Arranged at the invitation of President de la Madrid, the current meeting offered both Presidents an opportunity to discuss important bilateral issues of common concern and to strengthen the ties they established during their previous meetings. They discussed economic, trade and financial matters, as well as border issues, narcotics control, immigration, fisheries, ecological and scientific and technical cooperation.

The Presidents also had a useful discussion on the situation in Central America.

The two Presidents reaffirmed their determination to strengthen still further the spirit of cooperation, understanding and friendship which exists between their two countries.

The Presidents reviewed recent economic developments which have taken place in their countries. President de la Madrid stated that the economic policies of his administration are aimed at restoring the necessary conditions for rapid, just, balanced and independent national economic development. President Reagan stated that his government recognized Mexico's efforts to adjust and reorder its economy and reaffirmed United States support of and assistance to the Mexican government in its efforts to resolve its current economic problems.

The two heads of state also discussed negotiations on subsidies and countervailing duties and have committed their administrations to resolving these issues as expeditiously as possible. They discussed problems related to tuna fisheries and stated their hope that the issue could be resolved as soon as possible. While expressing understanding of Mexico's needs to resolve its balance of payments problems, President Reagan conveyed his hope that Mexico would soon return to normal trade patterns. On this subject President de la Madrid stated that the dynamics of trade between the two countries would benefit from greater Mexican exports which would generate foreign exchange revenue and thus help to finance the imports needed for the development of Mexico's economy.

In view of the need for continuing discussion of bilateral trade issues, they recognized the useful role played by the Joint Commission on Commerce and Trade, the consultative body established by both governments in strengthening commercial exchange between the two countries.

Both Presidents recognized the importance of trade along the border and agreed to continue efforts directed toward solving the problems being confronted by border communities of both countries. To that end, they considered a proposal to establish a working group for economic and trade matters in the border region within the Binational Commission. They also discussed sanitation problems along the border, a matter which adversely affects citizens of both countries.

The two heads of State gave special attention to cultural exchange as well as scientific and technical cooperation between Mexico and the United States. They agreed on the need to continue the promotion of such exchange and cooperation and strengthening existing programs and mechanisms in these areas.

The Presidents expressed their satisfaction with the excellent results of the campaign carried out by the Mexican Government in cooperation with the Government of the United States to combat illegal drug production and trafficking. They agreed on the need to continue such cooperation for the benefit and the well-being of both their people.

In this same spirit, they decided to intensify cooperation between the two governments with a view to finding more suitable responses to the problems of environmental pollution along the border. They noted that a cooperation agreement was signed today that establishes the framework for bilateral action on pollution of water, air and land.

In the discussion on the situation in Central America the two Presidents agreed on the need to contribute to the restoration of peace and to the prevention of an even greater conflict in the area by promoting fast processes of political dialogue and negotiation. President Reagan reiterated his strong support for the Contadora initiative. President de la Madrid and President Reagan agreed also on the importance of helping Central American countries to settle their conflicts peacefully. The Presidents furthermore reiterated their strong support of non-intervention and the self-determination of people. Finally the Presidents recognized the necessity for equitable social and economic development in the region.

The Presidents ended their talks fully convinced that strengthening the friendship and cooperation between Mexico and the United States remains a common objective of their governments. They reaffirmed their desire to hold periodic working meetings between themselves and other high officials of their governments.

President Reagan expressed his pleasure and appreciation for the hospitable welcome accorded to him by the Mexican Government and by the authorities of the State of Baja California Sur. He also extended a cordial invitation to President Miguel de la Madrid to visit the United States in the near future.