Australia's hard-line policies are driving Fiji's economy towards collapse while failing in their objective of pressuring Fiji to return to democracy, according to leaked US diplomatic reports by whistle blower website WikiLeaks.

The Sydney Morning Herald said leaked US embassy cables released by WikiLeaks and provided to The Sunday Age revealed that Australian policymakers and diplomats have been deeply frustrated with the lack of success of Australia's efforts to isolate Fiji, but see no viable policy alternatives.

They also revealed that former parliamentary secretary of Pacific island affairs Duncan Kerr last year broke ranks with the then Rudd government and privately sought to encourage the US towards diplomatic reengagement with Suva.

It said at a meeting at his Parliament House office on August 12 last year, Kerr told a senior American diplomat that Australia was "close to exhausting its diplomatic options on Fiji to little apparent effect".

The embassy reported that he appeared sympathetic towards reengaging with Fiji's Prime Minister Commodore Voreqe Bainimarama.

The embassy said Kerr's approach was an attempt to spur reevaluation of policy towards Fiji while the Australian government was on cruise control toward increasing disengagement with Fiji, without achieving any desired effect.

But his attempt to stimulate new thinking was undercut by senior Australian diplomats who reaffirmed the government's hard-line policy of isolating Fijian.

Just last week, New Zealand was in the spot light after WikiLeaks revealed that the New Zealand government had been spying on Fiji and the Fiji Military Forces.


Story by: Roneel Lal