S & Davis International, Inc. (AS & Davis) filed suit in the Northern District of Alabama to enforce an arbitration award against the General Corporation for Foreign
Trade and Grains (AGeneral Corporation) of Yemen. The suit arose from a breach of contract dispute.
On May 14, 1996, the General Corporation, a Yemeni corporation, executed a contract with S & Davis, an Alabama corporation, to purchase 300,000 metric tons
of wheat at a price of $274.88 per ton. The contract specified U.S. wheat No. 2 or better with point of origin from the U.S., Canada, Australia, South Africa, or Argentina. The purchase price was to be paid with a letter of
credit issued by the Bank of Yemen with confirmation by a AU.S.A. prime bank.
The contract was negotiated and signed in Yemen. However, the contract contained an arbitration agreement providing that any dispute was to be arbitrated by the Grain and Feed Trade Association (AGAFTA) in London, England.
After additional attempts through various political and diplomatic channels to open a letter of credit, on January 2, 1997, S & Davis declared the General Corporation had breached the contract and initiated GAFTA arbitration in London.
The original GAFTA panel held that the General Corporation breached the contract by failing to open a letter of credit but concluded that S & Davis had not shown entitlement to any damages. It also held that the General Corporation was a
separate entity from that of the Ministry, and, therefore, the Ministry was not liable. The appellate arbitration panel affirmed the finding of a breach of contract but awarded S & Davis approximately $17 million in damages against the General Corporation.
On December 18, 1998, S & Davis filed this suit in federal district court to enforce the arbitration award, in addition to a claim for breach of contract and enforcement of the arbitration award against the Republic of Yemen asserting that theGeneral Corporation is a political subdivision of the Republic, and an alternative claim for tortious interference with contractual relations against the Ministry of Supply & Trade for the amount of the arbitration award.
The Ministry filed a motion to dismiss under Fed.R.Civ.Proc. 12(b)(1), lack of subject matter jurisdiction, 12(b)(2), lack of personal jurisdiction, and 12(b)(5), insufficient service of process. The Ministry claimed immunity under the FSIA (Foreign Sovreignty Immunities Act), as a political subdivision of The Republic of Yemen.
S & Davis asserted that subject matter jurisdiction was allowed under the FSIA and the Convention on the Recognition and Enforcement of Foreign Arbitration Awards, 9 U.S.C. ‘ 201 et seq. The district court held an oral hearing and on April 22, 1999, denied the Ministry’s motion on all grounds. The Ministry timely filed a notice of appeal.
On the other hand a formal letter was sent to Mr. Richard Firtz the General Sales Manager FAS/USDA by Mr. Philip A. Geddes lawyer on behalf of S & Davis that protested any further aid to the Republic of Yemen under the provisions of Section 416 of the Agricultural Act of 1949. The protest was grounded legally on the requirement that any donations made under section 416 must not displace any sales and must not disrupt prices and patterns of trade.
About this matter Yemen Times contacted the American embassy and was assured that the appellation was true and that S & Davis won all the points mentioned in the case. However, the embassy had had no direct influence on this case for the past one year.
The current situation is still pending as there are efforts to bring together the two sides and reach a peaceful settelment.

Yemen has strongly condemned the massacre committed at the Aqsa mosque in Jerusalem against the Palestinians two days ago. Mr. Abdul Qader Ba Jamal, Yemen’s deputy premier, the foreign minister has said in a statement to Saba news agency that the Yemen Republic vehemently condemns the brutal carnage perpetrated by Israeli forces inside the courtyard of Aqsa mosque following Friday prayer and unjustified firing live bullets at prayers. It holds Israel and Barak’s government responsible for deterioration of the situation and escalation of the state of frustration suffered by the Palestinian people in the occupied Arab territories. The Yemeni official statement insisted on the need to enable the Palestinian people to establish their independent state with Al-Qods as its capital.
At least 23 Palestinians were killed and seven hundred others were injured during clashes with Israeli army troops over the past few days. The event has evoked worldwide protest and condemnation. A number of Arab capital cities have witnessed angry demonstrations protesting the massacres against Palestinians.
And in Yemen, all political parties, have decided to stage a massive protest demonestration today in Sana’a against the massacre perpetrated by Zionist soldiers in Al Aqsa Mosque area.

