This record is a partial extract of the original cable. The full text of the original cable is not available.

S E C R E T SECTION 01 OF 02 WELLINGTON 000997 
 
SIPDIS 
 
DEPT FOR EAP/ANP, INR/EAP 
NSC FOR GREEN, JONES 
 
E.O. 12958: DECL: 11/30/2014 
TAGS: PGOV PREL PHUM NZ
SUBJECT: NEW ZEALAND SPY "SCANDAL" - SECURITY INTELLIGENCE 
SERVICE UNDER INVESTIGATION 
 
Classified By: DEPUTY CHIEF OF MISSION DAVID R. BURNETT, 
 FOR REASONS 1.4(B,D) 
 
¶1. (S) Summary: Prime Minister Helen Clark has assented to a 
request by the Inspector-General of Security to conduct an 
investigation into allegations reported by the New Zealand 
media that New Zealand's Security Intelligence Service (SIS) 
has been spying on members of the newly formed Maori Party. 
The reports were attributed to anonymous whistleblowers in 
the New Zealand Security Intelligence Service, at least one 
of whom has since been identified as unaffiliated with the 
SIS.  The alleged spying ("Operation Leaf") supposedly 
gathered political intelligence on Maori through wiretaps and 
computer hacking.  Embassy Wellington RMAS dismisses the 
allegations; SIS contacts insist such domestic monitoring was 
discontinued a decade ago.  Some monitoring of Maori criminal 
groups may continue, but is conducted exclusively by the 
police service.  PM Clark has vehemently denied the 
allegations and thus far avoided political fallout, but has 
allowed an investigation by an independent supervisory body 
to proceed.  End summary. 
 
Legitimacy Of Media Sources Questioned 
-------------------------------------- 
 
¶2. (U) Since November 21, New Zealand media have been 
reporting allegations that New Zealand's Security 
Intelligence Service (SIS) has been spying on members of the 
newly formed Maori Party.  Three dissident "SIS operatives" 
have claimed to local media that they had been assigned to 
monitor domestic Maori groups in New Zealand in order to get 
intelligence on tribal divisions, finances, and treaty claims 
and in general to get "dirt" on those targeted.  The PM 
called these claims a "work of fiction" and challenged the 
three spies to make their complaints through proper channels 
if they were to be considered credible.  One of the "spies" 
has been identified - New Zealand citizen Jack Sanders (aka 
James Thomas Stubbs).  Sanders has been described by a NZ 
Police spokesman as a subject of interest by the Police for 
"dubious activities" in Asia. 
 
¶3. (U) While PM Clark, who is also Minister for the SIS, has 
vehemently denied the allegations, she has assented to a 
request by the Inspector-General of Security, Justice Paul 
Neazor, to conduct an investigation.  This assent may be 
linked to a letter of complaint from political rival and 
Maori Party co-founder Tariana Turia to Neazor.  Turia told 
the press that her phone was bugged while she was leaving the 
Labour Party, although she also admitted that a private 
security firm she hired at that time told her it was unlikely 
SIS was involved. Turia also spoke with SIS head Richard 
Woods and stated that she has accepted his assurances her 
Maori Party was not a target. 
 
¶4. (S) Post's RMAS spoke with SIS contacts, who stated that 
the press claims are not credible.  They further stated that 
the SIS had monitored Maori groups in the past when they were 
considered a possible national security risk, but stopped 
doing so at least 10 years ago.  In fact, when the RMAS asked 
SIS last year if they were looking at Maori groups in the 
wake of press reports that some Maori were embracing radical 
Islam, SIS said no, as they thought the police were doing an 
adequate monitoring job. 
 
SIS Background 
-------------- 
 
¶5. (S) The SIS is one of four key elements in the GoNZ's 
security structure, which also includes the Government 
Communications Security Bureau (GCSB), the NZ Police and the 
NZ Defence Force's special forces.  These organs are 
coordinated by the Domestic and External Security Committee, 
based in the Department of PM and Cabinet.  The SIS is akin 
to both our FBI and CIA and spends about 90 percent of its 
resources on domestic security issues.  (It was authorized to 
conduct overseas operations in 1996.)  Its focus is on 
internal issues involving counter-terrorism (CT), 
counter-proliferation, counterespionage and organized crime, 
and it is just completing a restructuring plan in preparation 
for requesting more CT funding.  Neazor's investigation will 
be the first into NZ's counter-intelligence services since 
the 1996 reforms. 
 
Comment 
------- 
 
¶6. (C) The initial newspaper article, written by strong 
anti-Western columnist Nicky Hager, exploited public 
stereotypes with its allegations of a security apparatus 
running roughshod over civil liberties and with its overtones 
of racial profiling ) targeting law-abiding Maori.  However, 
Clark's decision to allow an inquiry should effectively stem 
any political fallout for her Labour Government, especially 
as further press reporting continues to undercut the media's 
initial claims. 
Swindells