FROM THE OFFICE OF PUBLIC AFFAIRS

We welcome and support Mexico's economic program announced today in the context of the stand-by arrangement with the IMF. Mexico's firm policy response to recent economic and financial turbulence helped to preserve stability and growth over the past year, building on reforms of the past several years. Mexico's commitment to a sound economic program, supported by the IMF, should improve prospects for continued strong economic performance.

Finance officials from our two governments will continue to consult frequently about economic and financial developments in our countries over that period. Our close dialogue is facilitated by the various mechanisms we have to ensure ongoing consultation and cooperation, including the North American Financial Group, the Binational Commission, and swap line arrangements between our two countries under the North American Framework Agreement, which have been in place since 1994. In that regard, we welcome this opportunity to announce that the U.S. Treasury and the U.S. Federal Reserve have taken the decision to renew the NAFA swap lines for another year, through December 2000. Treasury and Mexico have had a swap line since the early 1940's.