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S E C R E T WELLINGTON 000284 
 
SIPDIS 
 
SIPDIS NOFORN 
 
C O R R E C T E D COPY CLASSIFICATIONB 
 
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: PREL PGOV XB NZ
SUBJECT: A/S HILL'S MEETINGS WITH NEW ZEALAND OFFICIALS 
 
Classified By: Acting DCM Katherine Hadda, 
for reasons 1.4 (b) and (d) 
 
¶1.  (C) Summary:  During his March 19-20 visit to Wellington 
and Auckland, Assistant Secretary of State for East Asian and 
Pacific Affairs Christopher R. Hill met with GNZ officials 
from foreign affairs, defense, law enforcement, and 
intelligence agencies.  All agreed that the United States and 
New Zealand should explore new areas for cooperation, notably 
 
 
 
in the Pacific Islands.  The Ministry of Foreign Affairs and 
Trade's (MFAT) CEO told A/S Hill that he was personally 
working to encourage an improved tone in New Zealand's public 
discourse on bilateral relations, especially at the political 
level. A/S Hill praised New Zealand's contributions in 
Afghanistan and the South Pacific.  He emphasized in both his 
meetings and follow-up press events that the U.S. would use 
economic -- not political -- criteria to decide whether to 
pursue an FTA with New Zealand. Local media coverage of A/S 
Hill's visit has been factual and up-beat. NZ officials have 
also told us how much they valued this first purely bilateral 
visit by an EAP Assistant Secretary in twelve years. END 
SUMMARY. 
 
¶2.  (C) A/S Hill met first with Ministry of Foreign Affairs 
and Trade (MFAT) CEO Simon Murdoch and Deputy Secretary John 
McKinnon, who were then joined by other MFAT officials 
covering Pacific Islands, security, counterterrorism and 
bilateral issues.  Ambassador Hill also participated in a 
working lunch with NZ defense, law enforcement, and 
intelligence officials.  The following are the key issues 
 
 
 
covered in the meetings: 
 
----------------------- 
Bilateral Relations/FTA 
----------------------- 
 
¶3.  (C) A/S Hill said he was trying to bring positive energy 
into US-NZ bilateral relations in recognition of our joint 
work in many areas.  He said that there was a lot that both 
sides could cooperate on within existing policy constraints. 
Murdoch agreed, acknowledging that the country's anti-nuclear 
ban is an emotional touchstone in New Zealand politics 
despite the country's looming energy shortages.  Murdoch said 
he believed the two sides should talk more, look for areas of 
policy alignment, and work together in areas not constrained 
by the anti-nuclear issue.  We should for example continue to 
cooperate under PSI exercises if it makes sense to do so. 
Murdoch said that he and others and MFAT are personally 
committed to improving the tone of New Zealand's public 
statements about the United States, especially at the 
political level.  He said that to avoid anti-Americanism 
 
 
 
being "the flavor of the month," organizations such as the 
US-New Zealand Council will have to step into the breach. 
The April 21 US-NZ Partnership Forum will also be very 
helpful.  A/S Hill said he recognized New Zealand remained 
interested in a bilateral FTA, and said that U.S. officials 
would use economic criteria only to decide whether and when 
to seek an agreement. 
 
--------------- 
Pacific Islands 
--------------- 
 
¶4.  (C) A/S Hill told his NZ counterparts that the United 
States recognizes the importance of the Pacific Islands.  Our 
problem is limited resources.  A recent Millienium Challenge 
compact for Vanuatu, for example, took huge amounts of 
paperwork despite the 200,000 person population.  US 
officials are now looking at regional initiatives, and are 
interested in cooperating with Australia and New Zealand. 
A/S Hill suggested it could be helpful for  all three 
countries to coordinate on a game plan for the Pacific 
 
 
 
Islands Forum. 
 
