Madrid in arms deal with Caracas

SPAIN: Spanish defence minister José Bono is to seal a controversial arms sale to Venezuela despite US opposition.

SPAIN: Spanish defence minister José Bono is to seal a controversial arms sale to Venezuela despite US opposition.

Mr Bono will attend the signing in Caracas next week of an agreement to supply military aircraft and patrol boats to the Latin American country, deputy prime minister Maria Teresa Fernandez de la Vega said.

"The defence minister will attend this signing between companies," she told a news conference, confirming earlier remarks by Venezuelan president Hugo Chavez.

The $1.56 billion (€1.3 billion) deal, which includes four coastal patrol ships, four corvettes, 10 C-295 transport planes and two maritime surveillance aircraft, has roused US government concern.

READ MORE

The US ambassador to Spain said this week Washington was still considering whether to allow Spain to sell aircraft with US technology. The planes have 50-60 per cent of US components and would therefore require a US export licence.

Mr Chavez, who has stepped up military spending this year and is closely allied to US foe Cuba, accused the US government of putting pressure on Madrid to block the deal.

Ms Fernandez de la Vega said the arms contract was part of a wider commercial agreement with Venezuela, drawn up with "scrupulous respect for international law". - (Reuters)