Mexico Reaches Pact With Rebels : Revolt: Government promises democratic reforms and investments in social services. Indian uprising cast spotlight on poverty, oppression in southern state.

Indian rebels and the government peace commissioner announced a 32-point accord Wednesday that promises democratic reforms, limited autonomy for indigenous communities, this nation’s first anti-discrimination law and major investments in social services.

Although still subject to approval by grass-roots rebels, the agreement reached after nine days of talks appears to end two months of embarrassment for the government.

It began Jan. 1, when guerrillas calling themselves the Zapatista National Liberation Army took control of several towns in southern Mexico.

The uprising belied the government’s insistence that Mexico had no guerrilla movement.

It called attention to the poverty and oppression in Chiapas, Mexico’s most southern state, just as President Carlos Salinas de Gortari was touting his nation’s entry into the First World.

The rebellion, which left at least 145 people dead, began the same day the North American Free Trade Agreement took effect.

Since then, charges of human rights violations by the Mexican army, the witty communiques of rebel spokesman Subcommander Marcos and the peace initiatives of government negotiator Manuel Camacho Solis have dominated national attention.

They have overshadowed the presidential campaign of ruling party candidate Luis Donaldo Colosio and led to speculation that he will be replaced on the ticket by Camacho.

The rebellion has also increased pressure on the government to ensure that the Aug. 21 presidential election will be clean, providing an unwelcome reminder of Salinas’ dubious 1988 victory.

Many Mexicans believe that Cuauhtemoc Cardenas actually won the 1988 election.

The government refused to include in Wednesday’s accord two rebel demands dealing with federal electoral reform, saying those issues will be addressed in Interior Ministry negotiations with political parties and in a special session of the Mexican Congress.

But the Zapatistas’ influence on national reform was evident.

Early in the nine days of talks, the rebels spoke with political parties, providing a forum for opposition leaders demanding changes in the federal election law in time for the presidential vote.

The government has since indicated that more radical reforms--perhaps even allowing the presence of international observers for the presidential elections--are under consideration.

The government response to the 32 rebel proposals dealing with state and Indian issues included concrete pledges with deadlines for completion, ranging from a month to, in one case, three years.

“The government has assumed its commitments seriously,” Salinas said in a statement from Mexico City. “In the coming days, the decisions needed to assure their execution will be made.”

Wednesday’s accord calls for an extensive renovation of the Chiapas state political system that would include the breakup of two townships into smaller units.

One township, Ocosingo, is twice the size of Delaware, with a population of 121,012--most of them Indians, who are governed by non-Indian municipal officials.

The state and federal legislative districts would also be redrawn to permit more Indian representatives.

A new federal law for indigenous communities will be proposed, which would allow Indians to conduct local business in their own language and to incorporate their traditions and customs into their laws and courts.

Another federal initiative would, for the first time, punish individuals for discriminating against Indians.

Both bills will be presented to the Mexican Congress in the next regular session, scheduled for April, and are expected to pass easily in a lawmaking body controlled by Salinas’ party.

The government proposal also promised teachers, health clinics and doctors, electricity, better housing, roads and child care centers. Indigenous people would receive their own radio station, free of government control.

The Commerce Ministry was directed to study the impact of NAFTA on Chiapas and to develop programs to alleviate harm it may cause in the region.

“At their heart, their demands were nothing more than demands for justice and dignity,” said peace mediator Samuel Ruiz, bishop of San Cristobal and a longtime Indian rights activist.

“We hope that all of society will support the points agreed upon,” Salinas said.

But two points of the pact are bound to generate controversy.

The agreement recognized that the land reform that was part of the Mexican Revolution has not been carried out completely in Chiapas.

Large ranches would now be subdivided, and private property might be expropriated to meet small farmers’ need for land, the Chiapas peace accord says.

Ranchers here, however, have denied that large land holdings exist and have sought the support of colleagues nationwide to prevent the breakup of their property.

The government also agreed to find a formula to compensate Chiapas for the large amount of oil and electricity that the state supplies the rest of the nation. The state now is paid nothing for that energy.

The formula will be developed in 90 days but phased in over three years to minimize tensions it will create in other parts of Mexico, the peace accord says.

“We have tried to take into account the legitimate interests of other parts of Chiapas society,” Camacho Solis said.

The Zapatista representatives said they will take the response back to their jungle communities for consultation.

“Now we have replies that reflect the commissioner’s true interest in making peace,” the rebel known as Commander Juan told reporters. “Now, we must reflect on his words. We must speak to the collective heart that sent us.”