WASHINGTON WATCH: CLINTON TAKES BOLD RISK ON MEXICO AID

It could yet turn out to be a costly mistake, but President Clinton deserves credit for taking decisive action in responding to the economic crisis in Mexico. No easy path was before him. While government experts were nearly unanimous in their call for some sort of financial bailout, opinion polls indicated that 80 percent of the American public opposed the idea. This opposition made any chance that Congress would pass the president's original $40 billion loan-guarantee proposal unlikely.More concerned with the dire forecasts of what would happen if nothing was done to assist Mexico than with the political mood in this country, Clinton bypassed Congress and used emergency authority to fashion a new plan with $20 billion from an unused Treasury Department account, originally established during the Depression to stabilize the dollar on international exchange markets in times of trouble. Clinton also worked tirelessly, once his first proposal appeared doomed, to cobble together another $30 billion in loans to Mexico from other countries and the International Monetary Fund.

While the president's actions were questioned by rank-and-file members of both parties, the congressional leadership endorsed Clinton's leadership."The president exercised his authority, he took a tremendous burden on his shoulders, he did what key leaders ... felt was necessary," said Speaker of the House Newt Gingrich. "I think people at a minimum we should recognize the president had the courage to do what he was being told by the very sophisticated experts was vital to reinforce international markets."Not all will be smooth sailing for the president, however. He has taken several huge risks. First, not only has he authorized direct loans to Mexico rather than merely guaranteeing them, as originally proposed, but they are loans with few strings attached. Conditions that both Republicans and Democrats in Congress had strongly suggested were left out. Instead, Clinton will rely on the judgment of the same Mexican leadership that caused the crisis in the first place.In addition, the Clinton administration's role in the origin of the crisis will be scrutinized. Numerous warnings appear to have been downplayed by the administration throughout last year, in part because of a desire to influence Mexican elections and in part because of debate in this country concerning the General Agreement on Tariffs and Trade. Clinton's circumvention of Congress raises new questions about any deals that might have been worked out with the Mexican government before the peso was devalued.Finally, by acting without Congress, Clinton loses all political cover. If his plan doesn't work, he gets all the blame. If it does work, it is uncertain how many will notice.

* * * * *

Two years ago, Jack Kemp was the favorite among Republicans for the 1996 presidential nomination. This week Kemp announced he won't seek that nomination, making official what most in this city had expected for a while."My passion for ideas is not matched by my passion for partisan electoral politics," the former congressman told reporters.While Kemp will not be in the race, his ideas certainly will. From supply-side economics to the importance attached to opportunity for all races and classes, Kemp has placed his stamp on the modern Republican party. Still, few politicians speak about free enterprise, personal responsibility and the need for compassion as eloquently as he. His candidacy will be missed.

Jon K. Rust is a Washington-based writer for the Southeast Missourian.