Press Release No. 154-03

10 April 2003

SUIT AGAINST DIPLOMATIC PROPERTY REGRETTABLE; ALL REMEDIES TO BE EXHAUSTED – OPLE

Foreign Affairs Secretary Blas F. Ople today said that it is most regrettable that the City of New York has decided to ignore the international legal commitments and relevant laws of the United States when the New York City Government filed a case against the Philippines seeking the payment of real estate taxes on the Philippine Government’s diplomatic and consular premises in New York City.

“This case springs from a misappreciation of the applicable laws on this issue.  The diplomatic and consular character of our property has never changed,” the Secretary said. “The amounts demanded are highly unreasonable and the actions of the City Government of New York could conceivably interfere with our ability to carry out our diplomatic and consular duties and functions,” he added.

On 9 April 2003, the City Government of New York announced that it had filed four lawsuits in Manhattan State Supreme Court against four foreign governments which own property in Manhattan and have failed to pay their real estate taxes.  The lawsuits are against the governments of Turkey, the Philippines, India, and Mongolia and seek payment of real estate taxes, charges, and interest of approximately $70 million, $17.7 million, $16.4 million and $2.1 million, respectively.

“We continue to make representations with the City Government of New York as well as with the U.S. State Department in Washington, D.C.  We have retained counsel in New York to enable us to be better armed in dealing with this lawsuit. We intend to exhaust all available diplomatic, political and legal remedies,” the Secretary said.

“We are committed to observing and respecting the laws of our host national government and the local government.  We understand the concerns of the City of New York as well as its current needs. It is my hope that we will be able to address this lawsuit to our mutual satisfaction so that we can move on with our urgent work of pursuing our vital interests in the Untied Nations and providing consular services to our Filipinos in New York,” he added. END.