KEY POINTS:
The Prime Minister says New Zealand stands ready to engage more actively with Fiji when it shows it is committed to holding democratic elections by March 2009.
The carrot rather than the stick approach came ahead of talks with Pacific Island Forum leaders today in which Fiji coup leader and Prime Minister Commodore Voreque Bainimarama will be asked to spell out in more detail plans for reaching the election target.
Helen Clark said there were concerns that hints of constitutional changes could drag out the process because such changes were often slow.
"It is important that everybody focuses now on how we support Fiji to get to those elections by the end of March 09."
Commodore Bainimarama had said that the Cabinet supported elections by March 2009 "in principle" but there has been no sense that that is a commitment.
Commonwealth Secretary-General Don McKinnon held talks with Commodore Bainimarama last night. He says they have agreed to further talks, perhaps within 10 days.
Papua New Guinea Prime Minister Sir Michael Somare, speaking at the official opening yesterday, appeared to encourage Australia and New Zealand to offer some carrots as well as the "stick" smart sanctions against Fiji which prevent high-ranking officials and military and their families from travelling to Australia and New Zealand.
"It is important we work together in the Pacific way to find a way forward in the best interest of the Fiji people," Sir Michael said. "A member of our family needs our understanding and assistance to bring it back to the fold. We would not be doing justice to our objectives if we sought solely punitive action for a member of the family."
Helen Clark said later that she took no criticism from Sir Michael's comments.
She spent a long time talking to him during the official opening of the forum by King George Tupou V yesterday.
Commodore Bainimarama was seated four seats away from her and three seats away from John Howard's stand-in, Foreign Minister Alexander Downer. Commodore Bainimarama received by far the biggest cheer of any of the leaders.
A pro-democracy rally at a foot ball ground was forced to be held outside Nuku'alofa.
Mr Downer said later he believed that the smart sanctions against Fiji were working.
"Australia and New Zealand have the leverage that other countries don't have."
He singled our Sir Michael and the European Union for their efforts in returning Fiji to democracy.
Mr Downer also dismissed the boycott of the forum by the Solomon Islands as having no virtue.
"They don't have to. There's nothing compulsory in this world. it's good to be wise but if you are not then you can boycott a meeting but then you can't contribute."