The recent case of Victoria 2 is a test of the assertion by some in the Australian political and media establishment that Australia’s “hegemony” over New Zealand is threatened. The two countries are not formally allies, but they share a close relationship based on trade and cultural ties. New Zealand has long been critical of Australia’s military spending, while Australia has been critical of New Zealand’s pacifism. The two countries have also had a number of tense encounters, most notably in 2009 when an Australian navy vessel sailed into New Zealand waters without permission and then insulted the country’s sovereignty. In response, New Zealand announced it would begin to build a fence along its border with Australia. The latest incident began on July 15 when an Australian navy vessel sailed into New Zealand waters without permission and then insulted the country’s sovereignty. In response, New Zealand announced it would begin to build a fence along its border with Australia. The Australian government has said that it will not apologize for the incident and that it is only seeking to protect its own interests in the region. New Zealander Prime Minister John Key said that he was “disappointed” with the Australian government’s response and called for an apology from Canberra. He also said that he would not allow Australia to become “a bully” in the region. Australian Foreign Minister Julie Bishop said that she was “disappointed” with Key’s response but added that she was open to talks about how best to improve relations between the two countries.