Business news with words aircraft+countries+department. 2 news.

A controversial scheme for American aid to help its southern neighbour fight drugs looks useful but underwhelming THE idea was first mooted at a meeting near Merida last March between Mexico's president, Felipe Calderon, and George Bush. Months of negotiations culminated in weeks of leaks, mainly from American officials. But for such a well-rehearsed exercise, the announcement when it finally came was oddly low-key. On October 22nd both governments said that in an early-morning telephone call the two presidents had agreed on a plan under which the United States will provide Mexico with $1.4 billion in aid over the next three years to fight drug traffickers. Patricia Espinosa, Mexico's foreign minister, said the largest single chunk of an initial $500m would be spent on aircraft--mostly transport planes, she said, although in Washington, the State Department talked of surveillance aircraft and helicopters. There will also be scanning equipment at the border, and new communications systems, training and technical advice for Mexican police, including help on a witness-protection programme. And the United States will also give $50m in anti-drug aid to the Central American countries.

THE Chinese government is considering cutting taxes on the import and leasing of aircraft to bring the country in line with international standards, according to a senior official with the Civil Aviation Administration of China. "China's tax on the import and leasing of aircraft is higher than most countries in Europe and the United States. Many European countries, such as Germany and UK, levy no taxes on aircraft imports, so we are considering cutting the tax," Sha Hongjiang, CAAC vice director of planning and development department, said yesterday.