It`s a relaxing morning for a surf at Bondi Beach for 33-year-old Nic Clyde. Nothing here betrays the huge stress he`s been under for the past five months. He`s spent a week in an American prison, been labelled a terrorist and now faces the prospect of a further six years in jail.

NIC CLYDE, GREENPEACE ACTIVIST: I`m not sure what my expectations were, but I certainly didn`t think that I would end up in a maximum security cell as a peaceful protester in a democracy like the US.

On July 14th last year, Nic and 14 other activists held a protest at the Vandenberg Military Base off the coast of California. The group was demonstrating against the national missile defence project or `Star Wars`, as it is known.

NIC CLYDE (On megaphone): This is Greenpeace, we would just like to inform you that we have three inflatables in the water off the Vandenberg Air Force Base and our intention this afternoon is to peacefully bear witness to the missile test today, over.

The National Missile Defence Program is a key campaign for Greenpeace. It`s also a key plank of George W. Bush`s presidency. Bush says the creation of a huge missile shield is necessary to protect America against rogue states and terrorists. Critics like Greenpeace say it will pave the way for a new nuclear arms race and undo decades of non-proliferation efforts. The Greenpeace activists succeeded in delaying the launch of the missile by 40 minutes. When they returned to the docks, they were arrested. This was no longer a routine action.

NIC CLYDE: For some reason I ended up in a maximum security cell for a week. I was woken up at 3:30 in the morning for breakfast, confined in a space with five other guys, 24 hours a day. You`re only allowed out twice per week for exercise. It`s really not a pleasant place to be at all.

The length of their incarceration was unusual. But no-one was prepared for the next surprise - for the first time ever for a protest of this kind felony charges were laid.

MIKE TOWNSLEY, GREENPEACE INTERNATIONAL: We were astonished that a non-violent peaceful protest, something that has happened at Vandenberg year in, year out, would attract a double felony. I mean it`s just an extraordinary example of overcharging. The US attorney`s office says it laid felony charges because they entered a safety zone. However, this kind of activism usually attracts the lesser charge of a misdemeanour.

JAMES LAFFREDY, NATIONAL LAWYERS` GUILD: We`ve seen a marked increase in the severity in which the government deals with any kind of protest in this country in the last couple of years. Everything from the use of double bullets on peaceful demonstrators to other forms of force, to overcharging those who have perhaps committed some misdemeanour violation in the course of their protest activity, instead being charged with felonies.

It`s a few days after Christmas and Nic Clyde is returning to the United States to face trial. Also facing charges for the same protest is Tasmanian Stuart Lennox. As they leave for the airport, Nic and Stuart don`t know when they will be returning. A felony charge can attract six years in jail. Their trial has already been delayed once because of concerns they wouldn`t get a fair hearing post-September 11. Indeed, at one stage early on in the case, the FBI referred to the group as `domestic terrorists`. At the airport, Stuart and Nic are checking in when Stuart receives a call with some unwelcome news. The prosecution has successfully introduced what is called a motion in limina into the trial. A relatively common legal procedure in the States, it means Greenpeace is forbidden from presenting moral or political arguments as a defence for its actions.

MIKE TOWNSLEY: I think it would have been hugely frustrating for us because it would have been a relatively simple discussion of were we there? Where were we? Not why we were there. We had a whole defence built up that would demonstrate that the `Star Wars` test was actually a breach of US law and international law under the Anti-Ballistic Missile treaty and we would have been prevented from discussing that in court.

With this knowledge, Nic and Stuart head to Los Angeles to join the other defendants and the substantial legal team Greenpeace has provided. Nic and Stuart leave expecting a lengthy trial, but a week later - the day before the case is to be heard - Greenpeace lawyers receive a call from the Prosecution.

MIKE TOWNSLEY: The Prosecution came to us at the 11th hour with a suggestion of a deal. It had always been our desire to remove the double felony. You`ve got to understand that two felonies in the USA for the US activists is a very serious thing. It would mark them out for life, in terms of getting jobs, in terms of being able to vote, in terms of being able to take out loans, and the other issue, of course, is that many states operate a "three strikes and you`re out" policy. So if any of those people had got another felony for any reason, they would go to jail for 25 years. This is too high a price to pay for what was a simple, peaceful, non-violent protest.

The following morning, the judge approved the deal. The felony charges were dropped and the group pleaded guilty to the lesser charge of a misdemeanour. But this result comes at a price. As well as paying damages of US$150,000, Greenpeace USA agreed to an injunction. This injunction prevents them holding any illegal protests against a National Missile Defence Program for the next five years. This applies to bases on US soil and in the Marshall Islands.

MIKE TOWNSLEY: I think we had to be realistic in the end, that given the motion in limina and the way things were going in terms of the court case, we were in a difficult position challenging these double felonies. Given the post-September 11 psyche with any potential jury, we were in a difficult place. There was very little for us to gain out of going to court on this issue.

JAMES LAFFREDY: I`ve always been a fan, if you will, of Greenpeace, but I was really disheartened and I`m frankly disgusted with the deal they made. I`m ashamed of them. I can`t imagine why they would do such a thing. As I say, if you are going to engage in acts of civil disobedience, you don`t have to do that. But if that is what you are going to do, then you ought to be prepared to pay the consequences, you ought not to let the government chill your right to do that, or your ability to do that by overcharging you. You ought not to buckle under that pressure. Had King buckled under the pressure in the south, we would haven`t the kind of civil rights movement that we have. If Ghandi had buckled under that pressure of the British government, India would probably still be under the rule of Britannia.

MIKE TOWNSLEY: Oh, I think it`s just silly. Greenpeace hasn`t sold anything out. Like I say, we`ve struck these kind of deals before. It hasn`t stopped us campaigning around the world. This was a realistic decision, taken at a particular moment in time. You`ve got to remember - this injunction covers Greenpeace USA. We have 32 offices, 32 different nationalities. We have people all over the world. So this is not the end of our campaign.

The Lawyers Guild, though, thinks the decision to cut a deal will set a precedence and have widespread consequences for all protest movements in America.

JAMES LAFFREDY: So I think this will have a chilling effect on the movement. I think it`s going to encourage the government to engage in further acts of overcharging whenever there is a protest in this country, because they will think other groups, like Greenpeace, will cave in under the pressure of those more severe charges being brought even when severe charges were brought inappropriately.

Sentencing on the misdemeanour charges will begin later this week. The maximum term for this charge is six months. Late today the Prosecution said it will not be seeking jail terms for Nic Clyde and Stuart Lennox. But in a decision that shocked Greenpeace lawyers, the Prosecution is seeking sentences for eight other protesters who took part in the action.