Chavez to press ahead with Spain arms deal

Venezuelan President Hugo Chavez has said he will press ahead with a $2 billion agreement to buy planes and boats from Spain …

Venezuelan President Hugo Chavez has said he will press ahead with a $2 billion agreement to buy planes and boats from Spain despite US opposition.

Mr Chavez has off accused the US government of doing "everything possible" to impede the agreement.

He spoke after the US ambassador to Spain, Eduardo Aguirre, said Washington still had to decide whether it would block the deal because the planes carry US technology.

"We have not yet decided on the matter," he said. "In the long run, we hope the sale won't go ahead."

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The deal - Spain's largest-ever defence order - comprises eight patrol boats and 10 military transport planes. Spanish Prime Minister Jose Luis Rodriguez Zapatero announced the agreement during a visit to Venezuela in March.

Mr Chavez said the Spanish boats and planes would be used against the drugs trade in Venezuela. The country borders Colombia, the world's top cocaine producer.

Tensions between Washington and Caracas have been tense in recent months, partly due to US criticism of Venezuela's purchases of military equipment, including 100,000 Russian-made assault rifles.

"They are hurt because we are not buying from them," Mr Chavez said.

Diplomatic differences have also been stoked the Venezuelan leader's allegations that President Bush has funded groups seeking his ouster and US charges that Mr Chavez - a close ally of Cuban leader Fidel Castro - is supporting radical political movements in Latin America.

Venezuela, the world's fifth largest oil exporter, remains a major supplier of fuel to the United States despite the diplomatic differences between the two countries.

AP