The Obama administration, caught in the middle of a power struggle in this tiny Central American nation, was urgently pressing yesterday for the survival of an accord it hailed as "a historic victory for democracy."

"No, it's not dead, but maybe sleeping for the time being," State Department spokesman Fred Lash said. "Both sides need to return to the table and negotiate the formation of a government of national unity."

Yesterday, with the U.S.-brokered pact's future seriously in doubt, Lash said the question of whether the United States would recognize the elections "remains nebulous."

Micheletti's backers hope that a clean vote for a new president will force the world to accept that politics has returned to normal in Honduras. Zelaya's backers accuse the coup-installed officials of trying to delay his return to power - at least until the election.

Honduras, one of the poorest nations in the hemisphere, plunged into political crisis four months ago when Zelaya was forced out of bed in his pajamas and flown to Costa Rica. He sneaked back into his country Sept. 21 and has been holed up in the Brazilian Embassy ever since under threat of arrest.

With a presidential election three weeks away, the United States and the rest of the international community - which cut off most foreign aid and diplomatic ties after the coup - are urgently seeking a resolution.

The key players seemed less inclined to find common ground.

"The negotiations have come to an end," Zelaya, who huddled with supporters, said. "We have declared that there is no possibility of recognizing that accord."

Last week's accord called for a national-unity government with backers of both sides to oversee elections. Congress would decide whether to reinstate Zelaya - and the ousted leader had assumed that would happen.

Micheletti negotiator Vilma Morales said the interim government did not consider the accord broken and plans to continue implementing it.

"Each of the negotiators signed each one of the points that were agreed," Morales said, "and it is our responsibility to fulfill what was agreed. We have to continue complying with it."

Meanwhile, Hondurans went back to work as normal and streets were busy with shoppers and traffic, but many were uneasy about what might come next after yesterday's setback on the accord.

Maria del Carmen Altamirano, a 60-year-old homemaker, said she was afraid the country might spiral into violence.

"I can't sleep, thinking that there is a war coming, that we'll have a civil war," Altamirano said. "Neither one of them wants to give in. They are both arrogant and are not thinking about the people's suffering, because all they care about is power and money. What I want is to leave this country, but I'm too poor and don't have the money."