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Civil Defence authorities have downgraded the tsunami warning for New Zealand.
The move comes after the Pacific Tsunami Warning Centre has cancelled its tsunami warning for New Zealand shortly after 1pm.
However, New Zealand authorities are warning that there could be surges for up to 24 hours.
"The Chatham Islands and Banks Peninsula could still expect wave heights of between one and three metres," a statement from Civil Defence said.
Authorities are warning that boaties could still be at risk if they take to the water.
Earlier today, a tsunami surge of water measuring one metre reached Northland, turning the normally placid harbour into a "washing machine".
"The wave was approximately one metre. It sucks out and comes in. It takes a couple of minutes. They are very long waves," said Jeroen Jongejans from his boat near the harbour entrance.
He said the water was discoloured indicating the energy level of the wave was very deep and had picked up debris from the harbour floor.
One of the marine markers indicating the course boats should take to get into the harbour was "violently shaking."
He said the tidal flow was estimated to be about 12 knots which was very strong.
"It is very unusual for a body of water to move at that kind of speed."
Mr Jongejans said he was in no danger but was in constant touch with civil defence authorities and was keeping a constant lookout for surges.
Kate Malcolm from Dive Tutukaka said there had been several strong surges in the marina and there had been a rise and fall in the water level of about a metre and-a-half.
"It has resulted in a washing machine action in the marina.
"The piles are moving around a lot when the surges come through. There is about 12 knots of current at the entrance when it comes through and the lines are quite tight on the vessels in the marina."
She said normally the tidal flow was hardly noticeable in normal conditions and the 12 knot current was very unusual and very strong. No damage had been reported.
"But some of the boats certainly looking like they were getting tossed around," she said.
The flow arrived as Northlanders were repeatedly warned to stay away from beaches and not try to watch events.
Surges have also reached Waitangi in the Bay of Islands.
Northland Civil Defence group controller Mike Manley said officials are concerned at reports that people have been ignoring warnings to stay away from beaches and estuaries.
A 40cm surge has reached Gisborne, while Pitt Island in the Chathams has been hit by a 1.5 metre surge and consistent one metre surges.
Napier, Castlepoint, Tauranga and North Cape tsunami indicators are showing signs that surges of water are reaching mainland New Zealand.
Residents on Pitt Island have recorded surges more than two metres.
The island's Flowerpot Lodge owner Bernadette Mallinson said water levels surged above high tide levels even though the island was at low tide.
If the surges continued in high tide later in the day the effects could be massive, she said.
Surges had begun at 8.30am, and residents were watching the seas from high ground, she said. There had been no damage reported, she said.
Official tsunami warnings are in place for the entire east coast after a massive earthquake hit Chile overnight.
A wave measuring 1.5m hit Raoul Island in the Kermadecs, earlier this morning.
Another surge measuring 30cm reached Gisborne but authorities said a second surge could be larger.
John Davies from Civil Defence in Gisborne said a drop in the sea level has been noted by the local harbour master.
Mr Davies told Radio New Zealand that the council is monitoring water levels and warned people not to go to the beach. Receding water levels were seen in Indonesia during the Boxing Day tsunami and in Samoa last year.
Civil Defence minister John Carter was informed last night while he was watching the Hurricanes game and has been kept up to date through the night. He arrived at the Civil Defence headquarters in the Beehive basement just after 9am.
"This is very serious. People are a risk around the coast."
He said civil defence officials, police and the coastguard were working together.
"That's always a problem that there are some silly people who think that this is a bit of a laugh and will go down and just watch what happens. The chances are if they do and this is serious, it may be the last thing they do and we'd much rather people just stayed right away."
He said it was the first serious occurrence since the Samoa tsunami.
"These things seem to be occurring a bit more regularly now. People need to understand, they need to learn themselves about what they have to do to protect themselves."
Civil Defence officials were trying to warn people at events on the coast, such as a fishing contest and coastal farmers markets around the country, he said.
The first wave that reached the Chatham Islands measured 20cm, according to GNS Science, but authorities warn that succeeding waves could be higher. It was followed by a second wave measuring half-a-metre.
GNS Science staff said the waves had reached monitoring equipment off the coast of the Chathams and could slow have slowed down by 20 to 30 minutes.
The wave could be further slowed by the continental shelf.
