US embassy cable - 04WELLINGTON924

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