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DE RUEHME #3504/01 3481602
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R 141602Z DEC 09
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC 9387
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
RUEHC/DEPT OF LABOR WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFISS/CDR USSOUTHCOM MIAMI FL
RHMFIUU/HQ USNORTHCOM
RUEAHLA/DEPT OF HOMELAND SECURITY
RUEABND/DEA HQS WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC

UNCLAS SECTION 01 OF 05 MEXICO 003504 
 
SENSITIVE 
SIPDIS 
 
NSC FOR SENIOR DIRECTOR RESTREPO; DEPT FOR WHA DAS 
JACOBSON, MEX DIRECTOR LEE, D STAFF CUE, AND INR HOHMAN. 
 
E.O. 12958: N/A 
TAGS: PREL PGOV PINR MASS ECON ETRD MX

SUBJECT: MEXICO: VISIT OF A/S VALENZUELA (DEC 06-08) 

 ¶1. (SBU) Summary: During his two day visit to Mexico (Dec 
6-8), A/S Arturo Valenzuela met with senior Mexican officials 
including key counterparts from the Secretariat of Foreign 
Affairs, Governance, Federal Police and several key economic 
ministries. A visit to several Federal Police installations, 
a meeting with SSP Director Genaro Garcia Luna provided 
insights into how our Merida assistance is helping Mexico 
address problems with organized crime and drug trafficking 
and revealed insights into some of the political pressures 
preoccupying the Calderon administration. The session at the 
Foreign Ministry opened up a discussion on how Mexico could 
provide regional leadership on Honduras and other issues, and 
an out of the box exchange on ways to use the 2010 Mexican 
bicentennial celebration to move forward on border 
modernization. A round table with key policy makers on trade 
and competitiveness at the Los Pinos Presidential compound 
began with a review of some perennial trade disputes but 
quickly evolved into a constructive exchange on setting a 
bilateral agenda to strengthen U.S. and Mexican 
competitiveness in a global economy.  Valenzuela also met 
Calderon chief-of-staff Patricia Flores and Interior Minister 
Fernando Gomez Mont, providing a chance to drive home the 
visit's themes with two critical political players. 
 
¶2. (SBU)  There were several outreach events. A breakfast 
with local U.S. and Mexican business leaders explored ideas 
for the next stage of U.S. Mexican economic integration, 
focusing on information technology, education and energy. A 
round table with civic participation groups and new media 
bloggers, focused on efforts to build a national consensus 
against violence. A press event provided an exchange with 
leading journalists. A Wilson Center/Mexican institute dinner 
brought together a host of parliamentary political players 
and think tankers for a give and take on bilateral relations 
and political change in Mexico. Throughout the visit, there 
were signs of a political class, cognizant of the need for 
internal change in order to address modern threats and 
exploit new opportunities but uncertain how to effect it, and 
reminders of the need to ensure that all major political 
forces be included in our ongoing efforts to deepen our 
relationship and expand the avenues of cooperation with our 
neighbors to the south. End Summary 
 
 
--------------------------------------------- ----- 
Security Discussions with the Federal Police (SSP) 
--------------------------------------------- ----- 
 
¶3. (SBU) A tour of SSP installations at the Federal Police 
Headquarters and training facilities at Iztapalapa provided a 
good snapshot of how our Merida assistance is deepening 
Mexico's law enforcement capabilities.  At Iztapalapa, 
Valenzuela saw various simulated exercises on hostage rescue, 
operations aimed at securing planes and large office 
buildings, and the use of riot control units and various 
motorized law enforcement vehicles, as well as air support 
installations to service helicopters and other police 
aircraft.  At headquarters, a review of the Plataforma Mexico 
intelligence system provided a good glimpse into the state of 
the art technology incorporated in the comprehensive police 
data base system that we are helping the Mexican government 
develop. Valenzuela capped off the tour with a meeting with 
SSP Secretary Garcia Luna. 
 
