The government is warning that it will push for Fiji's suspension from the Commonwealth if the military refuses to pull back.
Prime Minister Helen Clark told parliament in a special ministerial statement on Tuesday, that New Zealand travel bans have now been placed on senior Fiji military officials and their families, including military chief Commodore Frank Bainimarama.
"If this coup is not stopped, Fiji will again be suspended from membership of the Commonwealth," Clark told the House.
She says from now, bilateral defence ties will be suspended, with the exception of maritime patrolling, disaster relief and search and rescue activities. And also being looked at are sporting bans and sanctions on aid.
Secretary General of the Commonwealth, Don McKinnon spoke with officials on Tuesday morning about suspending Fiji's membership. It is one of a range of measures Clark hopes will muscle Bainimarama into pulling back.
Clark says a range of further measures is available. She says those will be based on reactions to coup activity in 2000 and previously.
She says these measures will be implemented progressively unless the commodore withdraws from unconstitutional activity.
Clark says unless the commodore was wanting to enter New Zealand for the purpose of talks and dialogue it would be extremely unlikely he would be able to enter.
Bainimarama was in New Zealand just last week when he was assured by Clark he would not face arrest.
She is still reluctant to describe what is happening in Fiji as a coup. She says it is creeping military action designed to put so much pressure on the government, that it will buckle.
Clark says its a very disturbing situation although she is encouraged that Prime Minister Qarase and the Fijian people are not weakening.
She says in a democratic country, governments are chosen through the ballot box not at the point of a gun.
Fijian President Ratu Josefa Iloilo, who is also commander in chief for the military, also says what the military has done on Tuesday is unlawful and he is distancing himself from those actions. He says that he will remain in office and is urging calm.
Fiji media said earlier the president had dissolved parliament and sanctioned Qarase's removal.
Clark is urging Bainimarama to pull back from the brink, warning that if he does not the military will cause irreparable damage to Fiji's economy and people.
She says the government fears for the future of Fiji and has praised the actions of ousted Prime Minister Laisenia Qarase.
Clark says he and his government should be commended for standing up to the bullying and undemocratic and unconstitutional action.
Qarase under house arrest, pleads for help
Qarase says he is under house arrest on Tuesday as heavily armed
troops surround his residence in the capital Suva.
"I am under house arrest, so what happens next is anybody's guess,"
Qarase told Fiji radio.
Qarase said earlier a coup was underway in the South Pacific
nation, with the military raiding key installations and setting up
roadblocks throughout Suva.
Bainimarama has repeatedly threatened to topple Qarase's
government, which won a second five-year term in May, claiming it
is corrupt and soft on those behind Fiji's last coup in 2000.
Fiji has had three coups since 1987.
Armed soldiers moved into downtown Suva on Tuesday morning and the military started seizing government ministers' vehicles.
The military says all government ministers would be under house arrest by the afternoon.
A spokesman for the military told website fijilive.com that ministerial cellphones would also be confiscated.
Qarase talked with both Clark and Australian counterpart John Howard on Tuesday and pleaded for help.
Howard says Qarase called him from his besieged Suva residence.
He says he asked for the Australian military intervention in response to the coup.
But Howard told him that would not happen, saying it would in effect be invading another country.
Howard says it is not in his country's best interests to become involved.
Australia has two warships off the Fijian coast in case an evacuation of Australian citizens is needed.
It is not known whether an intervention request was made of Clark, but she says that would only make things worse.
What is clear is that Fiji's Qarase has only hours left to serve in the job which he was originally appointed to by the man who's effectively sacking him.
Bainimarama is expected to announce an interim government later on Tuesday and incur the wrath of the international community.
NZ tries to halt takeover
The New Zealand government is still trying to convince Bainimarama to halt his takeover.
Clark says its becoming increasingly clear the people of Fiji do not believe the military's actions are the right thing for their country. She says the government is trying to get that message across to Bainimarama.
Clark says Foreign Minister Winston Peters has continued to try to contact him to say to him it is not the way to go. But she says Bainimarama is obviously feeling very cocky and carrying on with his creeping military operation.
Peters will not be going to Fiji on Tuesday to help deal with the current crisis.
Representatives from the Pacific Forum are to head to Fiji to try stop the Fijian military from overthrowing the Qarase government.
"What you have got is someone who is going from a history of honour to dishonour and it will be a disaster for Fiji and a disater for the Pacific as well," Peters says.
A spokesman from Peters' office says no final decision has yet been made as to whether he might go on Wednesday.
That is effectively the only time Peters can go to Fiji as he is committed to going to to the Philippines later this week for the East Asia summit.
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