[New Zealand] PM tells Fiji what a coup will cost it

Saturday December 2, 2006 - By Mathew Dearnaley

Prime Minister Helen Clark has cast doubt on whether New Zealand would continue making its $8.7 million-a-year aid contribution to Fiji if the country has another military coup.

"Obviously it would be under review, and while we would continue to work with community groups it's very difficult to have a development partnership with a country which doesn't have a proper government," she said yesterday.

Even worse for Fiji would be a likely suspension of European Union financial aid of more than $48 million a year, a figure which is boosted by one-off development projects and by sugar subsidies.

The EU suspended aid after the 2000 coup in Fiji, and it was not restored for nearly four years.

New Zealand effectively halved its aid, which it channelled mainly through non-government groups.

United Nations Secretary-General Kofi Annan has warned that Fiji would be asked to withdraw from international peacekeeping operations, to which it now contributes about 1000 soldiers in return for annual payments of at least $12 million.

US Under-Secretary of State for Political Affairs Nicholas Burns telephoned Fijian Prime Minister Laisenia Qarase to tell him of America's opposition to attempts to change Fiji's government.

The US would stop "certain" assistance and might decide to cease other assistance if there was a coup, he said.

Mr Burns told Mr Qarase that the US had told Fiji's military leaders that they were subordinate to the elected government.

In Sydney, Pacific foreign ministers issued a statement expressing their firm support for the "democratically elected" government of Fiji and its right to govern within Fiji's constitution and the rule of law.