S E C R E T WELLINGTON 000284

SIPDIS

SIPDIS NOFORN

C O R R E C T E D COPY CLASSIFICATIONB

STATE FOR D (FRITZ), EAP/FO, AND EAP/ANP
NSC FOR VICTOR CHA
SECDEF FOR OSD/ISA LIZ PHU
PACOM FOR JO1E/J2/J233/J5/SJFHQ

E.O. 12958: DECL: 04/13/2016
TAGS: PREL PGOV XB NZ
SUBJECT: A/S HILL'S MEETINGS WITH NEW ZEALAND OFFICIALS

Classified By: Acting DCM Katherine Hadda,
for reasons 1.4 (b) and (d)


1. (C) Summary: During his March 19-20 visit to Wellington
and Auckland, Assistant Secretary of State for East Asian and
Pacific Affairs Christopher R. Hill met with GNZ officials
from foreign affairs, defense, law enforcement, and
intelligence agencies. All agreed that the United States and
New Zealand should explore new areas for cooperation, notably



in the Pacific Islands. The Ministry of Foreign Affairs and
Trade's (MFAT) CEO told A/S Hill that he was personally
working to encourage an improved tone in New Zealand's public
discourse on bilateral relations, especially at the political
level. A/S Hill praised New Zealand's contributions in
Afghanistan and the South Pacific. He emphasized in both his
meetings and follow-up press events that the U.S. would use
economic -- not political -- criteria to decide whether to
pursue an FTA with New Zealand. Local media coverage of A/S
Hill's visit has been factual and up-beat. NZ officials have
also told us how much they valued this first purely bilateral
visit by an EAP Assistant Secretary in twelve years. END
SUMMARY.


2. (C) A/S Hill met first with Ministry of Foreign Affairs
and Trade (MFAT) CEO Simon Murdoch and Deputy Secretary John
McKinnon, who were then joined by other MFAT officials
covering Pacific Islands, security, counterterrorism and
bilateral issues. Ambassador Hill also participated in a
working lunch with NZ defense, law enforcement, and
intelligence officials. The following are the key issues



covered in the meetings:

--------------
Bilateral Relations/FTA
--------------


3. (C) A/S Hill said he was trying to bring positive energy
into US-NZ bilateral relations in recognition of our joint

work in many areas. He said that there was a lot that both
sides could cooperate on within existing policy constraints.
Murdoch agreed, acknowledging that the country's anti-nuclear
ban is an emotional touchstone in New Zealand politics
despite the country's looming energy shortages. Murdoch said
he believed the two sides should talk more, look for areas of
policy alignment, and work together in areas not constrained
by the anti-nuclear issue. We should for example continue to
cooperate under PSI exercises if it makes sense to do so.
Murdoch said that he and others and MFAT are personally
committed to improving the tone of New Zealand's public
statements about the United States, especially at the
political level. He said that to avoid anti-Americanism



being "the flavor of the month," organizations such as the
US-New Zealand Council will have to step into the breach.
The April 21 US-NZ Partnership Forum will also be very
helpful. A/S Hill said he recognized New Zealand remained
interested in a bilateral FTA, and said that U.S. officials
would use economic criteria only to decide whether and when
to seek an agreement.

--------------
Pacific Islands
--------------


4. (C) A/S Hill told his NZ counterparts that the United
States recognizes the importance of the Pacific Islands. Our
problem is limited resources. A recent Millienium Challenge
compact for Vanuatu, for example, took huge amounts of
paperwork despite the 200,000 person population. US
officials are now looking at regional initiatives, and are
interested in cooperating with Australia and New Zealand.
A/S Hill suggested it could be helpful for all three
countries to coordinate on a game plan for the Pacific



Islands Forum.