¶4. (SBU)  Garcia Luna reviewed his efforts in finalizing a 
Mexican government initiative to replace military units in 
Ciudad Juarez with potentially over 2,000 federal police (ref 
A).  The idea was to move the military to the outskirts 
around the city, focusing them on securing transit routes and 
providing backup support for urban operations with Federal 
Police units taking over law enforcement responsibilities in 
the city.  This would help ensure that military and police 
actions were more closely tied to legal prosecution and would 
relieve the operational burden currently on the army. Garcia 
Luna said a key operational priority was to close down, for 
six months, installations in the ever growing red light 
district, including strip joints, brothels, and other 
establishments involved in the sex trade. These businesses 
and others that fostered drinking and drugs were encouraging 
a tourist trade that was attracting criminal elements and 
providing new opportunities for organized drug cartels that 
had unleashed an explosion of violence on the city. 
 
¶5. (SBU) Garcia Luna underscored the challenge of replacing 
the high number of municipal and state police with better 
trained, vetted federal units. For example there were 400 
Federal Police assigned to Baja, versus 3,500 local police in 
Tijuana and 2,800 men in Mexicali. Many local governments 
used the municipal police for civic action as opposed to hard 
police work. New criminal patterns were also making the job 
harder with organized groups taking over robbery and other 
activities that, while much more prevalent than drug 
killings, had traditionally been the work of individual 
criminals that were easier to combat. Garcia Luna favors 
collapsing state and municipal police into one force, with 
federal police filling the gap during the transition. 
 
¶6. (SBU)  Valenzuela noted the difficulty of bringing 
together federal and local law enforcement efforts. His work 
with Mexico over the years had given him a good understanding 
of the country and the challenges involved in dealing with 
local authorities. With regard to raising the competence of 
local police, the problems were not only political. Both the 
Ambassador and the Assistant Secretary noted the need to 
proceed carefully in closing down businesses in Ciudad Juarez 
that could complicate a difficult economic environment and 
spur additional violence and criminality. 
 
--------------------------------------------- ------- 
Foreign Ministry: Mexican Leadership on Honduras ... 
--------------------------------------------- ------- 
 
¶7. (SBU)  A breakfast with SRE Undersecretaries Julian 
Ventura (North America) and Salvador Beltran del Rio (Latin 
America) provided an opportunity to review regional issues, 
e.g., Honduras, and review ways to strengthen our bilateral 
cooperation. A/S Valenzuela noted the need to find a way past 
the Zelaya/Micheletti impasse in Honduras, restore peace and 
stability and open the way to rebuilding Honduras' shattered 
economy. The trick was not allowing Brazil and others to 
monopolize the mantle of regional leadership. One alternative 
is for Mexico and the United States to support a Central 
American-Caribbean Initiative advanced by Presidents 
Fernandez and Arias.  This could help advance a unity 
government and truth commission, and could usefully balance 
Brazil's mis-steps with Zelaya. Ambassador Pascual emphasized 
that the US and Mexico have similar stances on Honduras and 
have the most to gain from working cooperatively as equals: 
what was needed were concrete, practical ways that we could 
work together more effectively.  Beltran agreed, noting the 
importance of preventing Venezuela and other countries from 
dominating the debate without offering any viable solutions 
(Note: During the breakfast Beltran commented on regular 
reports coming in on his blackberry from Foreign Secretary 
Espinosa, in Uruguay for the Mercosur meeting. End Note). 
Valenzuela encouraged Beltran to support ongoing efforts to 
get Zelaya and Micheletti out of the headlines so that 
negotiations on a unity government could move ahead. 
 
