Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, February 2, 1995 TAG: 9502030011
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: Associated Press
DATELINE: NEW YORK LENGTH: Medium
Business leaders widely praised President Clinton for his Mexico rescue plan Wednesday, calling it a bold and decisive move that contrasts sharply with his image as a waffler.
The Clinton turnaround was so dramatic because it came swiftly after he abandoned his original plan Tuesday in the face of fierce congressional opposition, the executives said.
``This took some guts. It's not politically popular,'' said John Endean, vice president for policy at the American Business Conference, a coalition of chief executives of fast-growing mid-sized corporations. ``He did this because he thought it was the right thing to do.''
For many months Clinton's public persona has suffered from apparent flip-flops on a range of domestic and foreign issues.
Just last week, for instance, Clinton's State of the Union address offered what analysts termed half-hearted support for an increase in the minimum wage after he had strongly endorsed the idea.
Making matters worse was growing congressional and public opposition to Clinton's proposed packaged of $40 billion in loan guarantees to help rescue Mexico's troubled economy.
By Monday, the plan seemed all but doomed in Congress. Financial markets were panicking. Final defeat seemed assured around midday, when Clinton announced he was abandoning the plan.
But Clinton swiftly offered an alternate plan that doesn't require congressional approval: It would give Mexico $20 billion in U.S. loans or guarantees and nearly that much in credit from the International Monetary Fund.
The renewed confidence in the president's leadership was most immediately demonstrated by powerful rallies in key financial markets.
``At this point, I have to give the president credit. There was a crisis and he acted with decision and my hat's off to him,'' said Willard Workman, a vice president for international affairs at the U.S. Chamber of Commerce in Washington.
The business community has been a consistent supporter of aid to Mexico's ailing economy, which threatens to drag down U.S. exports and boost joblessness and illegal immigration in the United States.
But one polling expert said that even though the president may be viewed positively now, the sharp public opinion against Mexican aid could undermine his leadership down the road.
Up to 70 percent of the public opposes U.S. loan guarantees to Mexico, said Lydia Saad, a research analyst for the Gallup Organization, a Princeton, N.J.-based polling organization.
``It's true he acted decisively, and any time a president stands up to Congress I think he looks good,'' said Thomas D. Gallagher, a Washington-based political analyst for Lehman Brothers Inc., a Wall Street investment bank.
``But the polls show this wasn't a popular move. Outside the Beltway, I would say this is probably a wash for the president.''
by CNB