Honduran rivals signal new bid to solve crisis

By Mario Naranjo

TEGUCIGALPA (Reuters) - Honduras' ousted president and de facto leader gave signs they would try again on Saturday to form a unity government to guide the country out of a four-month crisis after the process collapsed a day earlier.

President Manuel Zelaya, a refugee in his own country in the Brazilian Embassy, early on Friday declared dead a pact to end the crisis, while de facto leader Roberto Micheletti said he would form a new government without Zelaya's participation.

The United States and the Organization of American States on Friday pushed the two sides to try again, while Latin American presidents urged Zelaya's re-instatement, which has been the sticking point of the accord.

In the latest twist in the long saga, Micheletti's government said it would suspend installing a new cabinet to give Zelaya the weekend to name members to it.

On the other side, a negotiator for Zelaya said representatives from the two sides would meet on Saturday to continue the negotiating process.

The poor Central American country, which exports bananas, coffee and clothes, holds presidential elections on Nov. 29.

But if Zelaya and Micheletti cannot resolve their standoff, a newly elected president might not be able to win back diplomatic recognition and vital financial aid that were cut off to punish the country over the coup.

"We've possibly found a road. There's a pre-agreement, but I don't want to give more details," Jorge Reina, a negotiator for Zelaya, told a local radio station. "There's a new path."