Secretary of Labor and Social Welfare Javier Lozano alarcon of Mexico

Javier Lozano Alarcon praised the new bilateral agreement between Mexico and Spain.

Lozano Alarcon said in an e-mail to AP that he had no relationship to Ye Gon and called the accusations "slanderous and defamatory.

In a written response Monday to The Associated Press, Lozano Alarcon denied the accusations and said he was considering a defamation lawsuit against Ye Gon.

Lozano Alarcon was a key player in Calderons campaign and his transition team following Calderons narrow victory a year ago.