New Zealand could cut all sporting ties with Fiji if the Government pushes ahead with sanctions against a new Administration.
Foreign Minister Phil Goff will take proposals to the cabinet on Monday for sanctions if an ultranationalist Administration is named. They include cutting all military ties, stopping sporting contacts, cooling diplomatic relations, cutting aid and banning George Speight, leader of the May 19 coup, and his supporters from entering the country.
After the release of the last hostages on Thursday, the Great Council of Chiefs named Ratu Josefa Iloilo, a former deputy to deposed President Ratu Sir Kamisese Mara, as President and Speight's nominee, Ratu Jope Seniloli, as Vice-President. Mr Goff said New Zealand could offer sanctuary to Mahendra Chaudhry if the deposed Prime Minister needed to flee.
Mr Chaudhry was among those released on Thursday.
Mr Goff said sanctions would show New Zealand's "total rejection of the moves towards an undemocratic and a racist constitution" if Indians were excluded from Government. Australian Prime Minister John Howard is likely to impose sanctions.