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Terrorism's Western Ally***U.S. intelligence is still coming to grips with reports that Al Qaeda and other Muslim terrorist groups are setting up bases in Venezuela. A London newspaper reports Osama bin Laden has established a training camp on Venezuela's Margarita Island, a tourist destination that also has an Arab-Muslim community and a bad reputation as a hangout for smugglers and terror groups like Hamas and Hezbollah.

The more you know about Venezuelan President Hugo Chavez, and his list of friends, the less surprising this all seems. Footage shows Hugo hugging Iranian President Khatami. More footage shows Hugo hugging Libya's Moammar Gaddafy. By the way, you won't find any video of Hugo meeting, much less, hugging George W. Bush.

But Chavez has met with Saddam Hussein. In fact, he was the first foreign leader to visit Baghdad after the first Gulf War, and he expressed his admiration for Saddam. He has offered support to convicted terrorist Carlos "The Jackal." He considers Fidel Castro his mentor. He gives sanctuary to Colombia's FARC rebels, a group that is trying to overthrow the Colombian government and has also killed Americans.

Hugo Chavez came to power by tapping into frustration over Venezuela's corrupt political system. He was elected in 1998 by a landslide. Since then, Chavez has been engaged in what has been called a "slow-motion constitutional coup." He has abolished the senate, brought in Cubans as strike-breakers against the oil industry, and organized gangs to beat up opponents.***

Venezuelan Arabs Stung by U.S. Charges Like Arab nations and communities around the globe, most of Margarita's well-established Muslim traders bitterly oppose the U.S.-British invasion of Iraq, seeing it as an unlawful and unjustified attack against their race and religion. But the Lebanese, Syrians and Palestinians who have made this tropical resort and duty-free zone their home for decades are even more angry about what they see as another American affront, this time leveled directly against them.

Allegations by a top U.S. military chief that Margarita is a base for radical Islamic groups posing a potential terrorist threat have angered both the 12,000-strong Arab community and the government of Venezuela's leftist President Hugo Chavez. "We have nothing to do with terrorism here. Pure business, that's what we do," Naim Awada, who emigrated from Lebanon 20 years ago, told Reuters in his clothing store in Porlamar. All around him, shop names like Nabil Import, El Laden Mustafa and Flower of Palestine attest to the strong Arab presence on Margarita, an island of tourist hotels, arid hills and abundant beaches off Venezuela's eastern Caribbean coast.

Arab community leaders and Venezuela's government say the allegations by the Pentagon's top soldier for Latin America, Gen. James Hill, are really part of a wider campaign by foes of Chavez to try to discredit the populist president abroad. They say Chavez' opponents, who have failed to topple him over the last year despite a short-lived coup and a crippling two-month anti-government strike, are seeking to paint him as a dangerous anti-U.S. maverick collaborating with terrorism. The debate is more than just academic for Washington because Chavez, a former paratrooper and coup plotter elected in 1998, rules over the world's No. 5 oil exporter that is also one of the top suppliers of crude oil to the United States.***