DATE=6/4/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-233402
TITLE=MEXICO / DRUGS (L-ONLY)
BYLINE=JAMES BLEARS
DATELINE=MEXICO CITY
CONTENT=
VOICED AT: 

INTRO:   MEXICAN AUTHORITIES SAY THEY WERE NOTIFIED TWO YEARS AGO
OF A U-S INVESTIGATION INTO DRUG MONEY LAUNDERING BY MEXICAN 
BANKS, BUT THEY DENY GIVING THE AMERICANS PERMISSION TO CONDUCT 
UNDERCOVER OPERATIONS ON MEXICAN SOIL.  REPORTER JAMES BLEARS HAS
MORE FROM MEXICO CITY.

TEXT:  THE THREE-YEAR UNDERCOVER OPERATION CODE-NAMED " 
CASABLANCA" HAS BEEN TOUTED AS THE LARGEST AND MOST SUCCESSFUL IN
THE HISTORY OF U-S LAW ENFORCEMENT.  

INDICTMENTS HANDED DOWN TWO WEEKS AGO IN LOS ANGELES CHARGE 
MIDDLE-RANKING EMPLOYEES OF 12 OF MEXICO'S 19 BANKS WITH 
LAUNDERING AT LEAST 110 MILLION DOLLARS FOR MEXICAN AND COLOMBIAN
DRUG CARTELS. BUT THE AMERICANS' JOY HAS BEEN JARRED BY MEXICAN 
FURY AS OFFICIALS AND POLITICIANS SOUTH OF THE BORDER SAY THEY 
WERE  NOT  INFORMED UNTIL JUST BEFORE THE ANNOUNCEMENT TO THE 
MEDIA.

HOWEVER, THE MEXICAN ATTORNEY GENERAL'S OFFICE HAS NOW CONFIRMED 
THAT ITS DEPUTY, RAFAEL ESTRADA SAMANO, MET IN JANUARY OF 1996 
WITH TWO OFFICIALS OF THE U-S CUSTOMS AGENCY AND THE AMERICAN 
CUSTOMS ATTACHE FROM THE U-S EMBASSY IN MEXICO CITY.  THE 
AMERICANS TOLD MR. ESTRADA ABOUT MONEY LAUNDERING IN THE STATES 
OF BAJA CALIFORNIA AND SONORA THAT EXTENDED TO PANAMA, THE CAYMEN
ISLANDS AND THE UNITED STATES.

MR. ESTRADA SAMANO CONFIRMS THE MEETING OCCURRED AND THAT HE 
INFORMED HIS BOSS AND RELEVANT AUTHORITIES IN THE STATES.  
HOWEVER, HE DENIES KNOWING ABOUT THE UNDERCOVER AMERICAN 
OPERATION ON MEXICAN TERRITORY, OR THAT HE GAVE THE AMERICANS A 
GO-AHEAD TO WORK IN MEXICO.

THE POLITICAL AND DIPLOMATIC FALLOUT IS CONTINUING, AND THE ISSUE
IS CERTAIN TO BE PURSUED AT NEXT WEEK'S EXTRAORDINARY SESSION OF 
THE UNITED NATIONS ON DRUGS, A MEXICAN-SPONSORED INITIATIVE.

                        /// REST OPT ///

MEXICO SEES THE CASE AS EXTRA-TERRITORIAL PROWLING BY THE 
AMERICANS, WHILE U-S OFFICIALS SAY SECRECY WAS NECESSARY TO 
PROTECT THE LIVES OF AMERICAN AGENTS.  MEXICAN OFFICIALS ARE 
PREPARING TO ACCUSE THE U-S OPERATIVES OF ENTRAPMENT, ACTUAL 
MONEY LAUNDER AND VIOLATING MEXICAN SOVEREIGNTY.(SIGNED).



NEB/JB/MWD/PT

04-Jun-98 8:41 PM EDT (0041 UTC)
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Source: Voice of America
.