US embassy cable - 05KINSHASA819

UNCLAS KINSHASA 000819 
 
SIPDIS 
 
DEPT FOR EB/IFD/OIA/JPROSELI, L/CID/JNICOL AND AF/C 
 
FROM BRAZZAVILLE EMBASSY OFFICE 
 
E.O.12958: N/A 
TAGS: CASC, EFIN, EINV, KIDE, PGOV, CF, OPIC 
SUBJECT: CONGO/B: 2005 REPORT ON INVESTMENT DISPUTES 
AND EXPROPRIATION CLAIMS 
 
REF: A) STATE 070014; B) Kinshasa 0769 C) State 61595; 
 
D) Ashraf-to-Sanders March-April 2005 emails; 
E) Indyke-to-Bargeron/Winstead email of February 2005 
 
1. In reply to Reftel A, Embassy Brazzaville reports 
the following investment disputes in Republic of Congo 
(Congo/B). 
 
2. Claimant A 
Year When Dispute Arose: As early as 1999 
Case History: Claimant purchased Congolese debt on 
secondary market and claims that Congo has defaulted on 
the debt.  Claimant filed suit and won in U.S. court, 
seeking direct allocation of revenue to itself from a 
third party that owes regular and continuing payments 
to Congo for oil revenues.  Congo appealed the case in 
U.S. court and lost in April 2005.  The Embassy 
delivered a demarche to Congo in March and April 2005, 
urging a negotiated settlement with claimant (Refs B 
and C).  The claim amount is about 16.3 million euros 
(US$20.6 million) in principal and interest. 
 
3. Claimant B 
Year When Dispute Arose: 2004 
Case History: Claimant alleges that Societe National 
des Petroles du Congo (SNPC), the state-owned national 
oil company of Congo, reneged on a letter of intent to 
supply 5 million barrels of crude oil that was signed 
by the Congolese Minister of Hydrocarbon in July 1999. 
The dispute involves the specified quantity of crude 
oil; the dollar amount is unspecified.  Claimant 
visited Brazzaville (Congo) in February 2005.  Meetings 
took place between claimant, claimant's Congolese 
lawyer, the president of SNPC, and the Minister of 
Justice.  Before departing, claimant reported that the 
claims had been addressed during the meetings and that 
the results were satisfactory, but did not specify what 
the results were.  Prior to the February visit, the 
Embassy furnished a list of Brazzaville lawyers to the 
claimant through the Department. 
 
4. Claimant A: Af-Cap 
Claimant is a U.S. company.  The Embassy does not have 
a signed privacy act waiver. 
 
5. Claimant B: Frank Weston 
President 
International Multiracial Shared Cultural Organization 
(IMSCO) 
Claimant is a U.S. citizen and U.S. resident.  The 
Embassy does not have a signed privacy act waiver. 
 
6. Brazzaville Embassy Office - Sanders. 
DOUGHERTY