US diplomats disparaged New Zealand’s reaction to a suspected Israeli spy ring as a “flap” and accused New Zealand’s government of grandstanding in order to sell more lamb to Arab countries, according to leaked cables.

The arrest and conviction in 2004 of two Israeli citizens, who were caught using the identity of a cerebral palsy sufferer to apply for a New Zealand passport, caused a serious rift between New Zealand and Israel, with allegations that the two men and others involved were Mossad agents.

“The New Zealand government views the act carried out by the Israeli intelligence agents as not only utterly unacceptable but also a breach of New Zealand sovereignty and international law,” New Zealand’s then-prime minister, Helen Clark, said after the arrests.

But US officials in Wellington told their colleagues in Washington that New Zealand had “little to lose” from the breakdown in diplomatic relations with Israel and was instead merely trying to bolster its exports to Arab states.

A confidential cable written in July 2004, after New Zealand imposed high-level diplomatic sanctions against Israel, comments: “The GoNZ [government of New Zealand] has little to lose by such stringent action, with limited contact and trade with Israel, and possibly something to gain in the Arab world, as the GoNZ is establishing an embassy in Egypt and actively pursuing trade with Arab states.”

A cable two days later was even more pointed, saying: “Its overly strong reaction to Israel over this issue suggests the GNZ sees this flap as an opportunity to bolster its credibility with the Arab community, and by doing so, perhaps, help NZ lamb and other products gain greater access to a larger and more lucrative market.”

The two Israelis were sentenced to six months in prison and ordered to pay a fine of $NZ50,000 (£24,000) to the Cerebral Palsy Society of New Zealand because the victim of the attempted identity theft was a tetraplegic, wheelchair-bound cerebral palsy sufferer in residential care.

Both men pleaded guilty but denied working for Mossad. The pair were released after serving just two months behind bars and deported in October 2004. Israel made a formal apology for what an Israeli government statement refered to as “the incident with the Mossad,” and normal diplomatic relations were restored by late 2005.

To US diplomats, though, “New Zealand’s public reaction is its strongest diplomatic retaliation in 20 years – since French spies bombed the Rainbow Warrior in Auckland harbor in 1985. Clark’s limitations on diplomatic contact go further than the GoNZ reaction in 1985, however, and it was reported that she toughened the language of her response from that put forward by MFAT [New Zealand's ministry of foreign affairs and trade].”

Ironically, a 2003 US embassy cable from Wellington alleged that New Zealand agreed to deploy troops to Iraq in order to safeguard lucrative contracts for New Zealand diary exporters, a claim described by Clark – currently the head of the UN Development Programme – as “rubbish”.

If you recall, New Zealand’s strategy certainly helped them gain credibility with at least one Arab “government.”

Updates (Israel time; most recent at top)

8:35PM: Following PM Netanyahu’s official request that the US release Jonathan Pollard, former US attorney-general Michael Mukasey has sent a letter to US President Barack Obama calling for Pollard’s sentence to be commuted to time served.

“[Pollard] has not been alleged by anyone to have had any motive to harm the United States. In these circumstances, a life sentence can only be considered utterly disproportionate to the crime,” the letter read.

“I had occasion myself to consider life sentences, and indeed to impose them. In more than 18 years on the bench, I imposed such sentences on four defendants,” Mukasey said.

8:30PM: Egypt has condemned our air strikes against palestinian terrorists, but not a word against the rockets fired by the latter.

6:20PM: Honest Reporting has come out with its Dishonest Reporter Award for 2010.

5:40PM: According to this site, Rachel Corrie’s mother Cindy has organized a mass mailing and phone-in favoring the anti-Israel bus ads in Seattle (see 8:34AM update).

3:35PM: PA chief negotiator (and propaganda minister) Saeb “Massacre” Erekat is worried Israel will launch a new large scale attack on Gaza, in response to rocket fire on Israel.

“Military solutions such as these won’t attain a thing and would only complicate the situation,” Erekat warned

Perhaps Erekat should express concern that the Hamas attacks on Israel only “ complicate the situation.”

Of course, I can understand why Erekat would make such a statement, given recent revelations and PA efforts to distance themselves from them.

12:42PM: Ynet reports that superheroes have visited Israel.

Of course, it won’t be the first time.

12:35PM: Israeli scientists are now helping..kangaroos.

Obviously so we can import them and then release them all on hapless palestinians.

12:30PM: Israel is apparently taking PR tips from rapper Shyne (whom I blogged about here)

12:25PM: Lebanese Prime Minister Saad Hariri has stated Lebanon will ask the UN to halt the probe of an international tribunal into the 2005 assassination of former Lebanese Prime Minister Rafik Hariri “for the interests of the country.”

Hariri was quoted as saying that the Lebanese government will turn to the UN to “work to stop the activities of the tribunal and to cancel the work protocol between the government and the tribunal.”

Moreover, the newspaper quoted Hariri as saying that he will stand by Hezbollah if the group is found guilty by the tribunal, and that Lebanon will not support any of the tribunal’s further activities.

“I have already sacrificed a lot, and I cannot sacrifice more,” Hariri said.

