DRAFT COUNTRY TERRORISM REPORT FOR 2007

UNCLAS SECTION 01 OF 03 MEXICO 000023 SIPDIS SENSITIVE SIPDIS STATE FOR S/CT - 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 is also resolved to greatly strengthen law enforcement and counter terrorism cooperation with the USG 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 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 / BASSETT