Coup leaders have re-opened the airport to international flights
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A delegation from African and Portuguese-speaking countries has arrived in Sao Tome and Principe to try to resolve Wednesday's coup there.
The mediators include Angolan Interior Minister Osvaldo Van Dunem as well as the foreign ministers of Nigeria and Gabon.
The leader of the coup, Major Fernando Pereira, says he has signed an agreement with foreign diplomats providing for international mediation.
"We are not interested in seeing Sao Tome and Principe plunged into violence and instability," he said
The major seized power on Wednesday while President Fradique de Menezes was visiting Nigeria.
The mutineers are still holding several government ministers - but have released the acting president, Parliamentary Speaker Dionisio Dias.
There were no reports of casualties in the coup.
Nigerian role
Outside mediation was also discussed at talks in Nigeria between President Olusegun Obasanjo, President Joaquim Chissano of Mozambique, and elected Sao Tome President Fradique de Menezes.
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Everything that Nigeria can do to help us resolve this problem is welcome
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Major Pereira said he was willing to negotiate an end to the crisis with Nigeria, which is keen to exploit potential oilfields off the West African archipelago.
"We're ready to negotiate with Nigeria. Everything that Nigeria can do to help us resolve this problem is welcome," he said.
Meanwhile, life is returning to normal in the island as the new rulers have been urging residents to return to work, despite loud international condemnation of their action.
The airport in Sao Tome was reopened to international flights on Thursday following a phone conversation between the coup leader and Nigeria's president.
President Chissano and President Obasanjo had discussed the possibility of military intervention to restore the ousted government, according to Reuters news agency, quoting a senior aide to Mr Chissano.
However, Sao Tome's deposed leader, De Menezes ruled out any direct action by Nigeria to restore the democratically elected government of the tiny island.
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OIL-FUELLED FUTURE
Sao Tome has one of the world's highest foreign debts
The auctioning of oil permits in 2004 is due to net $100 million
Sao Tome will receive 40% and Nigeria 60% of eventual oil revenue
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"Nigeria has no intention of intervening militarily," he told the Portuguese public radio station (RDP) in an interview from the Nigerian capital Abuja.
But the deposed president did not exclude an intervention by the African Union (AU).
"In a situation where a democratically elected government is being ousted, the African Union must begin to think about preventing it as it has done in other countries," De Menezes said.
National Assembly President Dionisio Dias is now reported to have been released.
Prime Minister Maria das Neves and some of her ministers are still being held.
On the day of the coup they were all detained and held at an army barracks alongside 30 MPs - who were later released.