A dispute emerged over a presidential inauguration party to fete Hispanics in politics when the Cuban American National Foundation was rejected as a sponsor.

BY LESLEY CLARK

WASHINGTON - More than a thousand miles from Miami, President Bush's inauguration and the related festivities are exposing an ongoing rift in Cuban exile politics.

The Congressional Hispanic Leadership Institute, which is hosting an inaugural eve function in the capital Wednesday to celebrate the growing influence of Hispanics in politics, has rejected an offer from the Cuban American National Foundation to be a sponsor of the event, signaling an interest in distancing itself from the prominent Cuban advocacy group.

Foundation Director Alfredo Mesa, who last week said his group was cosponsoring the event, said Monday that he was later told that the foundation's money would not be accepted because the Hispanic institute doesn't accept contributions from nonprofit groups. Sponsors of the event include corporations such as Altria Group, BellSouth, Carnival, Ford Motor Co. and General Motors.

But Miami Republican U.S. Rep. Mario Díaz-Balart, whose brother, U.S. Rep. Lincoln Díaz-Balart, chairs the Hispanic institute, said its board of directors declined to accept the foundation's money or its involvement. The $25,000 contribution would have purchased a table for foundation members and entitled the group to be listed in the program as a sponsor.

''The bottom line is their money was not taken and it's not because they were a nonprofit, it's because they're not welcome,'' Díaz-Balart said.

Lincoln Díaz-Balart was unavailable for comment, but his chief of staff said the foundation's interest in publicizing its involvement confirmed the board's decision not to accept the money.

''This is not the appropriate venue to try to acquire public relations or to try to correct mistakes, it's an event to celebrate Hispanics in the U.S.,'' Ana Carbonell said.

The snub comes as the foundation, long a leading voice for Cuban exiles, tries to rebuild its relationship with Florida's Republican-dominated congressional delegation and the Bush administration. Foundation officials, who two weeks ago jetted to Washington to witness U.S. Sen. Mel Martinez's swearing in, said the sponsorship offer was part of an effort to mend fences.

Critics said the foundation in recent years has fallen out of favor with the GOP, amid accusations that it has softened its traditionally hard-line approach. The foundation has also been perceived as politicizing its work, a charge magnified when its former executive director left the post in August to campaign against Bush.

Mesa, who came on board in November, said he was not told that CANF members were not welcome, and said several of the foundation's board members planned to attend the gala with individual tickets.

''At the end of the day we all believe in the same cause and that has to be the focus, ridding Cuba of Fidel and Raul Castro,'' Mesa said. ``We will do everything we can to work with all who share that goal.''

The Grand Hispanic Gala at the Willard InterContinental Hotel will be co-chaired by Bush's nephew, George P. Bush, and music producer Emilio Estefan, among others.