THE WASHINGTON TIMES NATIONAL WEEKLY EDITION

PATRICK BUCHANAN

The stakes in Mexico and in the GOP

Just three weeks in power and Newt Gingrich and Bob Dole may be
about to commit a blunder on the scale of George Bush's 1990
abandonment of his "No new taxes!" pledge.

Make no mistake: Rage against that $40 billion Mexico City-Wall
Street bailout is catching fire.  Unlike the General Agreement on
Tariffs and Trade (GATT), this one is easy to understand. And it has
nuclear potential. Republican collaboration in this ultimate
insiders' deal could be the decisive act that kills the Spirit of
November '94 and creates a Third Party.

Why are Newt and Bob putting at risk all the hopes wrapped up in the
new Republican Congress?  Comes the reply: If Mexico does not get $40
billion, pronto it will not be able to pay offits oid loans.

Well, excuse me, but so what?  If Mexico City can't pay off her old
loans, Mexico isn't going to disappear. Her people aren't going to
starve.  The banker-blockheads who loaned Mexico City the money will
simply have to roll over their lousy loans.  Instead of putting
taxpayers on the hook for medium-term loans, to pay back short-term
Mexican loans coming due, let the Wall Street banks work it out with
their feckless Mexican clients.  And keep us out of the loop.

This bailout is corporate socialism. The Big Banks "privatize" their
profits from loan- sharking in the Third World, and "socialize" their
debts--i.e.  dump them into the laps of tax- payers.

These fellows are terrific at giving speeches on the glories of the
"global free market." Now, let them test its bracing waters, in
mid-January.  Only if America's parasitical financial elite is made
to pay the price of its follies, will those follies ever end.

And no more necessary mes- sage could be sent to Third World regimes
that loot foreign investors, then to say to Mexico:  "OK, boys, you
lied to us; you took our folks to the cleaners.  Now, bail yourselves
out!  Because the gravy train doesn't stop here anymore."

Mr. Dole said on  "Meet the Press" last Sunday he did not want to put
U.S.  taxpayers at risk.  Fine, Bob, then don't put them at risk.
Some Republicans are cobbling together a "compromise:  We will
support the loan guaran- tees, they say, only if Mexico puts up its
oil as collateral, only if they agree to restore the peso to 3.5 to
the dollar, only if they broaden economic reforms, etc.

Forget it, fellas. You cannot bribe a corrupt partner into behaving
honorably, by making good his bar bill, gambling bill and Visa bill,
all run up while he was bilking the firm. For the United States to
put "conditions" on its loans to Mexico is but a massive bribe to
Mexico City to act responsibly. It won't work. It is interference in
the affairs of a country we cannot run, that will only earn us the
hatred of the Mexican people, as they endure the hardships brought
upon them by their untrustworthy and deceitful government. Let Mexi-
co City face the music.

What should the Republicans do? What Democrats would do in the same
situation:  Nail responsibility for this debacle right where it
belongs--on Bill Clinton and Robert Rubin.

Who was the $25 miUion-a-year chief executive who led the investors
of Goldman Sachs into Third World securities? Robert Rubin. Who was
in charge of the While House "Economic Security Council" that was
supposed to monitor the Mexican situation?  Robert Rubin. Mr. Rubin
was in the crow's nest when we hit tke reef Elevating Mr. Rubin to
secretary of the Treasury is like promoting the captain of the Exxon
Valdez to run the entire tanker fleet.

Why doesn't Newt demand Mr.  Rubin's resignation? Why don't the
Republicans raise the ques tion: If we are suddenly on the verge of
some horrific financial crisis, who steered us to the edge of the
abyss?

Republicans ought to admit they were deceived on the North American
Free Trade Agreement, and demand the heads of the deceivers.  NAFTA's
critics were right all along: The Mexican peso was not worth
three-to-the-dollar. Carlos Salinas' crowd was never the
corruption-free, hugely competent, regime sold to Congress by Mexico
City's Washington lobbyists.

We went into partnership with an unworthy partner. It's time to
repeal NAFTA, cut our losses, and get out.

Mr. Clinton told us NAFTA was a cure for America's crisis of illegal
immigration. He now tells us to expect 430,000 additional invaders if
we do not add $40 billion in loan guarantees to the $18 billion
package of Mr. Rubin.

This is an abdication of the president's constitutional duty to
defend America's borders. We gave 10,000 troops in Haiti. If they are
needed here, bring them home. Time to tell Mr. Clinton: If you are
incapable of fulfilling your obligation to defend the states of the
Union from foreign invasion, it's tirne the nation got a new
commander in chief.

Patrick Buchanan is a nation ally syndicated columnist.

                                                                            JANUARY 30 - FEBRUARY 5, 1995 33