ANAHEIM, Calif. — Middle East politics have usurped traffic congestion and job creation as the hot topic in an upcoming municipal election, with a powerful GOP operative accusing a city council candidate of pro-Hezbollah and anti-Israel activities.

A letter by former state Republican Party chairman Shawn Steel has been circulating on the Internet accusing Syrian immigrant Belal “Bill” Dalati of helping sponsor an anti-Israel rally and associating with “zany left-wing groups.”

“There is much more to learn about Bill Dalati,” Mr. Steel wrote in the letter. “Dalati would be a poor choice who focuses on [America’s] enemies in the Middle East. You have a chance to do something about it.”

Mr. Dalati said the claims were unfounded, denying ties to Hezbollah or any fund-raising activities on their behalf.

The letter was posted on a politically conservative site by former state Senator John Lewis, who is a consultant for Councilman Bob Hernandez, one of Mr. Dalati’s opponents in the nonpartisan race.

Mr. Steel wrote that an organization called the Arab-American Broadcasting Co. helped sponsor an anti-Israel rally in Anaheim at the height of the recent war between Israel and Hezbollah. The company shares an address with Mr. Dalati’s insurance business.

Mr. Steel accused Mr. Dalati, 41, of close associations with “extreme groups.”

“He may very well be promoting a radical agenda instead of fixing potholes,” Mr. Steel said in an interview Monday. “I would consider this particular rally … in the same way as if he attended a Ku Klux Klan rally or a neo-Nazi rally. Those groups and their anti-American rhetoric are fundamentally the same.”

Mr. Dalati called the July 29 event an anti-war rally and said the Arab-American Broadcasting Co. was now inactive. Mr. Dalati produces a weekly Arabic-language cable TV show focusing on Anaheim politics. Mr. Dalati, who became an American citizen in 1987, expressed hope that the scandal would not draw attention away from his campaign platform, which includes the creation of more jobs, better health care, and reducing traffic congestion.

“I’m running as an American citizen, as an American guy,” Mr. Dalati, who is an insurance agent and registered Republican, said. “Why are they bringing race and religion into it?”

Mr. Steel’s comments have generated heated debate in chat rooms and in Little Gaza, a major area for many of Orange County’s Arab-Americans, who numbered more than 24,000 in 2000, according to the U.S. Census Bureau.

The scandal is not the first time the Middle East crisis has spilled over into the local political scene in areas with large Arab-American populations.

Most recently, the Los Angeles mayor, Antonio Villaraigosa, apologized to local Islamic leaders who accused him of taking Israel’s side in the violence in Lebanon and ignoring invitations to attend Islamic peace vigils. Mr. Dalati said he was grateful for the opportunities he’s had.

“Life has been so generous to me. I’m a married man with four kids, and I live comfortably.This country has given me so much, and this city has given me so much. I’m trying to give back,” he said. “It’s not about Arab-Americans. It’s about Anaheim.”