Goff threatens end to Fiji trade access

By JOHN ARMSTRONG political editor

New Zealand may end Fiji's preferential trade access, but is holding off imposing economic or other sanctions until it is clear who is in charge in Suva.

The cabinet yesterday limited immediate action to joining Australia in barring George Speight and any of his armed gang from entering either country.

Speight has permanent resident status in Australia and an estranged Australian wife and children.

A list of possible sanctions against Fiji was approved and will be applied "as and when necessary."

Foreign Minister Phil Goff said sanctions would be implemented if there was a capitulation to Speight's demands, the ousting of Fiji's President, Ratu Sir Kamisese Mara, and the tearing-up of the constitution.

But Mr Goff remained hopeful that the "moderation" of Ratu Mara and elements of the Great Council of Chiefs would prevail over Speight and his supporters.

The so-called "smart" sanctions approved by the cabinet include:

* Freezing new aid projects, except for humanitarian assistance, and reviewing or redirecting existing aid programmes.

* Freezing military assistance and defence cooperation.

* Cancelling ministerial visits.

* Consulting sports bodies about their contacts with Fiji.

* Consulting Commonwealth states about Fiji's possible suspension from the international body. The Commonwealth ministerial action group - the organisation's political rights watchdog - meets next week and will decide then on Fiji's membership.

* Possibly looking at Fiji's membership of the South Pacific Forum and shifting the forum's secretariat and the University of the South Pacific from Suva.

* Calling in the Fiji High Commissioner to issue a formal protest.

* A possible ban on investing in Fiji and removing that country's preferential trade access under the Sparteca agreement. Mr Goff ruled out comprehensive economic sanctions, saying they could hurt people opposed to Speight's actions. But he noted that the European Union was considering withdrawing price support for Fijian sugar cane.

While New Zealand could not hope to control events, sanctions would be aimed at influencing those Fijians wavering between backing the President and supporting Speight.

On Saturday, the President sacked Prime Minister Mahendra Chaudhry, dissolved Parliament and granted himself the right to govern for six months.

New Zealand reluctantly "accepts" those decisions.

More Fiji coup coverage

Under seige: map of the Parliament complex