Fiji PM gives in to military demands amid coup fears

SUVA, Nov 30 (Reuters) Fiji Prime Minister Laisenia Qarase gave in to a raft of demands by his defiant military chief today after an overnight show of force in which troops secured strategic parts of the capital amid fears of an imminent coup.

Suva residents were stockpiling supplies from supermarkets and cash machines were running short of money before Mr Qarase attempted to allay fears in a televised national address.

The military said the three-hour exercise overnight was a precaution against feared foreign intervention after regional and world leaders expressed concerns that a fourth coup in 20 years would devastate the South Pacific island nation.

Military chief Commander Frank Bainimarama has repeatedly threatened to remove Prime Minister Qarase's government unless it drops three pieces of legislation, including a bill that would grant amnesty to those involved in a coup in 2000.

Mr Qarase, who met Bainimarama in New Zealand yesterday, announced that he had suspended the three bills pending a constitutional review.

''If there is a legal determination that the final drafts of the bills ... are inconsistent with the constitution, the government will not hesitate to withdraw them,'' Mr Qarase said.

Bainimarama gave Prime Minister Qarase a list of ''non-negotiable demands'' and a two-week deadline last week, at the same time threatening a ''clean-up'' of Qarase's elected government.

His demands included the resignation or removal of Fiji Police Commissioner Andrew Hughes and the dropping of police investigations into whether his threats were seditious.

Mr Qarase said he was prepared to accept whatever advice he was given by police and prosecutors.

''If they decided not to proceed further in the greater interest of peace and stability in Fiji, the government would agree to this,'' Mr Qarase said, adding that Hughes's performance would also be reviewed.

Hughes attended yesterday's talks, after which he went straight home to Australia on leave.

In return for his concessions, Mr Qarase said he had written to Bainimarama asking for a commitment that the military will not act outside the law.

''This would go a long way towards calming fear and ending uncertainty among the people and restoring confidence in the economy,'' the Fijian Prime Minister said.

Bainimarama has yet to respond to Qarase's concessions but his forces remain deeply suspicious of foreign intervention.

Pacific Island Forum foreign ministers will meet in Sydney tomorrow to discuss Fiji's crisis under the same regional pact that enabled Australia to lead a mission into the Solomon Islands.

Bainimarama has warned them to back off and Qarase said he had not sought any kind of intervention. ''We reject the use of force,'' Qarase said.

An Australian army Black Hawk helicopter crashed into the sea south of Fiji late yesterday, killing one Australian soldier and stoking the Fiji military's fears of foreign intervention.

The helicopter was from one of three warships Australia sent towards Fiji this month in case it needed to evacuate holidaying nationals, a decision that incensed Bainimarama and his troops.

Fiji has suffered three coups since 1987. Bainimarama was almost killed in a failed but bloody mutiny linked to the 2000 coup and blames Prime Ministger Qarase for being soft on those behind those upheavals.

Australia, Britain and New Zealand have advised their nationals against travelling to Fiji and the UN Security Council has also expressed its concern.

REUTERS AKJ DS1220