Senior US administration officials are working on a policy to “contain” Hugo Chávez, the Venezuelan president, and what they allege is his drive to “subvert” Latin America's least stable states.

A strategy aimed at fencing in the government of the world's fifth-largest oil exporter is being prepared at the request of President George W. Bush and Condoleezza Rice, secretary of state, senior US officials say. The move signals a renewed interest by the administration in a region that has been relatively neglected in recent years.