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This text below is a phonetic transcript of a radio story broadcast by PRI’s THE WORLD. It has been created on deadline by a contractor for PRI. The transcript is included here to facilitate internet searches for audio content. Please report any transcribing errors to theworld@pri.org. This transcript may not be in its final form, and it may be updated. Please be aware that the authoritative record of material distributed by PRI’s THE WORLD is the program audio.

MARCO WERMAN: The economy of Honduras is also at the breaking point.  The Central American nation was already hurting from the Global Economic Slowdown. Then in June the Honduran Army ousted the President, Manuel Zelaya. The political unrest has scared away tourists and foreign investors, and it’s driven up unemployment.  Hondurans are set to choose a new president on Sunday. Many of them hope the election will diffuse the crisis and get the country’s economy back on track.  Reporter John Otis sets the scene.

JOHN OTIS: American businessman Chris Haughey is trying to set up a toy factory on the outskirts of the capital, Tegucigalpa.

CHRIS HAUGHEY: So what you see in the factory here is roughly 50% of the machines were purchased here in country and the rest were, you know, have been brought in from the U.S.

OTIS: But shortly after Haughey broke ground, a military coup ousted President Zelaya. Street protests led to curfews, and that caused construction delays at Haughey’s plant, pushing back the start-up date for toy production.

HAUGHEY: The impact for us has mostly been with delays. You know, providers not showing up because there’s a curfew for all or part of the day and so they’re not going to come out to the factory.

OTIS: Haughey is determined to stick it out, but most new business ventures in Honduras have been put on hold.  Now the Honduran economy is expected to contract by 4% this year. But the economic problems began even before Zelaya was forced out of office. Most Honduran exports go to the United States, but the U.S. financial crisis depressed demand for the country’s coffee, bananas and apparel. Remittances from Hondurans living in the U.S. also plummeted.  Last January, President Zelaya boosted the monthly minimum wage to about $300.  He also decreed that domestic workers are entitled to Social Security Pensions. Those moves prompted a wave of layoffs and turned the Honduran business community against Zelaya.  Then came the military coup. Reductions in foreign aid to the de facto government of Roberto Micheletti soon followed.  Now, many Hondurans are buying only buying essential items.  Alaba Castaneda runs a printing press that turns out books, envelopes, and calendars. But since the political crisis began, Castaneda has laid off 5 of her 18 workers. Sales have dropped by 40%.

ALBA CASTANEDA: [Interpreted]   There were curfews.  We couldn’t leave home. It seemed like war could breakout. So people only bought the bare essentials, like food, because people have to eat.

OTIS: Hotel owners claim the coup has been even worse for business than Hurricane Mitch, which laid waste to much of Honduras in 1998.  Ana Maria Maradiaga runs the Hotel Escuela Madrid, a training school for future hotel and restaurant employees. She says aid workers flooded into Honduras after Hurricane Mitch and stayed in hotels for months. But the coup led to an exodus of tourists and a wave of cancellations.

ANA MARIA MARADIAGA: Tegucigalpa was completely empty. Big hotels, small hotels, restaurants.  I mean, everywhere, the tourism in Tegucigalpa was dead.

OTIS: Honduras is the third poorest country in Latin America with nearly 70% of the population living below the poverty line.  But the ongoing political crisis has put much needed aid projects on hold, says the American toymaker Chris Haughey.

HAUGHEY: There are constantly groups coming down from the U.S., from Canada, from other developed nations to assist with social project; water projects, health, you know, poverty alleviation. And those groups have basically put their plans on hold as well.”

OTIS: President Zelaya remains holed up in the heavily guarded Brazilian Embassy in Tegucigalpa and it’s unclear whether he will be reinstated before his term ends in January.  Unlike the left-wing Zelaya, the two leading candidates in Sunday’s presidential election are mainstream politicians with close ties to business and to the United States.  U.S. Ambassador Hugo Llorens has pushed for Zelaya’s return. But he also maintains that the swearing in of a democratically elected president to replace the de facto government could go a long way towards stabilizing the economy.

HUGO LLORENS: Our hope is that democracy can be restored, the country’s situation can be normalized, its relations with the international community so that Honduras can again become a place for growth and investment.

OTIS: For The World, I’m John Otis, Tegucigalpa, Honduras.

Copyright ©2009 PRI’s THE WORLD. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to PRI’s THE WORLD. This transcript may not be reproduced, in whole or in part, without prior written permission. For further information, please email The World’s Permissions Coordinator at theworld@pri.org.

