U.S. Recognizes Zedillo as President : Mexico: Treasury secretary delivers congratulatory letter. Bentsen says he thinks economic reform will continue.

The Clinton Administration on Thursday officially recognized Ernesto Zedillo as Mexico’s next president, as Treasury Secretary Lloyd Bentsen delivered a congratulatory letter to the “President-Elect of the United Mexican States” along with an invitation for Zedillo to visit the White House in the fall.

Zedillo won the most votes in Mexico’s hard-fought presidential election Aug. 21, but he will not be named president-elect until after the new Mexican Congress meets Nov. 1. to ratify the results. Opposition leaders continue to challenge the vote as fraudulent and unfair.

Bentsen, who delivered the letter from President Clinton during a private dinner with Zedillo here Wednesday night, stumbled over the words “president-elect” in reference to the Mexican during a news conference Thursday, adding that he is aware the title is premature. Zedillo takes office Dec. 1.

The Treasury secretary said his meeting with Zedillo, a 42-year-old, Yale-educated economist, convinced him that the economic reform policies launched by President Carlos Salinas de Gortari will continue, as Zedillo extends the Institutional Revolutionary Party’s 65-year hold on power.

“It is encouraging to me to see a continuation of good economic policies,” Bentsen said. “It’s obvious (Zedillo) is continuing the policy of reform . . . and I look on Dr. Zedillo as a man with great intellect and character.”

Bentsen’s visit focused on continuing efforts to expand economic relations between the U.S. and Mexico since the North American Free Trade Agreement took effect Jan. 1. Bentsen discussed with his counterpart, Finance Minister Pedro Aspe Armella, proposals that would permit U.S. investment houses and banks to open offices in Mexico.

Bentsen told reporters that 17 U.S. financial institutions have applied for permission to open Mexico branches, adding that he hopes the government will grant it “by the end of the year.”

Aspe and Bentsen also signed an unprecedented tax protocol Thursday afternoon that grants state and local governments on both sides of the border increased powers to exchange information on cross-border trade, to make tax collection on that trade easier. Bentsen said NAFTA has created a “plus-plus situation” for Mexico and the United States. It has created jobs in both countries, he said. American exports to Mexico are up 17%, he added, and Mexico’s exports to the U.S. have grown 22%.

Bentsen deflected several questions about recent Mexican banking scandals, particularly whether this week’s government seizure of the country’s fifth-largest banking and investment firm amid charges of fraud would affect foreign investment.

Citing the $55 billion in new foreign investment in Mexico in the past year, Bentsen said Mexico’s economy remains sound. He added that the savings and loan scandals in the United States illustrated that “we have not been without fault in that area, and I see foreign investment pouring into the U.S.”