Keating, who has returned to New Zealand, has been charged with attempting to make an intimate visual recording.
Commodore Alfred Keating was a senior defence attaché at the Washington embassy when a covert recording device was found in a unisex lavatory in July past year, Judge Grant Powell said.
Keating is one of the most high-ranking military officials of the Embassy.
His application for continued name suppression was however declined by His Honour Judge KJ Glubb in the District Court at Auckland.
At his first appearance in the Auckland District Court on March 5, Keating was granted interim name suppression before being remanded on bail to re-appear in court on March 29.
The sole issue of the trial will be identification, Newell told Judge Kevin Glubb.
He said Mr Keating's reasons do not even come close to meeting the threshold for extreme hardship.
"Their evidence would be tainted", Newell said.
He has sought name suppression pending trial on this charge.
"These events happened in Washington in the confines of the embassy".
Crown prosecutor Brian Dickey said there had been an extensive police investigation at the Washington embassy.
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His lawyer argued that Mr. Keating's name should remain secret because his daughter is serving in the navy and could face "extreme hardship" if he were named, Radio New Zealand reported.
Fred Keating standing in front of the New Zealand embassy in Washington DC at a defence reception in September 2017.
Newell immediately appealed that decision.
Earlier this week, in the High Court at Auckland Newell said Keating had not told his daughter of the charge - who is now serving with the navy overseas.
Fred Keating allegedly placed a camera inside the unisex bathroom at the New Zealand embassy in Washington DC.
The New Zealand embassy is located in an area of Washington called Embassy Row, where many countries have diplomatic outposts and attaches stationed.
New Zealand Herald court reporter Sam Hurley joined Larry Williams to talk about the case and why he was named.
Mr Keating would have been eligible to claim diplomatic immunity from being prosecuted by United States authorities, but the case was handled by New Zealand police, who travelled to Washington to investigate.
Mr Keating then went on to do further technical and professional training in 1982 on HMNZS Tamaki, at the Auckland Institute of Technology and HMS Collingwood.
He was commissioned as an officer in 1987 and sent to the United Kingdom to study engineering before he was posted to HMNZS Southland as the assistant weapon and electrical engineer officer.
Keating was subject to a search warrant by the New Zealand Police upon his return to the country.