Many of us in Arizona have witnessed firsthand the effects of the recent troubles in Mexico. The recent peso devaluations have led to widespread business failures in border towns like Nogales and San Luis. Immigration officials report the flow of illegal immigrants has increased sharply as a consequence of Mexico's economic woes. U.S.-Mexico trade has also suffered. We have already seen the results of Mexico's current problems. But Mexico may have larger problems in the future . . . problems that will also affect us.

During the 1970's, Mexico embarked on a number of industrial modernization projects which were to be paid for by future Mexican oil revenues. At the time, it appeared that oil prices would continue their upward spiral, and the Mexican government borrowed heavily from American and other foreign banks to finance its programs. The combination of declining world oil prices and the recession, however, has pulled the rug out from under the Mexican economy.

Make no mistake about it. Mexico's economic problems are both real and serious. Inflation has sky-

In 1981, Mexican customers accounted for about 48 percent of the sales made by American merchants along the border. Since the peso devaluations though, most American goods are now priced beyond the reach of our Mexican neighbors. Along the border, in towns like San Luis, Douglas and Nogales, unemployment rates are 20 percent or higher.

In the larger picture, U.S.-Mexico trade has suffered a tremendous setback. Only two years ago, the U.S. exported $17.8 billion worth of goods to Mexico, and imported only $13.8 billion worth of goods. However, last year, for the first time since World War II, the U.S. had a negative trade balance with Mexico. The situation shows no signs of improving either.

So we do have problems -- problems that I wanted to hear about from the folks in Arizona. We invited a number of experts in the field of U.S.-Mexico relations to join me at the public forums and give me their counsel. As usually happens, it was much easier to identify the problems than the solutions.

Still, I found these hearings to be informative and
the comments by the panelists and audience partici-

Will Rapp, Vice President and Manager of the International Division of Valley National Bank.
 

Tom Miller, Author of On the Border.
 

Elias Bermudez, Mayor of San Luis.
 

Trade is an important aspect of Arizona's economy. Approximately 50,000 jobs statewide depend on exports. The export economy accounted for about $2.5 billion in Arizona in 1981. Due to our proximity to Mexico much of our trade, of course, is done with businesses south of the border.

Likewise, Mexico depends upon Arizona and the U.S. when it comes to trade. Mexico is the United States' third largest trading partner. Both economies are heavily dependent upon their mutual abilities to trade freely and trade fairly. We have had our trade "problems" with Mexico lately -- problems ranging from cement to vegetables. Still, it is vitally important to both the U.S. and Mexican economies to seek solutions to our disputes. Following are some of the comments that were made on the trade issue.

Jerry R. Ladman, Director, Center for Latin American Studies, Arizona State University.
 

Will Rapp, Vice President and Manager of the International Division, Valley National Bank.
 

Victor L. Heller, Director of Travel and Tourism Studies, Arizona State University. 
 

Another topic that caused a great deal of discussion was immigration and the Simpson-Mazzoli bill in Congress. Briefly, the Simpson-Mazzoli measure would attempt to tighten our immigration laws and to provide amnesty for illegal immigrants who have

In the United States and Arizona, the undocumented alien population continues to grow. Firm numbers are hard to come by, but it is estimated that there are between 3.5 and 10 million undocumented aliens in the U.S. today. In Arizona, the Tucson Border Patrol reports a 12% increase in the apprehensions of undocumented aliens in 1983. The Yuma Border Patrol has reported 10 consecutive record months in terms of apprehensions -- from September of 1982, through June of 1983. Overall, from January through mid-August of this year, Yuma officials report a 36% increase in arrests of undocumented aliens over the same period last year. Although opinions on the immigration issue were sharply divided, I found the comments by the audience and panelists to be very informative.

Margarita B. Bernal, Board of Directors, El Consilio Manzo, citing from a paper by Peter Shey.
 

Tom Miller, author of On the Border.
 

Ramona Jean Corrales, Director of Chicanos Por La Causa, Somerton.
 

Arizona's common border with Mexico stretches 372 miles from California to New Mexico. This international boundary is an important and unique aspect of our state.

Our Mexican neighbors contribute significantly to Arizona's economy. In 1981, Mexican visitors spent over $622 million in Arizona. The recent peso devaluations have severely damaged the economies of our border communities. Sales revenues in Nogales for December of last year were down 62% from 1981. At the same time that sales revenues were plummeting, unemployment was rising. The unemployment rate for July of this year was over 27% in both Santa Cruz and Yuma counties. San Luis continues to be a major entry point for migrant labor and Nogales continues to be a major entry port for Mexican produce.

We have a whole range of common interests along the border. Many people have extended families and conduct business on both sides of the border. Some comments and concerns about the border raised during our forums:

Dr. Carlos G. Velez-Ibanez, University of Arizona.
 

Humberto S. Lopez, President, HSL Properties.
 

Tom Espinosa, Executive Director, Chicanos Por La Causa.

These small excerpts just touch the surface of these hearings. I know that I gained, and I think most of the people who attended gained a greater understanding of the myriad of troubles facing Mexico.

What do we do in the future? How can the U.S. and Mexico work to solve our joint problems? We are pulling together on some matters. The U.S. has agreed to buy more oil from PEMEX for the U.S. strategic petroleum reserve, and Mexico is continuing to purchase excess U.S. grain products.

Still, this is not enough. Central America primarily, and El Salvador specifically, have been the main focus of the Administration. This is unfortunate. What happens in Mexico over the next several years is as important as the outcome of the events in El Salvador.

The Administration needs to refocus attention on Mexico. We need to look at long-term solutions to our mutual problems, and work in close consultation with the Mexican government. Several items need to be considered closely:
 

These are just a few of the possible actions that need to be looked at and there are, of course, many interests and factors to consider. That's why I recently urged the President to form a bi-partisan commission to study U.S.-Mexico relations and to establish regular meetings with Mexican President de la Madrid.

I was approached at the Yuma public forum by a woman who asked me "Why are you so concerned about Mexico? Don't you realize that we have problems of our own at home?" Why, indeed? Because Mexico's troubles can become ours. More importantly, Mexico is a valued friend. The U.S. has always stood by its friends in times of need, and Mexico needs our help. And it is in our own best interest to give it now, before a major economic or political crisis in Mexico demands even greater assistance.