date:2004-11-03T23:08:00
source:Embassy Wellington
origin:04WELLINGTON924
destination:This record is a partial extract of the original cable.
The full text of the original cable is not available.

C O N F I D E N T I A L WELLINGTON 000924

SIPDIS

STATE FOR EAP/FO AMBASSADOR MORIARTY, EAP/ANP, EAP/CM AND
EAP/EP

E.O. 12958: DECL: 11/03/2014
TAGS: KNNP, KSTC, PARM, ECIN, PTER, ETTC, EAID, NZ
SUBJECT: APEC: NEW ZEALAND PM SAYS NZ WILL DEMARCHE CHINA
ON REMAINING SECURITY DELIVERABLES

REF: A. SECSTATE 228381
B. YAMAMOTO-GABOR 10/22/04 E-MAIL (NOTAL)
C. SECSTATE 225115

Classified By: Ambassador Charles J. Swindells, for reasons
1.4 (b), (d), and (g).

1. (C) Ambassador Swindells met with Prime Minister Clark on
November 2. He asked that New Zealand urge China to support
inclusion of the remaining APEC security deliverables at the
upcoming summit. He stressed that despite China's statements
to the contrary, the deliverables belong in APEC. Without
security in the region, there can be no economic growth. The
Ambassador stressed that New Zealand's intervention could
carry weight with China, given the two countries' relations.

2. (C) Prime Minister Clark, after demurring that New
Zealand has "no muscle and little voice," acknowledged that
"in a funny way, China does heed New Zealand because they
know our opinions are from the heart." Reviewing the Reftel
A and C points that the Embassy had earlier provided, Clark
assured the Ambassador that New Zealand agreed with our views
on the importance of the three deliverables. She said she
would ask New Zealand's embassy in Beijing to make a general
call on APEC issues that would emphasize New Zealand's belief
that the three deliverables belong in the APEC summit. She
indicated that the presentation would make it clear that the
message was coming from the top of New Zealand's government.

3. (C) Clark said that even before becoming Prime Minister
five years ago, she had held the view that APEC had to
include political/security as well as economic initiatives
because there can be no economic health in the region without
security. She said that APEC has formally emphasized
economic issues because that is the only way to include
Taiwan and Hong Kong. In reality, however, the organization
has always covered more than economic initiatives, for
example its emphasis on East Timor in 1999.

4. (C) The Ambassador said that the United States had
parallel views. If an APEC member cannot control its
sensitive exports, its entire customs enforcement mechanism
will be called into question. Absolutely, Clark agreed.
Confidence in the trading system is key, especially after
9/11. She said New Zealand was therefore "thrilled" with the
recent container security agreement recently announced by NZ
and U.S. customs authorities.

5. (C) The Prime Minister said that on her recent trip to
Singapore, she found that government reeling from Chinese
criticism over Singapore's granting of a visa to Taiwan's
Deputy Prime Minister just before his becoming Prime
Minister. She said she believed that the United States is
the greatest force for reason with Taiwan, and wondered if
the cross-strait tensions would be an undercurrent at the
APEC summit. She also said that China's public lashings at
Taiwan's leadership were undoubtedly counterproductive to its
goal of moving Taiwan away from independence. She likened it
to Bin Laden's recent video designed to influence the
American elections, calling his attempt "grotesque."

6. (C) The Prime Minister said that she had just learned
that she is to take the stage with Malaysia's Prime Minister
Badawi at an APEC Counter-terrorism discussion. She remarked
that she hoped it would be a more calm discussion than the
panel she had co-chaired with then-PM Mathahir on
globalisation. She told the Ambassador that she had publicly
told Mathahir off during that heated exchange.

6. (C) Comment: While we wish that the Prime Minister
herself would make the approach to China, her desire not to
do so is consistent with what New Zealand officials have told
us in the past -- that they believe as a small country their
role is to be a more neutral APEC player. They also do not
want to annoy China on the eve of beginning FTA negotiations
with that country in January. But we believe the NZ
Embassy's approach will be useful in moving China to the
right side. As the Ambassador told PM Clark, "If you say it,
they will know it is a trend."



Swindells
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