Caracas:  Venezuelan President Hugo Chavez on Friday charged that Israel aims to "terminate the Palestinian people" and said he backs the establishment of occupied Jerusalem as capital of an independent Palestinian state.

"We ... are on the side of the Palestinian people's memorable struggle ... against the genocidal state of Israel that knocks down, kills and aims to terminate the Palestinian people," Chavez told visiting Palestinian President Mahmoud Abbas.

"We reiterate ... our greatest commitment and our greatest solidarity ... for the creation of an independent Palestinian state with the holy city of [occupied] Jerusalem as its capital."

Chavez gave no details to support his charge that the Jewish state sought to eliminate the Palestinian population. Socialist Chavez is a harsh critic of both Israel and the United States. In January, Venezuela cut diplomatic relations with Israel over the Israeli offensive in Gaza of nearly a year ago, which Chavez called a Palestinian "holocaust".

Venezuela plans to open an embassy in Palestinian territories and upgrade its ties to ambassadorial level, Chavez said to support Palestinians in their struggle against Israel.

"We have decided to designate an ambassador and open an embassy in Palestine," Chavez said.

"We now have a charge d'affaires; we will name an ambassador in coming days as part of accords to boost our bilateral relations," he said.

Among aid agreements signed on Friday were scholarships for 20 Palestinians to study medicine in Venezuela. Chavez said he saw Venezuela offering many more educational grants.