Treasure hunt sparks legal battle between Spain and finder

By Sinikka Tarvainen Aug 16, 2007, 6:38 GMT

Madrid - When a US deep-sea exploration company used underwater robots to lift the world's biggest coin treasure from a mysterious shipwreck, it evoked exciting images of sea battles, pirates and treasure-hunters.

In real life, however, stories of sunken treasures easily become tedious accounts of unending legal battles.

After Florida-based Odyssey Marine Exploration recovered a treasure of silver coins from a wreck of unknown nationality in an undisclosed location, it sparked legal conflict with the Spanish government, which also lays claim to the booty.

The conflict has grown, with both sides taking legal action against each other, and even threatened to cause diplomatic tension after Spain intercepted an Odyssey vessel which had been moored in the British colony of Gibraltar.

The story of the wreck known as the Black Swan is linked to that of the HMS Sussex, a British warship which sank in the Strait of Gibraltar in 1694, allegedly with a treasure of gold coins on board.

Already fearing that Odyssey could steal treasures hidden in its waters, Spain nevertheless granted the company permission to search for the Sussex in the framework of a pioneering public-private deal with the British government.

In May, however, Odyssey came out with the surprise announcement that it had located another shipwreck, from which it had retrieved more than 500,000 silver coins weighing over 17 tons, gold coins and other artifacts.

The treasure, which the company describes as the largest collection of coins ever excavated from a historical shipwreck site, is estimated to be worth 370 million euros (500 million dollars).

Odyssey said it was still investigating the nationality of the wreck, refused to reveal its location allegedly to protect artifacts still at the site, and announced the discovery only after taking the treasure to a secret location in the United States.

The discovery of the wreck, which Odyssey has named the Black Swan, rang alarm bells in Spain, where the government fears that treasure-hunters could loot shipwrecks littering national waters.

Experts estimate that more than 800 shipwrecks lie off Spain's south-western coast, with treasures worth a total of more than a billion euros on board.

Numerous ships carrying gold and silver from Spain's American colonies once passed through the Strait of Gibraltar, where storms, wars, pirates and technical problems sent many of them to the bottom of the sea.

Some experts believe the Black Swan is the Nuestra Senora de las Mercedes, a Spanish frigate defeated by a British fleet off Portugal in 1804.

Another theory postulates that it could be the Merchant Royal, a British ship that sank off England in 1641 while transporting coins from Spain to Belgium to pay Spanish troops stationed there.

Odyssey says the wreck is in international waters beyond any country's jurisdiction, but Spaniards are not entirely convinced.

Even if the treasure was not found in Spanish waters, Spain could claim it if the ship sailed under its banner.

Spain has filed a legal claim in the US, saying it does not intend to give up rights to any Spanish property, and seized an Odyssey vessel after it left Gibraltar, forcing it to enter a Spanish port for inspection.

The incident threatened to create some tension with Britain, which regards the waters off Gibraltar as international, while Spain has long claimed the colony as its own.

But Britain has also said that like Spain, it wants more information on Odyssey's discovery and intends to protect its rights in case the shipwreck turns out to be British.

In the most recent development, a Spanish court has asked Gibraltar to inform it about Odyssey's activities in the colony, which the company's vessels have used as a base.

Odyssey has retaliated against Spain's legal offensive, seeking damages for the seizure of its vessel.

The company rejects Spain's accusations, saying it has always acted legally, wants to protect the world's underwater heritage and even invited Spain to participate in the expedition that resulted in the discovery of the Black Swan site.

Even if the treasure retrieved from there turned out to belong to Spain, Odyssey says it is entitled to 90 per cent of it as a salvage award.

Spain fears that the company could already sell the coins, but an Odyssey spokeswoman denied that the company had such plans.

'This is just another incorrect Spanish media report,' she said. 'We do not sell any Black Swan coins or artifacts over the internet or through any other outlet until ownership issues have been settled.'

The treasure may have to remain at its hiding place for quite some time, as experts predict a legal battle lasting several years over its fate.