Government demands Israel return any bogus passports

By FRAN O'SULLIVAN and BRIDGET CARTER

HERALD INVESTIGATION - The Government called in an Israeli diplomat over suspected Mossad spies arrested in New Zealand and demanded the Israeli Government return any bogus New Zealand passports it might have.

In a rare intervention, Acting Foreign Affairs Minister Jim Sutton summoned the Canberra-based Acting Israeli Ambassador Orna Sagiv a week ago over the case in which two Israeli men were arrested in Auckland after allegedly trying to obtain a false New Zealand passport.

Mr Sutton said the ambassador was called in to have the "riot act" read - "and for me to say on behalf of the New Zealand Government that we required a full accounting of what they were up to".

"If there are any New Zealand passports, incorrectly and improperly in their hands, we want them all returned."

Meanwhile, it has emerged that Australian spy-catchers have been investigating a suspected Israeli spy ring for a month.

A spokesman for Attorney-General Philip Ruddock confirmed yesterday that the Australian Security Intelligence Organisation (ASIO) had been investigating the matter.

He told the Sunday Herald Sun that ASIO had been in touch with its New Zealand counterparts.

Eli Cara, 50, and Uri Zoshe Kelman, 30, appeared in the Auckland District Court on Friday for a depositions hearing and have denied charges of trying to obtain a New Zealand passport and taking part in an organised crime group to obtain a false passport.

Police said they were satisfied the accused men were meeting their bail conditions.

Two other men believed to be connected to the case are Zev William Barkan, 37, and a fourth man thought to be in New Zealand. Police believe Barkan has left the country.

Mr Sutton said the Ministry of Foreign Affairs and Trade had urgently requested Ms Sagiv's attendance after an initial court appearance resulted in the men being released on bail.

"Two people had been arrested with New Zealand passports," said Mr Sutton. "It appeared they were representatives of the Israeli Government ...

"We wanted a full explanation of what was going on and an assurance that if there was any New Zealand passports that had been wrongly made out or wrongly provided or improperly applied for and provided, we wanted all of those returned."

Mr Sutton said the Israeli diplomat did not deny the Government's suspicion that the men were Mossad spies "but didn't confirm it either".

"My impression was she hadn't known about this until she arrived in New Zealand," he said. "I imagine she would have contacted her capital to see what they could tell her about why she might be being asked to present herself forthwith.

"But if she knew anything it wasn't obvious to me."

Ms Sagiv replied that the message would be "conveyed forthwith" to the Israeli Government, Mr Sutton said.

She also had discussions at "official level" with the ministry.

Last night, Ms Sagiv said relations between New Zealand and Israel were "friendly".

"We send messages as we have with many other countries, but I think what we say and if we say things in the diplomatic channels it should stay in the diplomatic channels and not in the media."

Mr Sutton said the issue had not been discussed at Cabinet level before the meeting.

David Baker, who is a spokesman in Israel for Israeli Prime Minister Ariel Sharon, said the Prime Minister's office would not be talking. When asked if he would respond to questions sent to the office, he said, "You can send them, but we will not be responding".

Both Cara and Kelman were bailed until a High Court appearance next month. Bail conditions were that Cara stay at the President Plaza Hotel and Kelman at the Duxton.

But a hotel staff member told the Herald Cara checked out of the President Plaza Hotel at the weekend and, when contacted yesterday, the Duxton said Kelman was leaving the hotel today.

The case surrounds claims that Barkan allegedly stole the identity of a wheelchair-bound cerebral palsy sufferer to obtain a false passport.

Kelman and Cara were accused of helping to get the passport for Barkan.

Foreign Affairs Minister Phil Goff said last night that any substantive action by the Government would follow the court case and what emerges. But the "separation of powers" ruled out a deal with Israel's Government.

"There is no question of any deal being reached because that would require the Government to interfere with the police and justice process and that's inappropriate in our constitutional arrangement.

"Once the police had taken the stand, made the arrests and the charges were laid that's entirely outside the Government's hands and appropriately so."

Mr Goff said there would be no reason to let the men go. "Why would we want to? An alleged criminal act has occurred. That has to be dealt with before the courts.

"Once that's all over then any political action that may be appropriate would take place at that time."

Mr Goff said he did not expect any representations from Israel, at least until the court case progressed.

He indicated there could be further inquiries at Government to Government level but would not be drawn on the detail.

He said Jan Henderson - New Zealand's Ankara-based Ambassador to Israel - "may well have been in touch".

"But I would not want to comment any more broadly than that.

"The court will make a finding on what if any offence has been committed. It will make an appropriate sentence and at that point the Government will make appropriate comments on the basis of the information that we have, which I guess won't be beyond what emerges from the courts."

The case has created a stir around the world. The Herald exclusive has been picked up by news sites worldwide, including the major Australian newspapers, the Jerusalem Post and some Middle East publications.

The Israeli newspaper Maariv headed its report "Two suspected Mossad agents arrested in NZ".

In Australia, the Sunday Herald Sun said the arrests would have set off alarm bells at ASIO headquarters in Canberra.

The security agency's job is to gather information to warn the Government about activities that might endanger Australia's security.

The newspaper's sources said if Israel had gone to the trouble of setting up a genuine business in Sydney as a front for spying, it was an "extraordinary" step. ASIO would not be investigating the case unless it suspected the pair were undeclared spies, a source said.

Undeclared spies, not known to a country's security services, were a "sneaky and snaky practice".

The allegations

* Two Israeli citizens appeared in an Auckland court on Friday charged with passport fraud.

* Eli Cara, 50, and Uri Zoshe Kelman, 30, face three charges after being arrested in a police sting operation late last month.

* The charges include attempting to obtain a New Zealand passport, and taking part in an organised crime group to obtain a false passport.

* Cara, who claimed to be a Sydney travel agent, has travelled to New Zealand 24 times since October 2000.

* Another Israeli, Zev William Barkan, 37, fled NZ. A fourth man is believed to be in hiding.

* The men are suspected of being Mossad agents.

* Email Eugene Bingham

* Email Bridget Carter