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US halts aid over Honduras coup US halts aid over Honduras coup
(about 2 hours later)
The US has halted all non-humanitarian aid to Honduras in the wake of the coup there in June. The US has halted all non-humanitarian aid to Honduras - about $30m (£18.4m) - in the wake of June's coup.
The state department said the US needed to take strong action given the failure of the replacement regime to restore "democratic, constitutional rule".The state department said the US needed to take strong action given the failure of the replacement regime to restore "democratic, constitutional rule".
Meanwhile, Brazil has suspended visa-free travel for all Hondurans in response to the coup.
Left-leaning President Manuel Zelaya was ousted from power and forced to leave the country on 28 June.Left-leaning President Manuel Zelaya was ousted from power and forced to leave the country on 28 June.
A government has been installed under interim leader Roberto Micheletti, who has refused to allow Mr Zelaya back into Honduras. The US aid decision came as he met Secretary of State Hillary Clinton in Washington.
"With this decision of the United States, the countries of the Americas have formed a single bloc in condemning the coup," Mr Zelaya was quoted as saying by the AFP news agency.
A government has been installed in Honduras under interim leader Roberto Micheletti, who has refused to allow Mr Zelaya back into Honduras.
'Strong measures''Strong measures'
The US decision now means that Honduras will lose access to more than $200m (£120m) in aid, the state department has previsously indicated. The US said it would not, at this stage, recognise elections scheduled for November as legitimate.
The aid was intended to be spent on rebuilding a main road across the country.
ANALYSIS Stephen Gibbs, BBC News, HondurasANALYSIS Stephen Gibbs, BBC News, Honduras
Much of the money was to be spent on rebuilding a main road across the country, something which the embattled leadership can presumably do without.Much of the money was to be spent on rebuilding a main road across the country, something which the embattled leadership can presumably do without.
The measure which the US could take, but appears not to be contemplating, is a full trade embargo - 70% of the Honduran GDP depends on trade with the US.The measure which the US could take, but appears not to be contemplating, is a full trade embargo - 70% of the Honduran GDP depends on trade with the US.
Without that, it would appear unlikely the country could operate for more than a few weeks. But instead, the stalemate continues.Without that, it would appear unlikely the country could operate for more than a few weeks. But instead, the stalemate continues.
Honduras is, just about, surviving its worldwide diplomatic isolation. Businesses remain open, as are borders and airports. The government wants to give the impression both to its population and the outside world that everything is continuing as normal.Honduras is, just about, surviving its worldwide diplomatic isolation. Businesses remain open, as are borders and airports. The government wants to give the impression both to its population and the outside world that everything is continuing as normal.
The decision came as US Secretary of State Hillary Clinton held talks with Mr Zelaya. A state department spokesman said: "There's a sense that the de facto regime was thinking if we can just get to an election that this will absolve them of all their sins.
"The secretary of state has made the decision, consistent with US legislation, recognising the need for strong measures in light of the continued resistance to the adoption of the San Jose Accord by the de facto regime and continuing failure to restore democratic, constitutional rule to Honduras," a state department spokesman said. "That is not the case."
The San Jose Accord is a plan brokered by Costa Rican President Oscar Arias, which - if agreed - would return Mr Zelaya to a limited form of power until elections scheduled for November. The terminated aid included $9.4m from the Agency for International Development, $8.96m from the State Department and $1.7m in security assistance.
Mr Micheletti's decision to reject the accord has triggering the US to respond by blocking aid to the country. About $11m from the US Millennium Challenge Corporation, given to countries with a track record of sound governance and economic policy, would also be cut.
The suspension of American aid to Honduras does not mean the US believes that Mr Zelaya's removal officially meets the legal definition of a military coup d'etat, however, officials said. The US said "strong measures" were needed because the government had yet to adopt the San Jose Accord, a plan brokered by Costa Rican President Oscar Arias, which - if agreed - would return Mr Zelaya to a limited form of power until elections scheduled for November.
"The Department of State recognises the complicated nature of the actions which led to June 28 coup d'etat in which Honduras' democratically elected leader, President Zelaya, was removed from office," the State Department said in a statement. The US aid decision was described as "not very friendly" by Honduran officials, AFP reported.
But officials made it clear that if the current situation continues, the US would not be able to view the November election as legitimate. "We regret that a friendly government of a friendly country and people would take the decision to side with [Hugo] Chavez," said the head of Honduran cabinet, Rafael Pineda Ponce, referring to the president of Venezuela.
Brazil's move to suspend visa-free travel for Hondurans was also prompted by the coup. Mr Chavez, Latin America's most prominent leftist leader and no friend of the US, has sought to isolate Honduras since Mr Zelaya's ouster.
However, the suspension of US aid to Honduras does not mean the US believes that Mr Zelaya's removal officially meets the legal definition of a military coup d'etat, officials said.
In a statement, the state department said it recognised the "complicated nature" of the events leading to Mr Zelaya's removal, which included constitutional disputed in the Honduran courts.
Meanwhile, Brazil has suspended visa-free travel for all Hondurans in response to the coup.
By blocking new visas for Hondurans, Brazil hopes "to promote the immediate restoration of President Jose Manuel Zelaya to the functions to which the Honduran people elected him," the country's foreign ministry said in a statement.By blocking new visas for Hondurans, Brazil hopes "to promote the immediate restoration of President Jose Manuel Zelaya to the functions to which the Honduran people elected him," the country's foreign ministry said in a statement.