Journalists stand behind ousted President Manuel Zelaya, center wearing hat, as he meets with presidential candidates in Tegucigalpa, 24 Sep 2009Deposed Honduran President Manuel Zelaya says he has held talks with Honduras' interim government but no progress was made.

Mr. Zelaya told journalists he met late Thursday with representatives from the government of acting President Roberto Micheletti. He described the talks as a positive step.

The Associated Press reports the ousted president was less optimistic about the meeting in an interview with a Honduran television station, saying the interim government's position left little room for agreement.

Mr. Zelaya turned up unexpectedly in Honduras Monday after three months in exile. Because the interim government has threatened to arrest him, Brazil granted Mr. Zelaya asylum in its embassy in the capital, Tegucigalpa.

U.N. officials say the Security Council will meet Friday to discuss the political crisis in Honduras, at the request of Brazil.

People in Honduras resumed normal activity Thursday after the interim government lifted a nationwide curfew imposed to clamp down on possible violence after Mr. Zelaya's return.

Mr. Zelaya and dozens of his supporters have spent the past four days at the embassy, which is surrounded by police. Clashes between police and Zelaya supporters earlier in the week left at least one person dead.

Spain's prime minister, Jose Luis Rodriguez Zapatero, told the United Nations General Assembly Thursday that democracy must be restored to Honduras and the coup cannot be accepted.

And the International Monetary Fund says it has consulted its member nations and will continue to recognize Mr. Zelaya as the head of the Honduran government.
 
The decision means the Micheletti administration will not be allowed to draw on the $163 million allocated by the IMF to Honduras (in Special Drawing Rights) to supplement the country's foreign reserves.

Acting President Micheletti has said he is willing to talk with the deposed leader, but only if Mr. Zelaya recognizes the presidential election scheduled for November. Mr. Micheletti also says he will not discuss dropping any of the charges against the ousted president

Mr. Zelaya was forced out of Honduras at gunpoint on June 28. The interim government has accused the deposed leader of planning to hold an illegal referendum in a bid to extend his time in power.

Some information for this report was provided by AFP and Reuters.