Thursday, September 3, 2009

Termination of Assistance and Other Measures Affecting the De Facto Regime in Honduras



Ian Kelly
Department Spokesman
Washington, DC
September 3, 2009


The Department of State announces the termination of a broad range of assistance to the government of Honduras as a result of the coup d’etat that took place on June 28. The Secretary already had suspended assistance shortly after the coup.
The Secretary of State has made the decision, consistent with U.S. legislation, recognizing the need for strong measures in light of the continued resistance to the adoption of the San Jose Accord by the de facto regime and continuing failure to restore democratic, constitutional rule to Honduras.
The Department of State recognizes the complicated nature of the actions which led to June 28 coup d’etat in which Honduras’ democratically elected leader, President Zelaya, was removed from office. These events involve complex factual and legal questions and the participation of both the legislative and judicial branches of government as well as the military.
Restoration of the terminated assistance will be predicated upon a return to democratic, constitutional governance in Honduras.
The Department of State further announces that we have identified individual members and supporters of the de facto regime whose visas are in the process of being revoked.
A presidential election is currently scheduled for November. That election must be undertaken in a free, fair and transparent manner. It must also be free of taint and open to all Hondurans to exercise their democratic franchise. At this moment, we would not be able to support the outcome of the scheduled elections. A positive conclusion of the Arias process would provide a sound basis for legitimate elections to proceed. We strongly urge all parties to the San Jose talks to move expeditiously to agreement.
US could withhold funds to Honduras over coup
MEXICO CITY — The United States is increasing pressure on the interim Honduras government, threatening to cut off millions of dollars promised for farming and transportation projects if the ousted president isn't returned to power.
The U.S. — Honduras' top trade partner and source of foreign aid — has been supporting President Manuel Zelaya since military officers flew the pajama-clad leader into exile in June. Secretary of State Hillary Rodham Clinton was scheduled to meet with Zelaya on Thursday, and the U.S. Embassy in Honduras has stopped issuing most visas.
But Washington has not pulled its ambassador, which almost every other country in the world has done. Nor has the U.S. stated whether it's going to recognize the outcome of presidential elections in November.
Next week the board of directors of the U.S.-funded Millennium Challenge Corporation, headed by Clinton, will meet to decide whether to cut off its aid to Honduras, which includes $215 million over four years.
"The concern with cutting foreign aid is that if it is used for popular purposes or humanitarian aid, you're punishing the people more than the leaders," said Jennifer McCoy, a Honduras expert at the Carter Center. "However, since the U.S. has already tried other options aimed at the leaders, especially revoking visas, this is the natural next step."
McCoy said more than the Millennium Challenge Corporation funds could be at stake. The U.S. has a role in deciding what loans Honduras receives from other institutions including the World Bank.
She said that so far, neither the negotiations nor the threats to cut funding have made a difference to the government of Roberto Micheletti, the interim leader named by the Honduras Congress.
"The Hondurans in power seem to be counting on the fact that they can withstand the economic pressure in the short term," she said. "They expect that the international community will change their position and recognize a new government once elected."
So far, $80 million of the $215 million allocation has been spent. Another $111 has been committed to contracts, and $25 million is unobligated, according to the Millennium Challenge Corporation. Spokeswoman Neneh Diallo said it would be premature to predict how much of the funding might be cut.
Dana Frank, a historian at the University of California, Santa Cruz, said the latest threats to cut funding are "sending mixed signals to Micheletti. Why haven't they already frozen all bank accounts and funding? Why are we still at an Air Force base there?"
Some countries, like Canada, continue to provide aid. Others have blocked funding; the European Union has suspended more than $90 million.
Associated Press writer Freddy Cuevas contributed to this report from Tegucigalpa, Honduras.

U.S. Suspends $30 Million to Honduras





Published: September 3, 2009
WASHINGTON — Secretary of State Hillary Rodham Clinton announced Thursday that the United States would formally suspend nearly $30 million in aid to the coup-installed government in Honduras. She also suggested for the first time that the United States might not recognize the country’s elections this fall if the ousted president was not returned to power by then.



Jewel Samad/Agence France-Presse — Getty Images
The deposed president of Honduras, Manuel Zelaya, talked to reporters on Thursday after meeting with Secretary of State Hillary Rodham Clinton at the State Department.
Senior administration officials said she was sending a “powerful signal” of their commitment to the restoration of democracy in Honduras, which has been the object of international condemnation since June 28, when soldiers rousted President Manuel Zelaya from his bed and loaded him onto a plane leaving the country.
Some outside the Obama administration, however, wondered whether it was much of a signal at all, saying that formally terminating the money would not have much of a practical effect because the aid had been suspended immediately after the coup. In addition, the United States will continue providing tens of millions of dollars in development and humanitarian aid.
“They are doing these piecemeal steps to see how the de facto regime responds,” said Vicki Gass of the Washington Office on Latin America, a human rights group. “And each time the de facto regime remains intransigent, they up the ante, but it takes them way too long.”
Mrs. Clinton’s announcement came as she met with Mr. Zelaya, who had urged the administration to issue a finding that his ouster fit the legal definition of a military coup. Senior administration officials said such a determination — which was not made — would not have obligated the United States to cut aid further.
A legal determination would have required certification by Congress, where some Republicans support Honduras’s de facto government. Reaction to Thursday’s announcement suggested that there might be a fight brewing anyway.
“Today’s decision by the State Department to cut aid to Honduras is an outrage,” said Representative Connie Mack, Republican of Florida, who called the cuts “simply over the top.”

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