The People's Republic of China wants to set up a FJD$100 million (US$61 million) regional airline.

And while it has raised the issue with the Fiji government it has yet to consult other Pacific Island states on this possibility.

However, Fiji says it has no intention of selling its controlling shares in Air Pacific to the Chinese government to kick-start the regional airline. It's a subtle attempt to impose its influence in the region. And it's a proposal that may not be a viable at least from Fiji's view of point, said Vuetasau Buatoka, the chief executive officer for the transport and civil aviation ministry.

Buatoka told Fiji TV the exercise is expected to run in the millions. It would entail a feasibility study that will include Niue, Tonga, Cook Islands and Samoa. Niue, Tonga and Cook Islands are seeking to establish their own airlines.

Another option for Fiji is to sell the Chinese the Fiji government's 51% shares in Air Pacific, changing the status of the airline to a regional one as required by China. However, government says this won't be done.

Asked whether China is trying to control the civil aviation sector within the region, Buatoka warned Pacific states to tread carefully to ensure they do not sell out their sovereignties in the process.

Earlier this week, Fiji TV also revealed that China offered the government a FJD$50 million (US$30 million) loan facility to develop the country's information and technology sector.

Information Minister Senator Dr Ahmed Ali was cautious about the offer, saying that government was looking at ways to diplomatically reject the Chinese proposal. He told Fiji TV that the offer was a risky one and Fiji will not commit itself because taxpayers will eventually repay the debt.

Dr Ali sounded the same warning as Buatoka saying the Fiji government must tread carefully before it makes a decision to accept the loan facility. - Asia Pulse/Pacnews