US embassy cable - 04WELLINGTON632

C O N F I D E N T I A L SECTION 01 OF 02 WELLINGTON 000632 
 
SIPDIS 
 
DEPT FOR EAP/ANP, EAP/PD 
NSC FOR GREEN, JONES 
 
E.O. 12958: DECL: 07/25/2014 
TAGS: PGOV, PREL, PARM, MNUC, PINR, NZ 
SUBJECT: NEW ZEALAND PRIME MINISTER REITERATES VIEW THAT 
NUCLEAR RIFT IS "FINISHED BUSINESS" 
 
Classified By: Political and Economic Counselor, 
Timothy Zuniga-Brown, FOR REASONS 1.5(B,D) 
 
1. (SBU/NF) Summary: New Zealand Prime Minister Helen Clark 
reiterated her position on NZ's anti-nuclear policy in 
comments to local media July 25:  "I'm not looking for 
compromises.  I'm perfectly satisfied with the policy.  As 
far as I am concerned, (the US-NZ nuclear dispute) is 
finished business."  The PM's comments were made in response 
to questions posed by a respected national reporter following 
backgrounders by Embassy Wellington.  The resulting 
well-balanced articles belied the Prime Minister's claims 
that the issue is "finished business."  The articles 
addressed a number of issues that Post has highlighted both 
publicly and privately in recent months ) the uncounted cost 
of NZ's policies and the increasing irrelevance of the 
legislation in a Post-Cold War security environment.  The 
weekend press coverage continues a welcome internal 
nation-wide dialogue on the nuclear issue.  End summary. 
 
"It is finished business" - or is it? 
------------------------------------- 
 
2. (SBU) Following on series of backgrounders by Embassy 
Wellington, respected Sunday Star-Times reporter Jonathan 
Milne wrote a series of well-balanced articles July 25 that 
addressed a number of points on the nuclear issues that Post 
has highlighted both publicly and privately in recent months 
) the uncounted cost of New Zealand's policies and the 
increasing irrelevance of the legislation in a Post-Cold War 
security environment.  Milne pointed to the decision to base 
U.S. Coastguard icebreakers in Hobart, Australia, the loss of 
business opportunities for businesses that refit military 
equipment, the loss of US training opportunities for the NZ 
Defence Force and the subsequent higher price paid for 
military training and hardware as evidence that the 
legislation is not cost-free to NZ.  He noted further that 
the reputed trade and tourism benefit of NZ's vaunted 
nuclear-free image has never been quantified.  A second 
article focused on the financial benefits accrued by 
Townsville, Australia.  The article noted that while 
Townsville previously designated itself a "nuclear-free zone" 
in the 1980s, it now welcomes American ship visits and has 
added millions of dollars to its local economy as a result. 
 
3. (SBU/NF) Prime Minister Helen Clark is quoted by Milne as 
responding to his story by flatly stating "I'm not looking 
for compromises.  I'm perfectly satisfied with the policy. 
As far as I am concerned, (the US-NZ nuclear dispute) is 
finished business."  Clark further stressed her view that the 
US-NZ nuclear problem is increasingly "irrelevant," and 
solely due to the USG's stubborn adherence to its "neither 
confirm nor deny" policy.  She goes on to note that the 
nuclear-free legislation is an issue that "New Zealand and 
America have put to the side for 20 years."  Milne's 
conclusion is that neither the GoNZ nor the USG are willing 
to compromise further to solve the impasse created by NZ's 
adoption of anti-nuclear legislation that resulted in a ban 
on visits by USG military vessels to New Zealand. 
 
4. (SBU/NF) Milne's third article, appearing under the 
misleading title "US makes nukes blunder," revealed an 
incident in December 2003 when the US Army landing craft USS 
Great Bridge sought permission for a USD 1.4 million refit in 
a New Zealand dockyard.  After being reminded of the USG ban 
on military ship visits, the vessel was redirected to 
Australia.  Milne reports that the GoNZ apparently was not 
aware of any intended visit and claimed it had not been 
notified by the USG of the specific incident.  Milne's 
article posited that the USG lost a chance to break the 
20-year diplomatic stalemate, noting that PM Clark claimed it 
was &highly likely8 that a request for such a refit would 
have been approved once it was determined that the ship fit 
NZ's anti-nuclear legislation. 
 
COMMENT: (Un)Finished Business? 
------------------------------- 
 
5. (C) PM Clark's comments confirm that she is not only 
comfortable with her government's stance on the nuclear 
dispute with the USG, but that she also firmly wishes that it 
will just go away.  That a leading Kiwi reporter can write a 
well-balanced series of stories in one of New Zealand's 
leading newspapers suggests the issue is not as "finished" as 
the PM would like it to be.  The series of articles continues 
a surprising but welcome internal discussion among New 
Zealanders that has been going on for nearly two years. 
Still, the Prime Minister's statements reaffirm post's view 
on the need for all US agencies to reinforce USG policy with 
New Zealand government interlocutors - both civilian and 
military. 
Swindells