Honduras says OAS visit on again

By Gustavo Palencia

TEGUCIGALPA (Reuters) - Honduras' de facto rulers said Sunday they had resolved a disagreement with the Organization of American States over a visit to the Central American country to discuss its political crisis.

The government running Honduras since a coup in June had told OAS chief Jose Miguel Insulza to stay away because of his support for ousted President Manuel Zelaya.

But it later reversed course and said Insulza could come on a mission with Latin American foreign ministers in the coming weeks.

"The secretary general will participate as an observer," the foreign ministry said in a statement.

During a visit to Honduras days after soldiers forced Zelaya out of the country on June 28, Insulza called for the president to be reinstated and did not meet directly with de facto leader Roberto Micheletti.

Honduras' de facto government had accused Insulza of "lacking objectivity, impartiality and professionalism."

The Washington-based OAS, the Western Hemisphere's top diplomatic body, suspended Honduras over the coup, the first suspension of a member state since Cuba in 1962.

Insulza was planning to travel to Tegucigalpa Tuesday.

Honduras is expected to be discussed at U.S. President Barack Obama's first "three amigos" summit with the leaders of Mexico and Canada Monday in Mexico.

Obama has canceled $16.5 million in military aid to Honduras and has condemned Zelaya's removal, as have Latin American governments and the European Union.

But the administration headed by Micheletti, the former head of Congress, appears to be digging in.

Before the coup, Central America's worst political crisis since the U.S. invasion of Panama in 1989, Zelaya was pushing for constitutional reforms that included letting presidents seek re-election.

His opponents accused him of trying to stay in power, but he denies the allegation.

Mediation efforts by Costa Rican President Oscar Arias have so far failed to achieve Zelaya's return.

(Editing by Anthony Boadle)