After breakfast with President Fox at Los Pinos to kick off his two-day trade mission, Schwarz- enegger told reporters that he supports plans, recently signed into law by U.S. President George W. Bush, to build 700 miles of high-tech fencing along part of the 2,000-mile border.

But, he said, the wall project would only be one element of a comprehensive resolution to the two nations´ migration challenge.

"Approving a law to build a wall between the United States and Mexico is an incomplete way to solve the problem," said Schwarzenegger, who was re-elected to a full term as governor of the most populous U.S. state on Tuesday after ousting former Gov. Gray Davis in a recall vote in 2003. "That´s why a guest-worker program must be functioning at the same time."

GUEST-WORKER PROGRAM

He said he would like to see a guest-worker program implemented, in which Mexican workers are matched with available U.S. jobs and given temporary visas to perform them legally.

The governor arrived with more than 60 California businesspersons, selected members of his government, and some state legislators. The entourage gathered at a luncheon Thursday sponsored by the American Chamber of Commerce/Mexico, with several dozen Mexican businesspersons in attendance.

Also at the gathering were four Mexican state governors, including Enrique Peña Nieto of the State of Mexico and Amalia García of Zacatecas.

LYNDON LAROUCHE

Schwarzenegger´s luncheon speech was interrupted by four singing and chanting followers of Lyndon LaRouche, a perennial U.S. fringe candidate known for his extremist views. The brief protest drew more chuckles and shouts of "fuera!" (out) than genuine concern.

Schwarzenegger has an image problem in Mexico, because of his support for the Minutemen, a migrant-hunting vigilante group, his refusal to allow undocumented immigrants to obtain drivers´ licenses, and what´s perceived here as anl anti-immigrant attitude.

The governor sought to ease concerns Thursday, noting that he himself is an immigrant (from Austria) and professing his love for Mexico.

"I wanted to make this trade mission to Mexico immediately after the election, not a year later, to send a signal to Mexico that it is a very important trade partner," he said.

He also pointed out that he won his first international bodybuilding competition in Mexico, and filmed three movies here.

This is Schwarzenegger´s first visit to Mexico City since he became governor three years ago. He has visited Mexican border states during his term.

His last appearance in the capital was in 2003, just after completing the filming of Terminator 3 and just before his first successful run for governor.

Schwarzenegger was scheduled Thursday night to attend the premier of a California tourism promotion film at the IMAX theater in the Papalote children´s museum in Chapultepec Park.

On Friday, he will meet with President-elect Felipe Calderón, who will have returned from a "working visit" to Washington, D.C., where he met with U.S. President George W. Bush at the White House on Thursday.

EL UNIVERSAL staff writers Natalia Gómez y José Luis Ruiz contributed to this report.