FM PETERS CLAIMS BRASH LIED ABOUT U.S. SUPPORT AT

C O N F I D E N T I A L WELLINGTON 000380 SIPDIS NOFORN SIPDIS STATE FOR D (FRITZ),EAP/FO, AND EAP/ANP NSC FOR VICTOR CHA SECDEF FOR OSD/ISD LIZ PHU PACOM FOR JO1E/J2/J233/J5/SJFHQ E.O. 12958: DECL: 05/16/2016 TAGS: PREL PGOV SUBJECT: FM PETERS CLAIMS BRASH LIED ABOUT U.S. SUPPORT AT ELECTION TIME Classified By: Charge D'Affaires David R. Burnett, for reasons 1.4 (b) and (d) ¶1. (C) Summary: NZ First leader and Foreign Minister Winston Peters, cheered on by the Government, has created a furor by claiming leaked e-mails prove National Party leader Don Brash courted US support for his party's general election campaign. The National Party has countered that Peters and the Government are yet again stirring up anti-Americanism for short-term political gain. Peters and his office have told post that he did not mean to criticize the United States. The Ambassador has told Peters his remarks were very unhelpful. Regardless of intent, Peters' latest outbreak proves that it will be difficult for New Zealand politicians to wean themselves off the anti-American rhetoric of the past two decades. End Summary. What Peters claimed -------------- ¶2. (SBU) Last week, Peters told Parliament that during last year's general election campaign, Brash sent an e-mail to his colleagues asking whether National should employ two American strategists whom he meet at a lunch in New York. Peters claimed the e-mail proved Brash had misled the public when he last year dismissed Government allegations that rich Americans were funding National's election campaign and formulating its policies. ¶3. (SBU) Peters' attack proved a damp squib, as it soon became apparent that National had not hired the Americans in question. National foreign affairs spokesman Murray McCully also said that Peters' outburst proved that the Government is continuing its knee-jerk anti-Americanism. But Brash fumbled badly in his initial response to the allegations, raising fresh questions among many analysts about his suitability for the leadership job. Peters' office: "personal motive behind attacks". -------------- -- ¶4. (C) A senior member of Winston Peters' political staff, Damien Edwards (protect),told our political analyst that the Minister's attack was not directed at the United States, but was actually more of a personal vendetta. Peters believes that before the last general election, Brash ignored advice not to actively seek to dislodge Peters from his long-held constituent seat. Peters subsequently lost his seat to the National candidate and now holds Brash to be personally responsible for this. Edwards claims Peters' disclosure of the e-mail was only meant to prove that Brash had misled the public, and to thereby undermine Brash's credibility as party leader. Peters never meant his attack to be construed as anti-American. Despite rumors elsewhere that the idea for this attack on Brash may have come directly from the Prime Minister's office, Edwards was careful to emphasize that that there was no collusion between Labour and Peters on this matter. ¶5. (C) Edwards also claims there's a conspiracy within National, where a small but influential faction of senior National MPs are quietly working to replace Brash as leader with former leader Bill English. Brash and John Key have agreed to a smooth handover of the leadership at a later date, says Edwards, and the pro-English faction is aware of this arrangement and is keen to prevent it. Edwards also claims that the mystery source of the leaked e-mails is someone within Brash's inner circle. He said this person, whose name he did not reveal, could not have acted without the knowledge of a senior National MP. National MP fears subsequent effect on party... -------------- -- ¶6. (C) Meanwhile, National MP and Shadow Attorney General Chris Finlayson (protect) told our political analyst that Brash's failure to effectively counter Peters' allegation has been damaging to his party. Yet, despite this, Finlayson says the mood within the party caucus is not especially downbeat. He also claims the leaked e-mails were not an inside job, but rather extracted from Brash's laptop when it was being professionally serviced. ...while Diplomats fear effect on US-NZ Relations -------------- -------------- ¶7. (C) But while Peters' NZ First staff may not have realized the potential damage to US-NZ ties, the diplomats under his leadership were more savvy. Simon Murdoch, CEO at the Ministry of Foreign Affairs and Trade (MFAT),called in the DCM to apologize for the remarks, and assured him the Minister had been made aware they were unwise. Peters also told the Ambassador during a private meeting that he had not meant his remarks to be anti-American. ¶8. (C) The Embassy has kept a low profile over the incident, with the Ambassador telling the media that we don't get involved in local politics. Most letters to the papers were highly critical of Peters and skeptical of his and the Government's motives. One paper ran an editorial agreeing with the Ambassador's observation that although untrue, such allegations could cause a stain on New Zealanders' perceptions of the United States. The Ambassador also told Peters during their meeting that regardless of the motives, negative remarks and baseless allegations are noticed in Washington. Comment -------------- ¶9. (C) We're somewhat skeptical about Edwards' accounting of the leak. Although we consider him fairly reliable, the fact is that Peters is traditionally taciturn about disclosing the true intent of his political strategy to anyone. Nor does it seem logical to us that a New Zealand First insider would be plugged in to the National Party's leadership debates. ¶10. (C) National's Finlayson is better placed to gauge sentiment within his party. However, as a new entrant to parliament the MP may not be privy to all of the maneuverings within what is a historically a factionalized political party. ¶11. (C) Peters will always be Peters: interested largely in his own affairs. But this incident proves yet again that politicians in all parties have grown used to making hay over the remaining strains in the US-NZ relationship. It's proving to be a hard habit to break, even among those who profess they want to see an improvement. McCormick McCormick