KEY POINTS:
National has marched to the political middle ground endorsing Labour's independent foreign policy and calling for a consensus on defence and trade.
In a foreign policy discussion document released today, National leader John Key said it was now possible for the two parties to put the ideological debates of the past 20 years behind them.
"National believes that after three decade of debate, the basis for an enduring consensus in foreign affairs, defence, and trade has arisen.
"This has been helped by Labour adopting more mainstream positions on foreign policy."
In the past National has accused Labour of having anti-American tendencies, but Mr Key was more diplomatic today.
Differences with Labour over attitudes towards traditional military allies such as the United States were "tonal", Mr Key said.
There had been incidents during the last election campaign where Labour had made some comments which had damaged relations between the two countries, he said.
"We think we can have arguably a stronger relationship...with the US."
However, this would not mean a return to the strategic alliances of the past.
Mr Key since the break down of Anzus in 1987 New Zealand had largely operated an independent foreign policy.
"We think that is the right foreign policy setting for New Zealand, one that will serve the country best."
National has been accused by Labour of flip-flopping over a range of foreign policy issues.
Tension points have been mostly around the nuclear issue, relations with the US and whether National would have joined the invasion of Iraq without the United Nations' backing the move.
Mr Key today tried to neutralise that criticism and signalled a stronger emphasis on an independent foreign policy operating inside multilateral bodies such as the UN.
Mr Key said he would "not prejudge" a position on any potential support for an attack on Iran without the UN's mandate saying it was a hypothetical question.
Committing troops overseas would be done on a case-by-case basis.
"It is a very serious issue, it is not something we are going to do in a light-hearted manner."
National and Labour have clashed in the past over the make up of the defence forces and in particular the Government's decision to scrap the airforce's skyhawks.
Mr Key said a National government would issue a defence white paper on the capability and resourcing of the defence force, though MPs have indicated it was unlikely to ever restore a strike force capability to the airforce.
The discussion document said there needed to be small, effective military with the ability to deploy, work alongside others (mostly Australia) and patrol the oceans around New Zealand.
Mr Key would not say whether he felt enough was being spent on defence, but he could not see it dropping under a National government.
National would also put a greater emphasis on targeting the Pacific for aid assistance with the proportion increasing from one-third to above a half.
More could be done to help the Pacific by helping those nations increase their exports to New Zealand.
A National government would also seek to increase exports as a proportion of GDP and complete more free trade deals.
Mr Key told journalists that the discussion document would give the opportunity for the public to comment, but "it is a clear indication of how National will operate in the area of international foreign policy".
Foreign Minister Winston Peters said imitation was sincerest form of flattery and a bi-partisan approach on foreign policy was in the best interests of New Zealand.
Mr Peters said the document was silent on Iraq because of Mr Key's "inexperience" and the "puppeteers" driving National policy had a secret agenda.
Defence Minister Phil Goff said the policy document was a "non-event" and the Government was sceptical about National's commitments.
Earlier today, Prime Minister Helen Clark - on a trip to the UK - set out New Zealand's foreign policy at an Oxford Union debate.
During her appearance, 22 years after David Lange's famous debate, Miss Clark described New Zealand's nuclear free status as the cornerstone of its independent foreign policy.
"Politicians tamper with it at their peril," she said.
She said New Zealand's role and interests in the Asia Pacific today were "light years distant" from what they were at the time of the Second World War and explained the new relationships with Asian countries and the changed composition of New Zealand's population, which she said had a bearing on foreign policy.
"We are used to living with difference at home," she said.
Miss Clark said New Zealand was passionate about the environment, and active internationally with commitments that covered saving whales and the Antarctic to sea bird protection and the Kyoto Protocol.
Dealing with big picture foreign policy, she said the Asia Pacific was "a huge priority" but relationships with Europe were also very important.
"We see ourselves as members of a community of shared values and as natural partners in a globalising world," Miss Clark said.
- NZPA, NEWSTALK ZB
Foreign Affairs
* Focus on the Asia-Pacific region
* Review development assistance and target the South Pacific.
* Closer ties with the US including defence, intelligence and climate change issues.
* No change to the anti-nuclear policy.
Defence
* Ensure security in the South Pacific.
* Publish a "White Paper" to look at the capabilities and requirements of the Defence Force.
Trade
* Aim to boost New Zealand's export performance to a GDP ratio of about 30 per cent to 40 per cent by 2020.
* Pursue all trade deals and put the multilateral Doha Round back on track.
* Supporting exporters to be the priority of MFAT.
