U.S. Aid to Honduras and Negotiations in San Jose, Costa Rica

July 8, 2009

Tegucigalpa: The United States Government is undertaking a comprehensive review of all its foreign assistance programs to determine how much of this assistance could be legally required to be suspended in light of the June 28 coup directed against and expulsion of President Manuel Zelaya.This is a careful and deliberative process.

However, as a matter of policy, the USG has suspended military assistance programs (totaling US$16.5 million) and development assistance programs that provide support to the Government of Honduras (GOH). In addition to military assistance, we are halting activities related to USG support to the GOH ministries in basic education, environment and family planning. Letters of suspension have been or are being sent to the implementing agencies. The timely release of new assistance funding for Honduran in 2009, totaling over US$50 million, could be in jeopardy, as well as the approximately US$130 million remaining in the Millennium Challenge Compact.

Programs that directly benefit the Honduran people are continuing. All assistance supporting the provision of food aid, HIV/AIDS and other disease prevention, child survival, and disaster assistance, as well as election assistance to facilitate free and fair elections, is still being provided to the Honduran people.

At the same time, the U.S. Embassy is gratified by the announcement yesterday of negotiations to be held in Costa Rica facilitated by Costa Rican President and President of the Central American Association Oscar Arias, whose standing as a mediator and peace-maker is of the highest level. The Embassy encourages the pursuit of this regional dialogue to seek a return of the legitimate Honduran government and a restoration of the constitutional and democratic order. Secretary of State Clinton and OAS Secretary General Insulza both worked very hard to promote this dialogue and to seek a consensual way of addressing the serious problems of political polarization in Honduras. The Embassy calls upon the people of Honduras to continue the open, peaceful pursuit of consensus and dialogue.