According to Maori oral history, Maori arrived on the islands about 1,000 years ago.

European settlement in New Zealand during the 19th century led to the Treaty of Waitangi (1840) between representatives of the British Crown and Maori chiefs.

OVERVIEW

The pact formed the basis of the British annexation of New Zealand, but conflicting land claims gave rise to the "New Zealand Wars". The government has paid compensation but the land issue remains controversial.

New Zealand's economy is based largely on agriculture, but manufacturing is of growing importance and the country has a fledgling film industry. In 1984 the government embarked on a major and controversial economic reform programme, which lifted controls on wages, prices and interest rates and removed agricultural subsidies.

Since the UK's closer involvement in Europe, New Zealand has developed new markets closer to home, notably in Australia, the US and Japan.

 Tourism is on the rise; visitors are drawn to the glacier-carved mountains, lakes, beaches and thermal springs.

 A significant proportion of New Zealand's electricity is generated by hydropower sources and the country has a range of renewable energy sources at its disposal.

 New Zealand plays an active role in Pacific affairs. It sent troops to East Timor when violence broke out in the territory in 1999 and contributed troops to a multinational force intended to restore order to the Solomon Islands in 2003.

 Migration patterns have changed in recent years, with most incomers coming from Asia and Pacific island states, rather than from the UK and Australia. Officials estimate that Asians will make up 13% of the population by 2021.

FACTS

• Population: 4 million (Statistics New Zealand, 2004)
• Capital: Wellington
• Area: 270,534 sq km (104,454 sq miles)
• Major languages: English, Maori
• Major religion: Christianity
• Life expectancy: 76 years (men), 81 years (women) (UN)
• Monetary unit: 1 New Zealand dollar ($NZ) = 100 cents
• Main exports: Wool, food and dairy products, wood and paper products
• GNI per capita: US $15,870 (World Bank, 2003)
• Internet domain: .nz
• International dialling code: +64

LEADERS

Head of state: Queen Elizabeth II, represented by Governor-General Dame Silvia Cartwright

Prime minister: Helen Clark

Ms Clark is a former political scientist who figured prominently in the Labour administration of the mid-1980s which ushered in free-market economics to New Zealand. In 1989, she became New Zealand's first woman deputy prime minister.

 Political commentators say Ms Clark worked hard on her image and presentation ahead of the 1999 general election that brought her to power. Her government has overseen a number of groundbreaking measures, including a decision to legalise prostitution.

Plans to nationalise the country's beaches and sea bed ignited a passionate debate about indigenous ancestral rights.

Ms Clark's government opposed the invasion of Iraq in 2003, raising tensions with the US, one of New Zealand's main trading partners. Helen Clark was born into a farming family in 1950.

 As a teenager she protested against the Vietnam War and campaigned against foreign military bases in New Zealand. Ms Clark's interests include social policy and international affairs, and she enjoys opera, reading fiction, and trekking.

Deputy prime minister, finance minister: Michael Cullen Foreign minister: Phil Goff

MEDIA

New Zealand's broadcasters enjoy one of the world's most liberal media arenas. The broadcast sector was deregulated in 1988, when the government allowed competition to the state broadcaster, Television New Zealand.

Ruia Mai became the country's first Maori-owned, Maori language radio station when it launched in 1996. The New Zealand Herald newspaper has the biggest circulation.

The press

• New Zealand Herald - Auckland-based daily
• Dominion-Post - Wellington-based daily
• The Press - Christchurch-based daily
• The Sunday Star Times - Auckland-based weekly

Television

• Television New Zealand (TVNZ) - state-owned, operates TV One and entertainment-based TV 2
• TV 3 - private network
• Prime TV - private network
• Sky TV - pay-TV operator
• Maori Television - public

Radio

• Radio New Zealand - public broadcaster, runs three radio networks: National Radio, Concert FM and the AM Network
• Radio New Zealand International - external service, broadcasting to South Pacific region via shortwave
• Niu FM - national government-funded station for New Zealand's Pacific islander communities
•  Ruia Mai - Maori-owned, Maori-language broadcaster
• Radio Works - radio group, stations include speech-based Radio Pacific
• Radio Network - radio group, stations include Newstalk ZB
• The Edge - pop music
• Radio Hauraki - ex-pirate station, rock music
• RBG - Rhema Broadcasting Group - operates Christian stations Rhema Radio, Southern Star Network and Life FM
• Association of Community Access Broadcasters - non-commercial chain of broadcasters

News agency

New Zealand Press Association