NEW YORK, Aug 9: The US State Department on Friday decided to intervene in the parking fines violation issue in New York City in which the Mayor of the city has threatened to tow cars of the diplomats who have failed to pay fines in excess of $200,000.

Secretary of State Colin Powell on Thursday called Mayor Michael Bloomberg asking him to hold off on actions against diplomats who enjoy diplomatic privileges and immunity from prosecution.

Fearing of reciprocating reprisals in other countries, the State Department also said that if needed it would take the city to court to prevent any action against diplomats.

Two years ago in a similar dispute, the State Department prevailed in persuading former Mayor Rudolph Giuliani to back off in imposing punitive action.

Mayor Michael Bloomberg had issued an ultimatum to the diplomats of some 189 countries to pay their outstanding parking dues or face action against them.

New York is in midst of a fiscal crisis and aims to raise funds by recovering outstanding fines from the diplomats.