Foreign espionage in New Zealand, while likely not as extensive as in many larger countries, has nevertheless taken place. The New Zealand Security Intelligence Service (NZSIS), which has primary responsibility for counter-intelligence work, states that there are foreign intelligence agents working in New Zealand today.
Potential objectives
New Zealand's relatively small population, economy, and military mean that espionage against New Zealand is unlikely to be a priority for foreign intelligence agencies. Nevertheless, the New Zealand government asserts that a limited amount of espionage does take place. Former Prime Minister Sir Geoffrey Palmer has stated that "it would be wrong to assume New Zealand was free from foreign threats [or] that New Zealand may be too small and unimportant to be of great interest to hostile foreign-intelligence organisations".
One potential reason for foreign interest in New Zealand might be its close intelligence links with larger Western nations – as part of the Five Eyes alliance, New Zealand receives more information than it might otherwise be expected to hold. Foreign intelligence agencies might therefore see New Zealand as a "back door" into the intelligence worlds of the United States, United Kingdom, and Australia. At times, New Zealand's allies have expressed concerns about both Soviet and Chinese espionage and influence in New Zealand.
Also of potential interest was New Zealand's nuclear-free legislation, which prompted a rift between New Zealand and the United States. Soviet defector Oleg Gordievsky alleges that the Soviet Union was interested in New Zealand's policy, and attempted to promote it in Europe, perhaps in the hope of weakening the United States' position in the Cold War nuclear arms race. The Soviet Union was frequently accused of encouraging those elements in New Zealand which it saw as beneficial to its interests – the pro-Soviet Socialist Unity Party was one alleged beneficiary, as were certain militant trade unions.
On occasion, foreign spies may be active in New Zealand for reasons not connected with the country itself – the French bombing of the Rainbow Warrior was aimed at Greenpeace rather than New Zealand. China is also sometimes alleged to target New Zealand-based Chinese democracy activists and Falun Gong members more often than it targets the New Zealand government.
It is alleged that New Zealand has been used as a "training ground" for other operations – it is a developed, English-speaking country, but was seen as less dangerous than more major targets.
Alleged espionage activity
Soviet Union/Russian Federation
Throughout the Cold War, a number of people in New Zealand, both Soviet citizens and New Zealanders, were accused of working for Soviet intelligence agencies. Many were diplomats connected to the Soviet embassy in Wellington. The SIS was active in monitoring the activities of Soviet diplomatic personnel, conducting surveillance of the embassy compound and trailing vehicles which left it. Occasionally, diplomats were expelled on charges of espionage or interference in New Zealand political affairs.
Among the expelled diplomats were Ambassador Vsevolod Sofinsky and embassy officials Sergei Budnik and Dmitri Razgovorov. Sofinsky and Budnik were both accused in the 1980s of giving covert assistance to the Socialist Unity Party, while Razgovorov was accused in 1975 of being an agent handler for local sources (notably Bill Sutch, below). Later, in 1991, Anvar Kadyrov was expelled after illegally attempting to obtain a New Zealand passport. The "Mitrokhin Archive" claims that many Soviet spies were active in New Zealand, possibly using it as a relatively "safe" training ground for activities in other English-speaking countries.
Probably the best known New Zealander accused of being a foreign spy is Bill Sutch, a prominent diplomat and economic advisor. He was observed on several occasions meeting Dmitri Razgovorov, a Soviet diplomat, and in 1974, the SIS accused Sutch of passing information. He was acquitted in court the following year, and died shortly afterwards. The question of his guilt or innocence was, and still continues to be, a matter of considerable public debate. Former NZSIS officer Kit Bennetts has maintained that Sutch was a Soviet intelligence asset.