Colombia fights U.S. diver for treasure

Gypsy Heart

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June 3, 2007, 1:49PM
Colombia fights U.S. diver for treasure


By JOSHUA GOODMAN Associated Press Writer
© 2007 The Associated Press
http://www.chron.com/disp/story.mpl/ap/world/4858002.html

BOGOTA, Colombia — The Spanish galleon San Jose was trying to outrun a fleet of British warships off Colombia's coast on June 8, 1708, when a mysterious explosion sent it to the bottom of the sea with gold, silver and emeralds now valued at more than $2 billion.

Three centuries later, a bitter legal and political dispute over the San Jose is still raging, with the Colombian Supreme Court expected to rule this week on rival claims by the government and a group of U.S. investors to what is reputed to be the world's richest shipwreck.

Anxiously awaiting the decision is Jack Harbeston, managing director of the Cayman Islands-registered commercial salvage company Sea Search Armada, who has taken on seven Colombian administrations over two decades in a legal fight to claim half the sunken hulk's riches.

"If I had known it was going to take this long, I wouldn't have gotten involved in the first place," said Harbeston, 75, who lives in Bellevue, Wash.

In 1982, Sea Search announced to the world it had found the San Jose's resting place 700 feet below the water's surface, a few miles from the historic Caribbean port of Cartagena. Under well-established maritime law, whoever locates a shipwreck gets the rights to recover it in a kind of finder-keepers arrangement meant to offset the huge costs of speculative exploration.

Harbeston claims he and a group of 100 U.S. investors — among them the late actor Michael Landon and convicted Nixon White House adviser John Ehrlichman — have invested more than $12 million since a deal was signed with Colombia in 1979 giving Sea Search exclusive rights to search for the San Jose and 50 percent of whatever they find.

But all that changed in 1984, when then-Colombian President Belisario Betancur signed a decree reducing Sea Search's share from 50 percent to a 5 percent "finder's fee."

Current President Alvaro Uribe's office declined to discuss the impending court decision, which is expected by Wednesday. But over the years successive governments have argued that Colombia's maritime agency never had the authority to award exploration contracts to Sea Search because the wreck is part of the country's cultural patrimony.

The government may also be motivated by dollar signs. Harbeston believes that if sold skillfully to collectors and museums, the San Jose's treasure could fetch as much $10 billion — more than a third of Colombia's foreign debt.

The real value is impossible to calculate because the ship's manifests have disappeared. But the San Jose is known to have been part of Spain's only royal convoy to try to bring colonial bullion home to King Philip V during the War of Spanish Succession with England from 1701-1714.

"Without a doubt the San Jose is the Holy Grail of treasure shipwrecks," said Robert Cembrola, director of the Naval War College Museum in Newport, R.I.

The San Jose has become a national obsession among Colombians, for whom the "gringos" are the latest in a long line of foreign plunderers dating back to the Spanish conquerors. But that has not prevented three lower courts from ruling that Sea Search is entitled to half the treasure.

Several U.S. congressmen and the State Department also took up the cause, warning in letters to successive Colombian presidents that what they considered a de-facto expropriation could jeopardize unilateral trade privileges.

Luis Felipe Barrios, a former government attorney on the case, said pressure from Washington was so intense that in the late 1990s he received a fax from former Sen. Jesse Helms, then-chairman of the Senate Foreign Relations Committee, threatening to revoke his visa.

Rep. Dan Burton, R-Ind., one of the most active campaigners on Sea Search's behalf, did not return calls or e-mails seeking comment. Most of the dozen other congressmen who took part in the letter-writing campaign have since retired.

Adding to this modern-day pirate drama is a mystery: Some question whether the ship has even been found.

In 1994, Colombia hired treasure hunter Tommy Thompson to verify Sea Search's coordinates. Thompson, an American who has since disappeared allegedly with millions in investors' loot from a previous deep-sea find, turned up nothing.

Another oceanographer, Mike Costin, who worked on a commercial submarine brought in by Sea Search for one of the company's early, booze-filled expeditions, also has his doubts.

