STATUS OF ARGENTINA'S CONDOR II MISSILE PROGRAM*

Created: 11/27/1990

OCR scan of the original document, errors are possible

APPROVED FOB RELEASE DATE: FE3 ^OOt

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MEMORANDUM

SUBJECT: Status of Argentina's Condor II Missile Program*

1. In recent months, we believe. President Carlos Menemdeliberately to terminate the condor IImissile project in Argentina. In late* * he | decree

]firms which managed the development of of Argentina[

canceling Argentina's contracts with the consen

the Condor II on bonait

The project has been shut down per orders of Defenseand Air Force Chief of Staff Moreover, r

)mi3sile production equipment from the Cordoba aircraft plant has been moved to the Cordoba solid propellant plant at Falda del Carmen and placed under tight security with instructions that no further movement of equipment or missile parts be permitted. In the meantime, consen has been closing its operations in Argentina and trying to retrieve equipment that it claims it owns.

2. Some senior active duty and retiredpersonnel,

however, continue efforts to retain theirin the

project as well as to seek foreign financing

CL BY:

DECL: OADR DRV FR: MULTIPLE

SUBJECT: Status of Argentina's Condor II Missile Program

3.

recent months, the Foreign Ministry has betm-

seeking us assistance in formulating legislation andcontrol high technology exports. In addition.Adviser Raul Matera hasanel of seniorretired Air Force engineers to propose to Menem thea new civilian organization responsible for developmentand missile technology to replace thein

the hopes easing foreign concerns about missile proliferationforeign investment in Argentina's fledgling

4. Menem, however, is likely to proceed cautiously in promoting stringent export control laws and instituting civilian control over Air Force projects for fear ofacklash from nationalists in tho military and Congress who believe that Argentina shouldapability to produce technologically advanced weapons. Polls show that Menem's decision to send Argentine forces to the Persian Gulf is unpopular. It has already drawn fire from nationalists for being too responsive to US interests, and Menem is likely to face similar criticism in negotiating international safeguards for Argentina's nuclear

SUBJECT: Status of Argentina's Condor II Missile Program

facilities. Testifying before the Argentine Congress in September, Cavallo played up the presidential decree canceling the Condor II projectnilateral decision taken last year, probably in an effort to head-off allegations from nationalists that the government had bowed to US pressure. Moroover, Romero, concerned about inflaming nationalist sentiment, has asked tha United States to limit the number of its technical inspectors scheduled to visit Condor facilities in the next few weeks and to include US Air Force personnel, so that the team would appear to be engaged in constructive service-to-sorvice talks. In any event, Menem's, as well as Romero's and Chief of Staff Julia's, resolve in clamping down on potential rogue Condor operations will largely be dependent on the degree to which they believo the

United states is helping them redirect Condor research into

peaceful ventures, such as aircraft and space development.

This memorandum was prepared I

South America-Caribbean Division, Offico of African and Latin American Analysis. Comments and queries are welcome and may be directed to the Chief, South America-Caribbean Division, ALA,

Original document.

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