Uribe is lying in hostage flap: Chavez

CARACAS

Venezuelan President Hugo Chavez on Sunday accused Colombian President Alvaro Uribe of lying in a dispute over Chavez's mediation in hostage talks, adding that the spat may harm commercial ties between the neighboring countries.

Uribe last week cut Chavez out of his role as mediator in negotiations with Colombia's Marxist FARC rebels over releasing hostages taken during Colombia's civil war. He accused Chavez of overstepping his bounds and publicly disclosing elements of private talks.

"They issued a statement yesterday filled with lies, and that is serious, very serious," Chavez said during a televised broadcast. "President Uribe is lying, and he's lying in a shameless way."

Chavez appeared to be referring to Colombia's statement on Saturday saying Chavez had been pushed out of the talks for speaking directly with a Colombian general about hostages despite an agreement with Uribe not to do so.

He described Uribe decision as a "spit in the face," in marked contrast to his calm acceptance of the news last week.

For months, Chavez had sought to persuade Marxist FARC rebels to release about 50 key hostages, including a French-Colombian politician, Ingrid Betancourt, and three U.S. defense contractors held for years in secret jungle camps.

COMMERCIAL TIES

Chavez on Sunday warned his cabinet ministers they had to be "on alert" over commercial ties with Colombia, Venezuela's second-largest trading partner.

"Everyone should be on alert with respect to Colombia," Chavez said. "The companies that Colombians have here, the companies we have over there, commercial relations -- all of that will be damaged."

Chavez made a similar threat this month about Spanish businesses after a diplomatic spat caused by Spanish King Juan Carlos telling Chavez to "shut up" during a summit in Chile.

He also briefly cut commercial ties with Colombia in 2005 after bounty hunters snatched a Colombian guerrilla from Venezuelan soil without consulting the Chavez government, sparking the worst diplomatic flap between the countries in years.

The conservative pro-Washington Uribe and the leftist anti-U.S. Chavez have suffered occasional diplomatic impasses but have cooperated on energy projects and fostering commercial ties.

Chavez has frequently criticized Colombia's participation in the U.S.-backed Plan Colombia counter-narcotics program, which he has described as Washington's effort to maintain a military presence in Latin America.

"I'm sure he didn't want to continue in the (hostage negotiation) process, the gringos pressure him a lot," Chavez said.

(Reporting by Brian Ellsworth; Editing by Cynthia Osterman)