"We found something, but I don't think it was the San Jose," he said.

An underwater video taken of the alleged wreck in 1982 show what looks like a corral reef-covered woodpile.

"But drink a glass of wine and it can look like almost anything," said Tony Dyakowski, a treasure hunter based in Vancouver, Canada. Dyakowski claims to have uncovered sea logs that put the San Jose miles closer to the mainland.

Harbeston shrugs off his detractors, saying, "If everyone's so sure it's not down there, then why don't they let us finish what we've started?"

Wherever the hulk lies, marine archaeologists say advances in diving, sonar and metal-detection make it possible to find almost any underwater wreck today. The problem is fending off rivals for whom the glint of gold is too powerful to resist.

"It's like when you light a lantern in the forest and you discover all these insects you didn't know were there before are now descending on you," said Peter Hess, a Delaware lawyer who represents salvage companies.

Besides Sea Search, rival salvage companies and the Colombian government, Spain has also actively defended its sovereign rights over sunken ships that flew its flag. Last week, Spain filed claims in a U.S. federal court seeking up to $500 million in colonial treasure a Florida firm estimates it found recently in a shipwreck in the Atlantic Ocean.

Archeologists also have voiced concern, pointing to a 2001 UNESCO convention — backed by Spain but not signed by Colombia or the United States — that outlaws commercial exploitation of sunken cultural heritage.

"People forget the San Jose is an underwater grave of 600 men," said Carla Rahn Phillips, a University of Minnesota historian and author of the new book "The Treasure of the San Jose." "The wreck deserves to be treated with respect, and most salvors I know only pay lip service to its historical importance."

The Colombian court ruling will also affect other commercial salvage companies eager to dive for more than 1,000 galleons and merchant ships believed to have sunk along Colombia's corral reefs during more than three centuries of colonial rule. Almost none have been recovered due to the legal limbo in the San Jose case.

Daniel de Narvaez, a scuba-diving businessman hoping to salvage a wreck near the Caribbean island of San Andres, said that given the long, tortuous battle, he expects the decision could go either way.

"After such a laughable and tragic ordeal, nothing surprises me anymore," he said.
 

you know what?

Colombia need that money,...$2 billions,.....not foreigner investors,..period.

Amona
 

When I get the kids from down the street to mow my lawn, I pay them.

I could, of course, do it myself and save money--but that's because I have both the equipment and the expertise to do so.
 

Amona, You are absolutly right. We should leave all the treasure in the world on the bottom of the sea were it belongs. I'll even go one step further. You should leave all the hard earned money that you've saved in the bank too. I'm told by a very reliable source that bankers need more money to live on then us working stiffs.

On the other hand, I think I'll share my hard earned money with my broker. I don't mind paying him for a service that makes me money.
 

Amona said:
you know what?

Colombia need that money,...$2 billions,.....not foreigner investors,..period.

Amona

So lets see Columbia put up the money and launch a recovery effort. The fact is, they won't!

Its the people who are willing to risk their money on a gamble like this that should see the returns. All the company is asking for is 50%. That is more than fair for Columbia to net that kind of money without having to put anything up. Florida only gets 20% and the US government gets nothing for wrecks salvaged in our waters. So who is bing rediculous????
 

Colombia already has a CASH CROP and many CARTELS who markets this CASH CROP.
The DRUG SMUGGLERS stay in business because the people here in the U.S. keeps buying the CRAP.
The U.S. provides most all the military the Columbian Army needs but they cannot even slow down these people. Do you think the BILLIONS in AID the U.S. PROVIDES reaches he ones who actually need it. HELL NO IT DOES NOT.
The U.S. needs to revamp its policy toward ANYYONE who claims ANYSHIP WRECK IS THEIRS AND IS NOT WILLING OR ABLE TO RECOVERY IT THEMSELVES.
Peg Leg
 

