Chavez expels US military official accused of spying

CARACAS, Venezuela (Reuters) - Venezuelan President Hugo Chavez said on Thursday he was expelling a U.S. Embassy military official who authorities have accused of spying with a group of Venezuelan military officers.

The diplomatic expulsion worsens already rocky relations between the United States and Venezuela, the world's No. 5 oil exporter and a top supplier of crude to the U.S. market.

"We have decided to declare persona non grata or as we say here, to throw out of the country, a military officer in the U.S. mission because of espionage," Chavez said during a ceremony to celebrate seven years in power.

"We have declared persona non grata U.S. naval Capt. John Correa, who must leave the country immediately," he said.

He said the full U.S. embassy military mission would be expelled from Venezuela if authorities caught any of its officers spying.

U.S. officials rejected the espionage charges.

"We will respond through diplomatic channels," U.S. State Department spokesman Kurtis Cooper said, referring to a January 30 letter the United States received regarding Correa.

"None of the U.S. attaches was or is engaged in inappropriate activities," the official said.

Chavez, an staunch ally of Cuba, has become a voice for regional opposition to U.S. free-market policies and has often accused Washington of trying to overthrow him since he survived a brief coup in April 2002.

U.S. officials reject his charges and say the leftist leader has become an authoritarian at home and a threat to regional stability by using Venezuela's oil wealth to meddle in the political affairs of his South American neighbors.

Venezuelan authorities said last week they had "confidential evidence" that U.S. Embassy staff were involved with a group of Venezuelan military officers accused of passing state secrets to the U.S. Defense Department.