May 27, 2005 - 1:05 AM

Chavez: Venezuela not seeking conflict with U.S.

By Pascal Fletcher

CARACAS, Venezuela (Reuters) - Venezuela is ready to discuss its differences with the United States, President Hugo Chavez said on Thursday in remarks that seemed to soften his recent warning that relations were at risk.

The left-wing leader, who often spars verbally with Washington, warned Sunday he would review ties with the United States if it failed to extradite a Cuban exile wanted by Caracas for the 1976 bombing of a Cuban airliner.

"Ok, we have differences, but let's talk about them," Chavez said, referring to Venezuela's relationship with its main oil client, which has soured badly in the last few years.

"We don't want major conflicts with anyone, not even the United States," he told a meeting of local businessmen.

The latest case to strain U.S.-Venezuelan ties involves Luis Posada Carriles, a former CIA operative and anti-communist militant whom Chavez wants extradited to Venezuela to face trial for the 1976 plane bombing that killed 73 people.

Posada, a lifelong foe of Cuban President Fidel Castro, is being held by U.S. immigration authorities for illegally entering the United States. Castro is a close ally of Chavez.

Posada has denied involvement in the Cuban airline bombing. He is due to appear before a U.S. immigration court in June.

Chavez, an outspoken critic of U.S. policies, did not mention Posada Thursday.

He said he held a cordial meeting Monday with a delegation of U.S. congressional lawmakers, including Indiana Republican Rep. Dan Burton.

"Burton himself said to me, 'There's no reason why we can't talk,"' said Chavez, who added he wanted "normal, respectful" relations with the United States.

But Chavez blamed Washington for the deterioration of ties.

He has called President Bush a menace to world peace for his wars in Afghanistan and Iraq.

U.S. officials criticize Chavez's friendship with Castro and say he is stirring up anti-U.S. leftist "revolution" in Latin America. They say they fear he is trying to repeat in Venezuela what they call the "failed model" of Communist Cuba.

Since February, Chavez has said he intends to convert the world's No. 5 oil exporter to "a new socialism."

Chavez said Thursday he would not impose socialism on his country by force, as had occurred in the former Soviet Union, but would seek to introduce it through national debate.

He said those who compared his government to Cuba were "either ill-intentioned, ignorant or crazy."

"We're not going to copy either the Cuban model, or the Chinese model or the U.S. model. We're building our own model, which responds to the needs of Venezuela," he said.