Atlantic Zone
on Red Alert
The state of emergency that is affecting the
Atlantic zone has left some 2.000 students without
classes. The Ministry of Education decided to close
the schools temporarily to avoid a tragedy. Some 40
primary and 3 high schools in Guápiles, Siquirres
and Sarapiquí.
An emergency was called for the area following rains
that began last Saturday and according to the
weatherman - the Instituto Meteorológico Nacional (IMN)
- will continue for the next two or three days.
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The comptroller's office -
La Contraloría General de la
República - has asked the
Ministerio de Obras Publicas y
Transporte ( MOPT) to review the
tariffs charged by Riteve SyC,
the vehicle inspection company
and Alterra the operators of the
airport following charges that
both organizations are passing
on costs above those established
by law.
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To date, two deaths have been reported and more
than 2.000 people have had to leave their homes.
The Comisión Nacional de Prevención de Riesgos y
Atención de Emergencias (CNE) declared on Sunday a
'red alert" warning, putting into action an
emergency plan to help the residents of the area.
Some 25 temporary shelters have been set up.
The areas hardest hit are in Matina in Limón and
Puerto Viejo de Sarapiquí in Heredia
Temporary Resident Visas Now Required for Citizens of
Costa Rica
Judy Sgro, Canadian Minister of Citizenship and
Immigration, announced today that citizens of Costa Rica will require a
Canadian temporary resident visa to travel to Canada as of today, May 11,
2004.
This measure was necessitated because increasing numbers of Costa Rican
nationals
are entering Canada as visitors when they intend to remain permanently.
"The decision to lift a visa exemption is never made lightly. Many factors
are considered before making this decision," said Minister Sgro. "It is
essential to maintain the integrity of Canada's immigration program, while
continuing to facilitate the entry of legitimate visitors."
Citizens of Costa Rica can apply for a temporary resident visa at any
Canadian visa office abroad.
The Canadian visa officer for the Central
American region is based in Guatemala. That officer will be available at the
Canadian Embassy in San Jose, Costa Rica, to facilitate the issuance of
visas.
A grace period ending at 23:59 EDT, on May 12, 2004, has been provided to
accommodate nationals of Costa Rica who have already left their country of
residence and are in transit.
"We remain committed to providing quality service to facilitate the entry
of business representatives, students, tourists and other legitimate
travelers from Costa Rica and all other countries," said Minister Sgro.
Individuals who travel to Canada regularly, such as business people, may
choose to apply for multiple-entry visas.
Visa requirements and exemptions are reviewed on an active and on-going
basis. Since December 2001, the results of ongoing reviews have led to
lifting
visa exemptions for Dominica, Grenada, Hungary, Kiribati, Nauru, Tuvalu,
Vanuatu, Zimbabwe, the Kingdom of Saudi Arabia and Malaysia.
Villalobos Investors File Notice of Arbitration
Against Costa Rica for US$204 Million
A Notice of Arbitration has been filed by the Canadian law firm Cain Lamarre
Casgrain Wells with ICSID (the International Centre for the Settlement of
Investment Disputes) of the World Bank for 245 investors and their
corporations from 15 nations (Austria, Britain, Canada, Denmark, Finland,
France, Germany, Netherlands, New Zealand, Panama, Spain, Sweden,
Switzerland, Taiwan, and USA) against the Government of the Republic of
Costa Rica.
The notice calls for preliminary indemnization to the investors by Costa
Rica of nearly US$204 million.
The notice was filed under the bilateral investment treaties (BITs) and
other treaties signed by Costa Rica, which provide a clause of “pre-consent”
to arbitration, automatically allowing for the jurisdiction of an ICSID
tribunal regarding a dispute arising out of an investment.
The notice alleges violations of obligations by Costa Rica under these BITs
and other international treaties, international law, norms, customs, and
standards, and domestic law, including the obligation for “full protection
and security” and “fair and equitable treatment under international law”.
These violations resulted in the loss of the investors’ investment with the
Villalobos Mixed Financial Conglomerate in Costa Rica. The notice does not
request the dismissal of criminal charges in domestic courts against Luis
Enrique Villalobos or Osvaldo Villalobos, known as the “Villalobos
Brothers”.
As this case develops, many will see major parallels and similarities of
“gross negligence” between this case and the BCCI case currently underway in
England (BCCI Depositors v. Bank of England).
ICSID rules require Costa Rica to name their nominee for the formation of
the ICSID tribunal within three (3) months, or ICSID will form the tribunal
without a nominee from Costa Rica. Costa Rica will also have to obtain legal
representation and the Costa Rican Congress will have to vote on a budget
(average legal costs for arbitration are US$2 million) for this
representation.
Costa Rica has a long history of the disrespect of the rights of foreign
companies and investors operating in Costa Rica. Examples include the cases
of Millicom Cellular, and Harken Energy.
US Vows to Approve FTA with Central America
US Agriculture Secretary Ann Veneman
vowed Monday in Costa Rica that her government would
approve as soon as possible the free trade agreement
(FTA) with Central America.
At a press conference held against the backdrop of
the ministry's Conference on the Use of Science and
Technology to Promote Agricultural Productivity, the
official said farm trade with Central America was of
fundamental importance.
Veneman said she was in favor of opening market to
agricultural products since "the treaty will widen
the opportunities for both parties."
