NZ's Palestine stance said to rule out formal apology

By FRAN O'SULLIVAN in Jerusalem

High-ranking Israeli officials are seeking a diplomatic solution to the New Zealand Government's decision to impose sanctions against the Middle East nation after the sentencing of two alleged intelligence agents for trying to illegally obtain New Zealand passports.

But a formal apology from Israel's Government is not in the pipeline.

That would be an admission of guilt, said a well-placed source. This is unlikely to happen given the New Zealand Government's stance on Palestine.

Prime Minister Helen Clark's strong statement featured prominently on television bulletins in Israel on Thursday and was splashed across the front pages of all leading newspapers yesterday.

Israeli Foreign Minister Silvan Shalom and his officials have continued to push a conciliatory line as they study Helen Clark's statement to see where an olive branch might be extended.

But Israeli President Moshe Katsav has reacted to the snub by Helen Clark who said a request for him to visit New Zealand this year would be declined. The president said he was not personally affected by the sanctions as there was never an intention to tack on a visit to a planned Australian trip.

Meanwhile Israel's Foreign Ministry has been under strict instructions from Prime Minister Ariel Sharon and Mossad not to comment directly on allegations that Israeli intelligence agents had breached New Zealand's sovereignty, according to Haaretz newspaper.

In an interview with the Herald, the head of the ministry's Pacific department continued to formally distance Israel from the actions of Eli Cara and Uri Kelman.

The two Israeli citizens were processed on the criminal law, said Michael Ronen. He understood that while they had admitted they had committed crimes, they had admitted no involvement "of an organisational sort".

"I don't have a reason to say anything else."

Mr Ronen said officials would do all in their power to re-establish relations. Officials appear to be pinning their initial strategy on the fact that the sanctions stop short of a full break in diplomatic relations.

Headlines from the world's media

* Spy scandal echoes Rainbow Warrior - The Australian.

* Two Mossad spies jailed in New Zealand - The Sydney Morning Herald.

* New Zealand jails Israeli 'spies' - bbc.co.uk.

* 'Mossad agents' jailed in New Zealand passport scandal - guardian.co.uk.

* 'Mossad activity' mars New Zealand ties - Washington Times.

* Wellington freezes ties over passport scam - Jerusalem Post.