VZCZCXRO5183
RR RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #0023/01 0042201
ZNR UUUUU ZZH
R 042201Z JAN 08
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC 0049
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RUEAWJA/DEPT OF JUSTICE WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMFIUU/CDR USSOUTHCOM MIAMI FL
RHMFIUU/CDR USNORTHCOM
RUEAHLA/DEPT OF HOMELAND SECURITY
RHEHNSC/NSC WASHDC
RUEABND/DEA HQS WASHINGTON DC

136383,1/4/2008 22:01,08MEXICO23,"Embassy Mexico",UNCLASSIFIED//FOR OFFICIAL USE ONLY,08STATE145633,"VZCZCXRO5183
RR RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #0023/01 0042201
ZNR UUUUU ZZH
R 042201Z JAN 08
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC 0049
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RUEAWJA/DEPT OF JUSTICE WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMFIUU/CDR USSOUTHCOM MIAMI FL
RHMFIUU/CDR USNORTHCOM
RUEAHLA/DEPT OF HOMELAND SECURITY
RHEHNSC/NSC WASHDC
RUEABND/DEA HQS WASHINGTON DC","UNCLAS SECTION 01 OF 03 MEXICO 000023 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR S/CT (Secretary/Counter terrorism)- RHONDA SHORE AND WHA/MEX 
 
E.O. 12958: N/A 
TAGS: PTER ASEC PGOV MX
SUBJECT: DRAFT COUNTRY TERRORISM REPORT FOR 2007 
 
REF: STATE 145633 
 
Mexico is a key ally of the United States in combating 
terrorism, and its commitment to work with us to preempt 
terrorist activity or entry through our shared border is 
strong.  There are no known international terrorists residing 
or operating in the country.  No terrorist incidents 
targeting U.S. interests/personnel have occurred on or 
originated from Mexican territory.  Although the July and 
September attacks on oil and gas pipelines by a guerrilla 
group called the Popular Revolutionary Army (EPR) have raised 
the specter of domestic terrorism, Mexico primarily 
represents a terrorist transit threat and our bilateral 
efforts focus squarely on minimizing that threat. 
 
Since entering office last December, President Calderon's 
Administration has demonstrated an unprecedented commitment 
to improve national security. Moreover, the GOM (Government of Mexico) is also resolved to greatly strengthen law enforcement and counter 
terrorism cooperation with the USG (US Government) in coming years. USG law 
enforcement agencies enjoy much improved  relationships with 
Mexican security institutions across the board. Mexico worked 
with the USG in 2007 to enhance aviation, border, maritime, 
and transportation security, secure critical infrastructure, 
and combat terrorism financing. 
 
In 2007, the GOM continued to make steady progress in the 
area of counter terrorism with an emphasis on border security 
projects focused on special interest aliens (SIAs) and alien 
smuggling.  The GOM worked to professionalize federal law 
enforcement institutions, restructuring and strengthening the 
institutions directly responsible for fighting organized 
crime, and developing tools under the framework of the 
Security and Prosperity Partnership (SPP) to better address 
national security threats. 
 
Information-sharing on counter terrorism issues in the first 
year of the Calderon administration was strong. The March 
2005 launch of the SPP, which consists of ten 
security-related goals within its Security Pillar, 
institutionalized mechanisms for information exchange between 
the U.S. and Mexico.  The USG will continue working with 
Mexico to improve existing information sharing initiatives. 
In particular, USG will continue to support digitalization of 
the GOM information-gathering procedures in order to build a 
database of usable biometric information and strengthen our 
ability to accurately analyze the information provided by 
GOM. 
 
The continued exploitation of smuggling channels traversing 
the U.S. Mexico border, and lack of enforcement along 
Mexico's border with Guatemala remain continuing strategic 
concerns.  The GOM takes the terrorist transit and SIA (Special Interest Aliens) smuggling possibility seriously and has been responsive to 
U.S. reports concerning SIA smuggling.  Mexico passed a law 
against human-trafficking which will aid in pursuing criminal 
proceedings against traffickers and smugglers operating in 
Mexico.  In a recent case, Mexican authorities provided 
substantial support to U.S. Immigration and Customs 
Enforcement in arresting a third country national wanted in 
the U.S. for SIA smuggling. 
 
One setback was a change in detention procedures for SIAs. 
In 2005 and 2006, Mexico's Immigration Service (INM) 
maintained a policy of housing all detained aliens of Special 
Interest Countries at their detention facility near Mexico 
City. However, in March 2007, INM began releasing such 
detainees from their point of arrest, thus hindering 
information-sharing and the USG's ability to track the 
movement of SIAs. 
 
Nevertheless, cooperation between the USG and GOM has been 
strong overall, especially in investigating individuals 
suspected of cooperation with SIA smugglers or terrorist 
organizations. The two countries exchange information and 
closely cooperate in targeting alien smugglers, particularly 
along Mexico's northern border. A particularly effective 
mechanism is the Operation Against Smugglers Initiative on 
Safety and Security (OASISS), which allows Mexican and U.S. 
law enforcement officials to systematically share real-time 
 
MEXICO 00000023  002 OF 003 
 
 
information regarding ongoing alien smuggling investigations. 
 OASISS enhances the ability of both governments to prosecute 
alien smugglers and human traffickers, who otherwise might 
elude justice.  OASISS is currently operational in the U.S. 
in all four states along the southwest border and in most of 
Mexico's northern border states. The program provides a model 
for bilateral information-sharing in a variety of law 
enforcement and security areas.  An essential next step will 
be to expand OASISS to all Mexico's northern border states. 
At the same time, the USG needs to continue to support the 
GOM's efforts to expand operations targeting SIA smuggling 
organizations along Mexico's southern border. 
 
