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