BACKGROUNDER: By Christina Persico, RNZ Pacific bulletin editor/presenter;
Caleb Fotheringham, RNZ Pacific; and ,
New Zealand has paused $18.2 million in development assistance funding to the Cook Islands after its government signed partnership agreements with China earlier this year.
This move is causing consternation in the realm country, with one local political leader calling it “a significant escalation” between Avarua and Wellington.
A spokesperson for Foreign Minister Winston Peters said the Cook Islands did not consult with Aotearoa over the China deals and failed to ensure shared interests were not put at risk.
On Thursday (Wednesday local time), Cook Islands Prime Minister Mark Brown told Parliament that his government knew the funding cut was coming.
“We have been aware that this core sector support would not be forthcoming in this budget because this had not been signed off by the New Zealand government in previous months, so it has not been included in the budget that we are debating this week,” he said.
How the diplomatic stoush started
A diplomatic row first kicked off in February between the two nations.
Prime Minister Brown went on an official visit to China, where he signed a “comprehensive strategic partnership” agreement.
The agreements focus in areas of economy, infrastructure and maritime cooperation and seabed mineral development, among others. They do not include security or defence.
However, to New Zealand’s annoyance, Brown did not discuss the details with it first.
Prior to signing, Brown said he was aware of the strong interest in the outcomes of his visit to China.
Afterwards, a spokesperson for Peters released a statement saying New Zealand would consider the agreements closely, in light of the countries’ mutual constitutional responsibilities.
The Cook Islands-New Zealand relationship
Cook Islands is in free association with New Zealand. The country governs its own affairs, but New Zealand provides assistance with foreign affairs (upon request), disaster relief and defence.
Cook Islanders also hold New Zealand passports entitling them to live and work there.
In 2001, New Zealand and the Cook Islands signed a joint centenary declaration, which required the two to “consult regularly on defence and security issues”.
The Cook Islands did not think it needed to consult with New Zealand on the China agreement.
Peters said there is an expectation that the government of the Cook Islands would not pursue policies that were “significantly at variance with New Zealand’s interests”.
Later in February, the Cooks confirmed it had struck a five-year agreement with China to cooperate in exploring and researching seabed mineral riches.
A spokesperson for Peters said at the time said the New Zealand government noted the mining agreements and would analyse them.
How New Zealand reacted
On Thursday morning, Peters said the Cook Islands had not lived up to the 2001 declaration.
Peters said the Cook Islands had failed to give satisfactory answers to New Zealand’s questions about the arrangement.
“We have made it very clear in our response to statements that were being made — which we do not think laid out the facts and truth behind this matter — of what New Zealand’s position is,” he said.
“We’ve got responsibilities ourselves here. And we wanted to make sure that we didn’t put a step wrong in our commitment and our special arrangement which goes back decades.”
Officials would be working through what the Cook Islands had to do so New Zealand was satisfied the funding could resume.
He said New Zealand’s message was conveyed to the Cook Islands government “in its finality” on June 4.
“When we made this decision, we said to them our senior officials need to work on clearing up this misunderstanding and confusion about our arrangements and about our relationship.”
Prime Minister Christopher Luxon is in China this week.
Asked about the timing of Luxon’s visit to China, and what he thought the response from China might be, Peters said the decision to pause the funding was not connected to China.
He said he had raised the matter with his China counterpart Wang Yi, when he last visited China in February, and Wang understood New Zealand’s relationship with the Cook Islands.
Concerns in the Cook Islands
Over the past three years, New Zealand has provided nearly $194.6 million (about US$117m) to the Cook Islands through the development programme.
Cook Islands opposition leader Tina Browne said she was deeply concerned about the pause.
Browne said she was informed of the funding pause on Wednesday night, and she was worried about the indication from Peters that it might affect future funding.
She issued a “please explain” request to Mark Brown:
“The prime minister has been leading the country to think that everything with New Zealand has been repaired, hunky dory, etcetera — trust is still there,” she said.
“Wham-bam, we get this in the Cook Islands News this morning. What does that tell you?”
Will NZ’s action ‘be a very good news story’ for Beijing?
Massey University’s defence and security expert Dr Anna Powles told RNZ Pacific that aid should not be on the table in debate between New Zealand and the Cook Islands.
“That spirit of the [2001] declaration is really in question here,” she said.
“The negotiation between the two countries needs to take aid as a bargaining chip off the table for it to be able to continue — for it to be successful.”
Dr Powles said New Zealand’s moves might help China strengthen its hand in the Pacific.
She said China could contrast its position on using aid as a bargaining chip.
“By Beijing being able to tell its partners in the region, ‘we would never do that, and certainly we would never seek to leverage our relationships in this way’. This could be a very good news story for China, and it certainly puts New Zealand in a weaker position, as a consequence.”
However, a prominent Cook Islands lawyer said it was fair that New Zealand was pressing pause.
Norman George said Brown should implore New Zealand for forgiveness.
“It is absolutely a fair thing to do because our prime minister betrayed New Zealand and let the government and people of New Zealand down.”
Brown has not responded to multiple attempts by RNZ Pacific for comment.
This article is republished under a community partnership agreement with RNZ.