Suva, June 12: Fiji's government and opposition agreed today to a land deal that could defuse racial tensions which have undermined stability on the Pacific island state. But a constitutional showdown between the two sides could overshadow the land agreement and again split the nation along racial lines, politicians warned.

Fiji has been rocked by three coups and racial conflict in the past 15 years. Tensions in the country still run high, amid bitter disagreements between the government, ruled by indigenous Fijian nationalist parties, and the opposition Labor party, controlled by ethnic Indians.

Indigenous Fijians make up just over half the nation's 820,000 people, and ethnic Indians - whose ancestors were brought in by former British colonists - comprise about 44 percent.

The government and opposition today reached an agreement aimed at ending years of feuding over land leases between Indian tenant farmers and their Fijian tribal landlords.

Labor lawmaker Krishna Datt said today details of the agreement would be published after they were announced next week by Prime Minister Laisenia Qarase and Labor party leader Mahendra Chaudhry.

The pact follows months of negotiations, he said.

Although ethnic Indians dominate the nation's economy, indigenous tribes own 90 percent of the land, and many have jacked up the price of renewing 30-year leases held by 13,000 mainly Indian tenant farmers.

The leases began expiring in 1997 and will continue to run out up to 2007.

Bureau Report