2005 REPORT ON INVESTMENT DISPUTES AND

UNCLAS KINGSTON 001257

SIPDIS

STATE FOR WHA/CAR (WBENT),WHA/TRD (MATTINGLEY),
EB/IFD/OIA/JPROSELI, L/CID/JNICOL

SANTO DOMINGO FOR FCS AND FAS

TREASURY FOR L LAMONICA

E.O. 12958: NA
TAGS: KIDE EINV ECON CASC EFIN PGOV JM OPIC
SUBJECT: 2005 REPORT ON INVESTMENT DISPUTES AND
EXPROPRIATION CLAIMS - JAMAICA

REF: A) STATE 70014

B) 01 KINGSTON 1525
C) 02 KINGSTON 1558
D) 04 KINGSTON 1525



1. Embassy Kingston is aware of one investment dispute
between a U.S. citizen/entity and the GOJ. This dispute
was first described in ref B, was updated in refs C and D,
and was included in the 2004 Report on Investment
Disputes.


2. Post was last contacted by Claimant via his lawyer in
June 2001. Post contacted Claimant in May 2004 to
ascertain the status of the investment dispute. Claimant
informed Post that in September 2000, the Claimant pursued
a negotiated solution with the GOJ's Ministry of Finance
and Planning (MOFP). Claimant said he thought he had
negotiated a settlement with the MOFP for USD 6.2 million.
However, in late September 2000, the negotiated settlement
was put before the GOJ Cabinet and rejected. As of May
2004, Claimant still hoped to settle the case. Embassy has
nothing new to report regarding this dispute.


3. Claimant's name:

Burton Josephs


4. Embassy Kingston is aware of one investment dispute
between a U.S. citizen/entity and a Jamaican
citizen/entity with purported local political connections.
Post is including this case for evaluation, as the GOJ
ties are unproven.


5. Post was contacted by Claimant in June 2004. Claimant
informed Post that a telecommunications business deal with
Jamaican partners had gone bad. USD 600,000 of Claimant's
money in a Jamaican bank was frozen by order of a Jamaican
judge, pending hearings in Jamaica. Numerous motions by
the Claimant to dismiss the Jamaican partners' case were
dismissed, and Claimant told Post that he believes the
Jamaicans have strong connections to a prominent former
senior politician that are influencing the case outcome.
Claimant met with Embassy officials in April 2005 to
update them on recent developments. Claimant's case is
set for a final hearing in June 2005. In parallel, the
dispute is also undergoing binding arbitration in Florida,
where Claimant stated he expects a favorable outcome, but
believes the Jamaicans will evade the provisions of the
arbitration.


6. Claimant's name:

Richard Linhart