Exclusive-Mexico considers tighter entry rules for Venezuelans after U.S. requests -sources

By Alexandra Ulmer, Dave Graham and Matt Spetalnick

SAN FRANCISCO/MEXICO CITY (Reuters) -Mexico is considering setting tougher entry requirements for Venezuelans, partly in response to U.S. requests, after a sharp rise in border arrests of Venezuelans fleeing their homeland, according to three people familiar with the matter.

Currently, Venezuelans do not need a visa to enter Mexico as tourists. But as apprehensions of Venezuelan migrants on the U.S.-Mexico border soar, Mexico is looking at making their entry subject to certain criteria, a Mexican official familiar with the government’s internal discussions said.

New entry rules could be applied soon, the official said.

A second Mexican government source said Mexico was reviewing its options, and holding discussions with Venezuela to explore alternatives to imposing visa requirements.

A third person familiar with Mexican-U.S. talks said Washington is urging Mexico to impose visa restrictions on Venezuelans, noting that U.S. Customs and Border Protection (CBP) has been complaining about the increase in Venezuelans.

Options under review include making Venezuelans show they are economically solvent and in employment, and have a return plane ticket when they enter in order to ensure they are not using Mexico to enter the United States, the first source said.

A U.S. State Department spokesperson said Washington was working with Mexico to address root causes of irregular migration in a “collaborative, regional approach” when asked by Reuters whether the Biden administration was pressing Mexico to tighten entry requirements for Venezuelans.

“The United States appreciates Mexico’s efforts that contribute to safe, orderly, and humane processes for migrants at and within its borders,” the spokesperson said.

The White House, the U.S. Department of Homeland Security (DHS), and CBP did not immediately respond to a request for comment. Neither Mexico’s foreign ministry nor Venezuela’s Information Ministry replied to a request for comment.

The discussions come as encounters of Venezuelans at the U.S.-Mexico border have leapt to 47,762 in the year through September from just 1,262 during the previous 12-month period, according to U.S. government data.

Total apprehensions of migrants at the U.S.-Mexico border have hit record levels this year. That has put pressure on U.S. President Joe Biden ahead of congressional elections next November, with many voters in Texas border towns upset https://www.reuters.com/world/us/migrants-school-buses-texas-town-feels-caught-middle-2021-09-21 and Republicans accusing his administration of pursuing an “open border” policy.

One of the Mexican sources said Washington had lobbied Mexico to slow arrivals from Venezuela, but that Mexico also wanted to make sure people were not entering on false pretenses.

A fourth source, in U.S. government, said efforts to lobby Mexico to tighten entry requirements from OPEC member Venezuela had increased since Venezuelan arrivals jumped this summer, and that requests for cooperation had been made informally by diplomats and the DHS. The source said Washington was not leaning hard on Mexico.

Tighter entry rules could seriously affect migration plans of many Venezuelans, who pay smuggling networks to help them escape economic devastation under President Nicolas Maduro, who has presided over a severe financial meltdown amid heavy U.S. sanctions. Many of the Venezuelans depart with little money.

Venezuelans arriving from elsewhere in Latin America like Colombia or Chile, where they often work for a few years to save in hard currency before heading north, would likely be less exposed to requirements centering on their solvency.

Rights activists on Friday decried the potential move to restrict Venezuelan arrivals.

“Venezuelan migrants and refugees are fleeing a complex humanitarian emergency, lack of justice, an absence of freedom, and violence,” said David Smolansky, an exiled Venezuelan opposition leader who coordinates the Organization of American States’ response to Venezuela’s migration crisis. “In the face of such a situation, it is fundamental that they receive protection.”

Reuters reported in October that the Biden administration wanted Mexico to impose visa requirements on Brazilians to complicate their path to the U.S. border. And in September, Mexico suspended visa exemptions for Ecuadorians for six months following a steep increase in that country’s nationals trying to cross the U.S. border.

The U.S. government source said Biden’s aides could raise the Venezuelan migrant issue with Mexican President Andres Manuel Lopez Obrador’s delegation when he visits Washington next week for a U.S.-Mexico-Canada summit.

