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Fiji's fresh decree of martial law is likely to be discussed on the fringes of the Apec leaders' summit in Sydney, where Prime Minister Helen Clark arrives today.
The re-imposition of emergency regulations could also lead to a suspension of aid worth millions of euros from the European Union, which made the lifting of martial law in May a condition of its help.
Foreign Minister Winston Peters last night called on Fiji military commander Frank Bainimarama to "take his Army back to the military barracks and stop embarrassing Fiji and the Pacific".
Commodore Bainimarama reinstated martial law yesterday and threatened to exile ousted prime minister Laisenia Qarase back to the Lau group of islands unless he keeps his head down.
Mr Qarase returned to Suva on Sunday from self-imposed exile to further court action in which he wants last December's coup - the fourth since 1987 - declared unlawful.
Mr Peters said yesterday's move meant NZ had to "doubt the sincerity" of Fiji's pathway back to democracy.
Fiji had been urging New Zealand and other countries to lift sanctions.
"It defies logic to see how they can now expect serious consideration to be given to such appeals when their actions undermine any claims they make to be improving Fiji's governance."
Mr Peters, speaking as he was leaving the Apec foreign ministers meeting last night, said Wellington regarded the new state of emergency with "considerable dismay".
He was certain the issue would be discussed at Apec meetings. "There should be no doubt that the Pacific community and the world is watching on this matter."
New Zealand, Australia, the United States, Papua New Guinea and China all have an interest in the island state, and their leaders at Apec are likely to discuss the setback in Fiji, informally at the very least.
US Assistant Secretary of State Christopher Hill has special responsibility for Asia and the Pacific and will be at Apec. He attended the Pacific Islands Forum in Fiji last year and is visiting New Zealand next week.
Mr Peters again said New Zealand would not boycott the Pacific Islands Forum summit in Tonga next month if Commodore Bainimarama turned up.
"We are not going to have our great future and our work in the Pacific contaminated by one aberration."
The reinstatement of martial law was aimed at Mr Qarase and Peceli Kinivuwai, the director of the deposed prime minister's political party, Soqosoqo Duavata ni Lewenivanua (SDL).
Commodore Bainimarama said yesterday that Mr Qarase was "acting irresponsibly by making statements and participating in activities which have political orientation".
Mr Qarase angered the military by alleging he was threatened, in a phone call before leaving his home, that he would be killed if he returned to Suva.
The caller identified himself as being from the Fiji military, Mr Qarase said. The ousted PM has also claimed he has been followed by the military since his return to Suva.
The Fiji Times reported claims that Mr Qarase's driver in Suva was detained by soldiers and roughed-up. Commodore Bainimarama denied the military had threatened Mr Qarase.
It is not yet clear what martial law will mean for ordinary Fijians but it may include road-blocks, curfews, limits on movement and bans on meetings.
Travel advice
* The Ministry of Foreign Affairs and Trade advises caution to all those travelling to Fiji, adding that there is some risk to their security.
* The ministry says the security situation in Fiji remains uncertain and there are indications of a deterioration in respect for the rule of law.
* It urges New Zealanders to take particular care with cash and credit cards, especially when using automatic teller machines.
- additional reporting: NZPA, AAP
