Negotiations to end the standoff in Honduras collapsed Sunday when the de facto government that ousted President Manuel Zelaya refused to accept his return, even though he had agreed to limits on his power. A delegation representing the de facto government, led by Roberto Micheletti, rejected a seven-point plan presented by President Oscar Arias of Costa Rica, who is mediating the talks in that country's capital, San Jose. The plan would have restored Zelaya as president over a unity government, curtailed his powers and moved up the election for his successor by one month, to October. It also included a general amnesty for all political crimes, a tacit recognition that the country could not move forward unless the events surrounding the June 28 coup were pushed aside. Zelaya's delegation accepted all seven points, Arias said. But Micheletti's delegation arrived Sunday morning with a counter-offer that rejected Zelaya's reinstatement as president and proposed that he return to Honduras to stand trial. The de facto government charges that Zelaya committed a series of crimes as he pushed for a referendum asking voters if they would approve a vote on rewriting the constitution. His opponents said that the measure was aimed at letting him run for re-election. Arias said that he would try to continue negotiating for another 72 hours. By rejecting his mediation, the de facto government in Tegucigalpa risks isolating itself even further. It has not been recognized by any country, while the United States, the United Nations and the Organization of American States have stood behind Zelaya as the legitimate president of Honduras and called for his return. The Obama administration has also cut $16.5 million in military aid to Honduras since the coup and threatened to cut some $180 million more in development aid. Loans from the World Bank and the Inter-American Development Bank are on hold. None of these actions appear to have moved the Micheletti government. In a brief news conference Sunday evening, the government's chief negotiator, Carlos Lopez, called the seven-point plan unacceptable. Requiring Zelaya's restoration 'is an open interference in Honduras' domestic affairs and a lamentable distortion of your role as a mediator,' he told Arias. 