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Bush may link border security: Merger of INS, customs under Justice Dept.-[Excerpt] WASHINGTON -- President Bush's advisers are pushing a plan to consolidate several border security functions into a new agency that would be overseen by the Justice Department, officials said Tuesday.

However, the plan to merge the Customs Service and the Immigration and Naturalization Service, which includes the Border Patrol, is likely to face resistance from the affected bureaucracies, as well as skepticism from some lawmakers.

Some members of Congress said that the administration proposal does not go far enough to ensure that border control activities are better coordinated and able to ward off terrorist attacks.

They have advocated creating a stand-alone department of homeland security that would have authority over a wide range of duties, including agriculture inspectors and emergency preparedness.[End Excerpt]

Bush defends foreign aid plan, immigration bill on eve of Latin American trip-[Excerpt] The president said he feared that the Senate might not pass legislation extending amnesty for illegal immigrants. The measure, which Bush had hoped to carry to Latin America as evidence of America's compassion, passed the House and is held up in the Democratic-controlled Senate.

"I'm not confident they'll move on it. I am confident we've got the votes, but the problem is I haven't been confident they're going to move on many things these days," Bush said. "We've got a lot of bills out of the House but not much out of the Senate."

On foreign aid, Bush said the aid package may not get a warm reception in all circles, "but it's the right thing to do."

The initiative would provide about $1.7 billion the first year, about $3.3 billion in the second year and the full $5 billion in the third and subsequent years. The money, which comes as an addition to current U.S. aid levels, is tied to reforms and would be rewarded to nations largely as grants rather than loans.

Previewing his remarks at an economic summit in Mexico, Bush said the United States is obligated to help poor countries, but those nations have "a responsibility to rout out corruption. I think it makes no sense to give aid ... to countries that are corrupt, because you know what happens? The money doesn't help the people. It helps an elite group of leaders.

"And that's not fair to the people of a particular country, nor is it fair to the taxpayers of the United States," Bush said without naming any nations.

Reflecting U.S. unease about one southern neighbor, Bush said Venezuelan President Hugo Chavez was not invited to attend trade talks in Peru because he does not support free trade.

"Why have somebody there who's not in favor of what we're all trying to do?" Bush said.

The administration is worried that Venezuela could become politically unstable. Chavez irked the administration when he questioned the war in Afghanistan and, separately, visited Iraq, Libya and Cuba. [End Excerpt]

Cuba's Castro Says Venezuelan Chavez Speaks for Him -[Excerpt] Hailing the Venezuelan leader's "spirit and enthusiasm", the veteran Cuban president said Chavez would address the U.N. conference in Mexico as president of the Group of 77, which represents more than 130 developing countries.

"No other voice could be better than yours to defend the interests of the (Group of) 77. ... You will have the possibility of putting forward the point of view of the progressive people of the world," Castro added.

Chavez, hosting a special 100th edition of his "Hello President" show lasting nearly seven hours, also received calls of congratulation from Guatemalan President Alfonso Portillo and the Dominican Republic's president, Hipolito Mejia.

The Cuban leader's public praise for Chavez was certain to infuriate political opponents of the Venezuelan leader and his self-proclaimed "Bolivarian Revolution". [End Excerpt]

S&P revises Venezuela ratings outlook to negative--[Excerpt] NEW YORK, March 18 (Reuters) - Standard & Poor's said on Monday it revised its credit outlook on Venezuela to negative, indicating that a ratings downgrade may be on the way if critical economic reforms are held hostage to the political tension gripping the country.

``The current situation has led to political polarization and a sense of frustration among the population at large, including the business and labor sectors, the Catholic church, and the military,'' S&P said in a statement.

``This, in conjunction with presidential statements about the possibility of nationalizing banks ... and the danger of exchange controls or a state of emergency, have created an environment that is not conducive to investment and growth.''

The ratings agency affirmed Venezuela's single-B long- and short-term foreign currency sovereign credit ratings. At single B, the ratings are five notches below investment grade.

A downgrade would increase the cost of borrowing for the world's No. 4 oil exporter at a time when President Hugo Chavez is facing stiff domestic opposition to his leftist agenda and authoritarian style. [End Excerpt]