VZCZCXYZ0022
RR RUEHWEB

DE RUEHWL #0065/01 0500728
ZNY CCCCC ZZH
R 190728Z FEB 10
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC 0385
INFO RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHBY/AMEMBASSY CANBERRA 0103
RUEHC/DEPT OF AGRICULTURE WASHINGTON DC
RUEHSV/AMEMBASSY SUVA 0016
RUEHWL/AMEMBASSY WELLINGTON

C O N F I D E N T I A L WELLINGTON 000065 
 
SENSITIVE 
SIPDIS 
STATE FOR EAP/ANP 
STATE PLEASE PASS TO USTR/WEISEL AND BISBEE 
 
E.O. 12958: DECL: 2020/02/19 
TAGS: OVIP ETRD PGOV SENV EAGR FJ NZ APECO MARR UN PREL
SUBJECT: DAS Reed Engages on TPP, U.N. Reform, Environmental 
Cooperation, Fiji, APEC and Bilateral Issues with New Zealand 
 
CLASSIFIED BY: Robert Clarke, DCM, Department of State, US Embassy 
Wellington; REASON: 1.4(B), (D) 
 
¶1.  (C) Summary.  During a series of meetings hosted by the 
Ministry of Foreign Affairs and Trade (MFAT) on February 19, EAP 
Deputy Assistant (DAS) Secretary Frankie Reed engaged on a wide 
range of topics including the Trans-Pacific Partnership (TPP), the 
United Nations, environmental cooperation, Fiji, APEC, and U.S./New 
Zealand bilateral relations.  New Zealand Chief Negotiator for the 
Trans-Pacific Partnership (TPP) Mark Sinclair said New Zealand 
views the TPP as a platform for future trade integration in the 
Asia Pacific and recognizes there will a number of sensitive issues 
on both sides during negotiations.   MFAT United Nations, Human 
Rights, and Commonwealth Division Director James Kember said New 
Zealand will continue to push for UN reform and voiced 
disappointment over U.S. handling of the Human Rights Report and 
Trafficking in Persons Report for New Zealand.  MFAT environment 
officials welcomed more concrete cooperation with the United States 
under the Energy Development in Island Nations (EDIN) umbrella and 
expressed appreciation for U.S. support of the Global Alliance. 
MFAT Pacific Division Director John Adank said New Zealand 
relations with Fiji remain rocky and urged the United States and 
others to continue pushing the Bainimarama regime to return to 
democracy.  On Asia-Pacific Economic Cooperation (APEC),   MFAT 
Asia Division Director Stephen Payton said that New Zealand is 
reviewing its Bogor Goals and will work closely with the United 
States to prepare the stage for a successful APEC meeting in 2011 
in Hawaii.  New Zealand is also open to allowing India to join 
APEC.  America's Division Director David Taylor emphasized New 
Zealand's appreciation for USG efforts  put forward on the review 
of the military relationship and covered a wide-range of other 
bilateral matters.  End Summary. 
 
 
 
Trans-Pacific Partnership - Reaching for the "Gold Standard" 
 
--------------------------------------------- ---------------------- 
----------- 
 
¶2.  (SBU) Regarding New Zealand domestic issues surrounding the 
TPP, Chief Negotiator for the Trans-Pacific Partnership Mark 
Sinclair emphasized that it has been a long-held objective of the 
Government of New Zealand to conclude a free trade agreement (FTA) 
with the United States, and there is a public perception that 
getting into the United States will be an "el Dorado" for New 
Zealand's commercial sector.  However, the reality is quite 
different, said Sinclair, since the United States is already quite 
open to New Zealand trade and investment.  He underscored that New 
Zealand needs to manage expectations in this regard.  In addition, 
Sinclair said that although New Zealand has already negotiated many 
free trade agreements, it is the first time New Zealand will 
negotiate an agreement that will open so many political 
sensitivities with a partner government.  Sinclair noted that 
Minister for Trade Tim Groser is well aware of this and quoted the 
Minister as saying, "getting the United States to agree to engage 
on the TPP is the easy part; the negotiating process itself will be 
gut wrenching, especially achieving the gold standard." 
 
 
 
¶3.  (SBU) On multilateral issues, Sinclair emphasized that New 
Zealand sees the TPP as a platform for future trade integration in 
the Asia Pacific.   If the eight initial members can reach the 
"gold standard" on the TPP, it will "put the squeeze" on Japan, 
Korea and others, which is when the "real payoff" will come in the 
long term.  He also stated that another challenge in negotiating is 
that the current economic and commercial situation has put a great 
deal of pressure on domestic agendas.   Negotiators must therefore 
be very cognizant of the impact on jobs, wages, and other such 
factors.  When asked what New Zealand's position is on including 
new members, Sinclair put forth that "smaller is better" for the 
current deal.  However, he emphasized, that what is more important 
is U.S. Congressional approval and if "critical mass" can be 
achieved with the initial eight.  New Zealand will take a 
"constructive view" if the group needs to "bulk up" and include 
Malaysia, for example. 
 
