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."