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Viewing cable 08MANAGUA633, NICARAGUA: ATTORNEY GENERAL PRESSED FOR MORE COOPERATION TO

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Reference ID Created Released Classification Origin
08MANAGUA633 2008-05-19 13:47 2011-06-23 08:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Managua
VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #0633/01 1401347
ZNR UUUUU ZZH
R 191347Z MAY 08
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 2633
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
UNCLAS MANAGUA 000633 
 
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: ATTORNEY GENERAL PRESSED FOR MORE COOPERATION TO 
RESOLVE U.S. CLAIMS 
 
REF: A) MANAGUA 564,  B) MANAGUA 274,  C) MANAGUA 0002, 
 
D) MANAGUA 424, E) 02 MANAGUA 877, F) MANAGUA 336 
 
SUMMARY 
------- 
 
1. (SBU) In a May 9 meeting with the Ambassador, Attorney General 
Hernan Estrada agreed to extend a May 16 deadline to June 16 to 
allow U.S. claimants more time to consider Government of Nicaragua 
(GON) offers to settle 42 property claims.  Estrada finally conceded 
that U.S. Embassy Property Office staff could attend GON meetings 
with U.S. claimants.  He also agreed to meet with claimants to 
determine whether their cases should be dismissed under Decrees 3 
and 38.  The Ambassador noted that the GON has resolved only 12 
claims this waiver year -- and none for properties under GON control 
-- and pressed Estrada for more cooperation on case resolution.  As 
the end of this waiver year approaches, Estrada's constant 
assertions that the GON is doing all it can to resolve U.S. claims 
still ring hollow. 
 
AGREEMENT TO EXTEND DEADLINE TO RESOLVE 42 CLAIMS 
--------------------------------------------- ---- 
 
2. (SBU) On May 9, the Ambassador met with Attorney General Estrada 
to review U.S. property claims resolutions as the waiver year draws 
to an end.  Ruth Zapata, head of the Office of Assessment and 
Indemnification (OCI), also attended the meeting.  Estrada asserted 
that 42 claims are ready for final settlement, pending additional 
paperwork and claimant signatures.  The Ambassador noted that 
several U.S. citizens on that list have told Property Office staff 
that the GON had not notified them of their settlement offers, and 
that the GON is pressuring them to settle without giving them a 
chance to fully understand the GON's offer of compensation.  In the 
Ambassador's presence, Estrada agreed to extend the deadline to 
finalize these 42 claims from May 16 to June 16, and he asserted 
that he and his staff are ready to meet with claimants to discuss 
their offers. [Note: Estrada's assertion that he will meet with 
claimants to discuss their settlement offers contradicts his April 
24 letter to the Ambassador stating that he will not meet with 
claimants to discuss settlement offers.  End note.] 
 
EMBASSY STAFF CAN ATTEND MEETINGS WITH U.S. CLAIMANTS 
--------------------------------------------- -------- 
 
3. (SBU) The Ambassador again asked Estrada to allow the Embassy 
Property Office staff to attend GON meetings that he and his staff 
have with U.S. claimants to improve cooperation on resolving cases. 
After five months of asking, Estrada finally conceded, asserting 
that his April 24 letter invited Property Office staff to attend 
meetings with U.S. claimants at the Attorney General's Office.  The 
Ambassador reviewed the April 24 letter in Estrada's presence, but 
could not find this point explicitly stated. 
 
ESTRADA WILLING TO REVIEW ANTI-SOMOZA DISMISSALS 
--------------------------------------------- --- 
 
4. (SBU) The Ambassador voiced serious concern that the GON has 
dismissed 84 more claims based on Decrees 3 and  38 (Somoza family 
and associates) without providing claimants an opportunity to defend 
their cases (Refs A-C).  The Ambassador told Estrada that some 
claimants have "certificates of non-confiscation," which state they 
are not subject to confiscation under Decree 38 and/or other 
confiscation decrees (Ref D).  Estrada said he is willing to meet 
with claimants to determine if the decree is applicable to their 
cases.  He noted that one claim belonging to U.S. citizen Octavio 
Bustamante was initially dismissed under Decree 38, a decree that 
authorized the expropriation of property belonging to "allies of 
Somoza," but the GON's technical committee for property claims 
reviewed the case and determined that Bustamante was eligible to 
receive compensation. [Note: We are following up with Mr. 
Bustamante's legal representative to confirm this information.  End 
Note.] 
 
FEW U.S. CLAIMS RESOLVED; NONE UNDER GON CONTROL 
--------------------------------------------- --- 
 
5. (SBU) The Ambassador pointed out that from our perspective only 
12 claims have been resolved during the waiver year, none of which 
involve properties under GON control.  Zapata explained that the GON 
is preparing a settlement offer for the 29 properties in the Las 
Serranias residential complex co-owned by U.S. citizen Juan Barreto 
but controlled by the Nicaraguan Army (Ref E).  She added that OCI 
is also working on settlement offers for three claims under the 
control of CORNAP, a parastatal holding company, and on two claims 
controlled by government ministries. 
 
 
GON RISKS LOSING WAIVER 
----------------------- 
 
6. (SBU) The Ambassador pressed the Attorney General for more 
cooperation on resolving U.S. claims, noting that the GON runs the 
risk of not receiving a Section 527 waiver for 2007-08, and losing 
important bilateral assistance.  Estrada responded that the GON is 
working diligently to resolve claims with its limited financial 
resources.  The Attorney General said he believes that the Ortega 
administration has made a good faith effort to resolve U.S. claims. 
The Ambassador urged the GON to do as much as it can before the end 
of this waiver year. 
 
COMMENT 
------- 
 
7. (SBU) Estrada's seeming confidence and constant assertions that 
the GON is doing all it can to resolve U.S. claims still ring 
hollow.  Indeed, Estrada's March 17 interview with a local newspaper 
conveyed his belief that the Ortega administration will receive the 
waiver regardless of the number of resolved claims by the GON (Ref 
F). 
 
TRIVELLI