U.N. Plan for Haiti Remains in Limbo : Caribbean: Ruling military fails to reply to proposal that would restore Aristide to power. Observers say the situation remains delicate.

PORT-AU-PRINCE, Haiti â€”  Negotiations to end Haiti’s long-running political and economic crisis were being pushed to the very last minute as the country’s ruling military declined Thursday to respond to a final proposal by U.N. special envoy Dante Caputo.

In a 90-minute session Wednesday night, Caputo delivered a letter to the military commander, Gen. Raoul Cedras, outlining a program that would bring back democratically elected President Jean-Bertrand Aristide, ousted in a coup in September, 1991.

In exchange for Aristide’s return, the plan offers an end to the economic embargo imposed after Aristide’s overthrow; major international financial and development aid, and a blanket amnesty for Cedras and others involved in the coup.

Caputo asked for a yes or a no, telling reporters early Thursday that the military has “to go to real decisions now. That is what I am asking for, decisions.�

Caputo said he had left the Wednesday session “feeling good� about the atmosphere.

The next step was to have been a meeting Thursday afternoon with Cedras and others of his high command in which they were to give their answer to Caputo, a former Argentine foreign minister. Diplomatic and other sources, including a close Aristide adviser, were confident that it would be yes.

However, as night fell, Caputo was still in his hotel; he had never received the call summoning him to the meeting.

His schedule for today reflected no displeasure at the delay. It still called for him to see the officers before leaving in the late afternoon for Washington. Caputo told a reporter that he was even willing to wait until Saturday if necessary.

Earlier, diplomats and Haitian experts said the military rulers had agreed in principle to give up power in a phased transition leading to Aristide’s restoration. Although optimistic up to the last minute, the sources seemed to foresee problems when they stressed that the situation remained delicate, even dangerous.

Caputo’s proposal--which would have Cedras step down after Aristide agrees to an amnesty for the general and others who led the violent Sept. 19, 1991, coup--has given the country its best chance for ending the politically and economically devastating crisis.

Other aspects of the plan include Aristide’s early return, possibly within 60 days; an end to the regional economic embargo imposed to pressure the military; a massive international aid project, and an immediate U.S. military program that would guarantee jobs, equipment and professional retraining for the 7,000-man army.

The next step would be to arrange an interim military leadership and to settle on a prime minister and Cabinet acceptable to all parts of Haiti’s perpetually chaotic political spectrum. While achieving that was not thought to be as difficult as reaching agreement on Cedras’ removal in exchange for amnesty, nearly all observers agree that any dispute could wreck the process.

Examples abound of earlier negotiations that came close to a settlement only to collapse, leaving both sides sharing the blame.

“The main characteristic of this nation is suspicion,� said one important businessman.

Sources said Caputo told the military that it had no choice but to accept the plan in the face of active international pressure, the not-too-veiled possibility of outside military intervention and the guarantee that Aristide would accept a broad amnesty for Cedras and his associates.

Aristide had opposed such an amnesty, saying the military leaders had to be tried and punished for “common crimes� committed during and after his overthrow. Human rights groups have claimed that as many as 3,000 people died at the hands of the military. They allege a continuing campaign by the military to terrorize the nation.

Even as late as Thursday, Aristide had not openly declared his acceptance of an amnesty, but he had dropped his public opposition and had authorized Caputo to assure Cedras that he could give up power without being punished.

One factor that is expected to contribute to stabilization, at least for the short run, is the possible presence of the U.S. military contingent that Clinton Administration officials have indicated may be sent. “The idea is for some U.S. troops . . . to be here before an accord is signed,� said an Aristide supporter.

Aristide, he said, is now confident that he can return safely and assume control of the government, largely because of the pressure applied by the international community, particularly by President Clinton.