Obama honeymoon with Venezuela's Chavez may be over

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"This report tries to discredit and criminalize the Venezuelan government," said Bernardo Alvarez, Venezuela's ambassador to Washington.

Chavez's latest attack on the United States and Colombia may be an attempt to rally supporters behind the flag as weaker oil revenues put a strain on the economy, government finances and his approval ratings.

The former paratrooper's popularity fell from 64 percent in February to 50-54 percent earlier this month, according to polling firm Datanalisis.

Chavez is concerned his support in the national assembly after elections next year could fall below the necessary two-thirds to approve key legislation, and has called on his government to pick up the pace of socialist reforms.

Still, critics say the Obama administration may be making a mistake in pushing for an increase in U.S. troops in Colombia after it lost a military base in Ecuador. The move is seen by several countries in the region as threatening the balance of power.

"It's a lack of sensitivity," says Hellinger. "They don't really have their foreign policy team for Latin America in place yet and that's the problem when you're preoccupied with Pakistan, Iran, and Afghanistan."

Republican Senators unhappy with U.S. policy on Honduras last week delayed the Senate foreign relations committee's vote on the confirmation of Obama nominee Arturo Valenzuela as his top official for Latin America.

(Editing by Kieran Murray