2 weeks Ago
A spokesperson for New Zealand's Ministry of Foreign Affairs said the suspension would continue until the Cook Islands government makes "genuine steps to rebuild the relationship and trust."
Special Relationship Tested
While the Cook Islands govern themselves, they retain some of the trappings of nationhood such as defence and passport arrangements with New Zealand. This commits the relationship that much more, and gives the funding freeze added weight. New Zealand is the Cook Islands' largest benefactor and has spent more than about $200 million in the last three years as part of a decades-old cooperation agreement.
The frozen funding is likely to be a thorny issue during the visit of New Zealand Prime Minister Luxon to China this week, during which he is scheduled to meet with President Xi Jinping.
Infrastructure and Scholarships Are Up for Debate
The Cook Islands have signed no security agreements with China but they have engaged in cooperation with Beijing over infrastructure projects and educational scholarships. Those moves, on top of being made without forewarning to New Zealand, have raised alarm within the Luxon government.
The Cook Islands are seen as strategically important for its economic value and there is talk of possible deep-sea mining in the surrounding waters. The citizens of the Cook Islands may also reside and work in New Zealand, demonstrating the close relationship.
New Zealand has also indicated the financial assistance will not restart until the Cook Islands government takes active steps to rebuild trust and the spirit of the relationship that has existed between the two countries for many years.
