Caracas, April 29 (AP): President Hugo Chavez has said that his government was planning to develop an advanced air-defence system and purchase other arms to defend Venezuela from foreign attack.

The leftist leader, who has repeatedly accused the United States of planning to invade his oil-rich nation, said Venezuela had test fired missiles on Thursday but it was not clear what kind of projectiles he was referring to.

"We're going to have a tremendous air-defence system, and with missiles capable of reaching 200 kilometres," Chavez yesterday said during a televised speech. "(It) will convert Venezuela into a nation truly invulnerable to any external threat, invulnerable to any plan of aggression."

There was no indication how Venezuela could develop such an effective air-defence system. The United States has spent many times more than Venezuela's defence budget to develop a missile shield and it is still not considered impenetrable.

The US State Department had no immediate comment. Chavez denied Venezuela was engaged in an arms buildup or posed a threat to regional stability as Washington has suggested, saying Venezuela was simply modernising its military after years of neglect.

"They are necessary investments. We're not going to attack anybody," he said at the speech at a military academy in Caracas.

Chavez also announced spending of more than USD 561 million for factories to build automatic AK-103 assault rifles, munitions, and detonators; a facility to train pilots to fly Russian M-17, M-26 and M-35 helicopters, and another facility to overhaul F-5 fighter jets.