(Reporting by Alexandra Ulmer in San Francisco, Dave Graham in Mexico City and Matt Spetalnick in Washington; Additional reporting by Kristina Cooke in San Francisco, Mica Rosenberg in New York, Vivian Sequera in Caracas and Ana Isabel Martinez in Mexico City; Editing by Rosalba O’Brien)

EU election observers begin work ahead of Venezuela regional, local vote

By Vivian Sequera

CARACAS (Reuters) – European Union election observers began their mission in Venezuela on Thursday, as campaigning kicked off for regional elections next month which are set to include opposition candidates.

It is the first time in 15 years the EU has sent observers to Venezuela.

Opposition parties are participating in the Nov. 21 contest after boycotting presidential and parliamentary elections in 2018 and 2020 respectively, votes where they have alleged President Nicolas Maduro and his party notched illegitimate wins.

“The opposition is going to participate in these elections (…) we want to hear from everyone,” mission chief Isabel Santos told reporters before observers set out from capital Caracas to cities around the country.

More than 3,000 positions – including governors, mayors and municipal councilors – are up for grabs next month, according to Venezuela’s elections authority. Some 21 million voters are eligible to participate.

A total of 44 EU observers have arrived in Venezuela so far. They will work in 22 of the country’s 23 states, Santos said, adding no personnel will be sent to the Amazonas state due to transport difficulties and the coronavirus pandemic.

The observers will release a preliminary report two days after the vote, with the final report expected to take two months, said Santos, a member of the European Parliament from Portugal.

Observers will remain deployed across the country until Nov. 29.

The Carter Center, a U.S.-based advocacy group, also plans to send four international electoral experts to Venezuela in early November, it said on Wednesday.

(Reporting by Vivian Sequera; Writing by Oliver Griffin; Editing by Sandra Maler)

EU to deploy election observation mission to Venezuela

BRUSSELS (Reuters) – The European Union will send observers to regional elections in Venezuela scheduled for Nov. 21, on the invitation of the country’s National Electoral Council, the bloc’s foreign policy chief said in a statement on Wednesday.

“An unprecedented electoral process will take place, with the concurrence of the majority of political forces for the first time in recent years, to elect more than 3,000 regional and municipal representatives in Venezuela,” EU High Representative for Foreign Affairs Josep Borrell said.

“The EU Election Observation Mission will undertake an independent technical assessment of all aspects of the electoral process and will propose recommendations to improve future elections,” he said.

The vote comes after three years of opposition election boycotts and a failed U.S.-backed effort to force Socialist Party President Nicolas Maduro from power through sanctions and the creation of a parallel opposition-led government.

The regional elections are expected to pose little threat to Maduro’s control of Venezuela. He has hung on to power despite a breathtaking collapse of the country’s economy as well as the broad U.S. sanctions program meant to force him from power.

The EU will send 11 election experts who will arrive in Caracas in October and will be joined by the end of that month by up to 62 long-term observers who will be deployed in the country’s regions.

A further 34 EU short-term observers and 20 locally recruited ones will reinforce the mission on election day. The EU team will stay in Venezuela until the completion of the electoral process, the EU statement said.

The EU observers will issue a preliminary statement and hold a news conference in Caracas after the elections and will also issue a final report with recommendations for future elections after the finalization of the electoral process.

(Reporting by Jan Strupczewski; editing by Jonathan Oatis)

Colombia arrests 10 over bombing, shooting of president’s helicopter

By Oliver Griffin

BOGOTA (Reuters) – Colombia arrested 10 people accused of involvement in attacks on a helicopter carrying President Ivan Duque and a military base last month that officials said on Thursday were planned by former FARC rebel leaders based in Venezuela.

The car bombing at the base in the northeastern city of Cucuta, home to the army’s 30th brigade, wounded 44 people, including two U.S. military advisers. Later in June, a helicopter approaching city with Duque and other officials aboard was strafed by bullets.

The 10 people captured in Norte de Santander province are former FARC rebels who reject a 2016 peace deal, Attorney General Francisco Barbosa said in a press conference broadcast via social media, and belong to the dissidents’ 33rd front.

Three took part in the planning and execution of both attacks and have been detained and charged, while another is a retired army captain, Barbosa said.

Orders to carry out the attacks came from former FARC leaders who are operating from Venezuela, Defense Minister Diego Molano said during the conference.

He said the incidents demonstrated the government of Venezuelan President Nicolas Maduro sheltered FARC dissidents, calling them “terrorists”.

“It’s clear that this attack against the president, against the 30th brigade, was planned from Venezuela,” Molano said.

