After months of unsuccessful negotiations, New Zealand has frozen nearly $30 million in aid payments to its Pacific neighbor, the Cook Islands, marking a sharp decline in their political relations.
In June, Foreign Minister Winston Peters halted $18.2 million in funding because the Cook Islands signed several contentious agreements with China without notifying New Zealand, a requirement due to their status as a realm country.
Through a letter dated October 13 obtained by 1News under the Official Information Act, Peters informed Cook Islands Prime Minister Mark Brown that the initial $18.2 million suspension would remain, along with an additional payment due at this time, bringing the total amount withheld to $29.8 million.
"The gravity of the Cook Islands' breach of trust" and what seems to be a continuing dispute over the interpretation of "free association with New Zealand,"
The letter highlighted a severe breakdown in communication, reflecting a deepening rift between New Zealand and the Cook Islands over diplomatic expectations and obligations.
Summary: New Zealand’s suspension of nearly $30 million aid to the Cook Islands signals a serious diplomatic setback following unresolved issues regarding the Cook Islands’ independent dealings with China.