¶5.  (C) MFAT Deputy Secretary Alan Williams said that New 
Zealand considers relations with the Pacific as a domestic as 
well as foreign issue, as many Pacific Islanders live here 
and events in their home countries resonate.  For this 
reason, New Zealand is looking strategically at its planning 
for the region, taking a whole of government approach among 
17 GNZ agencies.  New Zealand is trying sector-wide programs 
of assistance, for example on Papua New Guinea health care. 
This involves setting strategies with governments and holding 
them to benchmarks. GNZ also cooperates closely with 
Australia, meeting every six months on Pacific issues. 
Agencies of one country at times carry out the programs for 
the other.  Williams said that both the EU and Japan are 
reviewing assistance to the region.  Williams and Heather 
 
 
 
Riddell, Director of MFAT's Pacific Islands Division, agreed 
that the Post Forum Dialogue is a weak way to work with the 
Pacific Islands. 
 
¶6.  (C) Dell Higgie, New Zealand's Ambassador for 
Counterterrorism (and Director of MFAT's Security Division), 
summarized New Zealand's efforts to ensure Pacific Island 
nations are fulfilling counter-terrorism obligations.  NZ's 
Pacific Island Security Fund provides equipment for airport 
and port security, for example. New Zealand is emphasizing 
that CT measures will help protect Pacific Island countries 
from transnational crime as well.  GNZ has started a 
counterterrorism working group that includes both policy and 
law enforcement officials from the region.  The aim is to 
engender a sense of community on these issues.  Higgie said 
that in April, the UNSC CT chair would be speaking to the 
group in Auckland.  The United States has been invited, but 
has not yet responded. 
 
¶7.  (C) Higgie also said that if the United States were 
looking to increase international support for the 
 
 
 
Proliferation Security Initiative, it could be useful to get 
Pacific Island countries to affirm the initiative's 
principles.  New Zealand is very willing to help in this 
effort. 
 
¶8.  (C) Acting Police Commissioner Steve Long told A/S Hill 
that the NZ police have 35 staff in the Solomon Islands, to 
help restore a credible police force there.  They also have 
others scattered around the Pacific Island States.  Long 
noted the difficulty of anti-corruption work and solving 
political murders in the Solomon Islands. Even if the police 
force is clean and effective, if the courts are tainted or 
can be intimidated, police rebuilding efforts are undermined. 
 Martin Wevers, CEO of the Prime Minister's office, said that 
PM Clark had called on senior judges in Port Moresby before 
the Pacific Islands Forum meetings, just to underscore NZ 
support for a strong judiciary in PNG, which is facing 
similar problems to the Solomons.  NZ Defence Force Commander 
Bruce Ferguson said the NZDF protects the perimeter of all 
prisons in the Solomon Islands, to keep convicted criminals 
from being released by fellow tribesmen or collaborators. 
 
 
 
 
-------------------- 
China in the Pacific 
-------------------- 
 
¶9.  (C) Many Kiwi interlocutors, including Foreign Minister 
Winston Peters (septel) expressed concern over China's often 
negative role in the Pacific Islands.  Peters is trying to 
encourage a collective Pacific Island voice to counter the 
PRC.  New Zealand was not happy with China's intragigence 
over Taiwan's participation in the recent fisheries 
conference held in Wellington, which led to Taiwan leaving 
the meeting.  Deputy Secretary McKinnon said that GNZ would 
also discuss its concerns with Premier Wen when he visits New 
Zealand next month. 
 
------------------------------ 
Counter-terrorism/Intelligence 
------------------------------ 
 
¶10.  (C) Customs CEO Martyn Dunne, a veteran of SAS 
 
 
 
deployments to OEF and of the Solomon Islands deployment, 
talked about transborder challenges in the region, and the 
post 9/11 shift in customs from facilitation of trade and 
travel to security.  He said this shift had doubled the size 
of NZ Customs over the past two years, mainly in response to 
U.S. Customs and Border Patrol requirements.   He said NZ was 
the only country whose customs officials do their own 
container shipping inspections to meet U.S. security 
requirements.  He characterized the customs relationship as 
"superb."  Assistant U.S. Commissioner Keith Thompson had 
been in Wellington the previous week, and was full of praise 
for NZ's work on capacity building in the Pacific Island 
states. 
 
¶11. (S) NZ Security Intelligence Service Director Richard 
Wood and Warren Tucker, Director of the Government 
Communications Security Bureau, both expressed gratitude for 
U.S. intelligence sharing.  Because Australia's service was 
refocused after the Bali bombings, NZ has been asked to take 
on more training and support activity in Fiji, Tonga, PNG, 
the Cook Islands and the Solomon Islands. 
McCormick