David Barber in Wellington – Nobel Peace Prize winner Jose Ramos Horta and East Timor independence campaigners stormed out of New Zealand yesterday, leaving Foreign Minister Don McKinnon wondering: "What did I say?"

Mr Horta left, vowing he would not to return until the Government changed its policy towards the former Portuguese colony, now absorbed into Indonesia.

"New Zealand should drop dead. I will not set foot here again," he said, dubbing a press statement by Mr McKinnon on their talks "as utterly hypocritical, dishonest and misleading".

His attack stunned Mr McKinnon who had moved to assure local East Timor independence campaigners that New Zealand no longer saw Indonesia's occupation as irreversible. Recently, Mr McKinnon wrote to the local East Timor Independence Committee saying the Government supported the objectives of United Nations-backed talks aimed at finding a "just, comprehensive and internationally accepted settlement".

Mr Horta initially commended the minister for maintaining discreet but firm diplomatic pressure on Indonesia.

But later he appeared incensed at Mr McKinnon's reference to encouraging "reconciliation among the East Timorese factions". "I take offence at that," he said. "It's a myth that East Timorese seeking freedom from Indonesia are divided.

"The problem is the political and security situation. There are 20,000 to 30,000 Indonesian troops there and the arrests and torture are getting worse."

New Zealand should drop dead. I will not set foot here again