Nov. 6 (Bloomberg) -- The U.S. expressed concern that both sides in Honduras’s political crisis are failing to abide by a U.S.-brokered accord that includes setting up a national unity government.

“It is urgent that this government be created immediately,” State Department spokesman Ian Kelly told reporters today in Washington.

Ousted President Manuel Zelaya said an accord that was supposed to end the country’s political stalemate has “failed” and refused to submit appointments for a unity government until Congress has restored him to office, according to a statement e- mailed today.

The agreement, signed by representatives of Zelaya and acting President Roberto Micheletti on Oct. 30, is phrased vaguely enough for the two sides to maintain clashing interpretations of how it should be implemented and even whether it requires Zelaya’s reinstatement, the point on which previous negotiations to end the crisis had foundered.

Zelaya was ousted in a coup in June and has been holed up in the Brazilian embassy in Tegucigalpa since he snuck back into the country from exile six weeks ago.

‘Very Far’

“Zelaya’s side says a unity cabinet cannot be formed until Zelaya is restored, but that’s their interpretation and it’s very far from the letter and spirit of the document we signed,” Armando Aguilar, a negotiator for Micheletti, said in a phone interview today.

Zelaya’s foreign minister, Patricia Rodas, has said the accord obliges Congress to restore the ousted leader.

Textually, the accord says Congress should “resolve proper procedures with respect to returning ownership of the executive power to its state prior to June 28.” Congress should consult “pertinent authorities such as the Supreme Court” before deciding, the accord says.

Both sides were to form a unity government by Nov. 5 under the accord, though it doesn’t specify procedures for doing so.

After the accord was signed, Micheletti requested that the country’s main political parties each submit a list of 10 cabinet nominees, from which the unity government’s cabinet would be selected. The acting president formed the unity government last night even as Zelaya refused to submit nominations, according to a statement from Micheletti early today. Micheletti has given no further details about the cabinet.

‘Subterfuge’

The secretary general of the Organization of American States, Jose Miguel Insulza, called on both sides today to implement the U.S.-brokered deal without using “subterfuge,” and pressed Congress to vote on Zelaya’s return, according to a statement.

Congress has yet to vote on Zelaya’s return because it’s waiting for legal opinions from the Supreme Court, Attorney General and Human Rights Commissioner, lawmaker Antonio Rivera said today in a telephone interview from Tegucigalpa.

Foreign ministers of the Rio Group -- 23 Latin American and Caribbean countries including Brazil, Mexico and Argentina -- said Zelaya’s restoration is an “indispensable requisite” for the countries to recognize the results of Nov. 29 presidential elections, according to a statement yesterday.

Twenty legislators, 50 mayors and two presidential candidates who back Zelaya will boycott the elections if he’s not restored first, Rodas said.

Kelly has said the U.S. supports Zelaya’s return to power while leaving it up to Hondurans to resolve the matter.

To contact the reporter on this story: Blake Schmidt in Granada, Nicaragua at Bschmidt16@bloomberg.net

Last Updated: November 6, 2009 19:11 EST