New Zealand has suspended millions of dollars in funding to the Cook Islands over agreements the smaller Pacific nation made with China.

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When the Cook Islands was granted “internal self-government” in 1965—while still remaining a New Zealand colony—Albert Henry’s Cook Islands Party won the territory’s first election.

Brown’s refusal to show New Zealand officials the text of the China deal ahead of his trip prompted censure from Wellington this month. And about 400 people protested at the Cook Islands ...