The military's new role gives it greater influence in the security administration Correa overhauled after last week's police protests, which led to at least 10 deaths and left an unspecified number wounded in shooting.

A state of emergency declared after last week's events remained in force.

Police campaigners, protesting a new austerity package that cut their benefits and pay, held Correa hostage when he was taken to hospital with injuries caused by a tear gas canister lobbied toward him. Army units rescued Correa from the police group holding him in the first of several events that catapulted the military into a powerful position.

The military has been on a spending spree, encouraged by Correa, with more than $1.8 billion of arms purchases.

Comparing current expenditure with defense spending a decade ago, Ecuador led Latin America in military expenditure increase last year with a 241 percent rise, ahead of Colombia's 111 percent high. The rise in arms spending coincided with global improvements in the oil market, to which Ecuador contributes 305,000 barrels per day.

Recent military purchases have included secondhand German-built Leopard tanks and British-built Leander class frigates.

Ecuador has also bought unmanned aerial vehicles from Israel and Super Tucano combat aircraft and military vehicles from Brazil. Later purchases included Russian Mil Mi-17 helicopters, weapons and equipment and Chinese radar, anti-aircraft systems and infantry weapons. Ecuador also bought helicopters from India and Atlas Cheetah supersonic-aircraft from South Africa.

About $1.2 million of military equipment was donated by the Obama administration to help Correa fight the drug lords, despite his refusal to let U.S. forces use military facilities for the war on narcotics bound for North America.

In September 2009 Correa received a "gift" of six secondhand Mirage 50 jets from Venezuela.

The military's heavy armament has increased calls for the armed forces to be used more effectively against the drug gangs. Critics of Correa accuse the government of mismanaging the economy and not doing enough to suppress criminal gangs involved with drugs, corruption and other crimes.

Although Correa and other South American leaders have described the events of last Thursday as an attempted coup, critics accused the government of manipulating facts.

"Everything was staged by the president to hide the extreme corruption and to hide the poverty, hunger and unemployment that have risen to an alarming level," said Gilmar Gutierrez, a congressman and brother of former President Lucio Gutierrez.

earlier related report
Chile, Argentina row over asylum deepens
Buenos Aires (UPI) Oct 6, 2010 - Chilean anger over Argentina's decision to grant asylum to a guerrilla fighter wanted in Chile deteriorated into a diplomatic row as President Sebastian Pinera called off regular consultations, a move interpreted as a freeze on bilateral ties.

Pinera had been urging Argentine President Cristina Fernandez Kirchner to extradite Sergio Galvarino Apablaza Guerra, who faces charges he killed a Chilean senator and kidnapped the son of the owner of conservative newspaper El Mercurio. The incidents took place in 1991 after Chile returned to democracy under the first democratically elected president, Patricio Aylwin.

Argentina argues it is protecting Apablaza under its human rights laws but Chile counters the move is politically motivated.

Analysts said the simmering feud between Chile and Argentina introduced tensions where both sides seemed to be enjoying friendly relations.

The row has already sparked a war of words, with critics calling Fernandez untrustworthy and her Foreign Minister Hector Timerman lacking in human and intellectual attributes.

The two countries are partners in several regional organizations, including the Mercosur trade bloc.

Timerman retorted by calling Chilean pronouncements "nonsense and an embarrassment."

Chilean Sen. Andres Chadwick Pinera, a cousin of President Sebastian Pinera, mocked Timerman for trying to "explain something that has no explanation to begin with. How do you explain granting political asylum to a person accused of being involved in two serious crimes?" he wondered. "I feel sorry for him."

Chadwick Pinera said the Argentine government decided to grant Apablaza asylum because it feared his extradition would trigger a fierce backlash from human rights activists and affect the outcome of elections next year.

Chilean critics say the decision appeared to have the stamp of Cristina Fernandez and her senior aides rather than Timerman, who became foreign minister in June.

Chadwick Pinera said he regretted that relations between the countries had come to a stop because of the dispute.

"It is all over," said Chadwick Pinera, "trusting the Argentine government, its president, the Kirchner couple, is going to be most difficult."

Former President Nestor Kirchner, secretary-general of the Union of South American Nations, is seen by analysts as influential in his wife's decision-making process.

Chilean newspaper La Tercera said the Argentine government in a 36-page defense of the asylum granted Apablaza argued imputations against him "should not be considered as terrorist acts as they had no international consequences."

The Chilean tabloid said Sebastian Pinera's government was considering other measures in retaliation for Argentina's refusal to extradite Apablaza.

Apablaza was a member of the defunct Manuel Rodriguez Patriotic Front and is accused of killing right-wing Sen. Jaime Guzman and kidnapping Cristian Edwards del Rio, son of El Mercurio's owner.

The government decision to give political asylum to the former guerrilla member bypassed an extradition order the Argentine Supreme Court had endorsed.

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