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Judi Lynn Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-27-09 05:38 PM
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U.S. moves toward formal cutoff of aid to Honduras
U.S. moves toward formal cutoff of aid to Honduras
By Arshad Mohammed
Thursday, August 27, 2009; 6:29 PM

WASHINGTON (Reuters) - U.S. State Department staff have recommended that the ouster of Honduran President Manuel Zelaya be declared a "military coup," a U.S. official said on Thursday, a step that could cut off tens of millions of dollars in U.S. funding to the impoverished Central American nation.

The official, who spoke on condition he not be named, said State Department staff had made such a recommendation to U.S. Secretary of State Hillary Clinton, who has yet to make a decision on the matter -- although one was likely soon.

Washington already suspended about $18 million in aid to Honduras following the June 28 coup and this would be formally cut if the determination is made because of a U.S. law barring aid "to the government of any country whose duly elected head of government is deposed by military coup or decree."

The official said $215 million in grant funding from the U.S. Millennium Challenge Corporation to Honduras would also have to end should Clinton make the determination that a military coup took place.

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Judi Lynn Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-27-09 05:43 PM
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1. US 'disappointed' by Honduras mission failure
US 'disappointed' by Honduras mission failure
Thu Aug 27, 12:21 pm ET

WASHINGTON (AFP) The US voiced disappointment Thursday at the failure of a seven-nation mission to persuade coup leaders in Honduras to accept a settlement and renewed its support for ousted president Manuel Zelaya.

"We are disappointed by this inability to move forward," the State Department said in a statement to AFP.

"The United States supports the peaceful restoration of democratic and constitutional order in Honduras with President Zelaya?s return as president to finish his term," it said.

"We firmly believe a negotiated solution is the appropriate way forward and that Costa Rican President Oscar Arias' plan for resolving this crisis is a good one," it said. "Both sides would be well advised to sign it promptly."

Foreign ministers from seven nations and the head of the Organization of American States returned empty-handed after failing to persuade Honduras' de facto leader Roberto Micheletti to accept the Arias plan.

The Costa Rican president had proposed the return of ousted leader Zelaya but also elections and an amnesty for the leaders of the bloodless June 28 coup. Zelaya supports the deal.

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