WRAPUP 2-Honduras pressure mounts, U.S. wants deal "now"
(For full coverage of Honduras, click on [ID:nN28343997])
* U.S. wants a deal "now"
* Zelaya says de facto government will have to back down
* Mediator pushing for new round of talks on Wednesday
TEGUCIGALPA, July 21 (Reuters) - The United States and Europe stepped up pressure on Honduras' de facto government on Tuesday as deposed President Manuel Zelaya and his supporters called on Washington to pave the way for his return.
With negotiations deadlocked and Zelaya vowing to return to Honduras within days, some fear Central America's worst crisis since the end of the Cold War could flare into violence.
Talks mediated by Costa Rican President Oscar Arias collapsed over the weekend but he hopes to bring both sides back to the negotiating table on Wednesday..
The U.S. government threw its weight behind Arias' proposal that Zelaya, who was toppled in a June 28 coup, be reinstated to set up a coalition government.
"We're in constant contact with a number of countries in the hemisphere regarding the situation in Honduras, and we believe the Arias mediation is the right way to go, and the time is now to ... resolve this issue," State Department deputy spokesman Robert A. Wood told reporters.
"We think that this is the best (way) ... to restore the constitutional order in the country, and we want to see that happen now," he said.
The government that took power when Zelaya was toppled has not been recognized by any other country, but it refuses to allow his return to power and vows to arrest him on arrival.
The crisis is testing President Barack Obama as he seeks to improve U.S. relations with Latin America, where a growing bloc of leftist leaders that includes Zelaya has challenged Washington's influence in recent years.
Obama has already cut $16.5 million in military aid to Honduras but has let Arias and the Organization of American States take the lead on diplomatic efforts to end the crisis.
He faces pressure from Latin American heavyweight Brazil and other countries in the region who want more pressure on Honduras' de facto government but at home some Republicans in Congress feel Obama is showing too much support to Zelaya.
ZELAYA CONFIDENT Continued...



