ANALYSIS - Andean "Cold War" raises risks for Colombia, Venezuela

By Patrick Markey

BOGOTA (Reuters) - Spying charges, troop movements and mysterious killings along the border between Venezuela and Colombia are stoking a long-running diplomatic dispute that some are calling the "Cold War" of the Andes.

The on-off feud between the two South American neighbors since Venezuela's Hugo Chavez came to power a decade ago has usually stopped at sabre-rattling and diplomatic barbs.

This time, though, the increasing volatility on the border, presence of illegal armed gangs, and growing political distance between the two governments, mean the latest crisis may be tougher to solve and could spill over into more violence.

Chavez and Colombian President Alvaro Uribe in the past resolved differences with a handshake. Now ties between the Venezuelan socialist who blasts Washington's "imperialism" and the staunch U.S. ally are more chilly than ever.

"Instead of channels of communication, now there are more reasons for suspicion," said former Colombian foreign minister Rodrigo Pardo, now a magazine director. "Now there are more charges such as espionage, but less chance to explain them."

There may be little appetite for a military confrontation, but the border has become more sensitive since Chavez dispatched more troops after the murder of nine Colombians and the killing of two Venezuelan soldiers in the area.

Chavez, a Cuba ally who wants to counter U.S. influence, accuses Colombia of conspiring with the White House to foment violence. His government says it has captured three Colombian spies and blames paramilitaries for killing its two soldiers.

War is unlikely, but the potential for more violence on the border, ranging from an accidental troop clash to attacks from illegal armed groups, has increased.