US embassy cable - 05KINGSTON1257

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