Sources Detail Meeting of 5 Major Groups

By Amparo Trejo
Associated Press

APODACA, Mexico -- Wearing business suits and cowboy boots, they flew in on private jets, landed at several airports and took a short drive to this northern
Mexican town in a fleet of brand-new SUVs.

They were Mexico's drug lords, who control most of the drugs smuggled across the border to the United States. Along with them came their bodyguards, various
associates and their contacts in government. Sixty men in all, they gathered in a restaurant, drawing the notice of local people as well as police in nearby Monterrey.

A participant in the three-day meeting, as well as associates of the smugglers, government officials and others familiar with the drug trade, gave independent accounts
of the summit, speaking on condition of anonymity. Their descriptions differed slightly in detail but agreed on the central purpose of the meeting: to join forces after 12
years of bloody turf wars and form a new cartel that would unite operations and cut costs.

The alliance has been in the works for three years, but was made urgent by a tough line from Mexico's new president, Vicente Fox; by a court decision making it
easier to extradite drug smugglers to the United States; and by a proposed U.S.-Mexico crackdown on money laundering, according to government insiders as well
as associates of the smugglers.

Although nobody has a good estimate of how much money flows to Mexico from drug smuggling, the White House estimates that about half of the $65 billion worth
of illegal drugs that Americans buy each year comes through Mexico. By any estimate, drug trafficking is one of Mexico's top sources of income, rivaling the top legal
industries of oil, tourism and assembly for export.

The industry is so pervasive that it has corrupted law enforcement from top to bottom. Police assigned to drug duty are routinely arrested for collaborating with the
smugglers. In 1997, Mexico's newly appointed drug chief, Gen. Jesus Gutierrez Rebollo, was jailed after investigators discovered he was on the payroll of a drug
trafficker.

The last major drug cartel in Mexico collapsed in 1989 when its longtime boss, Miguel Angel Felix Gallardo, was arrested. The new alliance would end the war of
succession that has killed hundreds of people. It would mean a major shift in the drug trade in the Western Hemisphere, creating a syndicate better equipped to
evade law enforcement.

Rafael Macedo de la Concha, Fox's new attorney general, said his agents investigated tips about such a meeting and found no evidence that it had occurred. The
U.S. Drug Enforcement Administration declined to comment.

But the sources said the meeting took place Jan. 26-28 around a long wooden table in a restaurant's back room, with a picture window offering a garden view.
Screened off from the main dining area, participants talked as waiters in tuxedos served steaks, roast goat and dried beef soup, a regional specialty.

According to the accounts, the guest list read like a who's who of Mexican drug smugglers:

• Juan Esparragosa Moreno, who Mexican authorities say is a veteran drug boss known as El Azul for his dark, almost blue-toned skin, and other heirs of the late
Amado Carrillo Fuentes, aka the Lord of the Skies, including Ramon Alcides Magana, a former policeman known as El Metro, who authorities say saved the life of
Carrillo Fuentes's son and became a close confidant. They represented the Juarez drug-smuggling organization, which operates along Mexico's Caribbean coast,
central Mexico and the West Texas border.

• Humberto Garcia Abrego, accused by Mexican authorities of running the Gulf drug gang of his brother Juan, who is serving 11 life sentences in a U.S. prison for
drug smuggling. The Gulf gang operates along Mexico's Gulf of Mexico coast.

• Ignacio "Nacho" Coronel, reputed leader of the Colima gang, which operates in the Pacific coast state of Colima and along the far eastern border with Texas.

• Ismael "El Mayo" Zambada, wanted by Mexican authorities, and representatives of Joaquin "El Chapo" Guzman, who recently escaped from a Mexican
maximum-security prison in a laundry bin. The two men reputedly work in a semi-independent but coordinated manner along Mexico's Pacific coast and north to the
Arizona border.

• Gilberto Valdes, a businessman who sources said represents smugglers in the southern state of Chiapas.

• Two men in military uniforms with generals' stars, to whom the others referred as "representatives of the attorney general's office," the participant and associates
said. Also present, they said, was a group of Colombians acting as consultants.

These five major drug-smuggling groups make up a new cartel, not yet named, which encompasses many smaller gangs, the sources said. The only major group to
decline the invitation to the meeting was that of the Tijuana-based Arellano Felix brothers, who run the bloodiest organization, all the sources said.

Analysts who study the drug trade confirmed an apparent alliance, although they did not know about the meeting. Macedo, the attorney general, said his office asked
nearby residents about any unusual movements at the time but was told nobody had seen anything strange. "It's all speculation," he said.

However, Eduardo Valle, a former drug official at the attorney general's office, said colleagues told him there was "a lot of movement" in the agency's office in
Monterrey, just a few miles from Apodaca, at the time of the meeting. He said he did not know why, but added: "Certainly something major was happening."

The associates said the smugglers opened their books to one another, discussed how much each paid in bribes and shared contacts, informants and the names of
corrupt officials. According to the insiders, the participants agreed that members of the new cartel would -- for now at least -- respect one another's territory and
devise a joint strategy for selling drugs within Mexico and exporting them to the United States.

They decided to pool their bribes in one larger payment to each corrupt official and the generals agreed to accept the new form of payment, the sources said. Also,
they said, the traffickers agreed to more meetings to strengthen their new cartel.

Associated Press writer Niko Price in Mexico City contributed to this report.

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