The Venezuelan government did not immediately respond to a request for comment.

Colombia’s government has long accused Maduro of turning a blind eye to the presence of Colombian rebels on his country’s territory. Maduro, in turn, has said Venezuela is a victim of criminals from Colombia.

(Reporting by Oliver Griffin in Bogota; Additional reporting by Vivian Sequera in Caracas; Editing by Joe Bavier)

COVAX aims to resolve Venezuela COVID-19 vaccine roadblocks after Maduro ‘ultimatum’

CARACAS (Reuters) – The COVAX vaccine-sharing facility is aiming to overcome roadblocks to the shipment of coronavirus shots to Venezuela “as soon as possible,” a spokesman for the GAVI alliance said on Tuesday.

The comments from GAVI, the Vaccine Alliance which runs COVAX with the World Health Organization, came after President Nicolas Maduro on Sunday said he was giving the COVAX system an “ultimatum” to send doses to the crisis-stricken South American country or return the money Venezuela had already paid.

Officials from the OPEC nation said in June that several payments to cover the $120 million fee have been made, but that the final four payments have been blocked by Swiss bank UBS. Maduro’s allies have attributed that to U.S. sanctions aimed at ousting him from the presidency.

“We are working to resolve this matter as quickly as possible,” a GAVI spokesperson said.

Washington in 2019 blacklisted Venezuela’s state oil company, central bank and other government institutions, though it exempts humanitarian transactions from the sanctions.

Still, the measures have left many banks wary of processing even authorized Venezuela-related transactions.

Venezuela’s COVAX payments are not subject to any sanctions, but pose compliance problems for UBS because the government has not satisfactorily spelled out to the bank exactly what the payment is for, a person familiar with the matter said, adding that UBS will execute the transaction as soon as the open questions are clarified.

Venezuela’s information ministry did not immediately respond to a request for comment.

Several of the payments to COVAX were made by local Venezuelan banks on the government’s behalf, Reuters reported last month.

Venezuela has received 3.5 million vaccine doses from allies Russia and China, and is also conducting trials for Cuba’s Abdala vaccine.

(Reporting by Mayela Armas and Michael Shields; Writing by Luc Cohen; Editing by Bill Berkrot)

Venezuelans seek home care for COVID-19 amid crumbling health system

By Efrain Otero and Vivian Sequera

CARACAS (Reuters) – Venezuelan COVID-19 patients are paying doctors to come to their homes due to the high cost of private clinics and hospitals overflowing with patients and often lacking oxygen and medicine, doctors interviewed by Reuters said in recent weeks.

Family members tend to chip in or launch crowdfunding campaigns for infected relatives, said Laura Martinez, a 55-year-old resident of the lower middle-class Las Acacias neighborhood in western Caracas, whose husband and elderly parents were treated at home. Patients who receive home treatment for the coronavirus generally purchase respirators, oxygen tanks and anti-viral drugs.

President Nicolas Maduro’s government has said that the country, whose economy is mired in a brutal recession marked by hyperinflation, is experiencing a second wave of the virus. Official data have recorded around 1,000 new cases per day in recent weeks, though many health professionals warn the true toll is likely higher.

As the new wave gathered steam throughout March and April, home care, gained popularity thanks to word of mouth and social media. Such treatment often includes house calls, an option seen as a luxury in many developed countries but rendered cheap in Venezuela by a surfeit of underpaid doctors. Home visits cost $40-$80, depending on the severity of the patient’s symptoms, doctors said.

“It is the economic factor – without a doubt it is much cheaper for a doctor to visit one’s home,” Leonardo Acosta, a 25-year-old doctor, told Reuters in mid-April after a home visit in the capital Caracas.

“The cost of just being admitted to a clinic’s emergency ward is very high.”

Venezuela’s public hospitals frequently suffer from blackouts and routinely lack running water, according to medical associations who stage frequent protests over the inadequate conditions of the public health system.

Private clinics are better equipped but charge at least $1,500-$2,500 per night for inpatient care and as much as $5,000 per night for emergency care to treat acute respiratory problems.

That’s out of reach for the vast majority in a country where monthly minimum wage has not topped $5 in several years.

The information ministry did not immediately reply to a request for comment.

Patients are able to receive treatment at home as long as they do not require intubation, a delicate process that would require them to be transported to an intensive care unit, Acosta said.