In other words, Hariri thinks the interests of his country are best served by supporting the forces of darkness who murdered his very own father, which also happen to be doing everything in their power to wipe Israel off the map.

10:40AM: Israel has filed a complaint with the UN Security Council, following a series of Qassam rocket attacks on Israel on Tuesday.

Question is: with whom can we file a complaint about the UN Security Council?

8:34AM: An anti-Israel group called The Seattle Mideast Awareness Campaign has launched an advertising campaign involving ads alleging “Israeli war crimes” appearing on the sides of some Metro Transit buses in Seattle.

Meanwhile, one group has decided to react to this - by going on the offensive.

8:15AM: Some media bias to start the morning.

The system, dubbed “spot and strike,” is operated by the IDF’s Field Intelligence Corps. The footage shows how the system targets a Palestinian terrorist who was involved in an attempted attack that took place in late December 2009.

The system was controlled by a female officer from the Nesher Observation Unit. The officer directed a military helicopter and a Golani force to the location of the terrorist, while also following three other cell members, thus foiling the attack.

The officer stands to receive a special presidential commendation for her actions, as part of the coming Independence Day celebrations.

The new system, which has been operational for about a year, affords the IDF a new and effective way of dealing with terror threats, army officials say.

“The system proves most effective when we’re dealing with real-time events that require immediate response,” Chief Field Intelligence Officer Eli Pollack told Ynet.

Lt.-Col. Eran Gabai, head of the Nesher Unit, added that the observers’ work is very complex: “They canvass the area constantly to spot potential threats among otherwise mundane parameters.”

The IDF found a ladder, ropes and explosives in the documented incident, indicating that the terrorists were planning to climb over the security fence in order to carry out their attack.

Field Intelligence officers employ state-of-the-art technology in their reconnaissance efforts. “It’s a 24/7 operation which involves both mobile and stationary teams,” said Pollack.

“Our officers and observers are part of almost every military operation today. Our challenge is to keep misleading the enemy,” he concluded.

Of course, all of this would be unnecessary if the palestinians were not trying to commit terrorist attacks, a fact worth noting next time a pro-palestinian claims the security fence is a “land grab.”

Updates (Israel time; most recent at top)

10:15PM: Oops!

Palestinian Islamic Jihad militants fall off of a truck after one of them was injured, center, during a training session on the outskirts of Khan Younis, southern Gaza Strip, Wednesday, March 3, 2010. (AP Photo/Tara Todras-Whitehill)

(hat tip: Brian)

If only a similar mishap had occurred at Hamas training…

Palestinian security forces from Hamas demonstrate their skills during a graduation ceremony at a training area in Gaza City, Monday, March 1, 2010.

6:24PM: Photo of the day. Presumably taken on Purim, but given Jerusalem Syndrome, who knows (hat tip: Eli)

“Must..resist…urge…to….climb..”

6:06PM: According to Facebook’s head of strategy for Europe, the Middle East and Africa, Israelis spend over one billion minutes on Facebook every month, making it by far Israel’s most popular site and more than the time they spend on Google, Walla, and YouTube combined.

Here’s a case in point.

The Israel Defense Forces called off a raid in Palestinian territory after a soldier posted details, including the time and place, on the social networking website Facebook, Army Radio reported on Wednesday.

The soldier – since relieved of combat duty – described in a status update how his unit planned a “clean-up” arrest raid in a West Bank area, Army Radio said.

“On Wednesday we clean up Qatanah, and on Thursday, god willing, we come home,” the soldier wrote on his Facebook page, refering to a West Bank village near Ramallah.

The soldier also disclosed the name of the combat unit, the place of the operation and the time it will take place. Facebook friends then reported him to military authorities.

The Israeli military spokesman’s office had no immediate comment.

Israel says raids in the West Bank are aimed at detaining militants suspected of planning attacks on Israelis. Palestinian officials say the incursions undermine efforts by the Western-backed Palestinian Authority to enforce law and order in the territory.

Next status update from the IDF soldier in question: Guess who just did a really stupid thing?

11:35AM: Despite yesterday’s report that Hamas believes Egypt or Jordan were behind the Mahmoud al-Mabhouh hit, the Dubai police chief plans to pursue the arrest of the Israeli Prime Minister and Mossad chief.

Dubai’s police chief plans to seek the arrest of Prime Minister Benjamin Netanyahu and the head of the Mossad over the killing of a Hamas leader in the emirate, Al Jazeera television reported on Wednesday.

Dahi Khalfan Tamim “said he would ask the Dubai prosecutor to issue arrest warrants for … Netanyahu and the head of Mossad,” the television said. It did not give details.

Tamim has said he is “almost certain” Israeli agents were involved in the killing of Hamas commander Mahmoud al-Mabhouh at a Dubai hotel in January, calling for Mossad’s boss, Meir Dagan, to be arrested if it is proved responsible.

6:15AM: Relations between Israel and New Zealand seem to be thawing after the horrible Helen Clark years (hat tip: Zak)

A reciprocal deal has been struck between New Zealand and Israel on working holiday visas.

