DISCREPANCIES BETWEEN VIEWS OF OUTGOING AND INCOMING ADMINISTRATIONS IN MEXICO

Created: 10/27/1976

OCR scan of the original document, errors are possible

Intelligence Information Cable

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FuaTHta DISSEMINATION ANO USE Of THIS INFORMATION SUBJECT TO CONTROLS STATED AT BEGINNING ANO END OF REPORT.

"THIS IS AN INFORMATION REPORT, NOT FINALLY EVALUATED INTELLIGENCE"

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: DISCREPANCIES BETWEENF OUTGOING AND INCOMING ADMINISTRATIONS IN MEXICO

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ALTHOUGH INCOMING PRESIDENT JOSE LOPEZ-PORTILLO WAS HA.NDPICKEDRESIDENT LUIS LVAREZ AND THERE HAVE BEEN MANY SIGNS OF COOPERATION AND IDENTIFICATION BETWEEN THE TWO, IN RECENT WEEKS DIFFERENCES OF

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OPINION* PARTICULARLY WITH RESPECT TO TKE HANDLING Of ECONOMIC PROBLEMS. APPEAR TO HAVE DEVELOPED BETWEEN THE Two

TILLO HAVE INDICATED EC HE VERR 1A REMAINS IN OFFICE. THE PRLEC TFROM MAKING ANY COMMENTS WHICH COULD BE CRITICAL OF THE PRESENT ADMINISTRATION. AT THE SAME THEY ARE NOT HIDING THEIR VIEWS THAT ECONOMY COUNTRY HAS BEEN MISMANAGED BYND THAT INFLATIONARYVE AND DRAMATIC WEAKENING OF THE

PESO AFTER THEUGUST FLOTATION HAVE BEEN CAUSED PRIMARILY BY THE LOSS OF CONFIDENCE IN THE ECHEVERRIA ADMINISTRATION AND THE LATTER'S UNNECESSARY CATERING TO LABOR.

CLOSE TO LOO RT IL LO FEEL THATHAS MISMANAGED BOTH THE FLOTATION OF THE PESO SUBSEQUENT HANDLING OF THE ECONOMY. The RESULT ISOF THE BENEFITS WHICH COULD HAVE BEEN EXPECTEDWERE REALIZED AND THAT THE UNCERTAINTIES ECONOMY ARE AS GREAT, IF NOT GREATER, TwC MONTHS ORIGINAL FLOTATION AS THEY WERE PREVIOUSLY,

^-SIGNIFICANT DIFFERENCES EXIST BETWEEN THE OUTGOING

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FURTHER DISSEMINATION AND USE OF THIS INFORMATION SUBJECT TO CONTROLS STATED AT BEGINNING ANO END OF REPORT.

AND INCOMING PRINCIPALS Ml TH RESPECT TO ATE TOWARD ThE PRIVATE SECTOR. EMPHASIS ON FOREIGN POLICY. FOREIGN TRADE AND INFORMATION POLICY. GENERALLY SPEAKING, THER TJAMP WISHES TO CREATE CONDITIONS TO RESTORE INVESTOR CONFIDENCE

WHILE AT THE SAME TIME REDUCING GOVERNMENTP EN DI TU RE S- BY

ESSENTIALLY COMMERCIAL CRITERIA TO FOREIGN POLICY AN D FOREIGN TRADE. WITH RESPECT to INFORMATION POLICY. IT IS INTENDED to CENTRALIZE INFORMATION GUIDANCE AND TOT PRIMARILY FOR THE PROMOTION OF The ECONOMIC OBJECTIVES OF the GOVERNMENT.

5. LOPEH-PORTILLO IS determined TO WITHHOLD BOTH POLICY

STATEMENTS AND THE ANNOUNCEMENT OF APPOINTMENTS IN THE UNTIL 30 NOVEMBER IN ORDER to AVOID ON ECHEVERRlA, HE FEELS THAT THE OF CERTAIN INDIVIDUALS OR ThE FAILURE tq WOULD BE ANALYZED AS REFLECTING DIFFERENCES INVIEW. WHILE SUCH DIFFERENCES EXIST AND wlLLHE DOES NOT WaNT THEM PUBLICIZED ANDECHEVERRlA IS STILL

Original document.

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