May 22 (Bloomberg) -- Venezuelan President Hugo Chavez said he may cut diplomatic ties with the U.S. if it doesn't extradite Luis Posada, who Venezuela charged in the 1980s with blowing up a Cuban airliner in 1976.

``We'll have to evaluate is it's worth having an embassy there and one of theirs here,'' Chavez said in a televised speech in Caracas. ``Why have an embassy with a government that disgracefully protects international terrorism?''

Relations between the U.S. and Venezuela have been strained since a two-day coup in 2002, which Chavez says the U.S. helped plan. Chavez said in March the U.S. is planning to kill him and may invade Venezuela. The U.S. has denied the accusations.

Posada, a Venezuelan citizen, was charged last week with illegally entering the U.S. Posada can challenge his custody status at a bond hearing before an immigration judge. His first appearance before a judge has been scheduled for June 13.

A Cuban exile, Posada was taken into custody by U.S. officials two days ago after holding a press conference in South Florida. Posada said he wasn't involved in the plane bombing.

To contact the reporter on this story: Alex Kennedy in Caracas akennedy1@bloomberg.net.

Last Updated: May 22, 2005 16:34 EDT