 
 
¶4.  (SBU) When asked what the top local impediments will be to 
 
 
concluding an agreement, Sinclair noted a number of areas sensitive 
to New Zealand.   It is "no secret" that Monsanto does not like New 
Zealand's genetically modified organism (GMO) regulations, Sinclair 
said.  Intellectual property rights (IPR) is another "sleeper 
issue" that may raise concerns when it begins to impinge on New 
Zealand's digital lifestyle.  Sinclair added that foreign 
investment is always open to populist views in New Zealand, and it 
can be particularly sensitive when it comes to land acquisition or 
New Zealand brands that are considered "icons."  David Taylor added 
that investment involving New Zealand's natural resources will also 
be a sensitive point, particularly in light of the Government's 
recent decision to open up some conservation areas to resource 
extraction.  According to Sinclair, pharmaceuticals are also bound 
to be a contentious issue. 
 
 
 
Multilateral Issues at the United Nations 
 
--------------------------------------------- ------- 
 
¶5.  (SBU) MFAT United Nations, Human Rights, and Commonwealth 
Division Director James Kember touched on UN reform issues, as well 
as the U.S. Human Rights Report and Trafficking in Persons Report. 
On the United Nations, he noted that New Zealand has not signed 
onto the Declaration on the Rights of Indigenous Peoples because 
there were still issues to be worked out in the domestic process. 
(Note:  New Zealand officials said they voted against the 
Declaration because it was inconsistent with New Zealand's 
constitutional and legal arrangements.  End note.)  He said that he 
had met with former Prime Minister (and current UNDP Administrator) 
Helen Clark the previous day, and she urged New Zealand to continue 
pushing a U.N. reform agenda in the broader sense.   Kember added 
that New Zealand will continue down this path, but it has largely 
been silent on Security Council reform.  There is, however, a "red 
line" for New Zealand on Security Council expansion -- it does not 
want to see more members with veto power.  New Zealand will also 
seek another term on the Security Council and would appreciate the 
United State's support of its candidacy.   Kember assured that the 
Government of New Zealand has put a great deal of thought into this 
decision and believes that the move will help achieve the country's 
regional security goals. 
 
 
 
¶6.  (SBU) Regarding the G20, Kember said that although there are 
some that call into question whether it is a viable ongoing 
institution, especially because it excludes the G77, New Zealand 
continues to "have faith" in the G20.   This is because New Zealand 
has a mechanism for accessing the G20 through U.S. leadership. 
Taylor added that New Zealand greatly appreciates the United States 
seeking the views of others; however, it is concerned about others 
being invited into the group.   As the numbers creep up, New 
Zealand is "not comfortable" if it does not also have a place at 
the table.  In response to the question of other U.N. institutions 
that need reform, Kember said that the U.N. Economic and Social 
Council (ECOSOC) and other regional institutions set within it have 
become irrelevant and their time had "come and passed."  On the 
U.N. Human Rights Council, New Zealand appreciates close 
collaboration with the United States and hopes to strengthen future 
cooperation.  In response to a question on Helen Clark's views on 
United Nations Development Program's disaster relief portfolio, 
Kember said she was laudatory of UNDP's work, and had said that in 
Haiti UNDP did the best it could given the circumstances.   He 
added that Clark views the UNDP as an "influencer" not an 
"implementer" and believed that the institution should focus on 
strategizing and facilitating rather than getting into the "nitty 
gritty stuff." 
 
 
 
New Zealand Unhappy with Human Rights Report and the TIP Report 
 
--------------------------------------------- ---------------------- 
------------------------ 
 
¶7.  (SBU) Regarding the U.S. Human Rights Report and the TIP 
Report, Kember emphasized his disappointment with how the reports 
 
 
on New Zealand were handled.   He said that New Zealand provides a 
great deal of information and input for the reports, and the 
results were a "poor reflection of what New Zealand provided."  He 
added that the he appreciates the U.S. Embassy working closely with 
MFAT on the reports and expressed his hope that a "more accurate 
report will come out of it."  DAS Reed responded that the U.S. 
Government appreciates MFAT's assistance and pointed out that the 
final report reflects a consensus that reaches beyond the Embassy 
or any geographic bureau at the State Department. 
 