For doctors, performing home visits means getting paid in U.S. dollars and making substantially more than they would in the public health system.

“I’m doing this in part for economic reasons,” said Carlos Hernandez, a 25-year-old doctor who like Acosta recently graduated from the Central University of Venezuela. He is also working in the public health system, as the country requires of recent graduates, but said he has not been paid in four months.

Given the country’s economic crisis, Acosta said he will often provide treatment even when the patient cannot pay in full.

“I understand the situation,” he said.

(Reporting by Efrain Otero, Vivian Sequera and Leonardo Fernandez; Editing by Lisa Shumaker)

U.S., EU say they do not recognize Venezuela parliamentary vote

By Vivian Sequera and Deisy Buitrago

CARACAS (Reuters) -The United States, the European Union and more than a dozen Latin American countries said on Monday they would not recognize the results of a parliamentary election in Venezuela, which saw allies of President Nicolas Maduro win a majority.

Just 31% of 20 million eligible voters participated in Sunday’s election, the electoral council said early on Monday, less than half the turnout rate in the previous congressional elections in 2015. The opposition had boycotted the vote, calling it a farce meant to consolidate a dictatorship.

The results nonetheless return the congress to Maduro’s control, despite an economy in tatters, an aggressive U.S. sanctions program, and a mass migration exodus. An alliance of parties called the Great Patriotic Pole that backs Maduro won 68.9% of the votes cast, according to figures published on Monday.

“The United States, along with numerous other democracies around the world, condemns this charade which failed to meet any minimum standard of credibility,” U.S. Secretary of State Mike Pompeo said in a statement on Monday.

The EU’s top diplomat Josep Borrell said the election “failed to comply with the minimum international standards,” while a group of Latin American countries including Brazil and Colombia issued a statement saying the vote “lacks legality and legitimacy.”

Earlier in the year, the Supreme Court had put several opposition parties in the hands of politicians expelled from those same parties for alleged links to Maduro – one of the major reasons the opposition had called the vote a sham.

The elections council was also named without the opposition’s participation, and Maduro refused to allow meaningful electoral observation. Maduro allies have said the electoral conditions were the same as a 2015 parliamentary vote the opposition won, and the government paid no heed to foreign criticism.

“Venezuela already has a new National Assembly,” Maduro said early on Monday, in televised remarks that were muted in comparison with his frequent triumphalism. “A great victory, without a doubt.”

The opposition in 2015 won control of the National Assembly in a landslide, but the pro-Maduro Supreme Court blocked even the most basic legislation. In 2017, Maduro supplanted parliament with the creation of an all-powerful parallel body known as the National Constituent Assembly.

Opposition legislators nonetheless used the platform to denounce Maduro around the world for human rights abuses, corruption, and economic mismanagement, proving a constant thorn in the side of the Socialist Party.

Opposition leader Juan Guaido last year also used his role as speaker of the National Assembly to stake a claim to be Venezuela’s legitimate president, on the basis Maduro’s 2018 re-election was rigged, earning the recognition of more than 50 countries including the United States.

Pompeo said on Monday that Washington “will continue to recognize Interim President Guaidó and the legitimate National Assembly.”

Retaking control of the congress will give Maduro few meaningful tools to restart an economy where a monthly salary or pension is often less than the cost of a kilo of meat or a carton of eggs.

It may lend his government more legitimacy to offer oil industry deals to companies willing to risk U.S. sanctions to tap the OPEC nation’s huge oil reserves.

But even traditional allies such as Russia and China, typically the most likely to challenge U.S. sanctions, have shown scant interest in an oil industry hollowed out by years of decay and the emigration of its most talented professionals.

The opposition is calling on sympathizers to participate in a Dec. 12 consultation that will ask citizens whether they reject the results and want a change of government.

(Reporting by Vivian Sequera, Deisy Buitrago, Corina Pons and Mayela Armas; Writing by Angus Berwick; Editing by Hugh Lawson, Rosalba O’Brien and Chris Reese)

U.S. unfreezing Venezualan assets to help opposition fight COVID-19: Guaido

CARACAS (Reuters) – Venezuela’s opposition said on Thursday the United States has granted it access to millions of dollars of frozen Venezuelan government funds to support efforts to combat the spread of COVID-19 in the country.

The U.S. Treasury Department had approved the release of the funds, the opposition said in a statement without specifying the total amount.

