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Viewing cable 08MANAGUA274, NICARAGUA: ATTORNEY GENERAL PROMISES AMBASSADOR PROGRESS ON

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Reference ID Created Released Classification Origin
08MANAGUA274 2008-03-07 17:15 2011-06-23 08:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Managua
VZCZCXYZ0074
RR RUEHWEB

DE RUEHMU #0274/01 0671715
ZNR UUUUU ZZH
R 071715Z MAR 08
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 2197
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
UNCLAS MANAGUA 000274 
 
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 KIDE USTR CVIS NU
SUBJECT: NICARAGUA: ATTORNEY GENERAL PROMISES AMBASSADOR PROGRESS ON 
PROPERTY CLAIMS 
 
REFS: A) MANAGUA 0173  B) MANAGUA 106  C) MANAGUA 0002  D) 07 
 
MANAGUA 2581  E) 07 MANAGUA 2494 
 
SUMMARY 
------- 
 
1. (SBU) During the six-month review of the 2007-08 waiver year, 
Attorney General Estrada provided the Ambassador with a list of 62 
U.S. citizen claims that the Government of Nicaragua (GON) considers 
resolved or close to resolution. Estrada also delivered an update on 
GON efforts to resolve claims under government control.  The 
Ambassador highlighted that the GON has settled only 3 claims during 
this waiver year and there has been no progress in resolving 
property claims under the government's control.  The Ambassador 
asked the GON for more time to allow U.S. citizens the opportunity 
to defend claims the Attorney General has dismissed.  To ensure a 
more open dialogue on property issues, the Ambassador and Estrada 
agreed to meet every month to review progress on case resolutions. 
We are concerned that the GON's renewed interest in cooperating with 
us actually represents a strategy to shift blame from the GON to the 
USG and claimants should few cases be resolved in the remaining five 
months of the waiver year. 
 
 
AMBASSADOR DISCUSSES LACK OF PROGRESS DURING WAIVER YEAR 
 
2. (SBU) On February 26, the Ambassador met with Attorney General 
Hernan Estrada to review the first six months of the 2007-08 waiver 
year.  Ruth Zapata, Chief of the Office of Assessment and 
Indemnification (OCI), also attended the meeting.  The Ambassador 
reviewed Section 527 of the Foreign Relations Act, Fiscal Years 1994 
and 1995, and the Secretary's three benchmarks for Nicaragua during 
the 2007-2008 waiver year. 
 
3. (SBU) The Ambassador highlighted that the GON has settled only 3 
claims during this waiver year and there has been no progress in 
resolving property claims under the government's control.  The 
Ambassador voiced concern about the GON's dismissal of U.S. citizen 
claims without a clear explanation of these decisions, the GON's 
lack of flexibility with regard to allowing U.S. claimants the 
opportunity to defend their claims, and the denial of the Embassy's 
right to accompany U.S. claimants to meetings with GON officials. 
The Ambassador explained that he wants to establish a way forward to 
resolve a significant number of claims as soon as possible to avoid 
a "train wreck" when the current waiver year closes in July 2008. 
 
GON FINALLY SEEKS USG COOPERATION ON PROPERTY CLAIMS 
 
4. (SBU) Estrada listened to the Ambassador's comments and countered 
that the Ortega administration is working diligently on U.S. citizen 
claims, adding that the GON wants to cooperate with the Embassy to 
resolve these cases.  Estrada passed the Ambassador a list of 62 
U.S. claims compiled by OCI which the GON considers either resolved 
or close to resolution. 
 
5. (SBU) OCI Chief Zapata delivered a presentation that divided the 
U.S. property claims into five categories: a) 21 claims dismissed 
because the GON determined that the claimants were allies of Somoza 
(Ref B); b) 15 claims awaiting notification about advances in their 
cases but requiring the claimant's signature to accept the 
settlement offer; c) 15 claims that would be resolved in favor of 
the claimants if certain documents were provided; d) 6 claims that 
were previously resolved in favor of the claimant but for which the 
claimant rejected the settlement offer; and e) 5 claims settled via 
indemnification bonds [Note: Of these last five, the Embassy 
recognizes only three claims as resolved.  We have received neither 
the settlement document or confirmation from the claimant for one of 
the claims the GON asserts is resolved.  The other claim is not 
registered with the Property Office.  End Note.]. 
 
6. (SBU) Estada asked the Embassy to contact claimants for the cases 
listed in the presentation to advise them on what they must do for 
the GON to favorably resolve their claims.  During the February 28 
monthly Property Working Group meeting, Zapata promised to provide 
the Property Office detailed information on what claimants must 
provide to OCI or the National Confiscations Review Commission 
(CNRC) to advance and resolve their claims (septel). 
 
NO RESOLUTION OF CLAIMS UNDER GOVERNMENT CONTROL 
 
7. (SBU) The Ambassador urged Estrada to do more to resolve U.S. 
claims under government control.  Zapata gave a 15-minute 
presentation on GON efforts to resolve these claims.  The Ambassador 
reminded Estrada that the resolution of U.S. claims under government 
control is one of the benchmarks set forth in the Secretary's July 
 
31, 2007, letter to Foreign Minister Santos.  The Ambassador noted 
that the GON has yet to resolve a claim under government control 
during this waiver year. 
 
MORE FLEXIBILITY AND TRANSPARENCY FOR "DISMISSED CLAIMS" 
 
8. (SBU) The Ambassador emphasized the need for the Attorney General 
to conduct a transparent review process and to allow U.S. claimants 
enough time to contest dismissed claims.  The Ambassador argued that 
it was unreasonable for the GON to simply dismiss claims that have 
been pending 10 years and then grants claimants only 10 days to 
appeal these decisions.  The Ambassador also questioned the lack of 
transparency in the Attorney General's decision to dismiss claims 
that belong to alleged former Somoza allies (Ref B), noting that 
there is a lack of information available to the public on this 
topic. 
 
AMBASSADOR AND ESTRADA AGREE TO MEET ON MONTHLY BASIS 
 
 
9. (SBU) Throughout the meeting, the Ambassador pressed Estrada for 
cooperation between working-level contacts outside the monthly 
Working Group meeting, noting that monthly sessions are not 
resulting in sufficient progress.  To ensure that there is open 
dialogue between the Property Office and the GON on property claims, 
the Ambassador and Estrada agreed to meet after every Working Group 
meeting to review progress, if necessary.  The Ambassador also 
requested copies of final settlement documents to confirm the 
resolution of a claim, but Estrada was noncommittal. 
 
COMMENT 
 
10. (SBU) The GON sought to take the sting out of the six-month 
review by providing the Ambassador good news on the resolutions for 
U.S. claims and better communication between the Property Office and 
its counterparts at the CNRC and OCI.  We are concerned, however, 
that the GON's renewed interest in cooperating with us actually 
represents a strategy to shift blame from the GON to the USG and 
claimants should few cases be resolved successfully during the five 
months that remain in the waiver year.  The Property Office will 
work with the CNRC and OCI to resolve U.S. claims, but we will also 
press the GON to uphold Estrada's commitments for the remainder of 
this waiver year or run the risk of a "train wreck." 
 
TRIVELLI