UPDATE 1 — US says diplomat to Nicaragua returns to US after ambassador choice rejection

(Adds State Department quote in paragraph 2) Oct 13 (Reuters) — The acting US envoy to Nicaragua Elias Baumann has returned to Washington "for critical consultations" after officials in the country rejected the US pick for ambassador, Natasha Franceschi, the State Department said on Tuesday. The decision by co-Presidents Daniel Ortega and his wife Rosario Murillo"demonstrates the hypocrisy of their rhetoric of mutual respect and their desire to engage in political theater at the expense of the Nicaraguan people," the statement added. (Reporting by Costas Pitas; Editing by Doina Chiacu) ((Costas.Pitas@thomsonreuters.com;)