A/S HILL'S MEETINGS WITH PM CLARK AND FM PETERS

C O N F I D E N T I A L SECTION 01 OF 03 WELLINGTON 000286

SIPDIS

NOFORN
SIPDIS

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: PGOV PREL XB NZ
SUBJECT: A/S HILL'S MEETINGS WITH PM CLARK AND FM PETERS

REF: WELLINGTON 167

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


1. (C) Summary: During separate March 20 meetings with
Prime Minister Clark and Foreign Minister Peters in
Wellington, EAP Assistant Secretary Christopher R. Hill
encouraged the United States and New Zealand to work together
in areas such as the Pacific Islands and Afghanistan. Prime
Minister Clark shared her pessimism about the Philippines and
frustration with UN criticism on New Zealand's Foreshore
and Seabed legislation, and said she believes Russia should
not participate in the East Asian Summit unless the U.S.
does as well. Minister Peters said he welcomed the chance
for US-New Zealand cooperation in the Pacific, particularly
given China's negative role there. Peters hinted New
Zealand would soon announce an extension of its Provincial
Reconstruction Team in Afghanistan (they did so on April 10),
and said he hopes to visit Washington in early July. End
Summary.

--------------
Prime Minister Clark
--------------


2. (C) Ambassador Hill opened by conveying the Secretary's
greetings. PM Clark said she was glad to have had the
chance to meet with the Secretary on the margins of
President Bachelet's inauguration in Santiago. Discussing
the other part of her recent travels, PM Clark said she had
been discouraged to see the Philippines is much as it was
when she visited there nineteen years ago. She questioned
President Arroyo's claim of an attempted "rebellion," as
well as the quality of the country's judicial process. The
Philippines is, however, New Zealand's eighth largest
market, and as its population is doubling every 20 years so
will its food and drinks imports.


3. (C) A/S Hill said that soon after the alleged coup
attempt, he had met with Arroyo and told her Washington
would closely look at any crackdown. She lifted the state
of emergency soon after. At least Mindinao is looking like
a success, as a joint US-Philippines team should be able to
drive JI terrorists out of the Philippines.


4. (C) A/S Hill summarized the Secretary's recent meetings
in Australia, noting in particular her explanations
concerning the recent U.S.-India civilian nuclear agreement.
He
recognized that New Zealand might have questions, as do
Australia and Japan, about the agreement's implications for
the Non-Proliferation Treaty (NPT). Prime Minister Clark
acknowledged New Zealand has concerns, but said the
question is how best to draw India into disciplines they've
resisted until now. A/S Hill said that the negotiations
had been difficult. While it was a tough call, the U.S.
believes it is best to work on keeping India's nuclear energy
technology separate from its weapons program, and to
provide India with the safest energy technology available.
A/S Hill added that IAEA DG El Baradei supports the US-India
agreement.


5. (C) The Prime Minister said she appreciates U.S.
support (with Australia) for New Zealand's position on the
UN Draft Declaration on the Rights of Indigenous Peoples.
She disparaged the role of both the UN Human Rights regime
and the NGOs that had influenced it in writing the UN's
"silly" report on New Zealand's Foreshore and Seabed
Legislation. It's possible the creation of the new Human
Rights Council will bury the issue, she added hopefully.


6. (C) The Cartagena Protocol is another area in which we
are cooperating closely, Clark said, explaining that, unlike
the
United States and Australia, New Zealand had decided to
accede to the Protocol to prevent the EU from using it to

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initiate trade distorting restrictions. New Zealand's
position has not been popular with environmental NGOs, she
added, but Brazilian President Lula has been a close ally.


7. (C) PM Clark said while in Manila she had been
unsuccessful in eliciting the Philippine's goals as host of
both the ASEAN and East Asian Summits, and guessed this
might be because the GOP had not yet worked its strategy
out. She described ASEAN as being in "a bit of a corner"
about the EAS, and said it was not clear whether Russia was
invited or not. President Putin had not been pleased, she
said, to have been only allowed to stay for 20 minutes at
the first EAS. Clark said New Zealand believed it would be
hard to admit Russia without also admitting the United
States. She also said that ASEAN must drive the process.
However now that ASEAN has chosen to expand the EAS, China
seems to want to make it insignificant by pushing for the
doors to be opened as wide as possible. New Zealand is
watching all this very closely.


