Fiji spared tough action

Coup leader George Speight: Still defiant

Fiji has been suspended from Commonwealth meetings until democracy is restored but the ruling stops short of more serious punitive action.

Commonwealth foreign ministers meeting in London called for the immediate and unconditional release of Prime Minister Majendra Chaudhry and all other hostages being held in Fiji's parliament building.

Fijian nationalist gunmen led by George Speight have been holding the ethnic Indian premier and 30 others for more than two weeks.

He wants ethnic Indians excluded from power and has threatened to shoot the captives if the military try to storm the building.

Rebels and soldiers exchanged gunfire outside the parliament complex on Wednesday. The troops were chasing looters trying to escape back into the compound. No injuries were reported.

Sensitive situation

Commonwealth ministers are trying to keep lines of communication open and say they will review the suspension in September.

A Fijian soldier vets motorists at a roadblock

They will also be seeeking a timetable for a return to democracy and asking Fiji's new military ruler, Commodore Frank Bainimarama, to ensure the safety of the hostages.

So far there has been no reaction from either Fiji's military rulers or the rebels, although Mr Speight has said repeatedly he does not care what action the intenational community takes.

The chairman of the Commonwealth group, the Botswana Foreign Minister Mompati Merafhe, said they had to deal with a sensitive and complicated situation with the hostages still being held at gunpoint.

The Commonwealth Secretary-General Don McKinnon added: "We are very conscious that 30 plus hostages are still in captivity. So there is a fragile situation still there we don't want to exacerbate.

Economic cost

"On the other hand we do want to encourage them to get back to democratic government. You couldn't do that under full suspension."

The BBC diplomatic correspondent Barnaby Mason says the calculation is that support for Mr Speight is diminishing as Fijians realise the economic cost, tourism declines, sporting links are cut and sugar exports are disrupted by trade union action in Australia.

The Australian Foreign Minister Alexander Downer says his government would be implementing a range of sanctions once the immediate hostage crisis was over.

He has ruled out a full trade embargo, on the grounds that it would destroy Fiji's economy and inflict suffering on ordinary people.

Rebel demands

Transfer of all power to tribal chiefs

Chiefs to appoint a president of Speight's choosing

New president to name civilian government, possibly including Speight

Guaranteed amnesty for Speight and his supporters

Pro-rebel soldiers to be allowed back into army

But before Tuesday's meeting, coup leader George Speight said in a BBC interview that he and his fellow rebels would hold out for as long as necessary to secure their demands.

Mr Speight said that nothing - not even Commonwealth sanctions - would make the rebels reconsider their course because they had the support of the people.

Other Commonwealth countries in Asia and the Pacific have expressed concern that allowing coups, such as those on Fiji and in the Solomon Islands, to succeed could encourage further attacks on democratic governments.

'Halfway house'

Our correspondent describes the Commonwealth move as a kind of halfway house to full suspension - Fiji will not be able to take part in any meetings or decision making bodies.

Mr Speight wants a role in a future government in return for releasing the hostages, while the military are willing to offer him only an amnesty. He is also demanding that one of his allies be appointed president.

Many of his original goals have already been accomplished, including the scrapping of Fiji's multi-ethnic constitution and the removal of the president.

Earlier, Commodore Frank Bainimarama stressed that a military solution to the crisis in Fiji was not an option.