KEY POINTS:
Fiji's interim government has announced it is not going to expel New Zealand's acting high commissioner Caroline McDonald "at this stage", it was reported tonight.
Self-appointed prime minister Voreqe (Frank) Bainimarama told the Government last week Ms McDonald would be ordered to leave the country unless a study visa was granted to George Nacewa, the son of a senior official in Suva.
Cdre Bainimarama was told last Tuesday the visa would not be issued, and since then the Government has been waiting for his reaction.
Foreign Minister Murray McCully has spoken by phone to Cdre Bainimarama in an attempt to defuse the diplomatic spat, and earlier today Prime Minister John Key warned of retaliatory action if Ms McDonald was expelled.
TV One News reported tonight Fiji's Attorney-General Aiyaz Sayed-Khaiyum had announced Ms McDonald would not be expelled "at this stage" but he accused New Zealand and Australian high commission staff of spying on Fiji and using bullying tactics.
The report said the attorney-general said the Fiji government would be setting up a team within the next few days "to try and work with New Zealand to foster better relations".
Cdre Bainimarama has become increasingly irritated by the travel sanctions New Zealand has imposed on Fiji since he led a coup that overthrew the elected government two years ago.
The travel ban applies to members of his government, the military, and their relatives.
Mr Nacewa is the son of Rupeni Nacewa, a secretary in the Fiji's president's office.
Cdre Bainimarama sent an angry letter to Mr McCully late last week, and Mr McCully responded by reiterating New Zealand's position.
Mr Key said this morning the ball was in Cdre Bainimarama's court and he hinted an expulsion would trigger tit-for-tat action.
- NZPA understands the Government would consider expelling Fiji's high commissioner in Wellington, Ponsami Chetty, if Ms McDonald was given her marching orders.
New Zealand's previous high commissioner, Mike Green, was expelled in June 2007 after being accused of interfering in Fiji's domestic affairs.
A spokesman for Mr McCully would not comment tonight on the TV One report.
- NZPA
