CURRENT STATUS OF NEGOTIATIONS BETWEEN GUATEMALAN GOVERNMENT AND INSURANCE COMP

Created: 12/21/1954

OCR scan of the original document, errors are possible

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ROUTING AND RECORD SHEET

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HISTORICAL REVIEW PROGRAAA RELEASEAS SANITIZED

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ecember 1'Jjk

FOE: special Assistant to tie Director (Mr. Jackson)

status of negotiations between CuateixJ

Govcranent and Insurance companies in re the Sinking of the SS SPRTJOFJORD.

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Briticfc^frelght-er SS SFRnCFJORD, which was sunk ir,of Sen JregTlSota tSsaonae lnaured withftorveglan subsidiary of Lloyd's,ounds

Tbe coxp) as well as the shipotal loss,reliminary report pieced tbe dosages for the cargo However, the To American insurance cccpanies who shared underwriting for the cargoinal cettlenent with the owners The maxima total clain, Uierofore, which can be brought against the Guatemalan Government for both ship and cargo

October lk, at tbe request of WH Divioion,Cover Dlvlelon, Plans/Fl)igh official ofof tbe largest insurance companies located on the Eastofficial stated that his cenrpany had participated forhe recorded as "chicken feed" (the two otherbearnain lose were,nd heto ba of aeaiatanc*. Be Bold thnt the claims off the cargo had been taken over by Bigbnn, Engler, Jones

& Houston, one of tne leading admiralty firns innd that Mr. Oscar Houston is handling the matter on their behalf.

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3- On Octoberhe following coble,) was sent to Station Cuateaala:

Urge CALLKJERIS approach representative British Government iowdlately in attempt mke honorable settlement claim on SPRIHU-JORD. Beadnuorters authorizes CALLIGERIS negotiate iraae-diate0 for ship and cargo,

CALLIGERIS should bepproach the British along the line that while the presence of any sniport during

a revolution eubjecte the ehip to unwarranted risk, he would like to show hia good faith by pevmeuteasonable indemnity for tbe loss. He should make it plain that hie Government's finances oreisastrous condition androat sacrifice on part of Quatejaala andoeturc" of friendship towards Brltleh Governnent.

CALLIGERIS adopted this suggestion and the Gustemlan Foreign Minister

nade on oral ecncnuilcation to toe Brltlah Legation in the above eenee./ 3kk,0l). As of October

he Brltlah bad not yet replied to tbe Foreign Minister's approach. The first British note to the Guatemalan Coverntaent (July) had taken the position tbat tbe circumstances of the gidling vere such that the Brltlah Government "reserved the right in due couree to present, on behalf of thelain forut no sum was oentloned.

'-- Since Octoberothing further has been learned fromeither by CIA or tbo State Department, regarding progress ofeither vith tbe British Government or vithouston. On Decemberhereoueeted

to cable developnenta. Aa no reply has yet been received, it is Inferred that no developnenta are known to hove taken place, and that further local ixrveetLgatloa will be required. It appears possible that both tha British Goverment and Blghan, EngLer,ouston nay nave concluded that lt vould not be in their best interesta to press their claims too vigorously until the political end economic situation in Guatemala has become nore stable.

5. Further developnents will be reported to you ao coon as possible.

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Original document.

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