The secretary said that competition, along with the
transfer of technology, was one of the elements that
guaranteed the activity's success, and stressed
horizontal cooperation was a perfect tool for
producers in developing countries to access the
markets of wealthy nations.
On the US farm subsidies, the official said the
issue had to be discussed before the World Trade
Organization (WTO).
She recognized that many trade barriers were due to
technical obstacles to trade, especially health
measures imposed by every country, rather than
custom tariffs. Therefore, the transfer of knowledge
was necessary to fulfill scientific and
technological requirements, develop capacities, and
thus get benefits in the world market.
Veneman said her country had strongly supported
custom tariff cuts, and the continent's countries
had to move forward in market liberalization.
The ministry's conference was attended by
agricultural ministers and representatives of
Mexico, Central America and the Dominican Republic,
along with members of the Regional Agricultural
Cooperation Council.
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Chavez foils
'assassination plot'
Venezuelan President Hugo Chavez says his forces have captured a group
of about 50 Colombian paramilitaries who were plotting to kill or
overthrow him.
According to Mr Chavez, the men had been trained by Venezuela's
political opposition.
Opposition leaders say the claim is a crude attempt to discredit them.
The controversy comes at a time of rising political tension in
Venezuela, with the opposition hoping to unseat Mr Chavez in a
referendum.
In a few weeks' time President Chavez will find out whether his
opponents have gathered enough support to hold the referendum against
him and possibly force him from office. The government says 56
Colombians were arrested in a dawn raid at a farm on the outskirts of
the capital, Caracas.
State television has been showing pictures of armed police guarding
groups of young men dressed in green camouflage. It has also shown what
appears to be a camp complete with sleeping quarters and cooking
facilities.
Security officials say the men were using the camp to plan an attack on
a military installation in Caracas. They say the farm belongs to a Cuban
exile with close links to Venezuela's opposition.
According to President Chavez, the discovery is clear evidence that his
opponents are trying to assassinate him.
That claim brought a swift denial from opposition leaders who dismiss
the raid as a publicity stunt designed to justify a security clampdown.
In Colombia the leader of the main paramilitary group has also denied
any involvement.
U.S.
Dismantles Colombian Money-Laundering Ring
The U.S. government has broken up a massive international
money-laundering ring through which $20 million in illicit drug proceeds
from Colombia were laundered into the United States, Canada, and the
United Kingdom.
The U.S. Drug Enforcement Administration (DEA) said in a May 4 statement
that 34 people have been indicted in the case, dubbed "Operation White
Dollar." The defendants are charged with laundering money through the
Colombian Black Market Peso Exchange (BMPE).
In addition, a prominent Colombian industrialist, Jose Douer-Ambar,
agreed to have his prosecution deferred, in return for which he will
forfeit to the United States $20 million in illegal proceeds,
constituting the amount he purchased from the indicted peso brokers.
The BMPE is an informal currency exchange system in which "peso brokers"
serve as middlemen between narcotics traffickers, who control massive
quantities of drug money in cash in the United States. It also involves
companies and individuals in Colombia who want to purchase U.S. dollars
outside the Colombian banking system so that they can, among other
things, avoid the payment of import duties and transaction fees owed to
the Colombian government.
U.S. Attorney General John Ashcroft said the arrests highlight the U.S.
government's strategy to attack drug cartels where it "hurts most -- on
the money side," adding: "Those who choose to help hide the proceeds of
illegal drug trafficking are as much a part of the problem as those who
bring the drugs into this country, and they will be dealt with
accordingly. We will not let these organizations keep their ill-gotten
profits and continuously pump them into the drug pipeline."
The DEA said the 34 defendants were involved in a BMPE conspiracy
centered in Bogota. The indictment includes charges against five
defendants alleged to be "First-Tier Peso Brokers," who make contracts
directly with narcotics-trafficking organizations; two defendants
alleged to be "Second-Tier Peso Brokers," who concentrate on arranging
for the pickup of street-level cash narcotics proceeds and placing those
funds into the banking system; and nine defendants alleged to be
"Third-Tier Peso Brokers," who make contracts directly with the
Colombian dollar purchasers.
The DEA said that, if convicted, the defendants face a maximum sentence
of 20 years' imprisonment on each of the charges of money laundering,
which is described as the processing of criminal proceeds to disguise
their illegal origin. Moreover, various defendants face an additional
maximum sentence of five years' imprisonment on illegal money-remitting
and conspiracy charges.
Chile denies
facing isolation in South America
Chile has denied that it faces a regional isolation in South
America due to the recent tensions with Bolivia, Peru and Argentina.
An official from the Foreign Ministry told the press Monday that Chile
had excellent relations with Mexico, Ecuador, Colombia and Brazil, while
steps in that direction were being taken with Venezuela and, except the
gas problem, ties with Argentina were good.
Argentina is currently suffering a serious energy crisis that has forced
it to buy fuel from Venezuela and reduce its gas export to Chile.
It is even impossible to brand as bad the relations with Peru, whose
government requested the revision of the joint maritime borders.
With regard to Bolivia, the tension is actually due to the instability
afflicting the neighboring nation, where its being a landlocked nation
is frequently used as a factor to bring society together, the official
added.
Besides, the government has done what had to be done for the welfare of
Chileans, including the signing of trade agreements with the United
States and the European Union.
The country has political, social and economic stability, and because of
that the great powers consider it a serious partner, the official said.
Chile inked cooperation pacts with all the countries of Latin America as
part of its aim to expand ties with the rest of the world.
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