The Bush administration's refusal to license U.S. technology for Spanish-built planes continues to sour a $500 million contract between Spain and Venezuela.
Washington has barred Spain's CASA aircraft company from using U.S. optical system sensors, radar, high-technology cameras and integrated software systems in 12 C-295 military transports that CASA is proposing to build for Venezuela.
The Spain Herald reports that the administration of Venezuelan President Hugo Chavez Frias has given CASA 30 days to find European technology to replace the embargoed U.S. items. If CASA is able to locate alternative technology, it will make the operation much more expensive and severely cut into CASA's profit margin.
Chavez has threatened that if CASA is unable to locate alternative technology, then Venezuela may take its business elsewhere, possibly to Russia.
The unarmed C-295 has a maximum speed of 300 mph and can carry more than a nine-ton payload. C-295s are used to provide tactical and logistical transport, health evacuations, maritime patrol duties and for humanitarian and peacekeeping missions.
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