AUSTRALIA yesterday warned Israel its standing as a friend would be jeopardised if it were found to have condoned the suspected theft of three Australian citizens’ identities by its Mossad spy agency to carry out a political assassination.

As [Prime Minister] Kevin Rudd demanded answers over Israel’s role in the growing international scandal – and ASIO and the Australian Federal Police launched investigations – it was revealed that Australia had previously warned Israel not to use fake Australian passports for intelligence operations.

A diplomatic row broke out yesterday when three Victorians, all living in Israel, were confirmed among 26 people from four nations whose tampered passports were allegedly used by a team of suspected Israeli Mossad agents who assassinated Hamas official Mahmoud al-Mabhouh in Dubai last month.

Foreign Minister Stephen Smith summoned Israel’s ambassador to Australia, Yuval Rotem, early yesterday to express his “grave concern” about the issue.