Rice meets with Peters, Clark under shadow of protest

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Sat, 26 Jul 2008 12:00a.m.

Condoleezza Rice and Helen Clark

Condoleezza Rice and Helen Clark

Today's weather was not enough to put off Auckland University students.

The Students' Association offered $5,000 to any student who made a successful citizen's arrest of US Secretary of State Condoleezza Rice during her visit to Auckland.

A group of around 70 gathered outside Government House, where Rice was holding talks with Foreign Minister Winston Peters.

The students are angry at Rice's role in the war in Iraq.

Chanting "number one terrorist", they held banners proclaiming Rice a war criminal, while for the first time in more than 20 years the American administration has called New Zealand a formal 'ally' – not just a friend.

Rice's comments appear to show just how America regards the New Zealand relationship, after all-day talks with Peters and Prime Minister Helen Clark.

Rice says New Zealand's nuclear ban is not the issue it once was for this relationship.

"As to past disputes the US and New Zealand, I think have moved on," she said today.

The two clearly have a close relationship – she referred to Peters constantly by his first name.

New Zealand's ban on nuclear ship visits is largely seen as an obstacle to a free trade deal and a return to joint military exercises, but Rice says that may change.

But the elephant in the room was Sir Bob Jones' claims that Peters personally solicited $25,000 for the Spencer Trust, a trust Peters claims to know very little about.

Now Peters is suggesting Jones is confused.

The Trust appears to be a backdoor way of funding Peters, and for New Zealand First to get around electoral rules and declarations. Now he appears to be threatening legal action against Jones and the media for accusations he is not telling the truth.

"I did notice they put it in inverted comas – that does not save you from a defamation writ," says Peters.

It is a personal coup for Peters, getting Rice here, but his failure to clear up this funding scandal stinks of hypocrisy and threatens his job.

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