According to a Feb. 8 article in the online magazine Salon, officials of the Federal Reserve, the de facto central bank of the US, were planning to arrange for a bailout of the Mexican peso in November 1993 to ensure that the North American Free Trade Agreement (NAFTA) would be ratified by the House of Representatives. While the US media and government officials—including Federal Reserve Board of Governors member Jon LaWare—were assuring Congress and the public of Mexico's financial stability, top Reserve officials were concerned that the peso might be facing a devaluation. In a Nov. 9 conference call that one official described as "of a sensitive international nature," Fed leaders discussed arranging a US-sponsored bailout if the currency failed.

Mexico's federal government signed an accord with Michoacán's "community police" network Jan. 27, calling for the self-defense militias to be incorporated into the official security forces. The pact was signed by Alfredo Castillo, the government's special pointman for pacification of Michoacán, and 30 leaders of the "community police" forces. The ceremony took place at the village of Tepalcatepec, one of those recently seized by the militias. The "community police" are to be absorbed into the Rural Defense Corps, a paramilitary network under the command of the National Defense Secretariat.

Mexico's violence-torn state of Michoacán produces millions of kilos each year of its famous specialty crop, highly prized in US markets... Yes, avocados. Michoacán accounts for 72% of total Mexican production of this rich, green fruit, and over 80% of the state's output is exported to the United States. The trade amounts to nearly a billion dollars a year—even ahead of the state's notorious (and prohibition-inflated) marijuana. But now the two industries are experiencing a grim synergy, as narco lords acquire avocado plantations to launder money, facilitate smuggling and maintain a cover of "legitimate" income. According to a recent exposé in Mexico's Vanguardia newspaper, the Knights Templar cartel has in recent years been running an extortion racket on avocado farmers, seizing their lands if they can't pay up (on pain of family members being abducted and threatened with death), building a "legal" agrarian empire in the state. The local agribusiness association, with the clunky name of the Michoacán State Committee on Vegetable Health, has been co-opted by the Templarios through threats and bribes, according to the report.

Mexican federal police arrested 38 people across violence-torn Michoacán state on Jan. 20, claiming a blow against the notorious Knights Templar drug cartel. Among those detained was Jesús Vázquez Macías AKA "El Toro"—claimed to be a top kingpin of the blood-drenched narco network. "El Toro" was apprehended in the port city of Lázaro Cárdenas, and flown to a prison in Veracruz state, far from his home turf. But Lázaro Cárdenas, one of Mexico's key Pacific ports and industrial hubs, was actually taken over by federal security forces back in November, ostensibly to protect it from the warring narco gangs. That El Toro apparently managed to remain at large in the city until now loans credence to the claims of Michoacán's vigilante network that the government is turning a blind eye to the drug lords. (AFP, BBC News, Milenio, Jan. 20; BN Americas, Jan. 10; Reuters, Jan. 1)

On the night of Jan. 13, one day after "community police" gunmen seized several pueblos that had been controlled by the Knights Templar narco-gang in Mexico's west-central state of Michoacán, federal army troops were sent in to take back the villages from the vigilante force. "Community police" leaders say up to 12 of their men have been killed in clashes with the army. The bloodiest incident is reported from Antúnez pueblo, Parácuaro municipality—where a 17-year-old youth is said to be among seven dead. Mexico's National Human Rights Commission (CNDH) says it has confirmed the deaths of four at Antúnez, including a minor.

Some 100 gunmen from a "community police" force in Mexico's Michoacán state on Jan. 12 seized the town of Nueva Italia—precipitating a shoot-out with gunmen from the Knights Templar cartel who had been in control there. Two members of the vigilante force were wounded before the Templarios retreated, leaving the "community police" in control of thw town. It is unclear if there were casualties on the cartel's side. It seems there were no "official" police in the town, nor any army troops. Traveling in a convoy of pick-up trucks and armed with rifles, the "community police" also seized several hamlets in Parácuaro, Apatzingán and other municipalities—where several trucks and other vehicles deemed to belong to cartel collaborators were burned. Jan. 10 saw a confrontation for control of the municipal palace in the center of Apatzingán. The vigilantes also briefly set up a roadblock on the coastal highway, where more vehicles were stopped and burned—a total of 13 across the state in three days of violence.

On Jan. 24 the government of the north-central Mexican state of Zacatecas sent about 200 riot and ministerial police to remove some 30 campesinos and their relatives from an entrance they were blocking to the Peñasquito open-pit gold mine in Mazapil municipality. Campesinos from the Las Mesas ejido (communal farm) and the Cedros annex began blocking the entrance on Jan. 16 to get attention from state and federal authorities for their demand to reopen negotiations with the mine's owner, the Vancouver-based Goldcorp Inc., about the rent the company is paying to use ejido land. In addition to removing the protesters, the police arrested two campesino leaders, the brothers Epifanio and Mónico Morquecho, and took them to the prison in Concepción del Oro municipality, 40 km away; they were charged with damages, looting and extortion, based on a criminal complaint from Goldcorp.

A "commando" of six gunmen gained access to a Mexican prison after midnight on Jan. 3, killed four inmates in their sleep, and then tried to shoot their way out, sparking a fire-fight with guards that left five of the attackers dead. The assailants infiltrated the Social Rehabilitation Center (CERESO) in Tuxpan, disguised in uniforms of the Guerrero state Ministerial Police, telling guards they were bringing in a prisoner. Army troops were subsequently sent in to secure the facility. The slain inmates were said to be serving time for drug trafficking and kidnapping charges. (Borderland Beat, Jan. 4; BBC News, La Jornada, Jan. 3) This is the latest in a wave of cases of cartels taking their bloody turf wars to the inside of Mexico's prisons.