A dispute has erupted between the family of Charles Upham and the Government over the price the taxpayer was asked to pay for the war hero's Victoria Cross and bar.
Defence Minister Phil Goff yesterday said the Government did not think it was appropriate for the public to pay the $3.3 million the family had asked.
However, one of Captain Upham's daughters, Virginia Mackenzie, responded: "I can categorically say I did not ask for $3.3 million from the New Zealand Government."
Captain Upham is one of just three people to win two Victoria Crosses. After the Herald revealed that the family was seeking to sell his decorations, an overseas bidder offered $1.1 million - a sum which would shatter the world record for a set of medals.
Ms Mackenzie said the family had received many offers both before and after her father's death. In 1984 Captain Upham turned down an offer of US$1 million to leave his medals to a collector in his will. That offer would equate to NZ$8 million or $9 million today, Ms Mackenzie said.
A spokesman for Mr Goff said the family had told the Government they had received an offer of $3.3 million for the medals more than a year ago. The family then contacted the Government, and asked a price of $3.3 million net for the medals.
"That was conveyed to us in an email, and it was suggested the Government should buy the medals in party with an offshore foundation."
Ms Mackenzie said the Government's confirmation of the involvement of the overseas foundation showed the New Zealand public had not been asked to spend $3.3 million to buy the medals.
She did not wish to comment further as the negotiations with the Government had been confidential. Neither she nor Mr Goff would identify the overseas foundation.
Mr Goff said that while the decision whether to sell was the family's, it would be hugely disappointing if the medals, which are on loan to the Army Museum in Waiouru, were removed from public access.
He said it would be unfair to pay for the Upham medals, as 19 other families had given or lent Victoria Crosses to New Zealand museums, seeking nothing in return.
"Their generosity and public spirited-ness has made those medals accessible to the public and allows the bravery of the medal-holders to be remembered and honoured by all New Zealanders for generations to come."
Mr Goff also doubted whether Captain Upham - who died in 1994 - would have wanted the medals to be sold.
"Upham consistently stated that the credit for his VCs was not simply his, but shared with the men whom he led. At the end of the war he turned down a gift of £10,000 offered by the Canterbury province, which would have helped him buy a farm.
"In a letter to the Mayor of Christchurch, he said: 'The military honours bestowed upon me are the property of the men of my unit as well as myself, and were obtained at considerable cost of the blood of this country. Under no circumstances could I consent to any material gain for myself for my services'."
Any overseas sale of the medals would probably require Government approval.
Such valuable pieces of military memorabilia are likely to fall under the Antiquities Act, which allows the Government to bar the export of historically, culturally or scientifically significant items.
Upham's daughter denies asking taxpayer for $3.3m
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