only just resigned from the prime ministership. Despite the Labour Party's national conference rejecting the frigate project a year earlier, the purchase of two Anzacs, with the option to acquire two more, was approved by Prime Minister Geoffrey Palmer's cabinet on 4 September, then a majority of the Labour caucus on 7 September. From the government's perspective, the Anzac project was being seen as a litmus test of New Zealand's commitment to (among other things) relations with Australia and regional defence, particularly after the problems between New Zealand and the United States. Despite the government signing contracts for the purchase of two Anzacs in November 1989, the project continued to be a bone of contention in New Zealand politics, particularly after the Fourth Labour Government lost the 1990 election to the National Party, which formed the Fourth National Government. In 1992, Minister of Defence Warren Cooper began claiming in several arenas that exercising the option for two more frigates may not be necessary. Following the 1996 election, the National Party retained power, but only in coalition with the New Zealand First party, which opposed the purchase of additional frigates. Other options for replacing the two remaining Leanders were explored, but these were generally more expensive than purchasing the Anzacs. The US Clinton Administration partly discredited the option of a third Anzac by formally offering the RNZN two FFG-7s shorthulls of 15–17 years age, purportedly armed with SM1 Standard missiles and later 28 F-16s which it had refused to transfer to Pakistan. These offers were made partly because of US concern that Australia needed more regional defence support to conduct a more robust foreign and economic policy in SE Asia. However the F-16 offer, offered the NZ Cabinet an option and out and they took it, rather than be immensely unpopular in both Canberra and Washington by rejecting both. In the view of NZ PM Jenny Shipley the Australians had made a good offer, but it was not good enough and there were many alternative ship designs. Internal political opposition, particularly from New Zealand First, prevented the exercising of the contract option for two more ships before it lapsed on 10 November 1997, at which point the government was considering the purchase of a single frigate, outside the terms of the original contract. A year later, the idea was still being debated internally, although the proposal had been downgraded to buying