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C O N F I D E N T I A L SECTION 01 OF 03 WELLINGTON 000658 
 
SIPDIS 
 
C-041-07 
 
SIPDIS 
 
STATE FOR EAP/ANP 
OSD FOR JESSICA POWERS USDP/APSA/SSEA 
 
E.O.  12958 : DECL: 08/24/2014 
TAGS: PREL MARR NZ
SUBJECT: BGEN TOOLAN (OSD) VISIT TO NEW ZEALAND 
 
Classified By: DCM David Keegan; Reason 1.4 (A, B and D) 
 
¶1.  (C)  Summary.  Brigadier General John Toolan's visit 
marked the highest level OSD visit to New Zealand in 
years.  The General met with the leadership of the 
New Zealand Defense Force and Ministry of Defense, 
including Chief of Defense Force (CDF) LTGEN Jerry 
Mateparae, Secretary of Defense John McKinnon, and 
Chief of Navy, RADM David Ledson.  He met with other 
senior MoD personnel,GNZ intelligence and police 
officials, and discussed the range of bilateral 
security and intelligence sharing activities.  BGen 
Toolan met with the Ministry of Foreign Affairs (MFAT) 
and the Ministry of Agriculture and Fisheries (MAF) 
regarding aircraft sovereignty issues, which have now 
been resolved.  MOD officials outlined the challenges 
facing New Zealand's military in the coming decade, 
GNZ concerns surrounding instability in the Pacific 
and long-term demand on New Zealand security forces, 
a fear of ungovernable spaces in the region and the 
ill effects of China-Taiwan competitive diplomacy in 
the Pacific Island arena.  GNZ interlocuters were 
unanimous in their support for greater USG/GNZ synergy 
on security issues and applauded the improving 
bilateral relationship.  End Summary. 
 
Toolan Discusses Full Range of Defense Issues with GNZ 
Officials 
--------------------------------------------- --------- 
 
¶2.  (C)  Brigadier General John Toolan, Principal Director 
of OSD's Office of South and Southeast Asia in Asian and 
Pacific Security Affairs, visited Wellington on 10 August 
and Auckland on 11 August.  After an Embassy country team 
briefing, the General attended a Defense roundtable 
discussion chaired by Deputy Secretary of Defense Chris Seed 
and Vice CDF Air Vice-Marshal David Bamfield.  Discussions 
included New Zealand's military modernization programs in 
the 2009-2010 timeframe (after the 2008 national elections); 
New Zealand's possible uses for its new multi-role vessel 
and two off-shore patrol vessels; disaster relief 
using the Pacific Island Forum as a vehicle; and security 
discussions surrounding several key South Pacific islands, 
including Fiji, the Solomon Islands, Timor Leste, and Tonga. 
 
¶3.  (C)  Seed explained that the New Zealand military has 
reconfigured and realigned itself to allow for greater 
commitment to areas of risk and instability, due to New 
Zealand's recognition of its regional and global 
obligations. Seed said that the policy decisions largely were 
borne out of New Zealand's need to extend its sovereignty 
and protect its interests with respect to the large growth in the 
flow of illegal immigrants and narcotics in the region, and 
the sheer volume of ships moving through the southern 
Pacific. In addition, there may be times, such as in the case of 
Afghanistan, where New Zealand will contribute to global 
security operations outside its normal spere.  In response 
to Toolan's question regarding sustainability of GNZ 
expenditures on the military, Bamfield noted that the MOD is into year 
three of its 10-year funding program, and so far the Government is 
holding to it.  New equipment for the air force is still a 
couple years out for delivery; the new Navy is still three 
years away.  While continued funding is always a concern, a 
greater challenge is recruitment and retention of qualified 
personnel.  Bamfield added that the current reconfiguration 
plan will address the present generation of needs but there 
will be a different set of needs by 2015, including replacement of 
aircraft.  In order to plan properly, the GNZ will need to 
begin planning in 2009/2010. 
 
¶4.  (C)  In addition to personnel and finance issues, MOD 
officials noted that pre-2006 assumptions about stability in 
the Pacific had proven wrong.  Beginning in 2006, the GNZ had 
witnessed increased demands on its security services in four 
areas:  the Solomon Islands, Tonga, Fiji, and Timor Leste. 
Both Australia and New Zealand are now grappling with the 
responsibility of being the long-term security guarantors in 
 
WELLINGTON 00000658  002 OF 003 
 
 
multiple islands, which is also stretching resources and 
personnel.  Chris Seed added that the political instability 
of the last two years had also reinforced the need to plan 
for evacuation of personnel, as well as to respond effectively to 
natural disasters.  Seed mentioned that the GNZ and the 
Australian government are working on a model evacuation plan for the 
Fiji islands; Toolan responded that PACOM has evacuation plans for 
Fiji and other areas he said that such plans should be 
shared. Seed welcomed the idea, and said that once New Zealand and 
Australia are finished comparing notes, they should jointly 
approach PACOM. 
 
¶5.  (C)  Both Seed and MOD Director for International 
Relations Wayne Higgins flagged GNZ concern over the Pacific 
Island militaries.  Higgins offered that in his view, current 
Tongan Defense Service expansion plans are unrealistic and 
the role of the military in domestic security matters seems 
inappropriate to New Zealand.  David Bamfield added that 
whenever the GNZ raises concerns regarding Pacific Island military 
forces with the respective governments, they inevitably raise China 
or Taiwan as alternative supporters.  Toolan responded that the 
USG had put Taiwan on notice, and had urged them to play a more 
responsible role in conducting diplomacy in the Pacific 
region. Chris Seed suggested that such issues might be usefully 
discussed in greater depth at the March 2008 Quadrilateral meeting 
between the U.S., NZ, Australia, and France. 
 