 
--------------------------------------------- -- 
Binational Commission, Bridges and Bicentennial 
--------------------------------------------- -- 
 
¶8. (SBU) Ventura raised the challenge of coordinating the 
huge number of agencies engaged on both sides of the border. 
 The Bi-National Commission had lived out its time, but some 
mechanism was needed to get agencies to share their plans and 
improve their coordination and planning.  Ventura noted that 
significant work continued on the Mexican side to prepare the 
opening of three new bridge crossings along the Mexican-U.S. 
border.  The Mexican government saw the events as a way to 
dispel the perception that all of its efforts along the 
border were about fighting drug cartels. Ventura noted 
Mexican interest in having Presidents Obama and Calderon 
inaugurate one of the bridges together in early 2010. 
Valenzuela suggested adding a cultural/public affairs 
element, e.g. a musical event with Juanes and Mexican 
entertainers that would emphasize positive themes and 
invigorate grass roots participation in rejecting violence 
and criminality.  We would also consider initiatives,  said 
Valenzuela, to contribute to the upcoming Mexican 
bicentennial, in a way that could celebrate our progress in 
building a more honest, transparent and productive bilateral 
relationship. 
 
 
--------------------------------------------- ---------- 
Trade and Competition Talk at the Presidential Compound 
--------------------------------------------- ---------- 
 
¶9. (SBU) At the President,s residence, Presidential Advisor 
Rafael Fernandez de Castro laid out what he characterized as 
our negative and positive economic agendas. and the 
imperative to put our economic agenda on a constructive 
plane.  The negative agenda, as described by SRE Under 
Secretary for Trade Beatriz Leycegui, includes trade disputes 
such as trucking, tuna, Country Of Origin (COOL) legislation, 
Buy America legislation and shrimp.  A/S replied that it was 
important to address each country's political concerns to 
make real progress.  Ambassador Pascual urged U/S Beatriz 
Leycegui to meet with U/S of State Robert Hormats on these 
issues.  On the more positive agenda, the GOM officials at 
Los Pinos raised border infrastructure, regulatory 
cooperation and efforts to promote medical tourism from the 
United States. Ambassador Pascual suggested the GOM focus on 
three key sectors that would help Mexico become a more 
competitive partner: investing in technology and telcoms, 
renewable energy and looking for joint areas to improve 
Mexico,s infrastructure.  He noted that efforts on medical 
tourism needed to be carefully coordinated with our ongoing 
health reform efforts and asked for time to follow up in 
Washington before Mexico moved ahead on a specific 
initiative. He closed by saying he hoped to work with the GOM 
to develop a strategy for a competitiveness agenda that could 
run parallel to our shared security agenda. (Septel will 
provide more details on trade and business discussions.) 
 
 
------------------------------------ 
And also with Local Business Leaders 
------------------------------------ 
 
¶10. (SBU)  A/S Valenzuela also participated in a briefing by 
a group of local business leaders, representing Microsoft de 
Mexico, Cisco, General Motors de Mexico, Wal-Mart Mexico, 
Kimberly-Clark Mexico, Kansas City Southern Railways, Sempra 
Energy and Goldman Sachs. Discussion focused on obstacles to 
further growth, including an overreliance on oil for 
government revenues, an education system in which 54 percent 
of students leave school at age 15, and low computer and 
internet use, particularly in small companies.  Most of the 
U.S. companies present had made substantial investments in 
Mexico and, with the exception of General Motors, were 
profitable, despite the challenges.   Nevertheless,  they 
characterized Mexico as &stagnant8 and noted the need for 
the government to find a way to reduce dependence on oil and 
make the economy more dynamic.  Some suggested modeling the 
state-owned oil company Pemex after Petrobras, the Brazilian 
counterpart. WalMart and General Motors said they were 
focused on developing world class suppliers in Mexico, both 
for domestic sales and export. Information Technology leaders 
observed Mexico's lack of competitiveness compared to the 
BRIC countries, and low internet penetration rates (25 
percent) and pointed to a recent study, commissioned by two 
U.S. tech companies, that showed a 10 percent increase in 
broadband penetration could increase the country's GDP by 2.8 
percent over five years.  Next steps on competitiveness could 
also include a joint U.S. Mexican approach on China, and 
closer bilateral cooperation in APEC. 
 