The Civil Defence Emergency Management office has put a warning in place for the entire east coast of New Zealand and warn that a tsunami between one and three metres could be on its way after an 8.8 magnitude earthquake in Chile over night.
GNS Geonet project director Ken Gledhill said it was the fifth largest quake the world had seen since 1900.
Mr Gledhill said this morning that the wave that resulted from the quake first reached New Zealand Gledhill at 7.20am.
"Its built now to around 30cms high and it's likely to carry on building for the next few hours," he said.
"There's always big uncertainties and that's the biggest issue for Civil Defence.
When you tell them it might be between 1m and 3m at the beach, that's quite a wide range but it's the kind of uncertainty we have to deal with. Add to that uncertainties in timing where the first wave probably won't be the biggest one unless you're quite near the source.
"The message is - you probably don't have to go to the beach today. It's probably better if you don't," he said.
He said people wanting to see the wave would have to be "significantly above sea level" to be safe.
"The problem with these events are ... if you have two parts of the wave train that add together you can suddenly get a bigger wave. that's why it's probably easier to get a better idea when you are in the main beam of the event rather than on the side like we are," Mr Gledhill said.
He said for most of the country, the tsunami is a marine threat.
"That means if you go to the beach or on a small boat you could have an issue. We are still talking about less than a metre for most of New Zealand, but there's potential for the Chatham Islands and Banks Peninsula for something more than that (1m to 3m)," he said.
"One metre is not considered to be a destructive tsunami except if you're in the wrong place and it washes you out to sea. There'll be extra currents too. The currents will be crazy, probably for days.
"Apart from if you're unlucky and happen to be in one of these places where the wave gets amplified for some reason, it won't probably be too serious. That's our prediction at the moment. Hopefully it stays like that," Mr Gledhill said.
In Orewa, north of Auckland, many of the locals took the advice of authorities and stayed away. However a group of tourists were seen on the beach photographing their child.
Another woman was seen with a horse on the beach and was told to leave by a man on a motorbike.
Many other New Zealanders were going about their usual Sunday morning activities, blissfully unaware of the danger.
On Auckland's North Shore, people said they were unaware of the warning.
Police were at the Takapuna boat ramp, warning people not to go out on the water.
However, not all were heeding their advice and one couple launched their boat.
A man, who did not give his name to the Herald, said the warning did not worry him.
"I've heard every report from the last three hours. The safest place is on the water. We feel ok," the man said.
A waka ama event nearby has been cancelled. Paddlers from as far afield as the Solomon Islands had turned out for the event. Despite the cancellation, waka have headed out to sea.
Several other boaties who were about to head out were alarmed at the prospect of a metre-high wave hitting the east coast and were reconsidering their day on the water.
At Milford Beach two women who were about to set off on a walk along the coast to Takapuna and were apparently unperturbed about the warning.
"I've got my flippers," said one of the women.
At Whitianga a resident told NZPA that a warning siren had gone off, but residents didn't know what it was, so stayed put.
In Gisborne a voluntary evacuation was underway of residents at Midway and Waikanae beaches, but in Napier stall-holders were setting up their Sunday market on the foreshore.
They said they preferred to wait until they had heard what had happened in the Chathams before packing up and moving inland.
Meanwhile events around the country have been cancelled and the main railway line has been shut down in Kaikoura as a precaution.
KiwiRail spokesman Kevin Ramshaw said the line has been closed as a precaution.
He said the tranz-coastal train had left Christchurch but was aware of the tsunami warning and KiwiRail was monitoring the situation.
Mr Ramshaw said inter-island ferries have been diverted through the Tory Channel - a westerly route into the Marlborough Sounds and will be running late.
On the Chatham Islands, Catherine McKenzie is working at the Chatham Lodge, situated inland near the Henga Scenic Reserve.
About 40 locals have left their homes on the coast and gathered at the lodge to watch the news and listen to the radio.
"This is a safe place, a high place," Ms McKenzie said.
She said she was called by her boss at 3am and people began turning up two hours later.
The quake which has sparked the tsunami warnings hit 325 kilometres southwest of Santiago, at a depth of 35 kilometres at 3.34am local time (6.34pm NZT), the US Geological Survey reported.
A wave measuring 2.34 metres was recorded near Chile and Tsunami warnings were issued over a wide area in the Pacific.
- With NZPA
