VZCZCXRO3173
RR RUEHKW
DE RUEHWR #1438 1731236
ZNR UUUUU ZZH
R 221236Z JUN 07
FM AMEMBASSY WARSAW
TO RUEHC/SECSTATE WASHDC 4618
INFO RUEHKW/AMCONSUL KRAKOW 1750
RUEHBS/USEU BRUSSELS
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS WARSAW 001438 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EB/IFD/OIA HGOETHERT 
STATE FOR L/CID SMCDONALD 
STATE FOR EUR/NCE BPUTNEY 
STATE PASS USTR 
COMMERCE FOR 4232/ITA/MAC/EUR/OECA/MROGERS 
 
E.O. 12958: N/A 
TAGS: EINV CASC KIDE OPIC PGOV PL
SUBJECT: POLAND:  ANNUAL INVESTMENT DISPUTE REPORT 
 
REF: STATE 
 
 ¶1.  (SBU)  Post is unaware of any ongoing expropriation 
disputes involving Poland and U.S. companies or citizens. 
However, on April 29, 2004, Cargill filed a request for 
arbitration with the Polish Government relating to its 
investment in an isoglucose plant in Wroclaw.  In 1995, 
Cargill invested $90 million to build an isoglucose sweetener 
production facility, which opened in May 2001.  The plant was 
built with a capacity of 120,000 metric tons per year.  As 
part of Poland's EU accession negotiations, the EU imposed an 
27,000 ton annual isoglucose quota on Poland, which limited 
the ability of Cargill to utilize its investment.  In 
February, 2003 Cargill notified the Polish Government it 
would seek international arbitration under Article 3 of the 
UNCITRAL rules unless the two sides could reach an amicable 
solution.  A hearing on the case was held in May, 2006 and 
the court is considering new documents provided by the GOP 
after the original discovery deadline.  The arbitration case 
is still ongoing as of June, 2007.  Company officials hope to 
receive a final ruling in August or September, 2007.  The 
Polish government has not made an offer to settle the dispute. 
 
¶2.  (U)  Poland 
 (U)  The United States Government is aware of one claim of a 
U.S. claimant that may be outstanding against the Government 
of Poland. 
 
¶1. a. Claimant A 
 
b.  2003 
 
c.  In 1995, Claimant A, an American company, invested in a 
sugar substitute production facility, which opened in May, 
¶2001.  In late 2001, the Polish Government implemented a 
national production quota on sugar substitutes.  Then in EU 
accession discussions, the GOP agreed to an even lower quota 
on sugar substitutes with the EU.  These quotas limit the 
ability of Claimant A to utilize its investment.  In 
February, 2003, Claimant A notified the Polish Government it 
would seek international arbitration under Article 3 of the 
UNCITRAL rules unless the two sides could reach an amicable 
solution.  A hearing was held in May, 2006.  As of June 2007, 
discussions between Claimant A and the Polish Government are 
continuing. 
ASHE