The United States on Tuesday criticized Venezuelan President Hugo Chavez's planned nationalization of electrical and telecommunications companies and said any U.S. firms affected by it must be compensated.

"We've seen Chavez's statement. We've also seen the results of nationalization in other places, and in general these types of actions do not produce economic benefits as expected," said Gordon Johndroe, spokesman for the White House National Security Council.

"If any U.S. companies are affected, we would expect them to be promptly and fairly compensated," Johndroe said.

The U.S. State Department also slammed Chavez nationalization plan as "a well-worn path that history has shown does not usually benefit the population of the country in question."

Chavez announced on Monday plans to nationalize Venezuela's electrical and telecommunications companies, pledging to create a socialist state.

"We're moving toward a socialist republic of Venezuela, and that requires a deep reform of our national constitution," Chavez said on Monday in a televised address after swearing in his new Cabinet.

The relations between the United States and Venezuela have been frosty as Chavez has accused U.S. President George W. Bush of being a "devil" trying to control the world.

Source: Xinhua