The U.S.-Mexico Border Security and Public Safety Working 
Group formed in March 2006 has become another important tool 
for bilateral cooperation, establishing protocols between 
both governments to respond cooperatively at a local level to 
critical incidents and emergencies along the border.  The 
success of the pilot sites led to the expansion and 
formalization of the program.  These protocols are now in 
place along the entire US/Mexico border. 
 
The USG was able to further develop its border security 
relationship with the GOM under President Calderon through 
training programs, which focused on using non-intrusive 
inspection equipment, detecting weapons of mass destruction, 
and identifying fraudulent documents. 
 
The GOM coordinated with the USG on information sharing of 
air passenger data and the use of its Integrated System for 
Migratory Operations (SIOM).  The USG is also planning to 
support the establishment by the INM of a national center for 
migratory alerts.  This center will correlate information 
drawn from various other agencies to alert immigration 
officials of possible suspect entries into Mexico.  In 
addition, the USG and GOM agreed to share on an ad hoc basis 
biometric data for inclusion in the Integrated Automated 
Fingerprint Identification System (IAFIS).  In order to 
accomplish this goal, USG needs to continue to support GOM's 
effort to improve their biometric collection procedures in 
line with USG standards and practices. 
 
In mid-2006, the GOM and USG began negotiations on programs 
designed to deter terrorists from using the Mexico's seaports 
to ship illicit materials, detect nuclear or radioactive 
materials if shipped via sea cargo, and interdict harmful 
material before it could be used against the U.S. or one of 
our allies.  The cooperative effort will include installation 
of specialized equipment to screen cargo containers for 
nuclear or other radioactive materials.  If anything were 
detected, the equipment would alert Mexican port officials of 
the need to further examine the cargo and take appropriate 
action. 
 
In the area of money laundering, the USG developed strong 
working relationships with the Financial Intelligence Unit of 
the Attorney General's Office (PGR) and its companion unit in 
the Mexican Treasury (Hacienda) in combating money 
laundering, terrorist financing, and narcotics trafficking. 
In one case in late 2007, Mexican police worked with U.S. 
authorities to identify and arrest the alleged finance head 
for the Sinaloa drug cartel, targeting a ring that bought 
airplanes with laundered money to smuggle drugs.  The GOM 
also deployed to Mexico City's international airport a task 
force that included elements from the Federal Investigative 
Agency (AFI), Mexican Customs, and prosecuting attorneys from 
the Attorney General's anti-money laundering criminal 
prosecution section. 
 
On June 28, 2007 President Calderon signed into law 
legislation outlawing terrorist financing and associated 
money laundering.  The new law establishes international 
terrorism and terror financing as serious criminal offenses, 
as called for in UN resolution 1373, and provides for up to 
40 year prison sentences.  The measure also incorporates 
several non-finance related provisions including jail 
sentences for individuals who cover up the identities of 
terrorists and for those who recruit people to commit 
terrorist acts. While it lacked some important provisions, 
such as assets forfeiture measures, the law is a significant 
 
MEXICO 00000023  003 OF 003 
 
 
step forward in suppressing those who plan, facilitate, 
finance or commit terrorist acts.  Mexico's legislature is 
currently working on legal reform legislation which, if 
enacted, will offer law enforcement officials broader 
authorities (including assets forfeiture) to investigate and 
prosecute serious criminal cases, including terrorist 
activity. Despite the recent legislation and excellent 
USG-GOM cooperation, money laundering remains a significant 
problem in Mexico, and the USG would like to see more Mexican 
resources dedicated to tackling the problem. 
 
The Mexican Navy and Army continued to expand their counter 
terrorism capabilities in 2007.  The Mexican Navy improved 
control over ports of entry by deploying a newly constituted 
infantry force.  The Navy is also looking to expand its still 
incomplete control over Mexico's vast maritime zone by better 
integrating radar, patrol craft, sea going vessels, air 
platforms, and land based platforms.  If undertaken, these 
enhancements to Mexico's maritime air surveillance will allow 
the Navy to better protect key national strategic facilities, 
including those related to oil production in the Bay of 
Campeche.  In 2007 the GOM deployed significant military 
forces to combat a growing wave of drug related violence. 
The experience gained in these operations could be applied to 
future counterterrorism efforts, especially in regards to 
intelligence and logistics operations.  It remains difficult 
to assess the Mexican Army's counterterrorism capabilities 
due to the institution's closed nature. While there have been 
improvements in U.S.- Mexico military to military cooperation 
in the past year, the USG and the GOM armed forces have 
limited interoperability in the area of counter terrorism. 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity and the North American 
Partnership Blog at http://www.intelink.gov/communities/state/nap / 
Leslie BASSETT