The statement said part of the released funds would go to pay some 62,000 health workers $300. During a live appearance on Twitter on Thursday night, opposition leader Juan Guaido said health workers could register accounts to receive payments of $100 a month starting Monday.

Healthcare workers in Venezuela can earn as little as $5 a month.

Guaido first announced the additional support for healthcare workers four months ago, but distribution required a permit from the Office of Foreign Assets Control (OFAC), as the frozen funds were held by the New York Federal Reserve.

The opposition plans to distribute the funds using AirTM, a digital payment platform, but on Thursday, the website was blocked in Venezuela.

“You have to be very bad to block an account for men and women who are giving everything with conviction to protect our people when they are going to receive a bonus,” said Guaido.

The opposition leader added healthcare workers would be sent a manual with the steps to download a virtual private network (VPN) so they could circumvent the restrictions. AirTM also tweeted instructions how to use a VPN.

Guaido has been recognized by more than 50 countries as Venezuela’s rightful president after assuming an interim presidency in 2019 on the grounds that Maduro’s 2018 re-election was fraudulent.

In July, the opposition obtained permission to distribute $17 million in funds frozen in the United States that would be channeled through international health organizations to purchase supplies for medical workers.

The license also approves another $4.5 million to support Venezuelans at risk of death, an opposition press release said.

Venezuela is suffering economic collapse and its crumbling health system has so far registered 37,567 cases of COVID-19 and 311 deaths, although experts say the number is likely to be higher due to widespread insufficient testing.

(Reporting by Sarah Kinosian; Editing by Simon Cameron-Moore)

U.S. Iran envoy Brian Hook stepping down as key U.N. arms embargo vote looms

By Humeyra Pamuk and Michelle Nichols

(Reuters) – Top U.S. envoy for Iran Brian Hook is leaving his post and Elliott Abrams, the U.S. special representative for Venezuela, will add Iran to his role “following a transition period” with Hook, U.S. Secretary of State Mike Pompeo said on Thursday.

Hook’s surprise departure comes at a critical time when Washington has been intensely lobbying at the United Nations to extend an arms embargo on Iran and as the U.N. Security Council prepares to hold a vote on the U.S. resolution next week.

“We’re going to continue to make the case for this,” Hook told reporters on Thursday morning, hours before his departure was announced. “We hope that the council can find a way.”

It was not immediately clear when Hook’s tenure would formally end and whether he would see through the vote or not.

Pompeo did not give a reason for Hook’s decision to leave but wrote in a tweet that Hook was moving on to the private sector. He described him as a “trusted adviser and a good friend” who has achieved “historic results” in countering Tehran and secured the release of U.S. citizens detained by Iran.

Hook, 52, was appointed to the top Iran role at the State Department in late 2018 and has been instrumental in Washington’s intensifying pressure campaign on Tehran after President Donald Trump pulled out of the 2015 nuclear deal between Iran and the world powers.

Opponents criticized Hook and the administration for overly harsh and indiscriminate sanctions, which they said were hurting ordinary Iranians and failing to change the behavior of the Iranian government.

The U.S. bid at the Security Council to extend the arms embargo is a key test that some diplomats say will likely fail as it lacks the necessary support and veto powers Russia and China have already signaled their opposition.

If the United States is unsuccessful in its bid, it has threatened to trigger a return of all U.N. sanctions under a process known as snapback. Some diplomats have suggested Washington will likely start the snapback process, which could take up to 30 days, by the end of August.

Abrams, 72, a Republican foreign policy veteran, was named U.S. special representative for Venezuela in January 2019 and has led a hard-line approach aimed at ousting Venezuelan President Nicolas Maduro.

U.S. officials have said privately that Trump has been frustrated by the failure to remove Maduro, who retains the support of the Venezuelan military, as well from Russia, China, Cuba and Iran.

Abrams has recently been dealing with U.S. concerns about a growing alliance between Iran and Venezuela, both OPEC members under heavy U.S. sanctions. Iran in recent months has sent fuel tankers to gasoline-short Venezuela, drawing U.S. ire.

