Pubdate: Thu, 17 Dec 1998 Source: Reuters Copyright: 1998 Reuters Limited. Author: Anthony Boadle U.S., MEXICO CLASH OVER USE OF GUNS IN DRUG WAR WASHINGTON, Dec 16 (Reuters) - U.S. and Mexican officials failed to bridge their main difference in the war on drugs, the operation of armed U.S. agents inside Mexico, participants at a two-day strategy meeting said on Wednesday. Mexican Foreign Minister Rosario Green said Mexico was not prepared to allow U.S. Drug Enforcement Administration agents to carry weapons inside its territory. She also would not rule out taking legal action against U.S. Customs agents that operated secretly in Mexico to uncover a money-laundering ring using Mexican banks. "This is still being investigated," Mexican Attorney General Jorge Madrazo said at a news conference with White House drug policy czar, Gen. Barry McCaffrey. Operation Casablanca was the largest U.S. crackdown against laundering of drug profits. Some 150 people were arrested in May, including two dozen employees of Mexico's major banks. But it was carried out behind the Mexican government's back, severely straining cooperation in the drug war. Mexico, historically sensitive about U.S. encroachment on national sovereignty, said it would seek to extradite the U.S. agents. "That's an issue that is still being discussed," said U.S. Customs Service director Ray Kelly after the meeting. Top U.S. and Mexican officials exchanged information for two days on their actions against drug cartels that smuggle billions of dollars of South American cocaine and other narcotics through Mexico and into the United States. The officials also met with U.S. members of Congress who are skeptical about Mexico's efforts to fight corruption and stop the flow of drugs onto U.S. streets. Sen. Dianne Feinstein of California said she told the officials of her concern that drug cartels had won new power in Mexico, moving their operations into the Yucatan Peninsula. Feinstein, a Democrat and member of the Senate Foreign Relations Committee, also raised the issue of extradition, saying Mexico must do more to capture Mexican drug lords and bring them to trial in the United States. "For me the most pivotal issue in the war against drugs is the arrest and extradition of the cartel leadership," she told reporters. Feinstein said Mexico had arrested the Amezcua brothers, who controled methamphetamine production and trafficking into the United States, but a Mexican court had not convicted them. "I would be hopeful that they will be extradited," she said. The meeting with a half dozen senators and representatives came two months before the Clinton administration must send to congress an annual evaluation of the drug-fighting record of major countries involved in drug production and trafficking. DEA officials say two-thirds of the South American cocaine sold in the United States comes throguh Mexico. Feinstein has insisted that Mexico allow DEA agents to carry weapons when they operate south of the border, an issue that makes Mexicans bristle. Other politicians, such as Californian Congressman Xavier Becerra, believe that is already happening. "The whole issue of U.S. agents carrying weapons on the Mexican side is still a thorn," Becerra told reporters. "Some folks are not willing to admit that it already occurs, that U.S. agents already carry weapons on the Mexican side," Becerra said. "The Mexicans won't admit that. The U.S. won't admit that, but to some degree it already occurs." Becerra said the level of cooperation between Mexico and the United States on law enforcement issues is much greater than the governments are willing to admit publicly, and that Mexican statements on extraditing U.S. agents are just "puff." - --- Checked-by: Rolf Ernst