Basic Shell commands:
$ cd $HOME
$ mkdir tempdir
$ cd tempdir
$ tar -zxvf ../archive.tar.gz
At this point you have a copy of the contents of
archive.tar.gz in $HOME/tempdir/
$ zip -rmp password ../archive.zip *
... will create a zip archive from the contents of tempdir/ and then remove the files added. I presume it still does;
use standard (weak) PKZip 2.0 encryption as stated for the
-e option - which doesn't take the password, but prompts for it instead.
Make SURE / VERIFY you're still in tempdir/
If there is ANYTHING else than "/tempdir" at the end above,
then DO NOT continue with what comes next, here:
$ rm -rf *
$ cd ..
$ rmdir tempdir
All the above might be possible with a pipe too, as in:
$ tar -zxvf ./archive.tar.gz - | zip -p password - ./archive.zip
... I see no reason to try it out though - due to the weak encryption and possible problems with how zip handles special files, links and whatnot.
If you want real encryption, look into
gnupg and related utilities instead.
zip -h2 | less,
tar --help | less may hold information vital to the above, especially the piped conversion which I have not tried.