Fiji PM, military chief on collision course

SUVA, Nov 2 (Reuters) Fiji's prime minister was on a collision course with the military on Thursday, raising fears of a fourth coup in 20 years, as police prepared to move in to protect the South Pacific island nation's parliament.

Prime Minister Laisenia Qarase has rejected army demands to withdraw two contentious pieces of legislation or quit, saying there was no question of him stepping down.

The army in turn has stood firm and rebuffed an attempt by Qarase to sack military commander Frank Bainimarama, the man who installed him as interim leader after a 2000 coup and now wants him to go.

Bainimarama told Qarase he would bear the responsibility if Fiji suffered its fourth coup since 1987.

''The last thing we want to do is have violence, the last thing we want to do is have bloodshed, but Qarase is pointing us in that direction,'' Bainimarama told Radio New Zealand by telephone from Egypt, where he is visiting Fijian troops.

''The fact that he does not want to accede to our request, the fact that he does not want to resign ... means to the military that he has put us in a situation where there is going to be bloodshed and violence,'' said Bainimarama, who is expected to return within a week.

A May 2000 coup by armed nationalists devastated Fiji's tourism- and sugar-based economy and Qarase has said more upheaval in the former British colony would be ''a disaster''.

Fiji Tourism Minister Tom Vuetilovoni said visitors had no reason to fear for their safety. But Australia and New Zealand are readying warships in case they need to evacuate their nationals and Washington has warned of aid cuts if there is another coup.

TROOPS ON STREETS Fijian troops stepped up their presence on the streets of the capital yesterday. Suva remained quiet today but some residents fear another military takeover. Other cities in Fiji, including the major tourism hub of Nadi, were also quiet.

Police were due to move in to guard the parliament later today ahead of a crucial budget speech tomorrow.

Both houses of parliament and President Ratu Josefa Iloilo, infirm and rarely seen in public, will gather tomorrow in the complex of traditional bure-style buildings with steeply pitched roofs set in sweeping grounds on Suva's waterfront.

Fiji Police Commissioner Andrew Hughes said he did not think another coup was likely despite the seemingly unyielding positions taken by Qarase and Bainimarama.

''I think we're going to see a continuing war of words, continuing sabre rattling, chest-thumping and brinkmanship,'' Hughes told reporters.

''That said, I'm not being complacent. We're taking all necessary precautions,'' he said.

Despite Bainimarama's repeated warnings of bloodshed, Qarase said he thought the impasse could be resolved.

''I think it's the beginning of easing the situation, the tension between the military commander and the government,'' Qarase told Australian radio. ''We are awaiting his return so that we can establish dialogue.'' Bainimarama has called on Qarase to resign or withdraw two controversial pieces of legislation, one of which would grant amnesties for some of those involved in the 2000 coup in return for information.

REUTERS DKA SND1135