Security sources have recently disclosed that three women bodies had been found in and outside Sana’a.
One of the bodies, found in a watch out near a qat field on the Sana’a-Amran road, was said to belong to an approximately 22-year girl. The same girl was reported as going missing ten days ago.
Another body was found in Assafiah area inside the capital city while the third one was found in Taiz street.
Announcement of this event coincides with preparations of Bani Al-Hareth Court to continue looking into the students’ murder at the College of Medicine.

Mr. Keith Vaz, British Minister for State of Foreign and Commonwealth Affairs, arrives in Sana’a today. He is visiting Yemen at the invitation of President Ali Abdullah Saleh, following the President’s recent visit to the United Kingdom.
While in London, President Saleh and the British Foreign Secretary expressed their strong desire to improve and deepen bilateral relations. It is for this purpose that Mr. Vaz, who was born in Aden, is visiting Yemen.
Mr. Vaz will meet with President Saleh, the Prime Minister, the Foreign Minister, the Minister for Cabinet Affairs, and the Minister of Health among others.
Mr. Vaz will also sign with the Deputy Finance Minister a Memorandum of Understanding between the two countries on the United Kingdom’s $ 8 million aid program to support economic reform in Yemen.
According to well-informed foreign sources in Sana’a , Mr. Vaz is likely to discuss with the Yemeni officials the question of the 10 British prisoners in Aden and the possibility of releasing them. These 10 Britishers were tried by a Yemeni court in the beginning of 1999 as they were charged of forming a gang to carry on terrorist acts. Among the prisoners is the son of Mustafa Abu Al-Hamza, Mohammed, who threatened to avenge Abu Al-Hasan Al-Mihdar, the former leader of the so-called Aden-Abyan Islamic Army which kidnapped a group of tourists in December 1998. The confrontation between Al-Mihdar’s men and police led to the murder of four tourists including two Britishers. Later, Al-Mihdar was sentenced to death.
The same sources told the Yemen Times that the British Foreign Secretary discussed with President Saleh in London the question of issuing a general amensty on the imprisoned Britishers, adding that the visit of Mr. Vaz to Yemen is also to push ahead the efforts in this regard.
Mr. Vaz will address a press conference at the Taj Sheba Hotel tomorrow. He will also be meeting leading members of the Yemeni-British Friendship Association.

On the occasion of the 38th anniversary of September 26 revolution, President Saleh delivered a speech in which he highlighted a number of national and regional issues. He first congratulated the Yemeni People and prayed for the souls of patriots who scarificed their lives for the revolution. “It is to them that we owe the establishment of our republican system, democracy and development,” he said. He added that the will of Yemeni people had crystallized and consolidated the achievement of the unity through the prevalence of democracy, the right to form political parties, trade unions, freedom of press and expression, protection of human rights, general liberties and the empowerment of women to participate in all walks of life on equal basis with men.
The President highlighted the clear and transparent path that has emerged out of the revolution and has shaped our foreign policy, based on the principles of national, Islamic identity, peace and mutual co-operation and respect among all nations, a policy, which has enabled our country to establish progressive relations with all countries of the world. We, therefore, will continue to support efforts aiming at securing a permanent, comprehensive and just peace in the region.
President Saleh called for an end to Israeli occupation of Arab land occupied in 1967 in the Golan Heights and Palestine. He also called for implementation of the international resolutions based on the same criterion. “We draw the attention of the world to the plight of the Iraqi people caused by the continuation of the sanctions, especially since the embargo policy has proved its ineffectiveness in achieving the goals it was originally designed to achieve,” he said.
As for the constitutional amendments he said that they stemmed from the desire to enhance and entrench democratic values, greater paricipation in decision making, strngthen constitutional foundations, enhance stability, develop the electoral system, raise the standard of coordination and control between the executive and legislative authorities.
On the other hand, he highlighted the peace agreement of borders with neighboring countries which stemmed from an awareness that political, economic and social progress is best achieved through peaceful means and under collective security of neighboring countries.
At the end of his statement he expressed his hopes for prevalence of peace in the world.

Reliable sources told YT that Prince Sultan bin Abdulaziz, the 2nd deputy Premire, the defence Minister, is expected to arrive in Sana’a this month heading the Saudi delegation to meetings of the Yemeni-Saudi coordination council. It is also expected that he would inaugurate Taiz-Saber road funded by the Saudi Kingdom with a cost estimated at about $ 30 million.
Yemeni-Saudi coordination council meetings will be resumed after more than 10 years halt, from the eruption of the Gulf war.