NEW ZEALAND IMPOSES SANCTIONS AGAINST FIJI
New Zealand has imposed sanctions
against Fiji in response to that country's change of status to
a republic, acting prime minister Geoffrey Palmer said.
    The sanctions will end all military cooperation and cut
economic aid. New Zealand will also not renew an agreement
which supports the price of Fijian sugar when it expires in
March. The loss of aid and sugar supports will cost Fiji about
10 mln dlrs a year.
    Palmer told reporters after a cabinet meeting that the
government had asked High Commissioner Rod Gates to return from
Suva for discussions about other possible measures.
    "We won't be reacting further until these discussions with
the High Commissioner and the Prime Minister have been held,"
Palmer said.
    The sanctions were approved by the cabinet soon after
Colonel Sitivene Rabuka staged his second coup on September 25.
Implementation was postponed in the hope that Rabuka might turn
back from declaring a republic.
    Palmer said the cabinet was happy with the statement from
Commonwealth leaders in Vancouver that Fiji's membership of the
Commonwealth had lapsed. Prime Minister David Lange is in
Hawaii on his way home from Vancouver.
 REUTER
