U.S. extends $ 2.2 billion in credit to Venezuela to finance arms purchases . Secretary of Uruguayan Hugo Chavez 's worries about arms race in Latin America . Relations tense between Venezuela and neighboring Colombia , a Iran ally . `` Instead of spending it in weapons , spending it in housing , good housing for our people , and to further deepen investment , especially in the field of education . '' Washington worries about Hugo Chavez 's deepening ties to Iran as well .
U.S. extends $ 2.2 billion in credit to Venezuela to finance arms purchases . Secretary of Uruguayan Hugo Chavez 's worries about arms race in Latin America . Relations tense between Venezuela and neighboring Colombia , a Iran ally . Washington worries about Hugo Chavez 's deepening ties to Iran as well .