Foreign Minister Murray McCully signed the arrangement in Jerusalem overnight. It allows up to 200 people aged from 18 to 30 to stay and work in Israel for a year. The same applies to young Israelis travelling to New Zealand.

Mr McCully says the move will help to deepen tourism and education links in time, lead to better trade and investment between the countries.

“Israel is already our largest tourist market in the Middle East, and it is an affluent economy that will present opportunities for New Zealand,” Mr McCully said.

6:08AM: Mosab Hassan Yousef, the son of a Hamas founder and one of its leaders in the West Bank, who worked for Israel’s Shin Bet, talking with CNN’s Christiane Amanpour.

New Zealand looks certain to have a new government after about 3 million Kiwis – almost 10% of whom live in Australia – cast their votes tomorrow.

National polls yesterday gave the National Party of John Key a strong lead over the incumbent Labour Party of Helen Clark, who has been prime minister since 1999.

With the economy officially in recession and its budget plunging into deficit last month, most commentators have been tipping for weeks that Miss Clark’s four-term period at the top is coming to an end.

You may recall that John Key is Jewish and has an interest in Israel.

Helen Clark is simply a disgrace.

I’m guessing that there will be more consensus amongst Israellycool readers regarding their preferred candidate in these elections.

Hat tip: Shy Guy

This could be about to change, with New Zealand likely to elect a Jewish Prime Minister with ostensibly warm feelings towards Israel.

It has fewer than 10,000 Jews, less than 0.2 percent of its four million inhabitants. But New Zealand is set to elect its third Jewish prime minister.

Opposition National Party leader John Key, whose mother is an Austrian Jew, is far ahead of the Labor incumbent, Helen Clark, in the polls. An election may be called at any moment, but must be held by November 15.

Speaking to The Jerusalem Post this week, Key, who turns 47 on August 9, said he was “not a deeply religious person,” but still saw himself as part of the Jewish community, and had an interest in Israel because of his heritage.

“If I become prime minister, I would like to visit… I am definitely keen to go,” Key said. It would be his first trip to the Jewish state.

“New Zealand has a warm relationship with Israel,” he said, adding that “there is quite a lot of synergy” between the two countries, citing their small size.

Key’s mother, Ruth Key (née Lazar), escaped the Holocaust as a child by fleeing to Britain. In a profile published in the New Zealand Herald, it was reported that “the person who has undoubtedly had the biggest impact on John Key is his mother.”

Key told the Post that “Mum didn’t practice the Jewish faith when I was at home, but she sometimes took me to synagogue, and she was always very active in the Jewish community.”

Ruth came to New Zealand after WWII with Key’s father, George, but became a single mother of three in 1969 when he suffered a fatal heart attack.

“I have been involved in fund-raising for Hadassah [Medical Organization in Israel], and we had a celebration for the 60th anniversary of Israel,” Key said.

According to the Herald, Key’s party has had a consistent 20-point advantage over Labor in polls taken since August 2007.

“We are running a very positive campaign,” Key said. “They are starting to look quite tired… And we have been leading in the polls for about 15 months now.”

Julius Vogel, a practicing Jew, served two terms as New Zealand’s premier in the 1870s. And Sir Francis Henry Dillon Bell, a non-practicing Jew and later convert to Christianity, became the country’s 20th prime minister in 1925.

If Key does indeed becomes the country’s third Jewish premier, he says there are lessons to be adopted from the Israeli experience.

“We hear great things about how strong the [Israeli] economy is,” he said. “We are worried about the academic and economic performance of New Zealand and we have been looking at some of the things that Israelis have been doing with mentoring programs, hi-tech and venture capital.”

In reference to his views on Israel’s role in the Middle East, Key said, “Most New Zealanders who are aware of foreign politics understand the threat to Israel from Iran.” As prime minister, he said, he “would make the case that it is in the world’s interest if we could have a peaceful solution to the nuclear situation in Iran and North Korea.”

An Israeli tourist who stripped naked last week when New Zealand road workers whistled at her has been admitted to a mental health unit after allegedly assaulting a bar worker, police said Wednesday.

The woman was arrested Friday night after allegedly putting out a cigarette on the face of a bar worker in the tourist town of Coromandel on North Island.

She appeared in Hamilton District Court on Saturday charged with assault with intent to injure and was remanded to Waikato Hospital’s mental health unit, said constable Peter Easton of the Coromandel police.

On the plus side, she’s now qualified to run for the Knesset.

Road workers in a small New Zealand town got their wish granted when a woman stripped saying she was fed up with their wolf-whistles.

The Israeli tourist was about to use an ATM in the main street of Kerikeri, in the far north of the country, when the men whistled, the New Zealand Press Association reported.

She calmly stripped off, used the cash machine, before getting dressed and walking away.

The woman told police she didn’t take too kindly to the whistling from the men repairing the road.

“She said she had thought ‘bugger them, I’ll show them what I’ve got’,” Police Sergeant Peter Masters told NZPA.

“She gave the explanation that she had been … pestered by New Zealand men. She’s not an unattractive looking lady,” Masters said.

“She was taken back to the police station and spoken to and told that was inappropriate in New Zealand.”