KEY POINTS:
Fiji's military regime announced yesterday it has agreed "in principle" to hold elections and return the country to democracy by March 2009.
Helen Clark says, that is the latest possible date recommended by a joint working party of Fiji's interim government and the Pacific Islands Forum.
She says there is still plenty of time for Commodore Frank Bainimarama to make excuses and she sees no evidence he wants to give up his power.
She adds Fiji's military government had no option but to agree to the 2009 date, as the EU and Pacific Island Forum are standing over it.
Mr Peters said the statement yesterday was a further step on the path back to democratic government in Fiji following the lifting of emergency regulations on 31 May, but there was still a long way to go.
"We shall be watching closely the implementation of the report by Fiji's interim administration, as well as the practical measures they need to take to prepare for elections," Mr Peters said.
These include a redistribution of boundaries following a census in September; an updating of voter registration, and a voter education programme.
Prime Minister Helen Clark's spokesman said the announcement by the regime did not "affect the review underway of the totality of the relationship between New Zealand and Fiji."
"It is just an 'in principle' decision and it is at the outer edge of the recommendations. New Zealand will continue to engage through the Forum and the joint working group," the spokesman said.
- NEWSTALK ZB, NZPA
