Stalemate but head of UN general assembly says solution is near.

It is hard to see why déScoto is optimistic that there will be a solution when the two sides are still completely at loggerheads. No doubt there will be tremendous pressure on Zelaya to agree to go back with reduced powers and stay as a lame duck powerless president until new elections. Of course there will be no punishment of the coup leaders except that they may have to give up on prosecuthing Zelaya. So far they have been unwilling to do that except for "political" crimes.
Note that Honduras depends upon remittances from Hondurans in the US for 25 per cent of its income.

This is from aljazeera.

Honduras talks hit stalemate
Talks aimed at ending a political crisis in Honduras have failed to reach a resolution, after the two individuals claiming the presidency of the country left the negotiations.
Delegates for Roberto Micheletti, the military-backed interim president, and Manuel Zelaya, the deposed elected president, failed to reach a breakthrough in talks mediated by Oscar Arias, Costa Rica's president.
Micheletti's team of advisers left the Costa Rican capital San Jose on Friday evening and headed back to Honduras, bringing an end to the negotiations for the time being.
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The president of the United Nations General Assembly said a solution to the crisis was close despite the apparent failure of the Arias-brokered talks.
"I hear we may be very close to a solution for the restitution of President Zelaya," Miguel d'Escoto said on Friday.
"I feel confident that a solution will be arrived at very soon. By soon I mean very few days. A week is soon, but I believe sooner."
Country facts
Second largest country in Central America Population of 7.2 million Second poorest country in the region Economy forecast to grow less than two per cent this year Relies on money from Hondurans in the US for more than 25 per cent of its gross domestic product Former Spanish colony gained independence in 1821
........The US has suspended military ties with Tegucigalpa in the wake of the crisis and has said that it could cut off about $200m in aid.
The World Bank and the Inter-American Development Bank have also suspended credit to the country.
Gabriela Nunez, the finance minister in the interim government in Honduras, said on Friday that the suspension of Inter-American Development Bank and World Bank loans would cost the country $200m in 2009.
Zelaya's leftist allies in South America have also made life uncomfortable for Micheletti since the coup.
Venezuela has suspended its oil deliveries to Honduras, while Nicaragua denied Micheletti permission to fly through its airspace for the Costa Rica meeting.
Zelaya was removed from power as he was about to press ahead with a non-binding referendum on constitution change.
Congress and the courts had declared the move to hold the public vote illegal, accusing Zelaya of trying to change the charter to enable him to run for a second term in office.