Fiji PM refuses to resign amid coup fears

SUVA, Nov 1 (Reuters) Fiji Prime Minister Laisenia Qarase said today he would not resign in the face of threats from the country's military chief, warning a coup would have dire consequences for the South Pacific nation's economy.

''There is absolutely no question of me resigning ... or of my government stepping down,'' said Qarase in an address to the nation on local radio.

Military chief Frank Bainimarama has threatened to force Qarase to resign unless he drops two contentious bills, one of which will offer amnesty to some of those involved in a coup in 2000.

Bainimarama, currently visiting troops in the West Asia, said he would remove Qarase from office once he returned to Fiji, arguing the government was corrupt.

''I'll be back to see that Qarase and his cronies step down,'' he told the Fiji Sun newspaper on Wednesday. Bainimarama is expected back in Fiji later this week.

Fijian troops drove through the streets of Suva today and took control of tonnes of ammunition from the waterfront, amid fears of a coup. Australia has placed two warships on standby to evacuate Australian citizens.

Fiji has suffered three coups and a failed mutiny since 1987.

The coups have been racially fuelled, with indigenous Fijians fearful of losing political control of their island nation to ethnic Indian Fijians, who dominate the economy.

Qarase said that if the military staged another coup Fiji would face a foreign currency crisis and see the loss of thousands of jobs in the mainstay tourism industry.

Reuters MS DB1134