Honduras rulers reject world pressure to reverse coup

TEGUCIGALPA, (Reuters) – The Honduran interim  government defied international pressure yesterday and vowed  there was “no chance at all” of ousted President Manuel Zelaya  returning to office.

World leaders from U.S. President Barack Obama to  Venezuelan President Hugo Chavez have told the new rulers of  the Central Ameri-can country to restore Zelaya, a leftist who  was toppled by the army on Sunday and sent into exile after a  dispute over presidential term limits.

The Organization of American States gave Honduras an  ultimatum early yesterday to allow Zelaya back into office  by this weekend or face suspension.

But the interim government’s response indicated there was  little immediate hope of a negotiated solution to the crisis in  Honduras, an impoverished coffee and textile producer.

Enrique Ortez, interim foreign minister, said Zelaya would  be arrested if he came home and that the interim authorities  were sure Zelaya had been removed in a legal process.

“We are not negotiating national sovereignty or the  presidency,” he told Reuters in an interview. “There is no  chance at all” of Zelaya coming back to power.

The crisis in Honduras has spiraled into the worst  political turmoil in Central America since the U.S. invasion of  Panama in 1989, posing a test both for regional diplomacy and  for Obama’s ability to improve the United States’ battered  standing in Latin America.

The Honduran Congress has voted in a new government more  favourable to the traditional business and ranching elite to  replace Zelaya, who was toppled for trying to extend  presidential term limits in power.

The president also upset the army, judiciary and members of  his own Liberal Party for taking Honduras to the left.

In further signs of isolation of Honduras, the  Inter-American Development Bank said it was pausing all new  loans to the country until democracy is restored, while Spanish  Foreign Minister Miguel Angel Moratinos said Europe will not  talk to the new rulers if they attempt to get in touch.

“(The interim government) is going to try, but it’s better  they don’t try, because they will not get an answer from us,”  he told Spanish state radio.

Mindful of its history of intervention in Latin America  and, at times, of backing coups, Washington is trying to play a  limited, behind-the-scenes role to show support for democracy  and Zelaya’s restoration without being accused of meddling.

The Honduran coup has quickly become a “stress test” for  the U.S. government’s commitment to defending democracy in  Latin America.

Washington, which has put off until next week a decision on  whether to cut aid to Honduras, is letting the OAS take a  leading role.

“We will wait until the (OAS) secretary-general has  finished his diplomatic initiative and reports back … on July  6 before we take any further action in relationship to  assistance,” a senior Obama administration official said.

The U.S. military postponed activities with Honduran forces  while the Obama administration reviewed the situation, the  Pentagon said.

The United States has a task force of about 600 troops in  Honduras, a U.S. ally in the 1980s when Washington helped  Central American governments fight Marxist rebels.

The Honduran Congress approved a decree to crack down on  opposition during a nightly curfew imposed after the coup. The  decree allows security forces to hold suspects for more than 24  hours without charge and formalizes the prohibition of the  right to free association at night.

Pro-Zelaya protesters clashed with security forces near the  presidential palace on Monday and demonstrators applauding the  coup that installed interim President Roberto Micheletti took  to the streets on Tuesday. Protesters in favour of Zelaya  marched again yesterday.

“Micheletti is a puppet of the powerful and we don’t want  him as president,” said a masked student who identified himself  as Ramon.

Zelaya, who took office in 2006 and had been due to leave  power in January 2010, had become a divisive figure in  Honduras, a coffee, textile and banana exporter of 7 million  people, especially after he allied himself with a firebrand  socialist Chavez.

Zelaya gave up a plan to return home today,  accompanied by a group of foreign leaders, to serve out his  term. He said he now did not expect to return before the  weekend.

The crisis erupted as the country struggles with a sharp  decline in remittances from Hondurans living in the United  States and in vital textile exports. Thousands of jobs have  already been lost due to the slowdown in exports.

But coffee producers say exports have not been affected  even after protesters blocked major highways in the interior.