8. (C) A/S Hill said that it would be difficult for the
United States to participate in both the APEC and EAS summit
meetings. It might be better for us to consider EAS observer
status, he said. A/S Hill noted that the Secretary has
agreed to attend the ASEAN Post-ministerial meeting in KL
in July. Clark said that it was sometimes important to
follow form, even if relatively meaningless on the surface.
New Zealand had for this reason agreed to ratify the Treaty
of Amity and Cooperation, she said. It made no real
difference to
relations with ASEAN, but a failure to sign likely would
have. ASEAN is important, Clark said, and with 500 million
people and a large Muslim population it offers a strong
counter
to China and India. A/S Hill agreed, noting that there is
little understanding of ASEAN among Americans. When for
example the President meets with the seven ASEAN members of
APEC, the U.S. press mistakenly calls it a meeting with
ASEAN. PM Clark joked that it might be best to call the
seven "ASEAN minus three." She added that it was the
"minus three" who had most pushed for Russian participation
in the East Asian Summit.

--------------
Foreign Minister Peters
--------------


9. (C) Joking that the "Pacific" is inaccurately named,
Peters said the Solomons, Fiji, and PNG are all "points of
anxiety" for New Zealand. He said he is trying to get
Pacific Island leaders to understand that they need to look
after their entire countries and not just their families.
A/S Hill said the United States is looking for ways to help
the Pacific Islands, but our resources are limited. After
seeing how much work was needed to get a Millenium
Challenge compact for Vanuatu, with a population of two
hundred
thousand, the U.S. is now looking at regional programs as a
better means of assistance. A/S Hill said he had earlier
discussed with Ministry of Foreign Affairs and Trade (MFAT)
officials possible joint US-NZ work in the Islands (septel).
Peters agreed we'd get more mileage from working together,
including with China.


10. (C) The Chinese are working at cross purposes with
the U.S. and New Zealand in the Pacific Islands, said Hill:
they are after raw materials, not good governance.
Competition with Taiwan for regional diplomatic recognition
is another complicating factor. Peters agreed China is
playing a negative role. "They can make small nations
feel important," he said. He asked whether China is being
a helpful partner in the Six Party
Talks. A/S Hill said that he has been urging the Chinese
to lay down a strong line with the DPRK. So far, however,
they seem to believe friendly persuasion will work. It
won't, Hill concluded.


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11. (C) Peters said he hopes the United States and New
Zealand can do more together, adding he and the Ambassador
have established a good working relationship. A/S Hill
said that he and MFAT staff had agreed we should seek more
areas of cooperation, even given the parameters created by
New Zealand's anti-nuclear legislation. Afghanistan is
just one example. Peters said New Zealand is proud of its
Provincial Reconstruction team in Bamiyan, and he indicated
GNZ would soon announce the team's extension.


12. (C) Peters noted the irony of New Zealand's
anti-nuclear position, as the atom was first split by Kiwi
Sir Ernest Rutherford. A/S Hill said he understood New
Zealand's policy, but wondered if the country's energy
needs would eventually force a rethink. Peters said he was
closely following the efforts of the United States and
others to develop safe nuclear technology. "If you
succeed, the whole world will cheer," he said.
We must put the past behind us, said Peters, noting that
former Ambassador Swindell's call for a new dialogue "was
key to us." New Zealand does not want to export its
nuclear policy, and over time science may change New
Zealand's anti-nuclear views. For now, however, the policy
is a political reality.


13. (C) The Ambassador said the lack of Kiwi reporters in
Washington has a negative impact on the way U.S. issues are
covered in the New Zealand media. Peters agreed, adding
that the local press generally takes a "dog in the manger"
approach to reporting. There's no investment in high
quality journalists, he complained, and they are paid too
little.


14. (C) Peters said he hopes to visit the United States
around July 10. He and Ambassador Hill agreed both
countries' embassies would work together to ensure a
successful visit.

McCormick