Peters overshadowed by Bush at Apec

The arrival of Apec foreign and trade ministers in Sydney overnight was overshadowed by the dramatic entrance of United States President George Bush shortly after his surprise visit to Iraq.

Foreign Minister Winston Peters and Trade Minister Phil Goff got their first taste of a security-conscious Sydney just hours before the arrival of President Bush's party resulted in more street closures and more grumbling from disgruntled locals who are not happy with their hosting of the Asia Pacific Economic Co-operation forum.

Mr Bush was accompanied by his Secretary of State Condoleezza Rice who Mr Peters will meet this evening for one-on-one talks.

New Zealand officials expect Mr Peters to get a briefing from Dr Rice on the situation in Iraq just as the issue plays heavily on the mind of the Bush administration.

Mr Bush arrived earlier than initially planned as he faces a torrid time next week with his military commander in Iraq, General David Petraeus, and US ambassador to Iraq Ryan Crocker, reporting on progress in Iraq to the US Congress.

The president faces mounting pressure on the homefront to withdraw the troops, but used his visit to Iraq to bolster his argument for an ongoing presence even if it was reduced.

Mr Bush will get a number of reminders this week that many Australians are unhappy about the war, with a large protest planned for Saturday.

Last night around 200 people attended a rally against the war and the presence of Australian troops in Iraq, but it was a peaceful affair in drizzly, cool conditions.

Security officials and protest organisers have been engaged in a war of words over the past week with neither backing down from the prospect of violent confrontation.

Behind the barricades Mr Peters and Mr Goff are currently involved in tense negotiations to draft a joint statement for their leaders on a wide range of policy.

Reports from officials is that initial talks have done little to bridge large differences on climate change policy.

Australia has been pressing for a statement agreeing to non-binding targets to cut emissions by up to 25 percent, but negotiators are reportedly making heavy weather of the talks.

New Zealand and other countries that have signed the Kyoto Protocol want countries to commit to specific targets as reflected in that agreement.

Developing countries are also unhappy with Australia's approach, with both Malaysia and China saying it is trying to hijack the protocol.

Mr Goff is more likely to get support for New Zealand's desire for a commitment to kickstart the stalled World Trade Organisation talks, but whether this will make any difference to the process is a matter of debate.

Prime Minister Helen Clark leaves for Australia on Friday ahead of the leaders' summit on Saturday and Sunday.

Apec members are Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, South Korea, Taiwan (under the name Chinese Taipei), Thailand, United States and Vietnam.