718 WEST 5th ST AUSTIN, TEXAS 78701 4.7713;5 Times Laredo, Texas OCT 1 9 1982 Clements writes Reagan: lack of peso-dollar exchange serious By JIM PARISH Times staff writer President Ronald Reagan is being urged by Texas Gay, Bill Clements to recognize that lack of a peso-dollar exchange mech- anism is a serious international problem, a Clements aide said here Monday. Rick Montoya reported on Clements' in- terest in the problem during a short visit to Laredo yesterday. He is accompanying Ru- ben Sandoval, LULAC civil rights director, on a flying visit to several border cities. Montoya gave the Laredo MorningTimes a copy of a letter which he said had not been made public before. "We are making this letter public today because of the belief that President Reagan will eventually take some kind of action that will help border cities. Gov. Clements has been in continuing contact with a number of federal officials from the president on down. They are becoming more aware, as the gov- ern9r has said, that the lack of a peso ex- change mechanism is clearly an interna- tional problem," Montoya explained. He said the governor's letter was written mainly as a result of concerns which were ably expressed to the governor by Laredo Chamber of Commerce officials and a group of area bankers. Clements' letter reads: My Dear Mr. President: I am extremely concerned about the dev- astating impact that the devaluation of the Mexican peso and the subsequent currency exchange restrictions have had on the econ- omies of Texas communities, especially those along the U.S.-Mexico border. Towns along the border, in particular those smaller towns, were already catego- rized as "distressed economic areas" before the devaluation. Now the economies of border cities, de- pendent as they are on trade with Mexico, are crippled by sudden and severe down- turns in retail sales and sharp increases in unemployment rates. Retail business has dropped by 60 percent in McAllen, by 20 percent in El Paso, by 45 percent in Laredo and by 60 percent in Eagle Pass, to name but a few cities. Clearly, this is an international problem. It is imperative that some stability be provided as soon as possible so that com- merce between the two countries can con- tinue. I believe that this can be achieved through the implementation of a federally administered currency exchange mechanism that would permit U.S. border financial in- stitutions to accept pesos from the local pop- ulace, merchants and tourists. I urge your serious consideration of these recommendations. They will benefit the citizens and com- merce of both countries by alleviating the present economic crisis that has stifled trade between the United States and Mexico. Re- spectfully, William P. Clements Jr. Governor of Texas. • S •