• FAQ Honduras crisis
• William Troop on Zelaya’s return to Honduras in September

Read the Transcript
This text below is a phonetic transcript of a radio story broadcast by PRI’s THE WORLD. It has been created on deadline by a contractor for PRI. The transcript is included here to facilitate internet searches for audio content. Please report any transcribing errors to theworld@pri.org. This transcript may not be in its final form, and it may be updated. Please be aware that the authoritative record of material distributed by PRI’s THE WORLD is the program audio.

MARCO WERMAN: I’m Marco Werman and this is The World, a co-production of the BBC World Service, PRI, and WGBH Boston. Honduras’ strange political saga comes to a head this weekend. That’s Hondurans elect a new president. Their last elected leader, Manuel Zelaya, was ousted five months ago but he remains in limbo at the Brazilian embassy there. Many Latin American countries are refusing to recognize the elections organized by the defacto government of Roberto Micheletti. Yet some Hondurans say this weekend’s election could be the first step towards ending the country’s political crisis. John Otis reports from the capital Tegucigalpa.

PORFIRIO LOBO: [SPEAKING SPANISH]

JOHN OTIS: During a televised debate presidential front runner, Porfirio Lobo, pledges to attack corruption and reduce poverty in Honduras. Lobo’s main challenger, Elvin Santos, offers a similar message in his campaign speeches.

ELVIN SANTOS: [SPEAKING SPANISH]

OTIS: But the issue neither candidate mentions is what to do about deposed president Manuel Zelaya, a leftist with close ties to Venezuela’s Hugo Chavez. Zelaya was removed from office by the Honduran military on June 28^th amid fears he would try to change the constitution to remain in power. He was flown into exile. But he later snuck back in to Honduras and now remains holed up in the heavily guarded Brazilian embassy. Last month US diplomats announced they had brokered a deal to reinstate Zelaya for the remainder of his term. But the agreement hinged on the approval of the Honduran congress and most legislatures opposed Zelaya. They were also busy campaigning for re-election and have postponed their decision on Zelaya’s fate until next month. Miguel Gutierres is Honduran newspaper publisher claims congress is simply trying to run out the clock.

MIGUEL GUTIERRES: This has been a delay and a delay and a delay. I don’t personally believe that they will reinstate Zelaya back. Meanwhile Roberto Micheletti, Honduras’ provisional president is pushing ahead with the elections.

ROBERTO MICHELETTI: [SPEAKING SPANISH]

OTIS: To appease the international community Micheletti last week announced he would assume a low profile and make no more public appearances until after the voting. Still the elections are going forward under a cloud of suspicion. The organization of American states has refused to send electoral observes to Honduras. Brazil, Argentina, and other Latin American nations say they will not recognize the results. One presidential hopeful and dozens of pro-Zelaya legislative candidates have withdrawn saying their participation would only legitimize the coup.

[PROTESTORS CHANTING]

Anti-government marches have been banned in the capital Tegucigalpa but everyday Zelaya supporters meet in front of congress. They’re calling on Hondurans to stay home on election day and protest. Juan Barahona is one of the main opposition leaders.

JUAN BARAHONA: [SPEAING SPANISH]

TRANSLATOR: This is a coup regime. One that’s illegal and illegitimate therefore the electoral is illegal and illegitimate.

OTIS: Micheletti as well as the two leading presidential candidates are betting that relatively clean elections will make people forget about Zelaya. Daniel O’Connor is an American business man and a member of the Democratic Civic Union, a group that strongly backs Micheletti.

DANIEL O’CONNOR: I think there’s a strong expectation that the elections will be free, fair, and transparent. That the results will be ultimately recognized.

OTIS: The US government has cut off military and other non-emergency aid to Honduras yet critics say Washington could have taken a tougher stance. Instead American diplomats have hinted they will recognize the elections whether or not Zelaya is reinstated and that may have stiffened the resolve of the Micheletti government. US Ambassador Hugo Llorens says there’s still time for Zelaya to return to the presidency. He insists voters have the right to go to the polls next week and the condemning the elections would be akin to blaming the entire Honduran population for the coup.

HUGO LLORENS: We’ve worked very hard. We’ll continue very hard to restore the democratic order. But certainly free, fair, and transparent elections will be a part of the solution in Honduras.

OTIS: The next president will be sworn in on January 27^th. On that day all eyes will be on the figure handing over the presidential sash to the new Honduran leader. Lisa Haugaard of the Washington-based Latin America Working Group says that if Micheletti rather than Zelaya presides over the ceremony it will send a dangerous message to the rest of the region.

