MEXICO CITY, March 1 (Xinhuanet) -- The Mexican government is opposed to the closure of the U.S. Sheraton hotel in Mexico City, fearing the action could discourage investment.

    Speaking at his daily press conference, the Mexican president's spokesman, Ruben Aguila, said the decision to close the hotel "notonly puts at risk the jobs of the people working there, but affects the tourism sector's image and probably could discourage investment."

    However, he denied that the move would damage U.S.-Mexico relations.

    The hotel was ordered to shut down by the local council on Tuesday after it expelled a group of visiting Cubans under pressure from the U.S. Treasury Department, which said the long standing U.S. embargo against Cuba would otherwise be violated.

    Apart from the closure, the local council also demanded that the hotel pay a fine of 157,000 Mexican pesos and correct alleged operating irregularities within 48 hours.

    Aguilar said he was confident that dialog was the correct way to solve this problem, adding that the hotel had established a good track record during the 40 years of operation in Mexico.

    He called for local authorities to "avoid abusing their power and avoid putting investments and Mexican jobs at risk."

    However, Alejandro Encinas Rodriguez, head of the Mexico City government, insisted that the hotel be closed, adding that U.S. laws should not be applied in Mexico and that the local authority had done nothing beyond its normal range of power. Enditem