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The government is suspending all diplomatic ties with Israel after two of its citizens were sentenced to six months jail for passport fraud.
Eli Cara and Urie Kelman, who are suspected of being Israeli spies, pleaded guilty last month to trying to obtain false New Zealand passports.
Helen Clark has described the case as a serious attempt to undermine the New Zealand passport system.
"We regard it as an unfriendly action by agents of the government of Israel aimed at undermining New Zealand's sovereignty and certainly breaching international law," says Clark.
She says three months ago the New Zealand government asked the Israeli government for an explanation and an apology, but they have received neither.
Clark says from Thursday the New Zealand government is suspending all high level visits and exchanges with Israel, and that any Israeli officials wanting to come to New Zealand will have to get visas.
She says the government we will not be rapidly agreeing to the appointment of a new Israeli ambassador, will put constraints on official dealings with Israeli honorary consuls, and will not be accepting the Israeli approach to have its president visit New Zealand in August.
"We are taking a very dim view of this and we look forward at some point to the Israeli government swallowing its pride and offering the explanation and apology we've asked for."
Kelman, 31, and Cara, 50, captured international attention when it was revealed they could have links to the Israeli secret service, Mossad.
On Thursday Justice Potter imposed the six month terms and ordered the pair to each pay $50,000 reparation to the Cerebral Palsy Society. The man whose identity they used to obtain a passport has cerebral palsy.
The pair made multiple visits to New Zealand over the past nine months in the attempt to obtain a New Zealand passport.
They were working with two others when they were caught.
A passport officer became suspicious that Cara's foreign accent didn't match the anglo-saxon name on the application.
David Philp of the Department of Internal Affairs says the case shows their systems are effective, and has again highlighted the international value of a New Zealand passport.
Police followed the passport's delivery through central Auckland. It led them to Cara, who was waiting for its arrival at a nearby cafe.
After arresting Cara police went with the package to where Kelman was waiting. He was caught throwing away his phone, which was used in a series of calls to Cara.
Political experts believe Israeli spy agency Mossad has spread its operations further afield into the South Pacific to keep pace with global terrorism.
It is known that Cara's Israeli home is in a wealthy neighbourhood popular with intelligence personnel.
Israeli TV intelligence correspondent Ben David says if they are Mossad agents then the case is very embarrassing for Israel.
"They'll learn from this exercise. They'll try to work out a different way of approaching things in the future," he says.
Eli Cara and Urie Kelman, who are suspected of being Israeli spies, pleaded guilty last month to trying to obtain false New Zealand passports.
Helen Clark has described the case as a serious attempt to undermine the New Zealand passport system.
"We regard it as an unfriendly action by agents of the government of Israel aimed at undermining New Zealand's sovereignty and certainly breaching international law," says Clark.
She says three months ago the New Zealand government asked the Israeli government for an explanation and an apology, but they have received neither.
Clark says from Thursday the New Zealand government is suspending all high level visits and exchanges with Israel, and that any Israeli officials wanting to come to New Zealand will have to get visas.
She says the government we will not be rapidly agreeing to the appointment of a new Israeli ambassador, will put constraints on official dealings with Israeli honorary consuls, and will not be accepting the Israeli approach to have its president visit New Zealand in August.
"We are taking a very dim view of this and we look forward at some point to the Israeli government swallowing its pride and offering the explanation and apology we've asked for."
Kelman, 31, and Cara, 50, captured international attention when it was revealed they could have links to the Israeli secret service, Mossad.
On Thursday Justice Potter imposed the six month terms and ordered the pair to each pay $50,000 reparation to the Cerebral Palsy Society. The man whose identity they used to obtain a passport has cerebral palsy.
The pair made multiple visits to New Zealand over the past nine months in the attempt to obtain a New Zealand passport.
They were working with two others when they were caught.
A passport officer became suspicious that Cara's foreign accent didn't match the anglo-saxon name on the application.
David Philp of the Department of Internal Affairs says the case shows their systems are effective, and has again highlighted the international value of a New Zealand passport.
Police followed the passport's delivery through central Auckland. It led them to Cara, who was waiting for its arrival at a nearby cafe.
After arresting Cara police went with the package to where Kelman was waiting. He was caught throwing away his phone, which was used in a series of calls to Cara.
Political experts believe Israeli spy agency Mossad has spread its operations further afield into the South Pacific to keep pace with global terrorism.
It is known that Cara's Israeli home is in a wealthy neighbourhood popular with intelligence personnel.
Israeli TV intelligence correspondent Ben David says if they are Mossad agents then the case is very embarrassing for Israel.
"They'll learn from this exercise. They'll try to work out a different way of approaching things in the future," he says.
Israel is also miffed that the story is getting so much media coverage. When Mossad spies operated in the US and Canada it was generally swept under the carpet by Canadian and US governments. Not here, obviously.
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