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Viewing cable 06ASMARA580, Eritrea: 2006 Report on Investment Disputes and

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Reference ID Created Released Classification Origin
06ASMARA580 2006-07-07 09:33 2011-08-30 01:44 UNCLASSIFIED Embassy Asmara
VZCZCXYZ0011
PP RUEHWEB

DE RUEHAE #0580/01 1880933
ZNR UUUUU ZZH
P 070933Z JUL 06
FM AMEMBASSY ASMARA
TO SECSTATE WASHDC PRIORITY 8278
UNCLAS ASMARA 000580 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ENIV CASC KIDE OPIC PGOV ER
SUBJECT: Eritrea: 2006 Report on Investment Disputes and 
Expropriation Claims (527) 
 
Ref: State 60294 
 
1.  The United States Government is aware of four claims by 
American citizens that may be outstanding against the 
Government of the State of Eritrea (GSE). Three of these 
claims were reported in previous reports and there is one 
new claim for 2006. 
 
2.  a) Claimant A 
 
b) 1998 
 
c) On July 20, 1998 Claimant A notified the Embassy that 
eight machines and six lots of parts were stranded in the 
port of Assab following the outbreak of hostilities between 
Eritrea and Ethiopia.  Following the Claimant's request for 
assistance, the Embassy raised the issue with GSE 
officials, however, the Embassy's intervention did not 
succeed in securing the release of the equipment. Over a 
period of several years the Embassy raised the issue 
repeatedly with GSE officials.  There has been contact 
between the two parties in an attempt to resolve the case 
yet since the submission of the 2003 report, the Embassy 
has not been contacted by the claimant nor is the Embassy 
aware of any recent activity on the case. 
 
3. a) Claimant B 
 
b) The two properties in question were nationalized in 1975 
by the Derg government of Ethiopia.  Eritrea was then a 
province of Ethiopia. 
 
c) The expropriated properties are commercial and located 
at Martyrs' Avenue No. 273-281 and at Zibel Street No. 2- 
10, both in Asmara.  After Eritrea won its independence 
from Ethiopia in 1991, it issued a decree dealing with 
properties expropriated by the Derg government.  Article 9 
of this decree stated that the question of property 
expropriated from foreigners would be addressed at "a later 
date."  In 1993, Claimant B reported that, after seeing a 
newspaper announcement stating that properties would be 
returned, it paid the GSE a rehabilitation tax for the 
properties.  Claimant B also continued to pay taxes on the 
properties and reported that the GSE collected rents on the 
properties. 
 
In 2001, the Housing Commissioner of Eritrea told Claimant 
B that the two properties would never be return nor would 
compensation be paid.  Later in 2001, the Housing 
Commissioner reportedly told an Embassy officer the same 
thing.  An Embassy officer met with the GSE Minister of 
Land twice on this issue and in June 2002 the Minister 
denied the statement that the properties would not be 
returned.  He did add, however, that the GSE had not made 
any decisions about expropriated properties and had no idea 
when this would happen. 
 
Claimant has not pursued legal action.  Claimant estimated 
total property value at 140,000 in 2004.  There is a local 
representative on the case and to the Embassy's knowledge 
no further action on the claim. 
 
4.  a) Claimant C 
 
b) The two properties in question were nationalized in 1975 
by the Derg government of Ethiopia.  Eritrea was then a 
province of Ethiopia. 
 
c) The expropriated properties are commercial and located 
at Herent #212 and #214 in Asmara. After Eritrea won its 
independence from Ethiopia in 1991, it issued a decree 
dealing with properties expropriated by the Derg 
government.  Article 9 of this decree stated that the 
question of property expropriated from foreigners would be 
addressed at "a later date."  In 1993, Claimant C reported 
that all applications and documents needed for processing 
the properties' return had been submitted.  The GSE had 
been collecting rent since 1991 and income taxes prior to 
1973 (when the Derg seized power) had been paid.  Land 
taxes were paid. 
 
Claimant C has not been able to obtain a new certificate of 
ownership from the GSE, although claimant does have all 
prior title documents.  Claimant C has not pursued legal 
action and estimated the total property value at $290,000 
in 2004.    There is a local representative on the claim 
and to the Embassy's knowledge no further action taken. 
 
 
5.  a) Claimant D 
 
b) 2006 
 
c) In May 2006, Claimant D contacted Embassy to discuss the 
expropriation of a private vehicle.  Claimant D had 
imported the vehicle in 1999 upon arrival in Eritrea to 
work as a religious missionary and had paid all required 
taxes and duties.  In 2002, Claimant D was unexpectedly 
asked to depart Eritrea and left care of the vehicle, with 
a power of attorney, with an Eritrean national who is a 
member of an unregistered religious institution.  In June 
2005 Claimant D returned to Eritrea for several months. 
Again he departed and left the vehicle.  Several months 
later the GSE confiscated the vehicle allegedly for illegal 
activity.  Police have taken possession of the vehicle. 
Claimant D did not place a value on the vehicle.  Embassy 
last had contact on June 8, 2006 with Claimant D. 
 
 
6.  Claimants: 
 
Claimant A: Caterpillar Equipment.  Status of Privacy Act 
Waiver unknown. 
 
Claimant B: Irene Shoa Kivitz, American Citizen, Privacy 
Act Waiver not signed. 
 
Claimant C: Susanne Shoa, American Citizen, Privacy Act 
Waiver not signed. 
 
Claimant D: D. Kevin Smith, American Citizen, Privacy Act 
Waiver not signed. 
 
DeLisi