Peg Leg:
I can relate to the frustration and contradictions that are apparent in most third world countries today regarding the lack of legislation regarding search and recovery of antique shipwrecks and it's not only here in Colombia. There are many reasons for this but mainly I would think it's two main problems that surround this issue, the main one being the pro-UNESCO approach, "let's leave the wrecks where they are" and "only us archaeologists can get involved, nobody else. All others are unscrupulous treasure hunters with no regard to history or culture". This position has gained much support in most third world countries and remember that Colombia was one of the original six countries that wrote the initial draft of the Convention. The other issue that has impeded "viable" legislation has been ignorance and disinformation regarding this whole subject by the legislators and presidents in most latinamerican countries if not all third world countries. For instance it was widely believed here by some of the "best Admiralty lawyers" that it was unconstitutional to commercialize shipwreck artifacts and that there was no way around this legal barrier. It turns out they were wrong and one of the finest legal minds in this country that we contracted has totally dismissed this concept that was obviously used as a banner by the pro-UNESCO romantics that have yet to place both feet in the ground. Many other countries like Ecuador that have recently adhered to the Convention, I'll bet you dollars to donuts, Peg Leg, that 99.9999% of the population have no idea what they have signed and even further, that the legislators who approved it don't understand what the UNESCO Convention is all about. It just has a nice name and sounds like it must be good for everybody so they went along with the program and signed it. It won't be for a while, when the Spanish show up to pick up one of "their" galleons in Ecuadorian waters when they'll realize what they got themselves into, having to split Ecuadorian Patrimony with Chile, Bolivia, Peru, and the rest of their neighbors and their brother too. There's a very strong 300 year old anti-imperialist feeling here that will become apparent when the first move Spain makes to try and pull off what they did with La Galga and El Juno! Here it won't go as smooth and the sooner it happens the better so people will realize what this is all about.
 

Panfilo,

Great response! It makes you really think what we are up against. You made some very interesting points and it will be interesting to see how things play out with Spain!

Thanks Again,

Robert
 

One last thing Peg Leg, don't be fooled for a second into thinking that the drug trade has brought anything good to Colombia, even the billions of dollars that flow into our borders and the local economy have a devastating negative effect on all aspects of society. It is a cancer that corrodes all fibers of a nation, corrupting judges that would otherwise be honorable, bringing desolation to pristine natural resources and financing terrorist guerrillas that extort its citizens and oppress the poorer people. Wouldn't it be a better world if we could take the riches of the San Jose and build schools and universities and rehab centers and decontaminate the rivers, etc.? No, politicians wouldn't go with this idea, because it makes sense. Let's just leave them in the bottom of the sea like the most venerable institution, the UNESCO proposes where it will do the most good to humanity.
 

My point IS and WAS why is the U.S.SPENDING BILLIONS OF AMERICAN TAX DOLLARS EVERY YEAR TO FIGHT DRUG DEALERS in Colombia.
AND yet they are not able to provide much in the form of AID for themselves.
Yes they could use the money but we all know that will only go into the pockets of the GREEDY.
50% of what was recovered should last them a few weeks or a month at most and what about the REBELS WHO PAY THEM.
My last question is this. WHY DID THEY NOT GO AFTER IT THEM SELVES-THIS WAY IF WOULD GET IT ALL.
Peg leg
 

Columbia is at war!, and has been for many years. The FARC (the rebels) are in full control of 40% of the country, and they are in control of most of the Cocoa production in that country. Columbia does not have the resources to hunt for and salvage any shipwreck.
And yes UNESCO is a bad thing - any nation that signs on will be giving up many sovereign writes to the UN, and how smart would that be?
 

you know what?

Colombia need that money,...$2 billions,.....not foreigner investors,..period.

Amona


So lets see Columbia put up the money and launch a recovery effort. The fact is, they won't!

Its the people who are willing to risk their money on a gamble like this that should see the returns. All the company is asking for is 50%. That is more than fair for Columbia to net that kind of money without having to put anything up. Florida only gets 20% and the US government gets nothing for wrecks salvaged in our waters. So who is bing rediculous?

