Rebels holding the Fijian Prime Minister, Mr Mahendra Chaudhry, in an attempted coup dragged him on to the lawn of the parliament building yesterday and held a gun to his head, witnesses said.
Coup leader Mr George Speight, a failed businessman who says he is acting on behalf of indigenous Fijians, has threatened to shoot the ethnic Indian Prime Minister and other hostages if security forces attempt to retake parliament.
Yesterday's incident followed a security scare sparked by coup supporters scaling a fence.
President Ratu Sir Kamisese Mara of Fiji said he could not guarantee he would retain the government of Mr Chaudhry, who has been held hostage since Friday.
"I can't say that I will put back the government that caused all this problem," the President said. It was the first serious crack in support for the South Pacific island's first ethnic Indian Prime Minister from the President, who put Fiji under a state of emergency after rebels led by Mr Speight stormed parliament.
"If Mr Chaudhry wants to resign he can resign but it must come from him," Mr Mara told a news conference at Government House. But he called again for Mr Speight and his supporters to lay down their arms.
"It is important that the armed terrorist group in parliament release all hostages, so that I can begin the process of consulting with the leaders of all political parties in parliament," Mr Mara said in a statement. General dissatisfaction has grown steadily with the abrasive Mr Chaudhry's style of government since he took power exactly a year ago last Friday.
Tension has also risen between ethnic Fijians, who make up the majority of Fiji's 800,000 population, and the economically powerful Indian community.
Indian businesses were targeted during a looting and arson wave on Friday after Mr Speight and about 10 armed supporters took over parliament.
Mr Speight said yesterday he would stand down if instructed to do so by the powerful Great Council of Chiefs, which is due to discuss the crisis today.
Some division was expected in the council when it meets at Lami - Mr Speight's home village - just outside the capital, Suva, but analysts said it would eventually reach a consensus.