Chiapas Envoy Rules Out Presidency Bid : Mexico: Camacho Solis says negotiations remain his priority. Speculation had undermined nation’s political stability.

Peace envoy Manuel Camacho Solis said Tuesday that he will not run for this nation’s presidency, ending speculation that he would use his negotiations with Indian rebels in southern Mexico as a platform to launch a campaign that was certain to split the ruling party.

Instead, Camacho Solis said he will put all his effort into finding a peaceful solution to the peasant uprising that has left at least 145 people dead in the southern state of Chiapas.

The popular former Mexico City mayor had flirted for months with the possibility of challenging the candidate of the Institutional Revolutionary Party, or PRI. The party has ruled Mexico for 65 years.

But by refusing to squelch rumors of a maverick campaign, Camacho Solis had provoked criticism from party stalwarts and undercut Mexico’s political stability--one of the country’s greatest attractions for foreign investors--provoking wild swings in the volatile Mexican stock exchange.

He even appeared to be endangering the peace process. A rebel spokesman told foreign reporters last week that guerrillas would view a Camacho Solis presidential bid “with suspicion” because it would raise questions about his commitment to the negotiating process.

But Camacho Solis also used his position to pressure for political reforms demanded by rebels but not addressed in the government peace proposal. In a news conference two weeks ago, he threatened to seek the presidency unless democratic reforms were passed.

On Tuesday, the Mexican Congress began a special session to consider a constitutional amendment and laws that would make electoral authorities more independent of the PRI and other parties; stiffen penalties for voter fraud, and modify ballots to preclude ballot-box stuffing.

Camacho Solis’ decision came after hours of closed meetings and telephone calls with President Carlos Salinas de Gortari.

“Between seeking a presidential candidacy and contributing to the peace process in Chiapas, I choose peace,” Camacho Solis said at a news conference. “If people continue to perceive that my priority is to be a presidential candidate, it would end up harming the peace process. On the other hand, if I make clear that above all else my priority is to guide the peace process in Chiapas, that will be useful for peace.”

The Mexican stock exchange index soared 5.41% to 2,511.93 on the news, recovering two weeks of decline in a single session. Investors had been leery of the populist Camacho Solis and even more concerned about a split in the PRI.

For weeks, the market had nervously anticipated a repeat of the 1988 presidential election. That year, Cuauhtemoc Cardenas launched an independent campaign that divided the PRI and, eventually, the country, because many Mexicans believe that Cardenas lost because of fraud.

Camacho Solis had been viewed as likely to mount a maverick campaign because he was openly disappointed in November at being passed over for his party’s nomination in the Aug. 21 presidential election.

He resigned as mayor the day after Luis Donaldo Colosio’s candidacy was announced. Eight tense hours later, Camacho Solis accepted the post of foreign minister, considered the first step to oblivion. But his political career was revived when Indian rebels calling themselves the Zapatista National Liberation Army invaded several towns in Chiapas on Jan. 1, demanding democracy and better living conditions.

The initial military response provoked an international outcry, convincing the government of the need for a negotiated settlement and opening the door for Camacho Solis, a noted conciliator.

Since then, his peace efforts have overshadowed Colosio’s presidential campaign. A peace proposal reached after nine days of talks and currently under consideration by grass-roots Zapatista supporters made Camacho Solis a national hero, increasing pressure in some circles for him to directly challenge the PRI candidate.