VZCZCXYZ0000
RR RUEHWEB

DE RUEHWL #0157/01 0590406
ZNY CCCCC ZZH
R 280406Z FEB 06
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC 2451
INFO RUEHNO/USMISSION USNATO 0037
RHEHAAA/NATIONAL SECURITY COUNCIL WASHDC
RUCNDT/USMISSION USUN NEW YORK 0040
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHINGTON DC
RHHJJAA/JICPAC HONOLULU HI
RHHMUNA/CDR USPACOM HONOLULU HI

C O N F I D E N T I A L WELLINGTON 000157 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/ANP - DAN RICCI; D - FRITZ 
DOD/OSD FOR LIZ PHU 
PACOM FOR J01E/J2/J233/J5/SJFHQ 
NSC FOR VICTOR CHA 
 
E.O. 12958: DECL: 02/28/2016 
TAGS: PREL PGOV NZ
SUBJECT: EAP/ANP DIRECTOR KRAWITZ'S FEBRUARY MEETINGS IN 
NEW ZEALAND 
 
Classified By: POL/ECON COUNSELOR KATHERINE B. HADDA 
FOR REASONS 1.4 B AND D 
 
 ¶1.  (C) Summary:  Discussions during ANP Director Krawitz's 
February 8-11 visit to New Zealand addressed PRC activities 
in the Pacific, Pacific Island issues, regional stability, 
counter-terrorism, Antarctica, U.S.-New Zealand relations, 
bilateral military ties, and launch of a new U.S.-New Zealand 
Partnership Forum.  Bilateral differences over New Zealand's 
nuclear law, while discussed, did not dominate the visit. 
Suggestions on how to improve bilateral cooperation led to 
general agreement that more Washington visits by New 
Zealanders from all walks of life would do much to strengthen 
ties and improve relations. 
 
¶2.  (U) Key meetings were with Ministry of Foreign Affairs 
and Trade (MFAT) Deputy Secretary John McKinnon, 
Counter-terrorism/Security Policy Ambassador Dell Higgie, and 
Defence Ministry (MoD) Deputy Secretary Chris Seed.  Other 
meetings included MFAT's directors for the Pacific Islands 
and Antarctic programs, Parliament Foreign Affairs Select 
Committee Chair Dianne Yates and Parliament Member Jill 
Pettis, National Party Foreign Affairs Spokesman Murray 
McCully, American Chamber of Commerce CEO Mike Hearn, 
Wellington Chamber of Commerce CEO Charles Finny, academics 
and journalists. End Summary 
 
Bilateral Issues 
---------------- 
 
¶3.  (C) Both sides agreed that despite differences, we can 
and should maximize cooperation in areas of common interest. 
Encouraging good governance in the Pacific Island States and 
expanding U.S. work-study programs for New Zealand students 
were examples.  The New Zealanders accepted our point that, 
unlike the many Australian officials, politicians, business 
people, academics, even students who visit Washington and the 
State Department every year, relatively few Kiwis come to 
town or show interest.  Most people with whom we spoke agree 
New Zealand would benefit from sending more visitors to 
Washington.  They are also optimistic that the new U.S.-New 
Zealand Partnership Forum, planned for April, will be 
productive, and share the view that a broad cross-section of 
New Zealanders must participate for the forum to succeed. 
Phil Goff will lead the New Zealand delegation, in his role 
as Trade Minister (he is also defense minister).  National 
Party leader Don Brash will also attend as part of a New 
Zealand Government-sponsored trip to the United States. 
 
¶4.  (C) MFAT's McKinnon called his recent Washington visit a 
success, expressed hope A/S Hill would visit New Zealand in 
March, and said Foreign Minister Peters may visit the United 
States soon.  (Peters' office later said early July might be 
doable.)  McKinnon said he is committed to making the 
U.S.-New Zealand relationship work, despite continued 
differences over the nuclear issue.  Turning to trade, he 
said New Zealand officials know chances for getting an FTA 
with the United States in the near term are slim, but new 
Ambassador Roy Ferguson will continue to make the pitch, if a 
bit more quietly.  McKinnon wants to see a U.S.-New Zealand 
Trade and Investment Framework Agreement meeting before much 
more time passes.  Switching gears, he advocated for good 
contact and communication on peacekeeping, counterterrorism, 
defense, and Asian development issues.  McKinnon expressed 
surprise, given our interest in East Asian Architecture 
issues, that U.S. officials had not attended the Singapore 
Global Forum conference on Asia and the Future.  McKinnon 
stressed that there must be a U.S. voice in this, saying some 
countries wonder whether Washington has lost interest in the 
region.  We assured him this is not the case. 
 
