Honduras rejects OAS appeal to restore president

Zelaya, who was traveling in Central America, planned to return to Honduras on Sunday, according to Nicaraguan President Daniel Ortega. Zelaya has said he would be traveling with Insulza and the presidents of Argentina and Ecuador.

Contrary to assertions by the Micheletti government, Interpol on Friday released a statement saying it had not received any request to issue an arrest warrant for Zelaya.

Micheletti led a raucous chant of "Democracy!" before a giant crowd waving blue-and-white Honduran flags in front of the palace that Micheletti has occupied since Zelaya was seized by soldiers and flown into exile. He pledged to stand firm in the face of the international pressure.

"I am the president of all Hondurans," he proclaimed.

A rival rally by thousands of Zelaya backers marched to the offices of the OAS. Marchers carried a banner with a picture of Zelaya and the words: "Mel our friend, the people are with you!"

Despite feared violence, the two groups did not clash. Police helicopters circled overhead and dozens of soldiers and police guarded the palace.

Micheletti's supporters say the army was justified in ousting Zelaya — on orders of Congress and the Supreme Court — because he had called a referendum which they claim he intended to use to extend his rule. Zelaya denies that and has said he will no longer press for constitutional changes.

Nations around the world have promised to shun Micheletti, who was sworn in after the coup, and the nation already is suffering economic reprisals.

Neighboring countries have imposed trade blockades, major lenders have cut aid, the Obama administration has halted joint military operations and all European Union ambassadors have abandoned the Honduran capital.

On Friday, the U.S. Embassy in Honduras issued a statement expressing "deep concern over restrictions imposed on certain fundamental rights" by Micheletti's government, including a curfew in force since Sunday, and "reports of intimidation and censorship against certain individuals and media outlets."

Micheletti's government is so eager to find a friend that it announced it had been recognized by Israel and Italy — surprising the governments of those countries. Italy withdrew its ambassador to protest the coup, and Israeli Foreign Ministry spokesman Yigal Palmor said: "All rumors about Israeli recognition of the new president are wholly unfounded."

Micheletti asked Nobel Peace laureate Rigoberta Menchu to help mediate the conflict, and she arrived in Tegucigalpa on Friday.

"I come to try to talk with anyone who wants to listen to search for peace for this country," she said.

Ousted Honduran Finance Minister Rebeca Santos on Friday told international finance ministers in Chile that the coup has already hurt the economy. The World Bank and the Inter-American Development Bank have suspended between $300 million and $450 million in financing.