http://transcripts.cnn.com/TRANSCRIP...11/ldt.01.html


PILGRIM: President Bush said once again today that he is committed to building both a real and virtual fence on the U.S. southern border with Mexico. The president challenged critics who said he is not truly committed to building this fence, but he also said a border fence is not the real answer to this nation's illegal immigration crisis.

(BEGIN VIDEO CLIP)

BUSH: You can't fence the entire border, but what you can do is, you can use a combination of fencing and technology to make it easier for the Border Patrol to enforce our border. I happen to believe, however, that, in order to make sure the border is fully secure, we need a guest worker program, so people aren't sneaking in, in the first place.

(END VIDEO CLIP)

PILGRIM: Now, as President Bush vows to continue his push for so-called comprehensive immigration reform, the U.S. government is making it even easier for illegal aliens to send money home to their families. And critics say this new policy will only entice more illegal aliens to enter the United States.

Casey Wian reports.

(BEGIN VIDEOTAPE) CASEY WIAN, CNN CORRESPONDENT (voice-over): Apparently oblivious to the promised federal crackdown on illegal immigration, the U.S. Federal Reserve is expanding a program that helps Mexican illegal aliens send money home. It's called Directo a Mexico.

The Fed's marketing material says it's the most convenient way to transfer your money to Mexico. The Fed says your family receives more pesos for every dollar you send, because Directo a Mexico offers the best exchange rate. And it reassures illegal alien customers they won't lose their money, even if they're deported.

Texas Congressman Jeb Hensarling is on the committee overseeing the Federal Reserve.

REP. JEB HENSARLING (R), TEXAS: Well, of course it's a mixed message. I mean, we have got a branch of the federal government arguably giving tacit approval to people who come here illegally.

WIAN: One hundred and fifty U.S. financial institutions have signed up for Directo a Mexico. The only I.D. required of customers is Mexico's matricula consular, widely used by illegal aliens.

DR. STEVEN CAMAROTA, CENTER FOR IMMIGRATION STUDIES: To control illegal immigration, it takes a lot of things. It takes the border. It takes going after employers. And you don't want to do stupid things, like making it easier for illegals to transfer money back and forth. So, you require proper identification whenever someone wants to transfer money out of the country. It's very simple. We could do it.

WIAN: The Fed says most of the funds being transferred now are Social Security payments to retirees in Mexico, but it hopes to attract more individual workers, now using Western Union and similar services.

The Atlanta Federal Reserve Bank, which runs the Directo a Mexico program, says immigration laws are not its area of focus. The Mexican Central Bank this month announced, remittances from the United States have jumped nearly 20 percent so far this year, and are on pace to total $24 billion, smashing last year's record. Remittances are now neck-and-neck with oil as Mexico's second largest source of foreign revenue, behind only illegal drugs.

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WIAN: But some prominent Mexicans are now beginning to question that economic model. In just the past week, Mexico's Central Bank governor and its leading industrialist both criticized the country's increased reliance on money from Mexicans working abroad -- Kitty.