US cuts aid to Honduras (Roundup)

Sep 3, 2009, 19:42 GMT

Washington - US Secretary of State Hillary Rodham Clinton has cut off aid to Honduras in the wake of the June 28 coup that removed democratically elected President Manuel Zelaya from office, the State Department said Thursday.

Clinton had temporarily suspended aid shortly after the military- backed coup pending a review of the events. Washington has criticized the government that replaced Zelaya for its unwillingness to explore a compromise outlined by Costa Rican President Oscar Arias.

Clinton's move cuts off all non-humanitarian aid to Honduras that amounts to more than 30 million dollars. US law requires the termination of aid to countries where a military coup has taken place. The announcement came as Clinton met with Zelaya.

'Restoration of the terminated assistance will be predicated upon a return to democratic, constitutional governance in Honduras,' State Department spokesman Ian Kelly said.

It was not clear if Clinton's decision would also affect more than 100 million dollars in aid given to Honduras by the State Department's Millenium Challenge Corporation, which sign aid compacts with countries who demonstrate commitments to democratic and economic reform.

The US embassy in Tegucigalpa has also stopped issuing most visas to Hondurans following the coup, and moved to revoke visas already held by Honduran officials.

Roberto Micheletti, who has led the government since Zelaya's ouster, has refused to accept the Arias proposal known as the San Jose Accord. Among other provisions, the San Jose Accord calls for Zelaya's immediate return to power and elections in October - one month earlier than planned.

'At this moment, we would not be able to support the outcome of the scheduled elections,' Kelly said. 'A positive conclusion of the Arias process would provide a sound basis for legitimate elections to proceed. We strongly urge all parties to the San Jose talks to move expeditiously to agreement.'