I like know is he making propoganda!...Or show off?...
Neither. Any gifts they keep of that value leaves them open to charges of corruption, or at least greed. Putting the jewlery on display somewhere (as previously suggested) achieves nothing, and giving it to the poor brings accusations of grandstanding. It's a damned if you do, damned if you don't sort of thing. The King's advisors slipped up here. He should have given them the traditional Arabian gift of horses. Ecuadorans love horses.
Personally, I would have turned the gift over to the national treasury. It could be kept there, available to be worn by any first lady on any occasion of state. That solves the issue of ownership without offending the King or the people of Ecuador.
ebear