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Chavez says Obama must prove change after handshake

CARACAS (Reuters) - Venezuelan President Hugo Chavez said on Friday that Barack Obama must prove he wants to improve ties with South America after the two leaders shook hands at a summit last month.

Chavez, a strident U.S. critic, has reduced the frequency of tirades against what he calls the "empire" since Obama took office as U.S. president in January, but he returned to the theme in a speech at a workers' march on Friday.

"He says he is here to make changes ... this is not about speeches or smiles, it's about realities," said Chavez, who shook hands warmly with Obama at a meeting of leaders from the Americas.

Chavez, who expelled the U.S. ambassador to Venezuela last year, approached Secretary of State Hillary Clinton at the summit to discuss restoring normal ties between the two countries. Chavez has proposed sending a new ambassador to Washington.

He said on Friday that Obama must end a trade embargo Washington imposed on communist-ruled Cuba in 1962.

"If President Obama does not dismantle this savage blockade of the Cuban people, then it is all a lie, it will all be a great farce and the U.S. empire will be alive and well, threatening us," Chavez said.

Obama has already loosened travel restrictions to Cuba, a close ally of Venezuela.

Clinton said on Friday the new administration wanted to build closer ties with Latin American countries such as Venezuela and Bolivia that are governed by leftist leaders critical of Washington.

Clinton said she was worried that Bush administration policies of isolating leaders from those countries and supporting opposition groups had allowed China, Russia and Iran to make inroads into the region.

Chavez also criticized the annual U.S. terrorism report published on Thursday that said his "ideological sympathy" with Colombian guerrilla groups obstructed the fight against terrorism. The report also highlighted what it called lax Venezuelan controls on flights to Iran and Syria.

Chavez has repeatedly denied supporting armed groups in any part of the world.

(Reporting by Fabian Cambero; Editing by Peter Cooney)

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