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Posted: Thursday, August 26th, 2004 5:23 AM HST

Tongan prime minister fires ministers, plans privatization

By Associated Press

NUKU'ALOFA, Tonga (AP) _ Tonga's prime minister -- Crown Prince Ulukalala Lavaka Ata -- has fired three Cabinet ministers and says he plans to sell off some of his government's assets.

Observers in New Zealand say the changes likely were due to a fallout in government ranks which may have been sparked by the collapse of the nation's international carrier, Royal Tongan Airlines, in April.

The airline's failure caused losses of up to 20 (m) million dollars for the tiny South Pacific nation.

Lavaka said in a brief statement that the government would sell off assets that can be privatized, but he didn't elaborate.

Dominated by the royal family and a small group of noble families, Tonga has long suffered low living standards.

(Copyright 2004 by the Associated Press. All rights reserved.)



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