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Mexico Protests U.S. Entry

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TIMES STAFF WRITER

Mexico protested to the United States on Thursday that U.S. undercover agents had apparently entered Mexico illegally during a three-year sting operation against drug-money launderers.

Mexico Atty. Gen. Jorge Madrazo Cuellar told reporters that President Ernesto Zedillo had instructed the Foreign Affairs Ministry to send a diplomatic note to the United States on the issue. Madrazo said his office had found it was possible that the U.S. agents had broken Mexican law.

Madrazo said Mexico had asked the United States to dispatch officials from the Treasury and Justice departments to Mexico to explain what happened during the investigation and the U.S. agreed to do so.

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U.S. officials announced the indictments Monday against scores of suspects, including 26 employees of 12 Mexican banks. Three Mexican banks also were named as defendants. The Mexican government was not informed in advance, and a chorus of protests from Mexican politicians and banking officials has grown since then.

U.S. Atty. Gen. Janet Reno, apparently seeking to smooth the rift, on Thursday praised Mexico’s drug-fighting effort and its new rules against money-laundering. Speaking in Washington, she said the indictments were not against the entire Mexican banking system but rather “some corrupt banking employees and three banks.”

U.S. authorities have made about 100 arrests and seized more than $39 million as a result of the probe.

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