Venezuela will not buy ten Spanish planes due to the US veto on the operation, a government source said Thursday.

Procurement of C-295 and CN-235 aircraft "was cancelled because the United States cancelled it," General Alberto Müller, Staff advisor to President Hugo Chávez, reported.

Earlier this year, Washington denied Spain clearance to sell Venezuela ten planes containing US parts, by arguing that the sale could disrupt military balance in South America.

"They (Spain) needed to replace the aircraft parts, which were made in the United States, with other components, and it seems that this alters significantly the planes value," Müller explained.

Despite the US veto, Venezuela and Spain had continued negotiations during the first half of 2006 and even contacted other European companies to try to replace the US parts.