The man who seized power in a 1987 coup walked into government house to tender his resignation to Fiji's president after losing a historic multi-race election and was asked whether it was a sad day. "No, it's part of the job," Rabuka replied with a smile.

Mahendra Chaudhry, leader of the Fiji Labour Party, declared victory in the election on Monday and said he would be Fiji's first Indian Prime Minister.

The election was the first under a new constitution ending native Fijian political dominance and ensuring a multi-race government.

Today, Chaudhry was discussing with his multi-race coalition the shape of his new government, which he is expected to present to the President in the next few days.

His landslide victory, which could see his coalition with more than 48seats in Fiji's new 71-seat Parliament, has given him a large mandate to be the first Indian Prime Minister.

But some political observers say a Fijian Prime Minister could still emerge from the Labour coalition to ensure stability in Fiji, where memories of Rabuka's coup which ousted the first Indian-dominated government still linger.