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Fijian President dismisses government

Fiji's President, Ratu Sir Kamisese Mara has dismissed the government and is to appoint a caretaker Prime-Minister, to replace Mahendra Chaudhry, who is being held hostage by rebels in the parliament building. At a press conference this morning, he said the move would open the way for the release of Mr Chaundry and the other hostages.

The president said he was also considering providing immunity for the leader of the attempted coup, George Speight and six of the rebels, who have claimed power on behalf of indigenous Fijians. The latest development follows violent gunfire exchanges between the rebels and the army, in which two soldiers and a foreign cameraman were wounded.