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### Viewing cable 08MANAGUA287, NICARAGUA: GON COOPERATION IMPROVES DURING FEBRUARY MEETING

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08MANAGUA287 | 2008-03-10 21:45 | 2011-06-23 08:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Managua

`

    VZCZCXYZ0001
    RR RUEHWEB

    DE RUEHMU #0287/01 0702145
    ZNR UUUUU ZZH
    R 102145Z MAR 08
    FM AMEMBASSY MANAGUA
    TO RUEHC/SECSTATE WASHDC 2223
    INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
    RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

` `

    UNCLAS MANAGUA 000287

    SIPDIS

    STATE FOR WHA/CEN, EB/IFD/OIA AND L/CID
    STATE FOR WHA/EPSC
    STATE PLEASE PASS TO USTR
    TREASURY FOR INL AND OWH

    SENSITIVE
    SIPDIS

    E.O. 12958: N/A
    TAGS: EINV ECON USTR KIDE NU
    SUBJECT: NICARAGUA: GON COOPERATION IMPROVES DURING FEBRUARY MEETING
    ON PROPERTY CLAIMS

    REF: A) MANAGUA 274, B) MANAGUA 173, C) MANAGUA 0106,
    D) MANAGUA 0002, E) 07 MANAGUA 2581, F) 01 MANAGUA 2313, G) 04
    MANAGUA 2442, H) 04 MANAGUA 2324

    SUMMARY
    -------

    ¶1. (SBU) During the February 28 monthly Working Group meeting on
    property issues, Embassy Property Office and Government of Nicaragua
    (GON) officials reviewed 50 U.S. claims and discussed ways that the
    USG and GON could cooperate to attain their favorable resolution.
    One official from the National Confiscations Review Commission told
    us that the GON would allow some U.S. citizens to defend claims
    dismissed as "no ha lugar" in 2007.  We raised concerns about the
    application of anti-Somoza decrees and pressed GON officials to
    explain the process used to determine a claimant to be "an ally of
    Somoza."  The Head of the Office of Assessment and Indemnification
    said the GON would do more to protect individuals who benefited
    under the "Pinata" laws, a potentially negative development.  The
    Embassy will utilize the GON's newfound, but likely short-lived,
    spirit of cooperation to resolve claims, clarify the application of
    certain laws, and press for more flexibility and transparency to
    provide claimants the opportunity to defend their recently dismissed
    cases.

    PRODUCTIVE DISCUSSION WITHOUT SUPERINTENDENT PEREZ
    --------------------------------------------- -----

    ¶2. (SBU) During the February 28 monthly Working Group meeting,
    Econoff met with two officials from the National Confiscations
    Review Commission (CNRC) and with the head of the Office of
    Assessment and Indemnification (OCI) to discuss the list of U.S.
    claims Attorney General Hernan Estrada passed to the Ambassador at
    the six-month review of the 2007-08 waiver year on February 26 (Ref
    A), and to review 14 additional cases provided by the Property
    Office.  Property Superintendent Yara Perez did not attend the
    meeting, which allowed for constructive casework and frank
    discussion concerning GON policies.  During previous Working Group
    meetings, Perez dominated discussions with accusations of corruption
    against U.S. claimants and obstructed the sharing of information
    with the Embassy Property Office (Refs B, E, G, and H).

    THOROUGH REVIEW OF 50 CLAIMS
    ----------------------------

    ¶3. (SBU) GON officials and the Property Office staff reviewed 50
    U.S. claims on a case-by-case basis to discuss next steps for
    favorable resolution.  GON officials explained that they would send
    settlement offers to 15 claimants; another 15 claims might be
    resolved favorably if certain documents were provided to OCI.  The
    head of OCI noted that 6 claims were previously resolved in favor of
    the claimant, but the claimants had rejected the settlement offers.
    With regard to the 14 additional claims provided by the Property
    Office, GON officials said they would review each claim and provide
    an update on their status at the March Working Group meeting.
    Econoff asked the GON to provide a list of documents that the 15
    claimants needed to provide to OCI, and added that the Embassy will
    contact the 6 claimants who rejected settlement offers to fully
    understand their concerns and suggest that they continue their
    negotiations.

    FLEXIBILITY TO DEFEND DISMISSED "CLAIMS"
    ---------------------------------------

    ¶4. (SBU) Econoff pressed GON officials on better cooperation and
    more flexibility to allow U.S. citizens to defend claims dismissed
    as "no ha lugar" in 2007 (Ref B).  One CNRC official clarified that
    some U.S. claimants are allowed to submit documents to show that
    they either owned the property in question and/or that it had been
    confiscated.  She added that the CNRC notified 24 claimants that the
    GON had dismissed their cases, adding that these could no longer be
    pursued via the administrative process.  Econoff asserted that the
    USG will not recognize these dismissals if U.S. claimants are not
    given an opportunity to defend their claims in a fair and
    transparent manner.

    CLARITY ON THE APPLICATION OF ANTI-SOMOZA DECREES
    --------------------------------------------- ----

    ¶5. (SBU) Econoff raised concerns about the GON's recent decision to
    apply Decrees 3 and 38, which mandated the confiscation of property
    of "allies of Somoza," against 21 claims (Ref B).  Econoff
    complained that the application of these decrees appears to be an
    arbitrary and non-transparent process, complicating USG-GON efforts
    to resolve outstanding claims.  He explained that the claims that
    the Ortega administration recently dismissed based on those decrees
    had been previously accepted as legitimate claims by the Chamorro,
    Aleman, and Bolanos administrations.  Econoff noted that some
    claimants also received certificates acknowledging that were not
    "Somocistas," and he asked if the GON had a process to allow
    claimants to clear their names.  CNRC and OCI officials suggested
    that these concerns be raised with Attorney General Estrada [Note:
    The Embassy is preparing a letter to Attorney General Estrada asking
    for clarification regarding the application of Decrees 3 and 38, and
    whether an appeals process is available for affected claimants.  End
    Note].

    PROTECTION FOR THE PINATEROS
    ----------------------------

    ¶6. (SBU) OCI officials said Estrada has recently decided to enforce
    the provision in Law 278/1998 that states that the Attorney
    General's Office would intervene in court cases to protect and
    defend those individuals who received property under the Pinata
    laws, i.e., Pinateros (Ref E).  Econoff requested an explanation of
    how the GON would apply this statute and its impact on U.S.
    claimants.  OCI officials suggested that the Embassy address these
    questions to Attorney General Estrada [Comment: We are concerned
    that the GON will improperly apply the law to protect illegal
    occupants of confiscated property, using it as a basis for not
    returning property to the uncompensated owners.  End Comment.].

    COMMENT
    -------

    ¶7. (SBU) The absence of Property Superintendent Yara Perez allowed
    us to communicate more freely with other GON officials and conduct
    in-depth case work to identify the next steps in resolving U.S.
    claims.  The Ambassador's six-month review with Estrada may have
    opened the door to better USG-GON cooperation.  We will capitalize
    on the GON's newfound, but likely short-lived, spirit of cooperation
    to press forward on resolving claims, clarify the application of
    certain laws, and to afford claimants the opportunity to defend
    cases subject to dismissal.

    TRIVELLI

`