HONDURAS UPDATE SEPTEMBER 10 2009

By Emile Schepers

Two important pieces today.

1. EUROPEAN UNION WARNS OF FURTHER SANCTIONS AGAINST HONDURAS COUP GOVERNMENT: Reuters is reporting that next week the European Union will issue a warning to the coup regime in Honduras that if there is not a peaceful solution, new sanctions will be considered, perhaps targeting individuals involved with the coup and the de-facto regime headed by Roberto Micheletti. UE financial aid to Honduras has already been suspended. The UE is supportive of the Arias mediation process.

2. MILLENIUM CHALLENGE CORP. WILL BLOCK TRANSPORTATION PROJECTS IN HONDURAS. Bloomberg is announcing that the Millenium Challenge Corporation, chaired by U.S. Secretary of State Hillary Clinton, is going to block two transportation projects worth $11 million, and another $4 million road building project that was evidently also financed by the Central American Bank for Economic Integration (which had cut off support for Honduras earlier). This is in addition to $30 million in military and economic aid already suspended. Reports from other sources have suggested that Elvin Santos, the presidential candidate of the Liberal Party who is seen as complicit in the coup, had financial interests in some of the projects funded by the Millenium Challenge Corp. The other big party candidate in the November 29 elections, death penalty enthusiast Porfirio "Pepe" Lobo, is more connected to the big landowning agricultural sector.

The noose is tightening, and the internal resistance remains mobilized and strong.

More tomorrow.