Argentina's final agreement to surrender cargo and effects it seized from an alleged spy plane put at rest a bitter diplomatic row but raised key questions on governance in the Latin American country.

The dispute surprised diplomatic analysts who saw the Argentine rhetoric accompanying the February seizure of a U.S. Air Force C-17 Globemaster as a classic blunder pursued through the populist media for no apparent gain.

The seizure triggered a bitter diplomatic confrontation and was followed by weeks of negotiations on how best to backtrack -- mainly to save President Cristina Fernandez de Kirchner unwelcome attention in the news media already critical of her style of government.

This week the U.S. Embassy in Buenos Aires announced agreements were in place for the return of the plane's cargo and other contents.

"We are pleased to inform that the incident involving the seizing of U.S. property by Argentine authorities has been resolved satisfactorily," a State Department news release published in the media said.

After it seized the plane in February, Argentina presented a formal protest to the embassy. Argentine Foreign Minister Hector Timerman urged the U.S. administration to assist local authorities in the investigation, called for an official apology and warned that the seized material would never be handed back.

"For the sake of Argentine security, they owe us a response," Timerman said, claiming "this was not the first incident of such nature."

U.S. officials reacted to Timerman's comments, urging restraint and a more conciliatory approach marked by mutual respect.

"They were trying to bring warfare material into the country without letting us know," Timerman said at the time, adding, "all they have to say is 'We're sorry.'"

However, what appeared to be a carefully drafted document after the protracted negotiations said the U.S. materials were returned after a series of meetings between Argentine customs and foreign ministry officials.

The seized cargo was "related to a joint training activity that had been previously planned and approved" by both governments, which had to be seized due to involuntary administrative failures, the U.S. Embassy statement said.

Diplomatic analysts cited in Argentine media said the document appeared to have been drafted to save Fernandez any embarrassment over the incident but Timerman might find it harder to live down his rhetoric.

U.S. President Barack Obama raised the subject when he visited the region in March. Argentine-U.S. tensions rose through the spring and early summer and Argentine officials feared the U.S. anger over the incident might influence the Paris Club of country creditors, courted by Fernandez as part of her campaign to restore Argentina's credit worthiness in international financial markets.

U.S. administration departments suspended or downgraded links with the Argentine administration as talks for the return of the cargo continued.

In Washington, State Department spokesman Mark Toner told reporters, "We are pleased that the incident involving the seizure of U.S. government property that was associated with this joint training activity and had been impounded due to unintentional administrative errors, has now been resolved.

"The U.S. and Argentina share and respect a similar set of norms governing important procedures," said Toner. "Following a series of meetings with customs and foreign ministry officials, it was demonstrated that all relevant customs regulations and Argentine laws had been observed and therefore the impounded materials were returned."

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