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Viewing cable 08MANAGUA564, NICARAGUA: GON DISMISSES 85 MORE U.S. CLAIMS

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Reference ID Created Released Classification Origin
08MANAGUA564 2008-05-07 17:07 2011-06-23 08:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Managua
VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #0564/01 1281707
ZNR UUUUU ZZH
R 071707Z MAY 08
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 2560
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
UNCLAS MANAGUA 000564 
 
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 DISMISSES 85 MORE U.S. CLAIMS 
 
REF: A) MANAGUA 173, B) MANAGUA 287, C) MANAGUA 424, 
D) MANAGUA 274, E) MANAGUA 0106, F) MANAGUA 0002, G) 07 MANAGUA 
2581, H) 01 MANAGUA 2313, I) 04 MANAGUA 2442, J) 04 MANAGUA 2324, K) 
02 MANAGUA 877 
 
SUMMARY 
------- 
 
1. (SBU) During the April 24 monthly Working Group meeting on 
property issues, Econoff discussed Government of Nicaragua (GON) 
plans to dismiss 84 more U.S. citizen claims.  The head of the 
Office of Assessment and Indemnification reported that the GON 
recently decided that any claims dismissed under Decrees 3 and 38 
(Somoza family and associates) will not receive compensation. 
Econoff raised concerns about a 30-day time limit imposed by the GON 
on 42 U.S. claimants to accept the GON's final settlement proposal 
to resolve their claims via indemnification bonds (BPIs) without 
providing detailed information about the offers.  GON officials' 
newfound spirit of cooperation has quickly dissipated, but we will 
continue to press for cooperation, flexibility, fairness and 
transparency in resolving outstanding U.S. claims. 
 
GON DISMISSES 84 NEW U.S. CITIZEN CLAIMS 
---------------------------------------- 
 
2. (SBU) During the April 24 monthly Property Working Group meeting, 
Econoff met with 2 officials from the National Confiscations Review 
Commission (CNRC), and the head of the Office of Assessment and 
Indemnification (OCI) to discuss 84 claims that according to letters 
dated February 26 and March 31 from Attorney General Hernan Estrada 
to the Ambassador, the GON intends to dismiss under Anti-Somoza 
Decrees 3/1979 and 38/1979 (Refs A-B).  Ruth Zapata, the head of 
OCI, said Attorney General Hernan Estrada recently determined that 
any claims dismissed under Decrees 3 and 38 will not receive 
compensation [Note: We have requested a formal explanation of this 
new policy.  End Note]. 
 
3. (SBU) Econoff asked whether Estrada is still exploring legal 
options that would allow some U.S. citizens to challenge the 
application of these decrees to their claims (Ref C).  CNRC official 
Alfonso Solorzano explained the new policy does not authorize his 
agency or OCI the authority to review these claims.  Solorzano 
suggested that the Ambassador and Estrada might come to an 
understanding as to allowing claimants to defend their status. 
 
"LET ME GIVE YOU AN OFFER YOU CAN'T REFUSE" 
------------------------------------------- 
 
4. (SBU) An April 15 letter from the Attorney General to the 
Ambassador listed 42 U.S. claims ready for final settlement, pending 
additional paperwork and claimant signatures.  The letter stated 
that claimants had 30 days to accept the GON's offer of compensation 
or the GON would close their cases [Note: On April 24, the 
Ambassador received a letter from Estrada reiterating that U.S. 
claimants had 30 days, or until May 16, to settle the 42 claims or 
the GON would close their cases.  End Note.]  Econoff asked Zapata 
to explain why claimants were granted only 30 days; Zapata responded 
that claimants had been notified to settle their claims but they 
refused to do so.  She added that the GON will not meet with 
claimants to discuss the terms of their final settlement offers. 
 
U.S. CLAIMANTS UNHAPPY WITH SETTLEMENT OFFERS 
--------------------------------------------- 
 
5. (SBU) Upon receipt of the April 15 letter listing 42 claims ready 
for final settlement, the Property Office managed to contact most of 
the claimants to inform them of the opportunity to resolve their 
cases.  Several U.S. claimants expressed unhappiness with the terms 
of their final settlements, complaining that the GON's offer was not 
fair.  Some declared they will not accept the GON's offer if they do 
not receive fair market value for their properties. 
 
6. (SBU) Decree No. 51/1992 requires OCI to determine the value of a 
property based on its cadastral records.  Many U.S. claimants argue 
that the GON should consider improvements to their property.  While 
the previous Chamorro, Aleman, and Bolanos administrations 
cooperated with claimants to determine their final settlement 
offers, current Nicaraguan law does not require the GON to 
compensate claimants based on fair market value. 
 
COMMENT 
------- 
 
7. (SBU) The GON's newfound spirit of cooperation following the 
Ambassador's February 26 meeting (Ref D) with Estrada has 
dissipated.  On three occasions in April, the Attorney General's 
Office did not respond to our request for a meeting with Estrada to 
discuss U.S. property claims.  Moreover, the GON's refusal to meet 
with claimants, adversely affects our efforts to resolve cases.  We 
will continue to press the GON for cooperation, flexibility, 
fairness, and transparency in resolving claims as we enter the final 
stretches of the 2007-2008 Section 527 waiver year. 
 
TRIVELLI