Melgar Castro's hold on power began to dissolve in 1978. Charges of government corruption and of military links with narcotics traffic had become increasingly widespread, leading to accusations that the government had failed to adequately defend the country. Melgar's hold on power had weakened because he lacked support among large landowners. In addition, the Melgar government had seemed to be making little progress toward promised elections, leading to suspicions that it hoped to prolong its time in office. Right-wing political forces criticized the Melgar administration's handling of the Ferrari Case, which involved drug trafficking and murder of civilians and in which members of the military had been implicated. Unions and student organizations correctly interpreted the rightwing 's criticism as a prelude to a coup. When demonstrators took to the streets to support Melgar, right-wing elements within the military charged Melgar had lost control of public order and ousted him. On August 7, 1978, Melgar Castro and his cabinet were replaced by a three-member junta. Led by General Policarpo Paz García, chief of the armed forces, and including the air force commander and the chief of military security, the junta had close ties to the large landowners and moved to protect the military men involved in the Ferrari Case.

From its inception, the government of Paz García had promised to return Honduras to civilian rule. In April 1980, the Honduran citizenry was summoned to the polls to choose delegates for a new Congress. The Congress would select an interim government and would establish procedures for presidential and congressional elections in 1981.

Early indications for the 1980 elections pointed toward a victory for the PNH, headed by Ricardo Zúñiga. The PNH appeared more unified and organized than the rival PLH, and most people assumed that the PNH would be favored by the ruling military. The PLH suffered from internal divisions and a lack of leadership. Former president Villeda Morales had died in 1971, and the party's leader after his death, Modesto Rodas Alvarado, had died in 1979. A split had developed between the more conservative followers of Rodas and the party's left wing, which had formed the Popular Liberal Alliance (Alianza Liberal del Pueblo--Alipo). In addition, a third party, the Innovation and Unity Party (Partido de Inovación y Unidad--Pinu) had been registered and was expected to draw support away from the PLH. The PNH had succeeded in blocking the inscription of the PDCH, leading the PDCH adherents to join with groups further to the left in denouncing the elections as a farce and a fraud and urging popular abstention.

The April 1980 election produced a record registration and voter turnout (see Political Parties , ch. 4). More than 1.2 million Hondurans registered, and over 1 million voted--over 81 percent of those eligible. The high number of voters evidently favored the PLH, which won 49.4 percent of the votes cast. Under a complex apportionment system, the PLH won thirty-five sac2 seats in the Congress the PNH, thirty-three and Pinu, three. This result produced considerable debate over the composition of the next government. There was general agreement on naming Paz García as interim president, and the disputes centered on the composition of the cabinet. Ultimately, a PLH leader, Roberto Suazo Córdova, was made president of the Congress, while the PLH also gained five of the seats on the new Supreme Court of Justice. The cabinet was divided among all three parties and the military the armed forces received the Ministry of National Defense and Public Security, as well as the Ministry of Foreign Affairs, and the PNH acquired key economic positions.

The Congress took more than a year to draft a new constitution and an electoral law for the 1981 presidential and congressional elections. The work went slowly, and the elections originally scheduled for August 1981 had to be postponed until November. In the interim, the National Elections Tribunal (Tribunal Nacional de Elecciones--TNE) unanimously granted the PDCH the legal status needed for a place on the 1981 ballot.

Despite the presence of candidates for the Pinu and the PDCH on the November 1981 ballot, it was clear that the election would be essentially a two-party affair between the PLH and PNH. On November 29, 1981, a total of 1,214,735 Hondurans, 80.7 percent of those registered, voted, giving the PLH a sweeping victory. Suazo Córdova won 636,392 votes (52.4 percent), the PNH 491,089 votes, and 48,582 votes were divided between the Pinu and the PDCH. The PLH also took control of Congress, winning forty-four seats the PNH, thirtyfour the Pinu, three and the PDCH, one. The PLH also won 61 percent of the municipal councils. Suazo Córdova was inaugurated as president of Honduras in January 1982, ending nearly a decade of military presidents.

Data as of December 1993