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June 27th, 2005, 10:36 GMT

Israel Apologizes Over Spy Scandal

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NZ's prime minister anounced yesterday that Israel has apologized to New Zealand for attempts by two of its citizens to obtain passports fraudulently last year.

The two suspects have been arrested in March 2004, Uri Kelman and Eli Cara after making comments about working for an Israeli intelligence agency. The two were deported after serving two
months of their six-month prison sentences.

They escaped a more severe sentence by each donating NZ$35,000 to a local charity, but faced a maximum penalty of five years in jail and have appealed their convictions.

New Zeeland soon suspended all high level diplomatic contact with Israel, requesting an explanation and an official apology.

New Zeeland's Prime Minister said that "the Israeli letter of apology, signed by Foreign Minister Silvan Shalom, states that Israel apologizes for the involvement of its two citizens in the activities which led to their arrest and convictions in New Zealand".

Israeli's foreign minister, Mr Silvan Shalom, or the foreign ministry's director-general Ron Prosser will travel to New Zeeland to mark the end of the diplomatic conflict which arised over a year ago between the two countries.

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