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Viewing cable 08MANAGUA830, NICARAGUA: GON RACING AGAINST THE CLOCK TO RESOLVE U.S.

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Reference ID Created Released Classification Origin
08MANAGUA830 2008-07-01 18:24 2011-06-23 08:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Managua
VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #0830/01 1831824
ZNR UUUUU ZZH
R 011824Z JUL 08
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 2818
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
UNCLAS MANAGUA 000830 
 
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 RACING AGAINST THE CLOCK TO RESOLVE U.S. 
CLAIMS 
 
REF: A) MANAGUA 724, B) MANAGUA 633, C) MANAGUA 564, D) MANAGUA 424, 
E) MANAGUA 287, F) MANAGUA 274, G) MANAGUA 106, H) MANAGUA 0002, I) 
07 MANAGUA 2581, J) 02 MANAGUA 877 
 
SUMMARY 
------- 
 
1. (SBU) During the June 26 monthly Working Group meeting on 
property issues, Government of Nicaragua (GON) officials stated that 
U.S. claimants finalized 18 out of the 42 "close to resolution" 
claims with final settlements before the June 16 deadline.  GON 
officials agreed to improve cooperation and flexibility with 
claimants to clarify their settlement offers and to find alternative 
solutions to resolve additional cases.  Econoff pressed the GON to 
resolve claims under the control of government institutions and the 
Army before the end of the Section 527 waiver year.  The GON appears 
eager to resolve more claims this year than last to improve its 
prospects for a waiver. 
 
18 CLAIMS FINALIZED; REMAINDER DEPOSITED IN ESCROW 
--------------------------------------------- ----- 
 
2. (SBU) During the June 26 monthly Property Working Group meeting, 
Econoff met with the head of the Office of Assessment and 
Indemnification (OCI), the director of the National Confiscations 
Review Commission (CNRC), and an official from the Office of the 
Property Superintendent to discuss the final tally of 42 claims 
that, in the GON's view, were ready for final settlement, pending 
additional paperwork and claimant signatures by June 16 (Refs A-C). 
 
 
3. (SBU) Ruth Zapata, head of OCI, reported that 18 out of the 42 
U.S. citizen claimants had finalized their cases.  She added that 
the GON deposited indemnification bonds (BPIs) for the other 24 
cases in escrow with the Finance Ministry for claimants to withdraw 
later should they decide to settle on the government's terms at some 
future date.  She noted that these claimants could now no longer 
pursue their claims via the administrative process and hence must 
take their cases to court if they do not want to accept BPIs. 
Econoff requested copies of the final settlement documents, 
"finiquitos," for 11 of the settled claims. [Note: We have received 
finiquitos for 7 out of the 18 U.S. citizen claimants who accepted 
the GON's settlement offer.  Including these 7 claims, the GON has 
resolved 23 cases during this waiver year.  End Note] 
 
GON PROMISES BETTER COOPERATION WITH CLAIMANTS 
--------------------------------------------- - 
 
4. (SBU) Property Office staff and GON officials also reviewed 41 
additional claims.  Econoff pressed for better cooperation and 
flexibility with claimants.  Econoff explained that some claimants 
had refused to finalize their cases simply because the GON has not 
explained to them how it determined their final settlement offers. 
He also noted that other claimants seek alternative solutions, such 
as a land swap, instead of accepting BPIs.  Econoff urged the GON to 
do all it can to resolve as many claims as possible during the 
balance of this waiver year.  GON officials agreed to work with 
claimants whose cases are close to final resolution. 
 
NO CLAIMS RESOLVED UNDER GON CONTROL 
------------------------------------ 
 
5. (SBU) Econoff pointed out that the Ortega government has not 
resolved any claims for properties under its control during this 
waiver year, and he pressed GON officials to do so.  Zapata 
responded that there are several claims close to resolution and she 
and her colleagues are working with the Nicaraguan Army and 
government ministries to wrap up pending legal and logistical 
issues.  Zapata highlighted that she met with Econoff and U.S. 
claimant Juan Barreto, co-owner of the Las Serranias residential 
complex (Ref J), on June 20 and she awaited his proposal as a 
starting point for negotiations to resolve his claim for 29 
properties under Nicaraguan Army control.  Econoff noted that the 
Ambassador received the proposal on June 26 and it would be sent 
immediately to Attorney General Hernan Estrada. 
 
COMMENT 
------- 
 
6. (SBU) The GON appears eager to resolve more claims this year than 
last to improve its prospects for a waiver.  GON working-level 
officials are carefully tracking the number of claims that we 
consider resolved cases.  They believe that the Ortega government 
would be in a good position to receive a waiver if the GON equals or 
betters the number of claims it resolved last year (34). 
 
 
TRIVELLI