NEW YORK, July 22 (UPI) -- The New York Times commented editorially  
Monday on Mexico's political and economic challenges: 
	Mexico, battered by corruption scandals, deep recession and  
mysterious guerrilla violence, is passing through difficult and 
dangerous times. But instead of stepping up to the challenge with a bold 
plan of action, President Ernesto Zedillo now appears to be retreating 
from the promises of open, honest government he made at the start of his 
term 20 months ago. That is exactly the wrong response. 
	The repeated political and economic shocks of the last two and a half  
years have shaken the confidence of Mexico's political and business 
elite. The latest blow has come from Swiss and American judicial 
inquiries into huge secret bank accounts maintained by Raul Salinas de 
Gortari, the brother of former President Carlos Salinas de Gortari. 
	Many Mexicans suspect that these accounts may have been used to park  
payoff money from major businesses and even drug cartels. What 
connection, if any, Carlos Salinas may have had with any illegal 
activity is unclear, but a serious public investigation by Mexican 
authorities is warranted. 
	These revelations, combined with the prolonged economic slump and  
rural violence, have shaken the legitimacy of Mexico's long-entrenched 
political system. That system has delivered nearly 70 years of relative 
political stability, but at the price of letting top officials operate 
above the law and avoid prosecution for serious misconduct. 
	The United States has an enormous interest in the outcome of Mexico's  
current crisis. Two peoples deeply entwined by history, geography and 
large-scale migration have been drawn even closer by the North American 
Free Trade Agreement. Washington must respond sensitively to the Mexican 
crisis, respecting Mexico's sovereignty, the authority of its 
democratically elected government and the right of its people to sort 
out their own political destiny. 
	But respond it must. The Clinton administration, still nursing  
bruises from its battles to win approval for NAFTA and last year's 
emergency bailout loan, would just as soon pretend all is well in 
Mexico, at least until November's election. 
	The wiser course would be to encourage Zedillo to push through  
desperately needed political and judicial reforms. Specifically, Zedillo 
needs to distance himself from his party's corrupt and authoritarian old 
guard and insist on aggressive prosecution of compromised officials, no 
matter how politically well-connected they might be. 
	Instead, Zedillo seems to be moving in the opposite direction. Last  
week, his supporters abruptly cut off a congressional investigation that 
focused on a questionable government payment seven years ago to a 
business owned by a political backer of Carlos Salinas. The inquiry was 
uncomfortable for Zedillo, who, as a budget official in the Salinas 
government, approved the payment. 
	Zedillo also seems to have backed away from his efforts to clean up  
Mexico's notoriously fraudulent state elections. The most closely 
watched case involved the oil-rich state of Tabasco, where federal 
investigators found Gov. Robert Madrazo, an old-guard stalwart of the 
ruling party, had spent more than 30 times the legal limit in his 1994 
campaign. Last month, Zedillo's attorney general filed criminal fraud 
charges but left it up to Madrazo's own state officials to prosecute. A 
few weeks later, Zedillo flew to Tabasco, embraced Madrazo on the 
airport tarmac, and all charges were dropped. 
	Zedillo began on the right tack when he tried to bring new fairness  
to Mexico's judicial and electoral systems. By backing down now, he may 
buy a few months of political respite from worried members of his 
party's old guard. But he greatly heightens the risk of more radical 
challenges to the system, with disastrous consequences for his 
presidency and serious repercussions for the United States.