges 
in pursuing his security, economic and social reform agendas, 
including a closely divided Congress.  At the same time, he 
must chip away at the historic Mexican ambivalence toward the 
U.S. that has slowed progress on many common fronts, 
including security. 
 
¶17.  (U) President Calderon inherited a stable, growing 
economy tightly linked to U.S. economic cycles.  Mexico 
chalked up an estimated 4.7% growth rate in 2006, rebounding 
from near zero growth in the first years of the decade.  Real 
GDP growth is expected to slow to around 3.5% this year. 
Inflation has risen in recent months to around 4%, but is 
under control.  Public finances have improved steadily in 
recent years, boosted by sound macroeconomic management and 
high oil prices.  After crude oil revenues, remittances have 
become Mexico's second largest source of foreign exchange, 
ahead of foreign direct investment and tourism receipts. 
Remittances -- which support many of the poorest families in 
Mexico -- totaled $23 billion in 2006, up 15% from 2005. 
Mexico's exports to the U.S. (which account for almost 90% of 
all Mexico's exports) continue to grow at double-digit rates. 
 Many here are growing concerned, however, about Mexico's 
ability to compete in an increasingly globalized world, as it 
loses market share to India, China and other emerging 
economies. 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity 
GARZA