5. (C) MFAT Deputy Secretary Alan Williams said that New
Zealand considers relations with the Pacific as a domestic as
well as foreign issue, as many Pacific Islanders live here
and events in their home countries resonate. For this
reason, New Zealand is looking strategically at its planning
for the region, taking a whole of government approach among
17 GNZ agencies. New Zealand is trying sector-wide programs
of assistance, for example on Papua New Guinea health care.
This involves setting strategies with governments and holding
them to benchmarks. GNZ also cooperates closely with
Australia, meeting every six months on Pacific issues.
Agencies of one country at times carry out the programs for
the other. Williams said that both the EU and Japan are
reviewing assistance to the region. Williams and Heather



Riddell, Director of MFAT's Pacific Islands Division, agreed
that the Post Forum Dialogue is a weak way to work with the
Pacific Islands.


6. (C) Dell Higgie, New Zealand's Ambassador for
Counterterrorism (and Director of MFAT's Security Division),
summarized New Zealand's efforts to ensure Pacific Island
nations are fulfilling counter-terrorism obligations. NZ's
Pacific Island Security Fund provides equipment for airport
and port security, for example. New Zealand is emphasizing
that CT measures will help protect Pacific Island countries
from transnational crime as well. GNZ has started a
counterterrorism working group that includes both policy and
law enforcement officials from the region. The aim is to
engender a sense of community on these issues. Higgie said
that in April, the UNSC CT chair would be speaking to the
group in Auckland. The United States has been invited, but
has not yet responded.


7. (C) Higgie also said that if the United States were
looking to increase international support for the



Proliferation Security Initiative, it could be useful to get
Pacific Island countries to affirm the initiative's
principles. New Zealand is very willing to help in this
effort.


8. (C) Acting Police Commissioner Steve Long told A/S Hill
that the NZ police have 35 staff in the Solomon Islands, to
help restore a credible police force there. They also have
others scattered around the Pacific Island States. Long
noted the difficulty of anti-corruption work and solving
political murders in the Solomon Islands. Even if the police
force is clean and effective, if the courts are tainted or
can be intimidated, police rebuilding efforts are undermined.
Martin Wevers, CEO of the Prime Minister's office, said that
PM Clark had called on senior judges in Port Moresby before
the Pacific Islands Forum meetings, just to underscore NZ
support for a strong judiciary in PNG, which is facing
similar problems to the Solomons. NZ Defence Force Commander
Bruce Ferguson said the NZDF protects the perimeter of all
prisons in the Solomon Islands, to keep convicted criminals
from being released by fellow tribesmen or collaborators.




--------------
China in the Pacific
--------------


9. (C) Many Kiwi interlocutors, including Foreign Minister
Winston Peters (septel) expressed concern over China's often
negative role in the Pacific Islands. Peters is trying to
encourage a collective Pacific Island voice to counter the
PRC. New Zealand was not happy with China's intragigence
over Taiwan's participation in the recent fisheries
conference held in Wellington, which led to Taiwan leaving
the meeting. Deputy Secretary McKinnon said that GNZ would
also discuss its concerns with Premier Wen when he visits New
Zealand next month.

--------------
Counter-terrorism/Intelligence
--------------


10. (C) Customs CEO Martyn Dunne, a veteran of SAS



deployments to OEF and of the Solomon Islands deployment,
talked about transborder challenges in the region, and the
post 9/11 shift in customs from facilitation of trade and
travel to security. He said this shift had doubled the size
of NZ Customs over the past two years, mainly in response to
U.S. Customs and Border Patrol requirements. He said NZ was
the only country whose customs officials do their own
container shipping inspections to meet U.S. security
requirements. He characterized the customs relationship as
"superb." Assistant U.S. Commissioner Keith Thompson had
been in Wellington the previous week, and was full of praise
for NZ's work on capacity building in the Pacific Island
states.


11. (S) NZ Security Intelligence Service Director Richard
Wood and Warren Tucker, Director of the Government
Communications Security Bureau, both expressed gratitude for
U.S. intelligence sharing. Because Australia's service was
refocused after the Bali bombings, NZ has been asked to take
on more training and support activity in Fiji, Tonga, PNG,
the Cook Islands and the Solomon Islands.
McCormick