LISA HAUGAARD: We have thought that coups were things of the past and it’s very disturbing that there can be a coup that is more or less successful.

OTIS: For The World I’m John Otis in Tegucigalpa, Honduras.

[MUSIC]

Copyright ©2009 PRI’s THE WORLD. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to PRI’s THE WORLD. This transcript may not be reproduced, in whole or in part, without prior written permission. For further information, please email The World’s Permissions Coordinator at theworld@pri.org.

• BBC coverage
• FAQ Honduras crisis
• The World’s William Troop on Zelaya’s return to Honduras in September

Read the Transcript
This text below is a phonetic transcript of a radio story broadcast by PRI’s THE WORLD. It has been created on deadline by a contractor for PRI. The transcript is included here to facilitate internet searches for audio content. Please report any transcribing errors to theworld@pri.org. This transcript may not be in its final form, and it may be updated. Please be aware that the authoritative record of material distributed by PRI’s THE WORLD is the program audio.

KATY CLARK: There was one other item on Secretary of State Clinton’s agenda today – Honduras. While still in Pakistan, Clinton announced a breakthrough for the Central American nation. Ousted President Manuel Zalaya and the interim leader Roberto Micheletti have agreed to a US broker deal. The agreement calls on the Honduran congress to decide if Zalaya should be reinstated as president. The agreement also binds both sides to recognize the result of this month’s presidential election. Neither Zalaya nor Micheletti are candidates. Zalaya was ousted from Honduras in coup four months ago. He slipped back into the country in September. That’s when he took refuge with supporters at the Brazilian embassy in Tegucigalpa. Andreas Conteris is one of the people inside the embassy. He’s with the US based Democracy Now en Espanol. Andreas we spoke to you a few weeks ago and you were clearly in support of Mr. Zalaya’s reinstatement. What is the mood inside the embassy today as we speak?

ANDREAS CONTERIS: Well the mood here is one of I would say cautious celebration. Because it clearly is a step forward in terms of what many, many Hondurans want – their president to be reinstated. But it’s also the overwhelming majority of the international community that has been demanding that President Zalaya be restored as the democratically elected leader of this country. So the accord is definitely a step in that direction. However there may be a number of loopholes in it which will permit the coup regime to continue to stall for quite a bit of time which is now a very precious commodity before the elections coming up November 29^th.

CLARK: The election is coming up very soon as you say. What do you expect will happen?

CONTERIS: It really depends on when President Zalaya is allowed to be restored as the president of the country. As I said, the delaying tactics could continue even though there is a signed accord which could last for at least two or three more weeks. But if that doesn’t happen. If he’s allowed to be president again soon, then he will have a lot more influence in terms of encouraging the electorate to look at his point of view in terms of which candidate he might support.

CLARK: And I’m just wondering you’ve been in the Brazilian embassy in Honduras for some 38 days now. How are conditions?

CONTERIS: Well conditions initially were very difficult because there was no way to prepare for hundreds of people moving into a building that is not set up for housing whatsoever. Over time some of us have been able to get air mattresses. But actually most of the people here have been sleeping on the floor – hard floors. And food for a while was hard to come by but then lately it’s been more regular. Both electricity and water has been cut off on occasion. But also really what has been done by the military and police have been what could be described as psychological warfare tactics. Using all-night loud music and animal grunts. The first morning we were victims of what is known as long-range audio devices. A very high pitched shrieking sound which is used as a weapon. So it’s been really difficult in that sense. But more recently we’ve acclimated to the situation and now we’re definitely ready to move on from here.

CLARK: Well Andreas is there much celebrating going on at the moment?

CONTERIS: Actually there has been some celebrating here last night. At the embassy there was celebrations. There was some fireworks that went on in the city of Tegucigalpa itself. So yes there is definitely jubilation and joy at this step in the process. But it’s important to point out that it’s also met with quite a bit of caution because it’s really uncertain how quickly the process will move forward for the president to be reinstated.

CLARK: Andreas Conteris is with Democracy Now en Espanol. He spoke to us from the Brazilian embassy in Honduras where ousted President Manuel Zalaya is holed up today. Thank you.

CONTERIS: Katy, it’s been a pleasure.

Copyright ©2009 PRI’s THE WORLD. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to PRI’s THE WORLD. This transcript may not be reproduced, in whole or in part, without prior written permission. For further information, please email The World’s Permissions Coordinator at theworld@pri.org.