 
 
Environmental Cooperation - Ready to Put Meat on the Bones 
 
--------------------------------------------- ---------------------- 
------------- 
 
¶8.  (SBU) On environmental issues, MFAT Environment Division Deputy 
Director Janet Lowe and Economic Division Officer Laura Hogg 
briefed DAS Reed on U.S./New Zealand cooperation under the Energy 
Development in Island Nations (EDIN) agreement and Global Alliance. 
Lowe emphasized the importance that New Zealand attaches to 
developing further projects that support island clean energy 
projects.  She said that Foreign Minister Murray McCully wants to 
now "put meat on the bones" on the agreement that was reached 
between New Zealand, Iceland and the United States in 2008, not 
only because it will help island nations develop sustainable energy 
sources but also because it is another area to strengthen ties with 
the United States.  The Minister is particularly focused on "the 
concrete stuff."  Currently 65% of New Zealand's energy comes from 
renewable resources, and the country has a particular expertise on 
geothermal energy.   According to Lowe, New Zealand completed a 
study on the feasibility of geothermal energy in 20 island nations. 
Of the 20, the study concluded that five countries had potential. 
Now New Zealand is studying how it can take this study to the next 
level.  Besides geothermal, New Zealand is also looking at ways to 
help Tonga get a solar power station up and running.   New Zealand 
is also interested in doing research together with the United 
States in Hawaii.  Ambassador Huebner welcomed the opportunity for 
MFAT and the Embassy to work more closely on such projects.   On 
the Global Alliance, Hogg said that New Zealand is very grateful 
for ongoing U.S. support.   She underscored that the emphasis of 
the Global Alliance is twofold:  address food scarcity and reduce 
greenhouse gas emissions. 
 
 
 
Pessimistic Outlook on Fiji 
 
----------------------------------- 
 
¶9.  (SBU) MFAT Pacific Division Director John Adank outlined the 
rocky relations between New Zealand and Fiji during recent years 
and pointed out that New Zealand is making every effort to revive 
its diplomatic ties with Fiji.   He noted that since 2007, three 
New Zealand diplomats have been expelled (one high commissioner and 
two acting high commissioners).   According to Adank, the 
expulsions occur whenever the Bainimarama regime tires of New 
Zealand's travel restrictions.  Although New Zealand's diplomatic 
footprint has been reduced, Foreign Minister McCully is making 
every effort to move the relationship forward.  During the first 
week of January, FM McCully met with Fiji's Foreign Minister 
Kubuabola and pressed the issue of restoring New Zealand's 
diplomatic footprint in Fiji and issues surrounding Fiji's erratic 
visa issuance for the Pacific Island Forum (PIF) officials.  Adank 
underscored that the situation in Fiji has deteriorated further 
over the past year and that the United States, New Zealand, 
Australia and other countries need to continue pressuring Fiji to 
restore democracy.  He added that there is no sense that the regime 
in Fiji intends on engaging internally or externally on the issue. 
Adank urged the United States to consider the reaction of other 
Pacific Island nations in any decision it takes with regard to 
Fiji.   It needs to be done in the "right light" and "managed 
carefully" to avoid driving a wedge between the Pacific Island 
countries, said Adank. 
 
 
Asian Regional Architecture - Three Points on APEC 
 
--------------------------------------------- ---------------------- 
- 
 
¶10.  (SBU) MFAT Asia Division Director Stephen Payton briefly 
discussed three issues with regards to Asia-Pacific Economic 
Cooperation (APEC).   He said that New Zealand will work closely 
with the United States for the next meeting in Yokohama and help 
prepare the stage for a successful APEC meeting in 2011 in Hawaii. 
Second, Payton said that New Zealand is currently reviewing its 
implementation of Bogor Goals, and there is some sensitivity around 
this.  He pointed out that New Zealand has not met the "strict 
definition" of the goals, and there are perhaps some areas that New 
Zealand and the United States could work together in this regard. 
Last, Payton said that New Zealand is considering its position on 
APEC's membership moratorium.  New Zealand is open to allowing 
India to join. 
 
 
 
Bilateral Relations with the United States - Continuing on an 
Upward Trajectory 
 
--------------------------------------------- ---------------------- 
------------------------------------ 
 
¶11.  (C) Covering a wide-range of bilateral matters, America's 
Division Director David Taylor first and foremost emphasized New 
Zealand's appreciation for USG efforts put forward on the review of 
the military relationship.   He welcomed the "candor and warmth" of 
discussions with DAS Reed and DASD David Scher and said that MFAT 
will continue to work with the Embassy on joint messaging.   Taylor 
also noted his appreciation for the role of the Embassy and its 
"constructive, collegial relationship" with MFAT.  Regarding the 
Secretary's visit, Taylor noted that the last minute postponement 
in January due to the Haiti crisis was completely understandable 
and he looked forward to her rescheduling.  He hoped Washington 
would give as much advance notice as possible.  On the topic of 
visitors in general, Taylor said there is "real value in visitors 
from Washington" and expressed his hope that the number of visitors 
from Washington will continue to grow.  He also pressed on the 
issue of Prime Minister Key's visit to Washington and noted the 
PM's preference for June.  In response to the last point, DAS Reed 
emphasized that the difficulty in scheduling was not a reflection 
of the relationship with New Zealand but was purely an internal 
coordination issue.  Taylor also addressed the issue of budget cuts 
and resource caps at MFAT, but he expressed his expectation that he 
would be able to augment his staff at the New Zealand Embassy in 
Washington with an additional officer in the political section and 
an additional officer to handle the TPP. 
HUEBNER