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Prime Minister Helen Clark says she is not going to shoot her mouth off about the situation in Tibet until she knows what the facts are but was prepared to speak out if peaceful protesters had been killed.
China's crackdown on demonstrators in Tibet has brought international condemnation and talk of a boycott of the Beijing Olympics.
But New Zealand, which is to sign a free trade agreement with China next month, is taking a carefully moderate line.
The Tibetan government-in-exile said last night 80 people had been killed as China moved to suppress the demonstrations in Lhasa.
The Chinese Communist Party sent its army to occupy Tibet in 1950, forcing its religious leader the Dalai Lama to flee into exile.
Green MP Keith Locke has called on the Government to condemn China's actions.
Mr Locke said New Zealand should not give the impression it cared more about the upcoming trade deal with China than Tibetans' human rights.
"New Zealand cannot stand silently by while Tibetan protesters are drowned in blood," Mr Locke said.
"Our Government should speak out against the repression in Lhasa in the same manner as it did last year when the Burmese junta fired into crowds of protesting monks."
New Zealand's free trade deal is predicted to boost the New Zealand economy by up to $400 million.
Asked on Newstalk ZB if New Zealand would consider ditching the deal with China if its authorities were found to be in the wrong, Helen Clark said the idea was "ridiculous".
She also was dismissive on the Olympic boycott call saying she did not think it had international support.
Helen Clark told Breakfast on TV One that New Zealand's position was not out of line with international leaders - countries were waiting to establish the facts and urging restraint on both sides.
"We're still trying to get to the bottom of exactly what happened," she said.
"We do support peaceful protest, we don't support disproportionate reaction to peaceful protest. What we don't know is how these protests started out - were they peaceful, were they violent? If there's looting, arson and rioting that will get a response anywhere in the world, but if there is a response to be had it should be a proportionate one."
Mr Locke called the Government's wait for the facts argument "weasel words".
Helen Clark said on Breakfast the Greens and others opposed the trade deal "...and they will use whatever is in the headlines at any particular time to continue their opposition to it".
Helen Clark had personally raised human rights and Tibet issues with Chinese leadership: "That's not going to change."
She did not think New Zealand was treating China differently to other countries like Zimbabwe and Fiji where New Zealand has taken a tough line.
"I don't believe we do, what we are waiting to establish is what are the facts ... Now I'm not going to shoot my mouth off till I know more about the facts of it and I don't think you'd expect me to do so."
Miss Clark said New Zealand's position could change.
"It's not rock and a hard place if facts were established that made it clear that bullets had been fired on peaceful crowds, of course we'd say something. But I don't have that information."
United Future leader Peter Dunne said the Government should use its position to urge respect for human rights in Tibet.
"Emotional calls for New Zealand to abandon its negotiations for a free trade agreement with China are a classic case of cutting off your nose to spite your face," he said.
"New Zealand's long-term interests are best served by maintaining a close relationship with Asia's rising world superpower, but that does not mean we have to kowtow to Beijing."
He said because New Zealand had a good relationship with the Chinese government it was in a good position to point out economic advantages that come with freedom.
"Last year I had the privilege of hosting the Dalai Lama at a Parliamentary reception because I believe in the rights of free peoples everywhere and I urge the Government to adopt a similar attitude."
Around the world, protesters took to the streets yesterday to voice their anger at the latest Chinese actions. Some protests became violent and in India, Australia and China, police moved dispersed crowds.
Protests are also planned in New Zealand this week.
The diplomatic condemnation was led by US Secretary of State Condoleezza Rice.
"We urge China to respect the fundamental and universally recognised right of all of its citizens to peacefully express their political and religious views," she said.
"And we call on China to release monks and others who have been detained solely for the peaceful expression of their views."
Democratic presidential hopeful Barack Obama warned China's leaders that the eyes of the world were upon them in an Olympic year.
Condemnation also came from political leaders in Australia, France and Germany among others.
Chinese forces last night defended the crackdown on violent protests that have racked Lhasa, the Tibetan capital, after a week of demonstrations led by Buddhist monks.
Others who spoke out - including Hollywood actor and Buddhist Richard Gere - felt the Chinese response justified an Olympic boycott.
A spokesman for Foreign Minister Winston Peters said last night there was a wide variance in reports on events in Lhasa and the New Zealand embassy in Beijing was still seeking reliable information.
"We have always made it clear that when we have concerns about human rights issues we will raise those with [China]. That's something we've always done, and we will continue to do so irrespective of free trade negotiations."
NZ Friends of Tibet chairman Thuten Kesang said New Zealand should not shirk the responsibility of taking action at a diplomatic level despite the free trade deal.
WORLD LEADERS ON TIBET
"We urge China to respect the fundamental and universally recognised right of all of its citizens to peacefully express their political and religious views. And we call on China to release monks and others who have been detained solely for the peaceful expression of their views."
- US Secretary of State Condoleezza Rice
"This is the year of the Beijing Olympics ... but the events in Tibet these last few days unfortunately show a different face of China."
- US presidential candidate Barack Obama
"It is now more important than ever that demonstrators and security forces call for restraint and that the rights of individuals are respected."
- spokesman for German Chancellor Angela Merkel
"There is strong condemnation, coming from all the European Council and the 27 countries."
- French Foreign Minister Bernard Kouchner
"We urge the Chinese Government to allow peaceful expression of dissent. We call on Chinese authorities to act with restraint and to deal with protesters peacefully."
- Australian Foreign Minister Stephen Smith
"The Government is concerned at the reports of violence and is trying to obtain more accurate information. It calls on all sides to exercise restraint."
- Prime Minister Helen Clark
- staff reporters, agencies
