The Bush Administration ordered the arrest of 77-year-old Luis Posada Carriles on Tuesday as it came under fire from Cuban leader Fidel Castro for being hypocritical on its 'war on terror.'

Posada is an staunch anti-Castro militant who has been accused of masterminding a 1976 airplane bombing that killed 73 people. He is a former CIA operative who is wanted in Venezuela for a retrial on the airplane bombing.

Posada had headed to the United States to ask for asylum but later decided to abandon that request. He was arrested Tuesday night before he could leave the country again. He is in the custody of the Homeland Security Department.

According to immigration law, the HSD has 48 hours to determine Posada's immigration status. The U.S. government has a policy of not extraditing anybody to Cuba or on Cuba's behalf according to statement issued by the Homeland Security Department.

Posada's attorney, Eduardo Soto told reporters, 'It was the U.S. government's preconceived notion to detain him before we withdrew our application for asylum. You don't need to formally remove a person who wants to leave.'

Now, Soto said Posada will renew his request for asylum.

Posada had escaped from a Venezuelan prison in 1985 while his acquittal was appealed by prosecutors. His whereabouts were unknown until he arrived in Miami to seek asylum in the U.S.

Venezuela reportedly still wants Posada extradited for a retrial. Jesse Chacon, the Venezuelan interior minister said Posada 'must pay for the crimes he committed.'

Posada said he never wanted to cause problems for the United States and its government. Before he was arrested, he told reporters, 'If my petition for political asylum created any problem to the government of the United States, I am ready to reconsider my petition,' he said. 'My only objective is to fight for the freedom of my country.'

The Bush Administration is now in a difficult position. It has always held a very strong position against the dictatorship of Fidel Castro and Cuba's communist government. However, it has also announced a 'zero tolerance' policy against terrorism and countries that harbor terrorists.

How the government will handle this delicate situation remains to be seen but in Havana, Fidel Castro is almost certainly relishing the difficult position his U.S. counterpart is now facing.