(Reporting by Humeyra Pamuk; additional reporting by Matt Spetalnick; writing by Michelle Nichols; editing by Diane Craft, Dan Grebler and Jonathan Oatis)

U.S. slaps sanctions on Mexican firms, individuals linked to Venezuelan oil trade

By Daphne Psaledakis and Marianna Parraga

WASHINGTON/MEXICO CITY (Reuters) – The United States on Thursday blacklisted Mexico’s Libre Abordo and a related company, accusing them of helping Caracas evade U.S. sanctions in the first formal action by the U.S. Treasury Department against Mexican firms involved in trading Venezuelan oil.

The Treasury said in a statement it imposed sanctions on three individuals, eight entities and two vessels for activities related to a network attempting to skirt U.S. sanctions on Venezuela aimed at ousting President Nicolas Maduro.

Mexico’s peso slumped 2% after the U.S. action.

Among those blacklisted were Mexico-based Libre Abordo and related Schlager Business Group, as well as their co-owners, Olga Maria Zepeda and Veronica Esparza.

The Treasury also targeted Mexican Joaquin Leal Jimenez, accusing him of having worked with Alex Saab, recently arrested in Cape Verde, Libre Abordo and Schlager for brokering the resale of millions of barrels of Venezuelan crude.

“Leal is the critical conduit between Libre Abordo, Schlager Business Group, and their owners, and PDVSA and Saab. Leal has been coordinating the purchase and sale of Venezuelan-origin crude oil from PDVSA,” Treasury said.

Leal did not reply to a request for comment.

A Maduro ally who has previously helped the government buy food, Saab was sanctioned in 2019 and charged with money laundering and conspiracy in a U.S. court in relation to a food program managed by Maduro’s administration. The government has denied any wrongdoing in connection with the program.

Libre Abordo said its lawyers will evaluate the Treasury’s decision, which it said wrongly linked the firm to unrelated entities.

“Our exchange of humanitarian aid with Venezuela should not be subject of sanctions,” Libre Abordo told Reuters in a statement.

The sanctions freeze any U.S. assets of the individuals and entities and generally prohibit Americans from dealing with them.

Libre Abordo and Schlager began receiving Venezuelan oil for resale in Asian markets late last year after signing two contracts with Venezuelan President Nicolas Maduro’s government in mid-2019.

The agreement was framed as an oil-for-food pact exempted from U.S. sanctions as the Mexican firms intended to supply Venezuela with 210,000 tons of corn.

Through May, Libre Abordo and Schlager received some 30 million barrels of Venezuelan oil, according to PDVSA’s documents. Even though they supplied about 500 water trucks in exchange, food was never delivered, as very low oil prices affected a schedule originally planned, Libre Abordo said.

U.S. Secretary of State Mike Pompeo said in a statement that the oil-for-food “enterprise skimmed millions from funds that were claimed to have been for humanitarian aid, yet failed to deliver the promised food to the Venezuelan people.”

Reuters reported last month that the FBI was probing several Mexican and European companies allegedly involved in trading Venezuelan oil, gathering information for a Treasury inquiry.

“They want us to be unable to export oil so the Venezuelan people are left without food, medicine or gasoline,” Venezuela’s Foreign Minister Jorge Arreaza said on Thursday. “Your actions and sanctions are criminal,” he told Pompeo over Twitter.

Washington in January 2019 recognized Venezuelan politician Juan Guaido as the OPEC nation’s rightful leader and has ratcheted up sanctions and diplomatic pressure in the aftermath of Maduro’s 2018 re-election that was widely described as fraudulent.

Maduro remains in power, backed by Venezuela’s military as well as Russia, China and Cuba.

“The United States will continue to relentlessly pursue sanctions evaders,” Treasury Deputy Secretary Justin Muzinich said in the statement.

Washington also targeted on Thursday Marshall Islands-based Delos Voyager Shipping Ltd. and Greece-based Romina Maritime Co Inc. for operating in the Venezuelan oil sector, giving them until July 21 to wind down activities.

The other firms blacklisted are Alel Technologies LLC, Cosmo Resources Pte. Ltd, Luzy Technologies LLC; and Washington Trading Ltd.

The Treasury delisted Marshall Islands-based firm Afranav Maritime Ltd and Greece-based Seacomber Ltd, and two vessels they own, after the companies promised to stop trade with Venezuela while Maduro is in power.

(Reporting by Daphne Psaledakis in Washington and Marianna Parraga in Mexico City; Additional reporting by Ana Isabel Martinez in Mexico City and Eric Beech in Washington; Editing by Tim Ahmann, Jonathan Oatis and Daniel Wallis)