TEL AVIV — Israeli Prime Minister Ehud Olmert secretly promoted the sale of satellite services to Venezuela in defiance of the U.S., a newspaper here reported.

The Israeli daily Maariv said Olmert sought to facilitate the sale of satellite services to the government of President Hugo Chavez by the Israeli firm ImageSat. Olmert, the newspaper said, was blocked by the Israeli Defense Ministry, which did not want to spark a crisis with the Bush administration.

Olmert, who leaves Monday for the United States and a meeting with President George Bush, has denied the Maariv report, published in late May. The prime minister, however, did not deny sending the letter to Colombia's defense minister.

The police allegations against Olmert have stemmed from testimony from an American businessman who said he relayed more than $150,000 in cash to the prime minister. The businessman, Morris Talansky, was also involved in ImageSat's dealing with Venezuela.

Talansky, an investor in ImageSat, was one of a handful of investors who sued IAI for blocking a satellite deal with Venezuela. The suit was filed in 2007 in U.S. district court in New York City.

In 2006, the United States blocked an Israeli attempt to upgrade Venezuela's fleet of F-16 multi-role fighters. Defense industry sources said Washington was likely to reward Israel by approving an upgrade project by Israel's Elbit Systems for F-16A/Bs sought by Romania.

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