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Ps are the owner and insurer of a cargo of chemical fertilizer. Ds are the M/V Lago Hualaihue, a general cargo vessel owned and operated by the Chilean Government Merchant Marine. D's vessel was carrying a commercial cargo of bulk nitrates from Chile to Pensacola, Florida. It collided with P's ship in international waters off Panama. Ps allege negligence by Ds and the unseaworthiness of the M/V Lago Hualaihue, without any contributory negligence on the part of Ps, and that the collision resulted in some $1,500,000 damage to its chemical fertilizer. Ps brought this action under the FSIA on May 29, 1980. As required by 28 U.S.C. § 1605(b)(1) and (2), appropriate notice of the suit was timely given to the captain of the vessel, who had possession of her, and timely notice, in Spanish as well as in English, was sent to the Presidente of Empresa and to the Chilean Ministro de Relaciones Exteriores, both in Santiago, Chile. D moved to dismiss for lack of jurisdiction. D argues that the maritime lien asserted by P is not 'based upon a commercial activity of the foreign state,' within the meaning of that term as used in 28 U.S.C. § 1605(b).

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