Spain proposes to leave $4B treasure on Caribbean seafloor to avoid conflict with Colombia

[happyslug]

4. I see that as the ultimate solution, but first you have to calm people down.

Investors claim to have found the ship in 1981, but refused to give its location and demanded 65% of the gold. Columbia refused that request even through the Columbia Supreme Court did rule a 50/50 split was legal. The investors then made a claim in the US Courts, which ruled this was a case involving a War Ship and SPAIN is the place for such litigation and dismissed the case. In 2015 the Columbia Navy revealed it had found the ship but is keeping its location secret. Thus the investors are out of luck, they should have agreed to what the Columbia Supreme Court agreed to. Now they will get nothing.

https://en.wikipedia.org/wiki/Spanish_galleon_San_Jos%C3%A9

Under International Law, Warships always belong to the nation they belong to when sunk. Since this was a WARSHIP, Spain has a good claim to the treasure. Columbia claim is weaker, for it is based that the ship lays in territorial waters of Columbia, but outside the traditional three mile limit. Under the international Law governing resources, Countries can control the waters off their coast for 200 miles, OR the half way point to the land mass of another Country, whichever is shorter, Columbia claims this include salvage rights, but that has NOT been decided by the Courts. If the ship had been in the traditional three mile limit, the Ship would be Columbia's but it was found OUTSIDE those limits. Please remember the exact location is a state secret in Columbia but if it is within the three mile limit, no dispute, but if it is outside the three mile limit, that may explain why Spain is involved.

Side Note: The law as to salvage of CIVILIAN SHIPS is quite clear, the original owner has the right to salvage, unless it has "abandon" the salvage. If no abandonment has occurred, then the original owner has first claim on anything from the Salvage. Time is NOT a factor. In the 1990s, the US Supreme Court ruled that a Civlian Ship sunk in the 1850s had NOT been abandoned by its owners. The original Owners had claim the Ship on their insurance, but part of that claim was any rights those owners had to the ship, became the insurance company's property (i.e. the Insurance Company was the "Owner" of the ship). When the ship was found and gold was found on the ship, the Insurance Company said it has NEVER abandoned its claim. The mere fact it did not KNOW where the ship was, and the technology did not exist to recover the gold, did NOT add up to abandonment. The Supreme Court agreed with that position. This rule does NOT apply in this case for the ship involved is a WARSHIP and a different set of rules come into play.

As to the investors, they are subject to what ever law applies, all they are entitled to is the cost of salvage plus a reasonable profit for doing the work, NOT a share in what is recovered (Remember this is a WARSHIP, if the ship had been a Civilian Ship they would have a much better claim). The Investors refused to deal offered by the Columbia Supreme Court, so they have no one to blame bit themselves.

I suspect what Spain is doing here is saying to Columbia, lets compromise, lets split the treasure and give the investors only what is reasonable for their work. Thus instead of one winner and one loser, you end up with two winners. The problem is to many high ranking people in Columbia are saying this is Columbia's treasure and it should stay in Columbia. Spain by saying leave the treasure where it is, is saying, lets cut a deal and avoid fighting over this.

As to the three mile limit, that was the max range of black powder cannons and was first revealed in the 1500s and based on that fact. Longer range required the invention of Smokeless power in the 1880s, which in turn lead to the increase in territorial waters to 12 miles.

The investors also have a problem, the Columbia Supreme Court ruling applies to the location the Investors provided the court. It appears the ship is NOT at that location. The investors have said the ship has moved and the Columbia Supreme Court ruling gives its a claim to a broad area, but the Columbia Government is saying the ruling only applies to that location. I suspect the Investors had given the WRONG location to the Government so the Government could NOT recover the treasure itself. The problem is that since the Government had found the ship itself, the Government is saying the investors will be held to what they had said in the past. You lie to the Government, you will be held to that lie.

http://www.latimes.com/world/mexico-americas/la-fg-colombia-treasure-20160110-story.html