Ridiculous?, Colombia see this issue from other angle rather than American see it (with $$$$) Colombia wants to conserve the patrimony and I'm agree that they stop any american salvage company to remove any treasure from theirs water or just take 5%,...that's really fair for somebody that have $12 millions dollar to invest it or dump it out in vegas, That is ridiculous!

Children die for food and there is a investor ready to put 12 million dollar just to take 200% of the recovery,...do you think that is it fair?

Colombia is a 3rd world country and they need that money 100%, We don't need it, We have Oprah with 2 billions. ;D ;D ;D

Amona

BTW

http://www.negocios.com/gaceta/articleview/65056/
 

Amona said:
... Colombia wants to conserve the patrimony and I'm agree that they stop any american salvage company to remove any treasure from theirs water or just take 5%...

....Colombia is a 3rd world country and they need that money 100%,

Amona please make up your mind. Whats important to Columbia? The money or the conservation of patrimony?

/Voldbjerg
 

Amona,
Regarding the preservation of the San Jose by Colombia, please consider that the Colombian government obviously is not interested in mounting a search and recovery effort on their own, or else just does not have the equipment and expertise to do it.
If the children are hungry, it makes sense for Colombia to work out a deal with a professional salvage company and split the spoils (50% of the San Jose sounds a lot better than a 100% of nothing...)
As for "conserving the patrimony", what patrimony?? The wreck has not even been located yet, and even if that happens, is well beyond diving limits, so who will enjoy the patrimony?? You can't dive on it, you can't study it...
It will serve better to Colombia to get a cut of what is recovered, open a "San Jose" museum, so the public can really enjoy the national patrimony, and the government will make $$ charging an entrance fee. The salvage company invests a lot of money and effort into such an enterprise, and obviously should be compensated accordingly.
Just my 2 cents...

Cheers
 

I wanted to make a clarification or remark regarding the newspaper article written by Mr. Joshua GOODMAN of the Associated Press: the article is fairly accurate and condenses almost 30 years of history and 20 of legal battles into one page. The only thing that disturbs me is the title "Colombia fights U.S. diver for treasure" which is really not the case. In reality if you read the article, the "U.S. diver" (Sea Search Armada)has sued the Colombian Navy (DIMAR), rightfully so in my opinion, and won twice, in the circuit court and in the apelate court!The odds are in favor (historically speaking) of the "U.S.diver wining in the Supreme Court.It has been said that today, Wednesday, the Supreme Court will rule. We shall see. Perhaps if the title were: "U.S.diver fights Colombia for treasure" it would be more acurate.
 

Too-deep said
The wreck has not even been located yet, and even if that happens, is well beyond diving limits, so who will enjoy the patrimony?? You can't dive on it, you can't study it...

Too deep, I think you're talking "too-deep", read here about the location of the San Jose
(of course, Colombian's news paper)

http://www.semana.com/wf_InfoArticulo.aspx?IdArt=58280

Voldbjerg said
Amona please make up your mind. Whats important to Columbia? The money or the conservation of patrimony?

Both are important, but this isn't the issue, the really issue is to see a foreigner company remove and take out from theirs water territory 50% of theirs patrimony just to make 'richer' the investors when in Colombia need the whole 2 billions to fight the poverty and others social problem. I have a question for all

How much is 5% of 2 billion dollars? =$100 millions?,...... Only I would need 2.5% of that $100M to pay my debts.

I don't want to be rude with anybody here, it's just, I see this matter from the human perspective because I 'd been in Colombian so many time and I know how people live there.
Seems to me, Patrimony and Personal bussiness interest doesn't match.
Amona
 

Have you ever been to Africa. You have no idea what POOR is.
If Colombia were to spend a few of their OWN dollars THEN I would say let them have all of it and move on. But like most SA countries they stand with their hands out looking for a FREEBEES ad when they get it they BAD MOUTH AMERICANS-JUST LIKE YOU DO ALL THE TIME.
Peg Leg
 

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