KPMG (letterhead)
221 N. Kansas Street, Suite 1300
P.O. Box 522551
El Paso, TX 79999-0010










Securities and Exchange Commission
Washington, D.C.  20549

Ladies and Gentlemen:

We were previously principal accountants for Elamex, S.A. de C.V. and, under the
date of March 1, 1999, we reported on the consolidated  financial  statements of
Elamex,  S.A. de C.V.  and  subsidiaries  (Elamex) as of and for the years ended
December 31, 1998 and 1997.  On March 24,  1999,  our  appointment  as principal
accountants was terminated. We have read Elamex's statements included under Item
4 of its  amended  8-K dated May 17,  1999,  and we agree with such  statements,
except  (i) that we are not in a position  to agree or  disagree  with  Elamex's
statement that the change was recommended by the audit committee of the Board of
Directors, (ii) that we are not in a position to agree or disagree with Elamex's
statement that the new accountants were not consulted  regarding the application
of accounting principles to a specified  transaction,  completed or proposed; or
regarding the type of audit opinion that might be rendered on Elamex's financial
statements, and Elamex's new accountants were not consulted regarding any matter
disclosed  in any comment in the 8-K's item 4, and (iii)  except as described in
the  following  sentence.  In  our  letter  relating  to  internal  control  and
accounting  procedures  dated  March 1, 1999,  we noted a  reportable  condition
related to Elamex's  accounting  records and procedures in accounting for income
taxes.





/S/ KPMG LLP





El Paso, Texas
May 20, 1999