Honduras talks hopes brighter, Zelaya doubts rival

TEGUCIGALPA (Reuters) - The chance of a negotiated end to the Honduran crisis crept closer on Tuesday as mediators set up talks between de facto leaders and ousted President Manuel Zelaya, trapped by soldiers inside Brazil's embassy.

Foreign ministers and diplomats from the Organisation of American States will arrive on Wednesday in the poor coffee growing country to oversee a meeting between representatives of Zelaya and Roberto Micheletti, the de facto leader who took power after a June 28 coup.

Initial talks are scheduled to start in the afternoon.

The crisis echoes Central America's Cold War-era troubles, with soldiers and police armed with clubs and automatic weapons on street corners in the capital.

Leftist logging magnate Zelaya said he will not directly meet his rival without an agreement to restore him to power but he named a delegation to open the negotiation on his behalf.

Taking a tough stance ahead of talks, he accused the OAS of being soft on Micheletti who he says is playing for time to keep the de facto government alive longer.

"The position of the OAS is very complacent with the dictators," he told reporters inside his base in the Brazilian embassy in Tegucigalpa. Aide Rasel Tome said Zelaya named eight activists and officials to take part in the talks, although he insisted they must be allowed to visit the embassy first.

Tensions flared when Zelaya slipped back into Honduras two weeks ago. He has been trapped since then by troops surrounding the Brazilian embassy building as Micheletti has slapped emergency curbs on pro-Zelaya media and street protests.

Brazilian President Luiz Inacio Lula da Silva on Tuesday said Micheletti should give up power to end the crisis.

A group of 12 Lenca Indians supporting Zelaya sought asylum in the Guatemalan embassy on Tuesday, citing death threats and beatings from security forces. Activists plan a series of anti-coup protests in the next 24 hours. Some 200 people holding candles and blowing whistles marched on Tuesday night.

"We are protesting peacefully, we want democracy," said Daniel Martinez, 51, at an earlier event near Brazil's embassy. He had head and leg wounds he said were from police clubs at a march last month where one protester died in serious clashes.

MEDIA STILL SHUTTERED

Talks would likely centre on the San Jose agreement drafted by Costa Rican President Oscar Arias when he mediated earlier in the crisis. The document calls for Zelaya's reinstatement and a unity government until scheduled November 29 elections.

Zelaya said he was worried the OAS was no longer resolute in its support for reinstating him. "It seems to me that in the last few hours the Arias plan has been practically abandoned."

Micheletti wants Zelaya to stand trial and is resisting pressure to restore the leftist who is allied with Venezuelan President Hugo Chavez. Zelaya was toppled after riling powerful conservatives who fear he wanted to extend his hold on power.

Diplomats have praised a change in attitude from Micheletti, who has welcomed back OAS officials he expelled last month and bowed to international pressure by agreeing to lift the curbs on media and social freedoms.

"We are now very optimistic. There have been very significant advances from both sides," said OAS Special Adviser John Biehl who is currently in Honduras.

However, two media outlets that had their equipment taken by masked soldiers last week are still off the air and a ban on marches of more than 20 people is still in place, pending the formal lifting of the curbs.

(Reporting by Miguel Angel Gutierrez and Ignacio Badal; Additional reporting by David Ljunggren in Ottawa; Writing by Frank Jack Daniel; Editing by Cynthia Osterman)