New Zealand has put Fiji on notice after the country's military rulers caved in to George Speight and his rebels to secure the release of the 27 hostages held in Suva's parliamentary complex.
Sunday's agreement grants Speight and his gunmen amnesty and empowers the influential tribal elders'group, the Great Council of Chiefs, to choose a President and Vice-President and have a say in naming an interim civilian government.
Foreign Minister Phil Goff yesterday warned New Zealand would impose selective sanctions if the new administration contained members of Speight's group and sought to entrench the political superiority of indigenous Fijians over Fiji Indians.
If that happened, future Fiji-New Zealand relations would be "bleak."
Options included cutting back non-humanitarian aid, ending military cooperation and reassessing the level of diplomatic representation, including recalling the New Zealand High Commissioner, Tia Barrett, for consultations.
However, Mr Goff ruled out comprehensive economic sanctions.
"New Zealand will wait and see what shape the new administration takes and what, if any, commitment it shows to a return to genuine democracy. The signs, however, are not good."
