My understanding is that spying is perfectly ok, as long as one doesn't get caught. (I am talking here about spying on other countries, rather than working as an agent for another country in one's own country. The latter tends to carry a sentence heavier than most other crimes put together).
Periodically diplomats are asked to leave a country for "activities incompatible with their status". If a spy/diplomat is caught in the UN planting bugs then he will be asked to leave and the country concerned will mumble a few apologies.
If the transcripts were picked up using equipment in the UK then that is a matter for the UN to get better jamming devices.
The political issues surrounding the everyday activities of intelligence gathering is the embarrassing factor for Tony Blair. He made a grand show of working with the UN whereas the Short revelations make it look like he was working against the UN. Of course this may just be appearances and Tony Blair may still have been hoping to work with the UN, but that is probably neither here nor there now.
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