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A proposal to allow Japan to kill more whales in its own waters and the Northern Pacific while reducing or phasing out whaling in the Antarctic has been discussed by the International Whaling Commission.
The Sydney Morning Herald reports that documents leaked to the paper show a deal drawn up by the US-led International Whaling Commission drafting group - that included New Zealand and Australia - have drawn up a secret deal that would see Japanese whalers hunt a regulated number of minke whales in its coastal and the North Pacific.
In exchange, Japan would agree to either phase out its so-called scientific whaling in the Antarctic entirely or impose an annual limit for the Southern Ocean.
Foreign Affairs Minister Murray McCully said it is only one option on the table aimed at breaking the whaling deadlock.
Mr McCully told NZPA he expected the proposal to be released within the next fortnight and the Government would decide then, in consultation with the public, whether it supported it.
However, it was only one of a number of proposals on the issue.
The International Whaling Commission (IWC) has held a series of meetings over the past two years to try to bridge the global divide over whaling.
Mr McCully said since the moratorium on commercial whaling was introduced in 1986, the numbers being killed through "scientific whaling" has gradually increased.
He said four years ago Japan unilaterally doubled its "scientific quota" in the Southern Ocean.
"In addition, the IWC is polarised, with pro-whaling countries able to block efforts to improve conservation measures. The IWC's ability to reach agreement on whale management issues is critical, as it is the key forum for restraining the activities of whaling nations," Mr McCully said.
He said the IWC process is only one of several initiatives currently taking place.
Labour conservation spokeswoman Steve Chadwick said New Zealand and Australia need to carry out research to ensure that global whale numbers are not depleted if whaling is moved further north.
"We've been a leader on this, not a follower," Ms Chadwick said.
She said although the IWC was in a deadlock, it had kept Japan at the negotiating table.
Ms Chadwick said that without Japan at the table there would be a "wholesale slaughter of whales".
Greenpeace have slammed the proposal, saying that it could "legitimise bogus scientific research".
Greenpeace oceans campaigner Karli Thomas said support for Japanese whaling is waning inside Japan itself.
"The fact that Japan is still at the [IWC] table means that they realise that the time has been for them to flout the law and use the scientific loop-hole. It's hurting their international reputation no end and they're coming under a lot of pressure," Ms Thomas said.
IWC chairman William Hogarth was expected to unveil the document at an IWC meeting in Rome in early March.
A possible vote on the plan could happen at the organisation's annual meeting in Madeira, Portugal, in June.