NEW ZEALAND IMPOSES "STRICT CONSTRAINTS" ON

C O N F I D E N T I A L WELLINGTON 000605

SIPDIS

DEPT FOR EAP/ANP
NSC FOR GREEN, JONES

E.O. 12958: DECL: 07/15/2014
TAGS: PGOV PREL PINR NZ
SUBJECT: NEW ZEALAND IMPOSES "STRICT CONSTRAINTS" ON
DIPLOMATIC RELATIONSHIP WITH ISRAEL IN WAKE OF SPY SCANDAL

Classified By: DEPUTY CHIEF OF MISSION, DAVID R. BURNETT FOR REASONS 1.
5(B,D)


1. (U) In an escalating diplomatic row, two Israeli men were
sentenced July 14 by the High Court of New Zealand to six
months in jail on charges of trying to obtain a false New
Zealand passport. The GoNZ has not pursued allegations that
the men are agents of Israeli intelligence agency Mossad.
While Prime Minister Helen Clark would not confirm which
service employed the men, she noted "if one were to lay
espionage charges, one would have to be prepared to offer the
kind of evidence in court which our intelligence agencies
don't like coming forward to display. We have very strong
grounds for believing these are Israeli intelligence agents."
Israeli citizens Uriel Zoshe Kelman and Eli Cara were
sentenced to six months in jail, and ordered to each make a
NZ$50,000 (US35,000) donation to the Cerebral Palsy Society.
(Note: In attempting to procure a passport, they had procured
the birth certificate of a cerebral palsy sufferer.) The
light sentence reflected the fact that the two men were not
the principal actors in the plot, which was led by Israeli
Zev William Barkan, who has fled New Zealand and is still
wanted. Cara and Kelman pled guilty earlier this month to
three charges, including attempting to obtain a New Zealand
passport and participating in an organized crime group to
obtain a false passport, and faced a maximum sentence of five
years. The latter charge is a relatively new provision in
the New Zealand Crimes Act, designed to counter transnational
crime.

Fallout - "Strict Constraints"
--------------


2. (SBU) Prime Minister Helen Clark suspended high-level
contact with Israel and announced a range of diplomatic
sanctions, including placing Ministry of Foreign Affairs and
Trade (MFAT) officials under "strict constraints" in their
contact with Israelis. Clark justified her actions by
stating "the Israeli agents attempted to demean the integrity
of the New Zealand passport system. The Israeli Government
was asked for an explanation and an apology three months ago.
Neither has been received." Israeli Foreign Minister Silvan
Shalom responded via radio, saying "we are sorry about this
matter. It will be dealt with and all will be done to
restore Israel's long history of good relations with New
Zealand." Clark refused to accept this informal apology.
She has announced New Zealand will continue plans to require
Israeli officials to apply for visas, to postpone all Israeli
consultations this year, and to delay the agrement for a new
Israeli Ambassador, resident in Australia. Israel's
president, Moshe Katsov, was expected to visit New Zealand in
August, but the GoNZ will likely refuse his request.


3. (SBU) In a separate, but possibly related incident, a
Jewish cemetery in Wellington was vandalized July 15, and
headstones were desecrated. Clark immediately condemned the
attack.


4. (C) Comment: The GoNZ's public reaction is its strongest
diplomatic retaliation in 20 years ) since French spies
bombed the Rainbow Warrior in Auckland harbor in 1985.
Clark's limitations on diplomatic contact go further than the
GoNZ reaction in 1985, however, and it was reported that she
toughened the language of her response from that put forward
by MFAT. The GONZ has little to lose by such stringent
action, with limited contact and trade with Israel, and
possibly something to gain in the Arab world, as the GoNZ is
establishing an Embassy in Egypt and actively pursuing trade
with Arab states. With Israeli Government officials eager to
repair the relationship, and no time limit on the GoNZ's
restrictions, it is possible the issue may be resolved in six
months, when the Cara and Kelman have served their time, and
leave the country.
Swindells