--------------------------------------------- ----------- 
Civic Groups and Bloggers on Zero Tolerance for Violence 
--------------------------------------------- ------------ 
 
¶11. (SBU)  A/S Valenzuela also led a roundtable discussion 
with Mexican NGOs on using new media to engage citizens in 
the campaign against violence in Mexico.  The discussion was 
video-streamed live on the internet from the Benjamin 
Franklin Library, with questions submitted by web-chat from 
on-line audience members.  More than 9,000 contacts of the 
library, including Mexican researchers, university 
professors, journalists, and students, were notified of the 
webcast by Facebook and email.  Roundtable participants 
included AMB Pascual, representatives of leading Mexican NGOs 
Iluminemos Mexico, SOS Mexico, Mexicans United Against Crime 
(MUCD), the National Association of Councils for Civic 
Participation, and the CEO of Mobile Accord James Eberhard. 
 
¶12. (SBU)  Panelists agreed that reaching out to target 
audiences, particularly youth, through new media was a key 
component of local NGO strategies to increase citizen 
participation.  Texting, Facebook, and other digital services 
are powerful tools that pose new opportunities and challenges 
for Mexican NGOs seeking to amplify their messages on 
anti-violence.  NGO leaders concurred that greater 
cooperation and collaboration among NGOs, political leaders, 
and other members of civil society are essential to the 
success of anti-violence efforts in Mexico.  Ambassador 
Pascual underlined the critical role that citizen engagement 
through new media and traditional forms plays in the broader 
context of the Merida Initiative and the promotion of a more 
prosperous and secure Mexico.  During the panel discussion, 
photos of the event were posted on the Library's Facebook 
page on a continual basis.  The event received positive press 
coverage in leading Mexican newspapers "El Universal" and 
"Excelsior." 
 
 
--------------------------------------------- ------------ 
Political/Intellectual Leaders on the Change Mexico Needs 
--------------------------------------------- ------------ 
 
¶13. (SBU)  A/S Valenzuela and AMB Pascual participated in a 
seminar and dinner hosted by the Woodrow Wilson Center Mexico 
Institute Advisory Board bringing together political, 
academic, and civil society leaders.  A/S Valenzuela 
emphasized the importance of the U.S.-Mexican bilateral 
relationship and noted the series of challenges shared by 
both countries that needed to be addressed through joint 
action, including organized crime and managing economic 
integration.  Questions and commentary raised by the audience 
questioned whether counternarcotics merited the focus it was 
receiving in the bilateral relationship. Ambassador Pascual 
noted the urgent need to address what was a hemispheric 
problem that left unchecked would continue to undermine 
economic growth, exploit marginalized communities and 
frustrate efforts to bring our two countries closer. A/S 
Valenzuela also joined a post-dinner conversation with major 
parliamentary and media leaders (mechanical problems with the 
plane delayed his arrival) that engendered a lively 
discussion on the need for political change and the 
difficulty of finding a way to effect it among political 
parties focused on safeguarding their own political fortunes. 
At a capstone lunch before departing for the airport, 
Secretary of Governance Gomez Mont delved into the Mexican 
government's ideas on political reform, particularly on 
re-election of deputies to the parliament and reform of the 
voting system.  Both are necessary parts of a strategy to 
create citizen accountability. 
 
 
------- 
Comment 
------- 
 
¶14. (SBU) The two-day visit of A/S Valenzuela engendered 
discussions on the full scale of the bilateral agenda. A rich 
exchange -- on security cooperation and joint efforts to 
expand and deepen our Merida cooperation; on trade and 
competition ideas that could help spur economic recovery and 
future investment; on Mexican leadership to coordinate 
regional diplomatic initiatives with our efforts; and even 
disquiet from the political and intellectual class on the 
need for structural change that will help prepare Mexico for 
future challenges -- reflected a strong and growing 
partnership.  The tone throughout reflected an honesty and 
openness of engagement that was surprising for its lack of 
nationalist edge. Capacity still lags, and not all bad habits 
have been broken.  But the platform for progress is genuine, 
and increasingly broader in scope. 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity and the North American 
Partnership Blog at http://www.intelink.gov/communities/state/nap / 
PASCUAL