The Tinoco Arbitration(1932-1934) 2
Annual Digest of Public International Law
1917 - Government of Costa Rica [President Alfredo Gonzales] overthrown byFederico Tinoco.
Tinoco assumed power & established new constitution
During his tenure, he:
Granted certain concession to search for oil to a British company
Passed legislation issuing certain new currencies, and British banks [in thecourse of business] became holders of much of this currency
1919 - Tinoco retired, left the country – Government fall.
Old constitution restored and elections were held.
August 22, 1922, restored government passed Acts nullifying the currency laws ithad made
Consequence: Invalidated all transactions involved
The restored government is a signatory of the treaty of arbitration.
Brought by Great Britain on behalf of two British Corporations:
Royal Bank of Canada
Central Costa Rica Petroleum Company
Royal Bank of Canada claimed:
Banco Internacional of Costa Rica and the Government of Costa Rica areindebted to it proven by the holding of 998 1000 colones bills
Central Costa Rica Petroleum Company [CCRPC] claimed:
It owns the rights to explore and exploit petroleum reserves in Costa Rica
This is based on a grant issued by Tinoco
At page 176 and 379.