KEY POINTS:
Winston Peters managed to deflect embarrassing questions about funding at a stage-managed press conference with US Secretary of State Condoleezza Rice yesterday.
Only four questions - two from the international press corps and two from local media - were allowed at Government House.
There was only one mention
of the controversy, when a journalist asked his reaction to allegations he had lied about political donations.
"I can't wait to get down to Parliament and deal with Robert Jones next week," Peters said.
"Next week I will give you all the answers you need. This [Rice's visit] is so much more important. I would like to concentrate on this important visit to the country and our relationship for the future."
As if in reference to the allegations, Peters told the assembled media throng: "Putting things in inverted comas will not save you from a defamation writ."
He then turned to Rice and raised a laugh by saying: "I am sure you don't want to comment on that."
Peters was all smiles as he escorted Rice from the room, turning to beam at journalists with the question, "Does that sum it up?"
The talks took place amid heavy security, with police battling harsh weather to patrol the grounds, and secret service agents present inside and outside Government House.
Heavy rain forced the cancellation of a planned powhiri on the lawn.
Police kept a group of demonstrators at a distance, but they maintained a noisy protest on the street, despite pouring rain.
In the interests of safety, Auckland University Students Association withdrew its offer of a $5000 reward for any student who made a citizen's arrest of Rice, who it described as a war criminal.
But it said it would still support any student who tried to arrest her.
Auckland police district commander Superintendent Brett England said anyone trying to carry out the arrest faced "very serious consequences".
Helen Clark referred to the protesters when a journalist raised the subject of China's record on human rights. "In a democracy we defend and uphold free speech."
Rice said China had the right to deal with security threats "but it shouldn't be used as a cover to deal with dissent".
Clark said she had briefed Rice on New Zealand's position on the South Pacific, East Asia, the Middle East and Afghanistan.
They also discussed the downturn in the world economy and food and fuel security. Both voiced concerns about the situation in Zimbabwe.
Rice said she was looking forward to having dinner with the Prime Minister and watching the All Blacks-Wallabies match but would not be drawn on when a free-trade deal between New Zealand and the US might be brokered.
Earlier, Peters told media that he and Rice had had "extremely profitable discussions". He said the relationship between New Zealand and the US was "better today than for a long time" and much of the credit belonged to Rice.
Peters said they had specifically discussed Afghanistan, Zimbabwe and North Korea.
On the latter, Rice revealed Peters was one of the first people she had called after the North Korean nuclear test in 2006. "We co-operate on a wide range of issues. The relationship between the US and New Zealand is on a very good footing."
Rice said the countries had "moved on" from past disagreements, apparently referring to New Zealand's anti-nuclear policy.
Asked about the US ban on military exercises with New Zealand forces, Rice said: "If there are remaining issues to address we should find a way to address them."
Rice and Peters reaffirmed their commitments to democratic elections in the Pacific region.
Peters said he believed there was "no impediment" to a free and fair election in Fiji in March 2009.
