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Alliance Party rule was briefly challenged in the election of March 1977, when a split in the ethnic Fijian vote resulted in the loss of nine seats. The Alliance ended up with 24 seats in the 52-seat parliament, two less than the Indo-Fijian-dominated National Federation Party (NFP). A constitutional crisis developed when, three days after the election, the NFP splintered in a leadership brawl, and the Governor General of Fiji, Ratu Sir George Cakobau, asked the Mara to remain in power in a caretaker capacity. A second election was held in September that year to resolve the impasse; the Alliance was returned with an unprecedented 36 seats out of 52.
The majority of the Alliance Party was reduced in the 1982 election, but with 28 seats out of 52, it retained office. In April 1987, the party was finally beaten by a multi-racial coalition led by Timoci Bavadra, an ethnic Fijian who nevertheless drew most of his support from the Indo-Fijian population.
After less than a month in office, the new government was deposed in a military coup led by Lieutenant Colonel Sitiveni Rabuka. After several months of turmoil, the former Prime Minister Ratu Mara, the Alliance Party leader, was called back to head a transitional government. As part of a major realignment of Fijian politics, however, the Alliance Party was dissolved. Several political parties today claim to be its successor, among them the present ruling party, the United Fiji Party.
The Alliance Party was considered to be a centre-right party, and was a member of the International Democrat Union, a umbrella-organization of moderate right-wing parties from many countries, including the Republican Party of the United States, the British Conservative Party, and the Australian Liberal Party.