The British Foreign Office has decided to close three embassies and high commissions in the Pacific.
The missions in Vanuatu, Tonga and Kiribati will be closed by the end of 2006.
The British High Commission in Suva will oversee matters across the Pacific in what is being described as a hub and spoke policy.
The Press Officer for the British High Commission in New Zealand, Brian Nicholson, says the closures are not a sign that Britain is taking a hands-off approach to the region.
"We continue to work very closely with New Zealand and the EU in the Pacific in providing a significant contribution to the EU aid programmes for instance and this will continue. The UK will also continue to retain its position as a dialogue partner at the Pacific Islands Forum."
The closures will save Britain 11.6 million US dollars a year.
