Honduras' leaders edge closer to crisis talks

TEGUCIGALPA (Reuters) - Honduras' de facto leader Roberto Micheletti and ousted President Manuel Zelaya on Saturday edged toward negotiating an end to a political crisis triggered after troops toppled the leftist in a June coup.

Micheletti says he met recently with Organization of American States chief Jose Miguel Insulza in a step toward talks and Zelaya supporters signaled they were open to dialogue brokered by an OAS mission visiting Honduras.

Troops exiled Zelaya after he riled powerful conservatives who accused him of attempting to amend the constitution to allow presidents to serve more than a single four-year term and by cozying up to Socialist Venezuelan President Hugo Chavez.

Zelaya slipped back into Honduras two weeks ago and has been holed up in the Brazilian Embassy.

Micheletti says Zelaya must face corruption charges and is resisting pressure to restore him because he says the president was removed constitutionally. Zelaya insists he be reinstated unconditionally. But both say they are open to negotiations.

"We are hoping for assurances that we can resolve this problem through dialogue," Micheletti told reporters late on Friday. "We are talking with different sectors ... with Zelaya's people and others."

Talks would focus on the San Jose agreement, a document drawn up by Costa Rican President Oscar Arias, which calls for Zelaya's restoration, a form of political amnesty and a unity government until the scheduled November 29 elections. Zelaya's term was scheduled to end in January.

"If the regime accepts this agenda then we will too and we can sit down immediately for dialogue on Monday or Tuesday," said close Zelaya ally Carlos Reina who is inside the embassy with the deposed president.

LIFT THE DECREE

Micheletti, a veteran politician in Central America's No. 2 coffee grower, has resisted pressure to seek a deal to reinstate Zelaya or lift an emergency decree imposed last Sunday that curbed civil liberties and shut two pro-Zelaya news outlets.

Zelaya supporters back the San Jose deal and also want the emergency restrictions lifted.

Soldiers toppled Zelaya at gunpoint and sent the logging magnate into exile on June 28 after the Supreme Court ordered his arrest. Critics say he illegally sought to amend the constitution to lift term limits, but Zelaya denies wanting to stay in power.

U.S. officials have pressed for Zelaya's restoration, but criticized his surprise return. Washington has put pressure on Micheletti's supporters by cutting aid and revoking visas but shied away from tougher measures such as trade sanctions.

Troops have cordoned off the Brazilian Embassy, but protests have dropped off since the de facto government imposed the decree banning marches in support of Zelaya.

In a concession before talks, Micheletti backed down from a threat to shut the Brazilian Embassy if it does not give Zelaya asylum or hand him over to face treason charges.

The de facto leader insists elections will resolve the crisis. But several countries have suggested they might not recognize the vote without a prior agreement involving Zelaya.

(Additional reporting by Miguel Angel Gutierrez in Tegucigalpa; Editing by Stacey Joyce)