by MONITOR
THE deal which the Spanish government made one year ago to sell 12 military transport planes to Venezuela has been cancelled following the refusal of the United States to permit the use of American technology in the aircraft. Initially the company concerned, EADS-CASA, said that it would be able to find alternative technology but, according to a statement made this week in Madrid by the Spanish foreign minister, Miguel Angel Moratinos, this had proved difficult and costly. The construction of the planes, part of a contract worth 1.7 billion euros, was expected to create several hundred jobs. From the start Spain has disagreed with the view of the United States that these planes would be used by President Chavez of Venezuela in his campaign to destabilise Latin America and its relations with America. It also became known this week that Spain has been supporting Guatemala rather than Venezuela in the close competition at the United Nations for the vacant Latin American seat on the Security Council. The indications from the initial voting are that Venezuela will lose this contest; President Chavez may by now be reflecting that his abusive attack on President Bush at the UN a few weeks ago was not a very wise way of winning friends and influencing people. Although Latin America as a whole is no longer willing to toe the American policy line and needs a spokesman to articulate its regional ambitions, Chavez is clearly not the right man for the job.
SPAIN ENDS DEAL