WRAPUP 2-Give talks a chance, U.S. tells Honduras rivals

(For a TAKE A LOOK on Honduras, click on [ID:nN28343997])

* U.S. calls for patience in Honduras crisis talks

* Mediator Costa Rica also says give talks a chance

* Rival sides show no sign of budging from tough positions

(Adds Zelaya in Guatemala, analysts' quotes)

By John McPhaul

SAN JOSE, Costa Rica, July 14 (Reuters) - The United States and the Costa Rican mediator in Honduras' political crisis urged the rival sides on Tuesday to give talks a chance after the ousted president threatened to abandon dialogue if he was not reinstated quickly.

They were responding to a warning on Monday by deposed Honduran President Manuel Zelaya, toppled in a June 28 coup, that he would quit talks mediated by Costa Rican President Oscar Arias unless Honduras' interim rulers agreed to restore him to office this weekend.

"All parties in the talks should give this process some time. Don't set any artificial deadlines," U.S. State Department spokesman Ian Kelly told reporters in Washington.

Arias, who won the 1987 Nobel Peace Prize for his efforts to help end Central American civil wars, has called a fresh round of talks for Saturday between representatives of Zelaya and envoys of interim Honduran President Roberto Micheletti.

But with both sides refusing to make concessions, Arias is struggling to keep alive hopes for a quick negotiated solution to Central America's worst political crisis since the Cold War. Two days of talks in Costa Rica last week between the rival Honduran delegations failed to achieve any real progress.

Honduras, which exports bananas, coffee and textiles, has a long history of coups, returning to democracy only in the 1980s after 30 years of mainly military rule in the impoverished Central American country.

Zelaya, bolstered by world condemnation of the coup, insists his reinstatement is the only topic for any talks.

"The whole world ... has said it will not recognize a military government with civilian puppets," he told reporters in Guatemala on Tuesday after arriving for a visit.

But Micheletti's interim government, installed by Honduras' Congress after the coup, is adamant Zelaya cannot return to power under any circumstances because it says he was trying to illegally extend his rule by seeking to lift presidential term limits. His removal was lawful, Micheletti says.

The debate over how to solve the Honduran crisis is also developing into a tussle for influence in Latin America between Venezuela's leftist president, Hugo Chavez, a fierce critic of Washington, and U.S. President Barack Obama, who is looking to improve strained U.S. relations with the region.