China 
----- 
 
¶5.  (C) MoD officials expressed concern that China-Taiwan 
resource and diplomatic competition contributes to political 
instability in Pacific Island nations.  International Policy 
Division Director Paul Sinclair described Peoples Liberation 
Army (PLA) aid to defense forces in the region, especially to 
Tonga and Fiji, adding that the PLA outspends New Zealand by 
 
wide margins in PNG.  (Reportedly, PNG may transfer its 
Wellington Defense Attache position to Beijing.)  Equally 
troublesome are reported PLA links to paramilitary forces in 
Vanuatu.  Mod's Seed said PLA activities in the Pacific 
Islands pose real security problems for New Zealand.  He 
added that New Zealand Forces have no direct dialogue with 
the PLA on this issue, because the PRC tightly controls 
military visits to New Zealand.  These have declined from 
five or six to three visits a year. 
 
¶6.  (C) MFAT Americas and Pacific Island Director Riddell 
focused on how China's rapacious quest for natural resources 
undermines good governance, sustainable development, and 
environmental protection in Pacific Island states like PNG, 
Fiji, and the Solomon Islands.  For island states like 
Kiribati, politics and excessive fishing are the issues. 
Riddell said China pushes to restrict Taiwan's participation 
in the new Regional Fisheries Management Organization. 
 
¶7.  (C) McKinnon reviewed East Asian Summit (EAS) issues and 
how New Zealand's, Australia's and India's presence counters 
Chinese efforts to control the EAS.  He promised to keep us 
advised about how things go in the EAS. 
 
Counter-terrorism 
----------------- 
 
¶8.  (C) Counter-terrorism Ambassador Higgie said New Zealand 
is committed to the Proliferation Security Initiative (PSI) 
but frustrated by confusing signals from Washington.  U.S. 
officials urge New Zealand to take part, even as U.S. policy 
requires waivers for U.S. forces when New Zealand forces are 
present.  New Zealand would host a PSI exercise or planning 
meeting but fears embarrassment should the U.S. military 
decline to take part.  We explained U.S. policy, including 
provisions for case-by-case waivers, adding that Washington 
agencies may later review waiver rules for PSI activities. 
We also made the point that overstating the significance of 
waivers or high-level military visits when such occur does 
not help New Zealand's case.  Higgie then praised U.S.-New 
Zealand cooperation on the Container Security Initiative and 
on counter-terrorism capacity building in the Pacific.  She 
said New Zealand screens Polynesian exports to the U.S. that 
transit Auckland (much does) and talked of possibly setting 
up in American Samoa a regional training center for Pacific 
Island customs officials.  She stressed U.S. involvement is 
important.  The President's appearance at the 2003 meeting of 
Pacific Island Leaders secured counter-terrorism buy-in in 
the region.  So will the USD 1.5 million Washington gave the 
Pacific Island Forum to set up an anti-money laundering 
training center in Suva.  If successful, this could be a 
pilot for similar U.S. assistance for customs training. 
 
Pacific Islands 
--------------- 
 
¶9.  (C) MFAT officers called A/S Hill's planned March visit 
to New Zealand and his possible participation in a June event 
with Pacific Island States in Washington good ways to boost 
U.S.-New Zealand Pacific region cooperation.  The June event 
could set the stage for the Pacific Island Leaders 
Conference, on hold until 2007.  Promoting democratization in 
Tonga and rule of law in Fiji surfaced as other areas for 
cooperation.  Pacific Affairs Director Riddell noted that 
Foreign Minister Winston Peters (winding up a successful 
visit to Fiji at the time) has a special interest in the 
region and close ties to many Pacific island leaders. 
 
¶10.  (C) Assessing other regional trouble spots, Riddell said 
the Regional Assistance Mission to the Solomon Islands 
(RAMSI) will have to remain for some time, although it is 
evolving from a law enforcement/pacification process to a 
capacity building/nation building process.  Still, given all 
left to do, it is unclear when there will have been enough 
progress to begin holding senior officials accountable for 
their actions.  Upcoming elections will be the first held in 
peaceful circumstances in some time.  Riddell called PNG 
"deeply dysfunctional."  She thinks Australia's 
institution-building initiative is failing. Ironically, the 
fact that PNG institutions are limping along rather than 
 
collapsing makes things more difficult -- it's harder to 
repair than rebuild.  AIDS is also approaching crisis 
proportions in PNG.  One bright spot, Bougainville, which is 
finally coming out of its decades-long conflict, is promising 
if fragile.  Recent elections went well, but financial fraud 
is on the rise. 
 
