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Read how the U.S. should respond to the Honduran coup...

Author: /time Magazine | Title: Clinton Pushes Honduran Foes to Negotiations | 7/8/2009 | See Source »

...referendum that allows indefinite re-election. When Zelaya last month defied a Supreme Court ban against a nonbinding plebiscite he'd called on constitutional change, the army whisked him away in his pajamas and flew him to forced exile in Costa Rica. (See pictures of the Honduras coup on LIFE.com...

Author: /time Magazine | Title: Clinton Pushes Honduran Foes to Negotiations | 7/8/2009 | See Source »

...diplomats, Zelaya would be immune from prosecution when he's back in Honduras. Likewise Micheletti, who last week had insisted he that he would never negotiate Zelaya's return, and other Zelaya foes, including the military leaders who ousted the President, would not face trial for the coup. "It's designed to keep the potential for violence at a minimum when Zelaya is reinstated," says one diplomat in Washington, who asked not to be identified...

Author: /time Magazine | Title: Clinton Pushes Honduran Foes to Negotiations | 7/8/2009 | See Source »

...Handing Arias the mediator job takes a load of pressure off the Obama Administration. Since the coup, the White House has had to walk a fine line between cultivating a new, less interventionist image for the U.S. - which has too often aided military coups in Latin America - and "responding to the hemisphere's desire that it take a strong lead in defending democratic norms," says Vicki Gass, senior associate for rights and development at the independent Washington Office on Latin America. "There will have to be a negotiated settlement to this crisis, and while Latin America appreciates...

Author: /time Magazine | Title: Clinton Pushes Honduran Foes to Negotiations | 7/8/2009 | See Source »

...should squeeze the Micheletti regime by cutting off aid - always a dicey prospect when a country as poor as Honduras is involved. Washington funnels about $50 million a year to Honduras in social and military assistance, much of which the State Department put on hold in response to the coup; and in 2005 it signed a five-year, $215 million development grant for the country. Because of the coup, the World Bank has already suspended $270 million in pending credit for Honduras as well as $80 million it had slated for 2010. The U.S. could also withhold trade, but that...

Author: /time Magazine | Title: Clinton Pushes Honduran Foes to Negotiations | 7/8/2009 | See Source »

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