Intelligence Sharing Relationship Lauded 
---------------------------------------- 
 
¶6.  (C)  General Toolan had a working lunch with 
representatives from NZ Security Intelligence Service, External 
Assessments Bureau, Government Communications Security Bureau and NZ 
Police, as well as Ambassador for Counter-Terrorism Dell Higgie and 
other Defense Ministry and U.S. Mission personnel.  Ambassador Higgie 
explained that her office manages a gamut of programs to address 
terrorism, including the Proliferation Security Initiative (PSI) and 
export controls, as well as non-traditional security-related 
programs designed to discourage extremism.  Each bureau then recapped 
their respective intelligence relationship with U.S. counterparts. 
Both sides agreed to continue moving the positive 
intelligence-sharing relationship forward, especially in the South 
Pacific island-nation region. 
 
¶7.  (C)  The General attended a meeting with MFAT and MAF to 
specifically discuss the sovereignty of aircraft issue. 
(Comment: NZ agricultural inspectors have, for years, been granted 
permission by U.S. aircrews to board arriving international military 
aircraft to spray insecticide and perform a cursory inspection in 
contravention of long-standing U.S. assertion of sovereign immunity. 
 The U.S. Foreign Clearance Guide was clarified several months ago, 
reiterating U.S. sovereign immunity policy instructing U.S. aircrews to 
not permit New Zealand inspections of U.S. state aircraft.  With 
the upcoming Antarctic season looming, this issue had the 
potential for flight delays until a resolution could be found. End 
Comment.) In response to USG concerns, MAF proposed a work-around 
procedure whereby the spray bottles would be given to an American and 
that person would do the spraying at the direction of the MAF 
official.  The General thanked MAF for their flexibility in 
developing this proposal.  MAF stated that final approval was 
still needed by the government but in the interim, their new 
procedure would be used.  (Comment: While the above procedure 
is indeed in effect, we learned since the General's departure 
that additional MAF changes in the normal SOPs to the crew and 
cargo would apply, but MFAT and the Embassy have resolved 
these issues. End Comment.) 
 
¶8.  (C)  General Toolan met briefly with Secretary of Defense 
John McKinnon.  The meeting was very cordial and recapped the 
issues already discussed above.  The discussion turned to the 
upcoming visit to New Zealand by DASD James Clad 30-31 
August. Secretary McKinnon has known Mr. Clad for years and was eager 
to meet with him to share views regarding the U.S.-NZ 
relationship. 
 
¶6.  (C)  Navy Chief Rear Admiral David Ledson met with BGen 
Toolan, with discussion centering on two maritime events that 
 
WELLINGTON 00000658  003 OF 003 
 
 
were currently underway -- the deployment of a NZ medical 
team aboard the USS Pelilieu and the deployment of two NZ junior 
officers aboard the U.S. Coast Guard Cutter Walnut.  Both 
deployments have ushered in a new era of engagement between 
NZ and US and were received very favorably by the Navy Chief. 
The Navy Chief discussed the recent Quadrilateral (U.S., NZ, 
Australia, and France) Maritime conference held in New 
Zealand and the progress made in the area of maritime cooperation 
between the four participants.  The Admiral discussed the new 
vessels purchased under Project Protector and the challenge 
the Navy will have operating the new multi-role vessel (MRV). 
Admiral Ledson suggested that perhaps a small team of experts 
from U.S. Navy amphibious operations could help NZ establish 
clear operating procedures and roles for the ship and avoid some 
pitfalls U.S. operators have experienced.  (Note:  In an earlier 
conversation with DCM, Ledson emphasized the NZ desire for assistance i 
integrating helicopter operations on board the MRV.  End 
Note.) The Admiral also said that when Endeavour (tanker supply 
ship) is decommissioned, the navy may replace her with another MRV 
capable of carrying fuel. 
 
¶9.  (C)  The General flew to Auckland on August 11 for a tour 
of the NZ SAS (Special Forces) facility.  The SAS Commanding 
Officer gave the General a presentation on past operations and 
briefed the General on the recent award presentation to a NZ SAS 
soldier for heroism in Afghanistan.  The Victoria Cross (equivalent 
of U.S. Medal of Honor) was awarded to one of his soldiers, the 
first Kiwi to receive this award since WWII.  Other discussion 
involved the training, increased rotation schedule among military 
personnel and quality of the NZSAS.  Attrition and high pace of 
operations have resulted in NZ unable to commit SAS troops for further 
deployments to Afghanistan, but NZ Defense Minister Phil Goff 
has not ruled out future deployments.  Toolan toured the new 
multi-role vessel, HMNZS CANTERBURY at Devonport Naval Base, 
and had a productive discussion with Commodore David Anson 
over the future of US-NZ defense relations as well as AnsonQ,s 
upcoming assignment to Washington as the NZ defense attachQ. 
 
¶10.  (C)  Comment:  General Toolan's visit was eagerly 
anticipated by NZ Defense leaders.  His is the highest level OSD visit 
in years, to be followed by DASD Clad's visit 30-31 August.  At every 
level, NZ leaders stressed that they did not want to appear to be 
pushing the envelope and were very cautious about probing into 
sensitive policy areas.  Chris Seed said that his Ministry was under 
instructions from the Labour Government to be as transparent 
as possible, and characterized their policy as one of no 
surprises. All agreed the relationship is in better shape than it was 
two years ago, and New Zealand defense officials would welcome further 
collaboration on issues of mutual security concern, 
particularly with PACOM.  The NZ leadership has changed tack on dealing 
with the US, and recognized that there it is in our mutual 
interest to seek out a better working relationship on common security 
issues without focusing on our few areas of disagreement. End 
Comment.