Direct Foreign Investment New private direct investment has been entering Mexico at the rate of $150 million to $200 million a year over the past decade. About 80 percent of such investment comes from the United States and is channeled primarily into manufacturing, tourism, and mining. By Mexican law, certain basic fields, including petroleum production, communica-tions, and electric power generation, are reserved for government operation. International financial institutions have added to Mexico's growth by financing these State-dominated enterprises. The U.S. Export-Import Bank, the International Bank for Reconstruction and Development (the World Bank), and the Inter-American Development Bank have been the major sources of such financing. By June 30, 1970, Mexico had been authorized credits worth $2.3 billion by these institutions. Of these loans, 27.6 percent have been for electrical energy; 18.8 percent for transpor-tation; 16.7 percent for irrigation; 14.2 percent for roads; 8.3 percent for industry; 4.8 per-cent for agriculture; and 9.6 percent for social infrastructure, imports, export development, and other activities. It is clearly evident that much of Mexico's booming economy is the direct outgrowth of financial assistance from the World Bank Group. The President of Mexico, in his acceptance address of December 1970, noted that foreign investment has contributed strongly to Mexican industrialization and stated that such investment would be welcome in the future to the extent that it provides new tech-nology, is willing to enter into joint ventures with Mexican capital, and reinvests its prof-its and applies its reserves in Mexico. This statement indicates that more and more pres-sure for Mexicanization can be expected, although foreign capital will be welcome if foreign investors are willing to assume a minority position, with Mexican investors having the major precentage. The prospects for new ventures without Mexican equity participation are indeed poor. The Securities Market During 1970, trading on the Mexico City Stock Exchange amounted to $33.7 billion, a 4.1 percent decline from the overall volume in 1969. Investment apathy, combined with sharply higher interest rates for fixed income securities, affected the market for most of the year despite generally favorable market conditions in terms of performance by major companies. Of the 60 most actively traded stocks on the Mexico City Stock Exchange in 1970, only 22 registered price increases for the year and 34 declined. An indication of the low interest and unfavorable conditions existing on the Exchange was evident from the lack of public offerings that were made during the year, whereas in 1965-68 at least 11 issues were offered. Labor Relations The federal government has jurisdiction over all matters pertaining to labor under the Mexican Constitution. A federal labor law promulgated in 1931 is still in force. All workmen in mines and metallurgical plants are affiliated with the Miners Union, which was organized in 1934. This union has complete jurisdiction over labor relations in the field of mining. Jurisdiction by a single union is believed to be a favorable feature and serves to avoid jurisdictional conflicts and strikes. Although it is not compulsory 15