New Zealand has imposed diplomatic sanctions on Israel after two Israelis suspected of being spies were jailed for trying to obtain a passport by fraud.
The government said there were "very strong reasons" to suspect the two men were acting on behalf of Israel's Mossad intelligence service, and it froze all high-level official contact with Israel.
"The Israeli government was asked for an explanation and an apology three months ago. Neither has been received," Prime Minister Helen Clark said in a statement.
She said the actions of the Israeli intelligence agents were "utterly unacceptable" and a breach of New Zealand 's sovereignty and international law.
New Zealand will now suspend all high-level diplomatic contacts with Israel, not allow a visit by Israeli President Moshe Katzav after he goes to Australia next month, and delay the approval and accreditation of a new ambassador to New
Zealand, she said.
"We of course regret this reaction but we think that this is a decision which can be repaired and we will of course act to restore relations to their proper state," Israeli Foreign Minister Silvan Shalom said on Israel Radio.
A New Zealand court sentenced Uriel Zoshe Kelman and Eli Cara to six months in prison on Thursday after they pleaded guilty to trying to obtain fraudulently a New Zealand passport by assuming the identity of a wheelchair-bound cerebral palsy
victim.
They were let off from serving a further three months after offering to donate NZ$50,000 (€26,2658) each to a local charity. The pair had faced a maximum penalty of five years in jail.
Kelman shielded his face with a hand to avoid being filmed throughout the two-and-a-half hour sentencing.
A third man, identified as Zev William Barkan, was said by the defence to have masterminded the operation, but he left New Zealand before he could be arrested.