Identifier
Created
Classification
Origin
08BRIDGETOWN358
2008-06-03 18:17:00
UNCLASSIFIED
Embassy Bridgetown
Cable title:  

2008 EXPROPRIATION REPORT: ST. VINCENT AND THE GRENADINES

Tags:  CASC EINV KIDE OPIC PGOV VC XL 
pdf how-to read a cable
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RR RUEHWEB

DE RUEHWN #0358 1551817
ZNR UUUUU ZZH
R 031817Z JUN 08
FM AMEMBASSY BRIDGETOWN
TO RUEHC/SECSTATE WASHDC 6524
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS BRIDGETOWN 000358 

SIPDIS

STATE FOR WHA/CAR AND EB/IFD/OIA

E.O. 12958: N/A
TAGS: CASC EINV KIDE OPIC PGOV VC XL
SUBJECT: 2008 EXPROPRIATION REPORT: ST. VINCENT AND THE GRENADINES

REF: STATE 43784

------------------------------
St. Vincent and the Grenadines
------------------------------

The United States Government is aware of one (1) outstanding claim
of United States persons against the Government of St. Vincent and
the Grenadines (GOSVG).

UNCLAS BRIDGETOWN 000358

SIPDIS

STATE FOR WHA/CAR AND EB/IFD/OIA

E.O. 12958: N/A
TAGS: CASC EINV KIDE OPIC PGOV VC XL
SUBJECT: 2008 EXPROPRIATION REPORT: ST. VINCENT AND THE GRENADINES

REF: STATE 43784

--------------
St. Vincent and the Grenadines
--------------

The United States Government is aware of one (1) outstanding claim
of United States persons against the Government of St. Vincent and
the Grenadines (GOSVG).


1. a. Claimant A

b. June 2006

c. In June, 2007, the SVG High Court found that Claimant A had
violated the terms of the "Alien's (Land-Holding Regulation) Act."
The court ruled that Claimant A was required to spend a minimum of
USD 15 million on construction within three years of receiving title
to 100 acres of land at Chatham Bay on Union Island in the southern
Grenadines, and that the claimant's failure to do so meant that
Claimant A must "forfeit the land to the government without
compensation. Citing the danger of foreign investors taking
advantage of the the lack of capital gains taxes as a way to
speculate on land, Acting High Court Judge Albert Matthews stated,
"It is my view that the purpose of such legislation is to obviate
any attempt towards recolonization."

Claimant A originally planned to develop a resort on Union Island,
but claims that lack of access not only made the land difficult to
develop, but also difficult to sell. No roads led to the property
on Chatham Bay and no planes larger than 12-seaters can fly into
Union Island, making it difficult to bring in international visitors
for a large hotel.

Ambassador Ourisman raised this case with Prime Minister Ralph
Gonsalves in October, 2007. Gonsalves said the government had
offered to pay Claimant A the original purchase price of the land,
plus interest. Gonsalves further claimed that when he had
communicated this offer to Claimant A through his lawyer, Claimant A
refused it and demanded compensation of USD 25 million. In a
private conversation with Embassy Officers, Claimant A stated that
the GOSVG never offered to pay any amount. Embassy Officers
informed Claimant A that PM Gonsalves assured Ambassador Ourisman
that he was willing to honor his original offer to Claimant A. With
regard to the problem of property access, PM Gonsalves told
Ambassaddor Ourisman that the government had invested in
infrastructure such as a road to Chatham Bay, which had raised the
value of the property. According to Claimant A, there was never
notification of the existence of the road.

Claimant A has appealed the High Court's ruling and is awaiting a
response to the appeal. Claimant A further expressed a lack of
confidence in the indepence of the GOSVG judicial system, and
expected to also lose the appeal. However, Claimant A informed
Embassy Officers of his intention to appeal the case up to the Privy
Council in London (the court of final appeal for such cases). The
Embassy has not received any further information since November,

2007.

d. Claimant A: Haze Richardson and Lynn Richardson, Chatam Bay
Development CJorp., Ltd.; United States citizens; no Privacy Act
Waivers signed.

OURISMAN