Argentina is accusing the U.S. military of trying to sneak weapons and spy equipment into the country under the guise of providing a police training course.
Argentine officials say they seized nearly 1,000 cubic feet of undeclared material last week ranging from machine guns and ammunition to drugs and spy equipment.
A U.S. State Department official says all the imported material was properly declared and agreed to as part of the training course Argentina asked for. The official says the drugs were in a routine medical kit and the purported spy equipment is nothing more than satellite phones with secret codes. The official spoke on condition of anonymity because of the dispute's sensitivity.
Both countries were holding talks on the dispute Monday.
