VZCZCXRO6588
PP RUEHCD RUEHGD RUEHHO RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHMC #0046/01 0312318
ZNR UUUUU ZZH
P 312318Z JAN 08
FM AMCONSUL MONTERREY
TO RUEHC/SECSTATE WASHDC PRIORITY 2677
INFO RUEHME/AMEMBASSY MEXICO PRIORITY 3558
RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHMC/AMCONSUL MONTERREY 8033

UNCLAS SECTION 01 OF 02 MONTERREY 000046 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
DEPARTMENT PASS TO USTR 
DEPARTMENT PASS TO OSAC 
 
E.O. 12958: N/A 
TAGS: SNAR ASEC EINV ECON PGOV ETRD MX
SUBJECT: MONTERREY PRIVATE SECTOR VIEWS ON SECURITY SITUATION 
 
 
MONTERREY 00000046  001.2 OF 002 
 
 
¶1.  (SBU)  Summary.  On January 25, at the Consulate's periodic 
Business Roundtable, we heard the private sector's perspective 
on the security situation in Monterrey.   The event, organized 
by FCS and hosted by the Consul General, brought together ten of 
the Consulate's best private sector contacts.  During the 
discussion section, our interlocutors expressed the view that 
while the Mexican federal government has made impressive 
progress against the drug cartels, state efforts were lagging. 
Some participants noted the increased risk of bank robberies and 
cargo theft and wondered whether the risk of kidnappings had 
risen in Monterrey.  Despite these problems, there was a general 
consensus that Monterrey's security problems have not impeded 
the continued flow of foreign direct-investment.  End Summary. 
 
Praise for President Calderon 
 
¶2.  (U)  Our private sector contacts were impressed by President 
Calderon's willingness to take on the drug cartels, especially 
since this problem had been neglected during prior Mexican 
Administrations.  An industrial real estate developer praised 
President Calderon for his strong reaction to the drug cartels, 
and said that he was pleased to see Mexican federal military and 
police involvement.  Our colleague at the British Consulate 
agreed, stating that the federal government had made an 
impressive start.  Participants were curious about the status of 
the Merida Initiative, and were pleased to learn that the 
proposal had gone to the U.S. Congress for consideration and 
that the consultative process was ongoing with all concerned 
parties. 
 
Weakness at the State/Local Level 
 
¶3.  (SBU)  The consensus was that the drug cartels operate with 
impunity in Nuevo Leon.  And although the federal government 
received high marks, several business representatives noted the 
increase in bank robberies locally, and partially attributed the 
increase in crime here to the Nuevo Leon state government's 
weakness on security issues.  A business consultant said that 
the state government had no coordinated or integrated approach 
to security issues.  He further opined that the Nuevo Leon state 
government had lost credibility when it claimed that bank 
robberies would stop, but failed to put forward any apparent 
plan to do so. 
 
¶4.  (SBU)  A private security expert told us that the drug 
cartels had coordinated their efforts to form a common front 
against the governmental authorities.  The same expert used a 
kidnapping case in the neighboring state of Coahuila as an 
illustration of the corruption of the local police.  After the 
kidnapping victim was released, the family registered a 
complaint with local police.  Within five minutes they received 
a call warning them to drop the complaint or the whole family 
would be kidnapped. 
 
¶5.  (SBU)  None of our contacts felt that the local municipal 
governments were effectively combating the drug cartels. 
Indeed, one of our interlocutors commented that organized crime 
had infiltrated all of the municipal governments in the 
metropolitan area.  Another participant noted, privately, that 
while San Pedro had the reputation of being a haven where 
kidnapping for ransom did not occur, he and his family had been 
victims of a home invasion in 2006. 
 
Worry over Cargo Theft 
 
¶6.  (SBU) Our business contacts were very concerned about cargo 
theft, which we understand has increased rapidly in Nuevo Leon. 
In the majority of cases, we were told, truck cargo is stolen 
through the complicity of the driver.  The bands of thieves 
possess the sophistication to block GPS devices and quickly 
change serial numbers so the trucks cannot be traced.  A 
security expert commented how trucking companies need to know 
their drivers, because in some cases the drivers have multiple 
prior incidents.  In other cases, narcotics traffickers can buy 
trucks with cash and use them to haul drugs across the border. 
The Consul General briefed on the recently established Monterrey 
chapter of the Overseas Security Advisory Committee (OSAC). 
OSAC Monterrey held a seminar in January on cargo security, and 
planned a meeting in February on best practices to prevent cargo 
theft.  The Consul General also urged the businesses to consider 
joining OSAC, and we distributed OSAC information materials.  In 
addition, the Commercial Attache offered to help companies 
identify new technological solutions as related to facility or 
transportation security. 
 
But Foreign Investment Continues to Flow 
 
MONTERREY 00000046  002.2 OF 002 
 
 
 
¶7.  (SBU) Despite Monterrey's security problems, there was a 
consensus that security issues have not impaired foreign direct 
investment.  According to several contacts, the drug executions 
primarily involve police and those involved with the cartels, so 
security issues, aside from items such as cargo theft, do not 
directly affect the business community. Another participant put 
it differently, 'Yes, there is crime' he noted, 'but that's just 
one factor to be considered in making an investment and so far 
the economic positives have vastly outweighed the security 
negatives.'   Note. Investment statistics bear out this 
contention as Nuevo Leon registered a record US $1.8 billion in 
foreign direct investment in 2007.  End Note. 
WILLIAMSON