I don't consider them a failed state, myself.to ensure the rapid return of the submarine and her crew to the Corporate Republic of San Dorado,
But now that it's being returned and the exterior is intact, we can all say that those rumors were unfounded, and I'm sure that when San Dorado retakes possession of the boat, they will be happy to confirm to the world that the interior was similarly unmolested, I'm sure. And if that Coiler captain or crew wants to say otherwise? Well that's just sour grapes, right?
In other words: let the diplomatic coverup begin!