Antarctica 
---------- 
 
¶11.  (C) January 2007 kicks off Antarctic events related to 
the International Polar Year.  The upgrade of New Zealand's 
C-130 fleet has decreased logistical support for the U.S. 
Antarctic program temporarily.  Support will return to 12 
flights a season in a few years.  In late 2007, New Zealand 
will test a 757 refitted to carry passengers to the ice. 
This could free up cargo space in USAF C-17s.  New Zealand 
test flew a P-3 Orion to the ice, opening up possibilities 
for the plane's use as a back-up for medical evacuation 
flights.  Other plans for the P-3 include exploring how it 
might be used to assist scientific research.  But MFAT's very 
enthusiastic Antarctic Director voiced some worries during 
the meeting. He said the lack of clear arrangements for 
addressing the effects of land-based tourism -- such as 
hotels on an Antarctic Treaty signatory's base -- will create 
problems if not addressed soon.  More commercial fishing by 
non-treaty members, Chinese- and Togo-flagged vessels, for 
example, is also a concern.  New Zealand, which is 
encouraging China to sign the Antarctic treaty, clearly 
considers it important to voice displeasure to flag-issuing 
states if "their" vessels are caught fishing illegally. 
 
The Nuclear Issue 
----------------- 
 
¶12.  (C) The long-time U.S.-New Zealand dispute over nuclear 
law, the focus of a roundtable with local journalists, did 
not dominate.  When the topic came up, the U.S. message was 
that we do not seek to dictate policy but will not redefine 
our definitions of "ally" and "friend" to suit New Zealand's 
domestic politics.  Still, the question of nuclear power as 
an element of New Zealand's economic future led to some 
interesting exchanges.  At an MFAT-sponsored lunch, academic 
Nigel Roberts said Kiwis are unlikely to come around to an 
acceptance of nuclear energy even though New Zealand will 
face energy shortages in the coming years.  Kiwis will have 
to adapt to wind power and coal, energy generation methods 
that run counter to New Zealand's green image.  John McKinnon 
believes young New Zealanders are even less likely than their 
parents to favor nuclear power.  The most direct exchange 
about nuclear issues came during a meeting with the National 
Party's Murray McCully, who traveled from Auckland for a 
lunch 
meeting.  McCully said his own party's recent decision to 
reverse position and support retaining the ban does not mean 
less interest in strong relations with the United States. 
National's thinking is that by removing this contentious 
issue from discussion, National would be better able to press 
the Government more forcefully to strengthen bilateral ties. 
As McCully put it, New Zealanders will oppose any effort to 
eliminate the anti-nuclear legislation, and National would 
only be "shooting itself in the foot" to push for change 
without public support. 
 
Military Upgrades/Public Attitudes to Defense 
--------------------------------------------- --- 
 
¶13.  (C) MoD officials gave details on defense upgrades that 
will fully motorize the army and improve naval command and 
control capabilities.  New Zealanders see their country as 
being far from trouble spots.  They continue to regard their 
military as an expeditionary force.  MoD expects to continue 
this tradition of global deployments but anticipates having 
to do more in the Pacific, as transnational crime, China, and 
other regional threats increase.  A telling statistic:  New 
Zealand forces have deployed in the South Pacific on missions 
unrelated to disaster relief at least six times since 1990, 
compared to no military deployments in the previous 30 years. 
 MoD expects this trend to continue, if not worsen. 
Recognizing the importance of law enforcement and related 
 
missions in the region, New Zealand has backed away from the 
view that its military should only focus on its core mission. 
 
 
¶14.  (C) Academic Nigel Roberts said New Zealanders believe 
RAMSI plays a positive role in regional peacekeeping.  They 
support New Zealand's participation because RAMSI is well 
run, and there have been no New Zealand casualties.  MFAT 
Australia Director Bede Corry agreed: New Zealanders also 
supported actions in Bougainville, a larger operation, for 
the same reasons. New Zealand will be able to sustain its 
participation in RAMSI for some time because it involves a 
mix of civilian and military assistance.  Academic Jock 
Phillips added that Kiwis like to be seen as contributing to 
global military efforts, especially in peacekeeping roles, 
because, at times, this makes them feel morally superior. 
 
McCormick