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SwissInfo: Mexico conservative claims win

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July 3, 2006, Mexico conservative claims win, Frank Jack Daniel, SwissInfo

MEXICO CITY (Reuters) - Mexico's conservative presidential candidate Felipe Calderon declared victory on Monday in a bitterly contested election and official returns appeared to show his leftist rival could no longer catch him.

Calderon had a lead of almost 400,000 votes over Andres Manuel Lopez Obrador with returns in from 96.6 percent of polling stations and a senior election official said it was unlikely to change with a recount ordered for later this week.

A Calderon victory would ensure Mexico sticks to the free-market policies of outgoing President Vicente Fox and hold steady as a U.S. ally, bucking a trend of Latin American nations who have turned to the left and away from Washington in recent years.

"There is an irreversible result and it is in my favour," a confident Calderon of the ruling National Action Party said in a television interview. "The result gives me a very clear victory that cannot be reversed."

Arturo Sanchez, one of the nine board members of Mexico's Federal Electoral Institute, said he expected a recount to make no difference to the result.

"What is going to happen with these results? The truth is they will be the same," he told Reuters.

Lopez Obrador said on Sunday night he won the election by 500,000 votes and would insist that his victory be respected in an official recount but he appeared more open to a possible defeat on Monday.

"If in the count we conduct, it turns out the final result does not favour us, I am going to abide by the result," he said. However, he added, "We are going to defend the will of the people if it favours us."

The official returns and Lopez Obrador's softer tone reduced the risk of a major political crisis of a contested election, and Mexico's financial markets jumped on a wave of investor optimism.

CONGRESS GAINS

Legislative election results from Sunday showed Calderon's party made major gains and would be the largest single party in the next Congress, although it fell short of a majority.

The stock market jumped 3.8 percent in early trade and Mexico's peso currency rose about 1.5 percent.

Mexico's top election official said late on Sunday the race was too close to declare a winner and a recount was needed, but Calderon insisted that was no longer necessary.

With returns in from 96.6 percent of polling stations, the conservative had 36.4 percent support, 1 percentage point ahead of his rival. Lopez Obrador would have to see a dramatic swing in the remaining polling stations to catch up.

If the Federal Electoral Institute goes ahead with a recount, however, it could be days before a final vote count is in.

Some fear that delay and a combative Lopez Obrador could push Mexico towards political deadlock, street protests and volatility in financial markets.

Unrest would also worry the United States, which relies on Mexican help in securing its borders and tackling immigration and violent drug smuggling gangs.

The U.S. government took a cautious attitude on Monday, preferring to wait for the official final results.

"We note that the final results are still not available," said Frederick Jones, spokesman for the White House National Security Council. "We along with the Mexican people look forward to the announcement of the results."

Lopez Obrador supporters, remembering a 1988 presidential election widely believed to have been stolen from another left-wing candidate, claimed foul play.

"They are up to their tricks because everyone knows Andres Manuel won," Gabriela Ramirez, a Mexico City student, said late on Sunday night.

Critics of Lopez Obrador, a feisty and austere figure who pledged to put Mexico's poor first if elected, said the close race played into his hands and that he was looking for an excuse to mobilise supporters and cause trouble.

"Now if he loses, he can say the rich guys stole it from us. It could lead to chaos," real estate agent Victor Perera said at an upscale Mexico City neighbourhood restaurant.

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