2006 REPORT ON INVESTMENT DISPUTES AND

UNCLAS DUBLIN 000646 SIPDIS SIPDIS STATE FOR EB/IFD/OIA/JPROSELI, L/CID E.O. 12958: N/A TAGS: KIDE EINV PGOV EFIN EI SUBJECT: 2006 REPORT ON INVESTMENT DISPUTES AND EXPROPRIATION CLAIMS: REQUEST FOR EMBASSY INPUT: IRELAND REF: STATE 60294 ¶1. Below is Post's submission pursuant to Section 527 of the Foreign Relations Authorization Act, requested ref A. There have been updates to last year's submission,given developments in the case before the Irish High Court (ref B). ¶2. The United State Government is aware of one (1) claim of United States persons that may be outstanding against the Government of Ireland (GOI). (a) Claimant A (b) 1995 (c) The dispute involves the salvage rights of a United States citizen to the wreck of the Lusitania, an ocean liner sunk off Ireland's southern coast in 1915. In 1995, the GOI imposed a "Heritage Order" on the wreck site, designating it part of the national historic patrimony and giving the GOI's Heritage Service (now the Department of Environment and Local Government) authority to regulate access to the site. Claimant A, the Lusitania's owner, has twice applied for and been denied access to the wreck on the grounds that the proposed exploration would threaten the vessel's preservation. In July 2001, Claimant A filed for judicial review of the ruling, and the case came before the Irish High Court in November 2003. In June 2005, the High Court ruled that the GOI's action in the case had been expropriatory, but reaffirmed the Government's right to license dives to the vessel. The Irish Government appealed the ruling in November 2005, and the case is ongoing. Claimant A, who last discussed the case with Post on May 25, 2006, has estimated the Lusitania's value at USD 3-5 million. Claimant A: Gregg Bemis, a U.S. citizen. To Post's knowledge, Mr. Bemis has not signed a Privacy Act Waiver. KENNY