NEW : Senior State Department officials said the Obama administration was reluctant to make the formal designation in order to preserve its flexibility for a diplomatic solution . Interim government imposes a curfew in the capital city . The military has been deployed to quell unrest and restore order, but it is unclear if they will be able to do so before nightfall on Tuesday. U.S. said it 's terminating certain aid to Honduras to pressure interim government . Zelaya was at the Brazilian embassy in the capital , Tegucigalpa .
NEW : Interim government imposes a curfew in the capital city . The military has been deployed to quell unrest and restore order, but it is unclear if they will be able to do so before nightfall on Tuesday. U.S. said it 's terminating certain aid to Honduras to pressure interim government . Zelaya was at the Brazilian embassy in the capital , Tegucigalpa .