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Viewing cable 08MANAGUA1183, AMBASSADOR MEETS WITH FM SANTOS -- PROPERTY, CIVIL

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Reference ID Created Released Classification Origin
08MANAGUA1183 2008-09-19 23:03 2011-06-23 08:00 CONFIDENTIAL Embassy Managua
VZCZCXRO7336
PP RUEHLMC
DE RUEHMU #1183/01 2632303
ZNY CCCCC ZZH
P 192303Z SEP 08 ZDK
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 3181
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY
RUMIAAA/CDR USSOUTHCOM MIAMI FL PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHDC PRIORITY
RHEHNSC/NSC WASHINGTON DC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 MANAGUA 001183 
 
SIPDIS 
 
STATE FOR WHA/CEN 
STATE PASS USAID FOR LAC - CARDENAS 
NSC FOR FISK/GARCIA 
 
E.O. 12958: DECL: 09/17/2018 
TAGS: PREL PGOV KDEM PHUM NU
SUBJECT: AMBASSADOR MEETS WITH FM SANTOS -- PROPERTY, CIVIL 
SOCIETY AND MANPADS 
 
REF: A. MANAGUA 1118 
     B. MANAGUA 1151 
     C. MANAGUA 1153 
 
Classified By: Ambassador Robert J. Callahan Reasons 1.4 (b and d) 
 
1. (C) Summary.  In a courtesy call on Foreign Minister 
Samuel Santos on September 11, Ambassador Callahan urged the 
Nicaraguan government to make further progress on resolving 
property claims, especially those under the control of the 
government and armed forces.  Santos gave assurances that 
cooperation would continue while contending that a "new 
order" was in place to prevent abuses in the settlement of 
claims, as had happened under previous governments. 
Ambassador raised concern about the increasingly negative 
public attacks on civil society, and especially on 
U.S.-funded NGOs, noting that our activities are in full 
compliance with U.S. and Nicaraguan law and are consistent 
with democracy activities worldwide.  Santos pushed back, 
accusing unspecified groups of violating the law, seeking to 
cause a rupture in U.S.-Nicaraguan relations, and of not 
being honest with the funds and with their political goals. 
He asserted that the GON is engaged in an effort to ensure 
"full compliance" with the electoral law and regulations 
governing NGOs.  On Nicaragua's man-portable air defense 
systems (MANPADS), Ambassador reiterated that our offer 
remains on the table and that we hope to receive a formal 
response from the government to the proposal.  Santos pledged 
to raise it with President Daniel Ortega, who would be 
handling the issue personally.  End Summary. 
 
PROPERTY 
-------- 
 
2. (C) Ambassador noted that in the first six months of the 
review period, the GON had made very little progress on 
resolving outstanding property issues.  In the last six 
months, the GON had made positive efforts and Ambassador 
expressed the hope that this trend would continue.  The issue 
of property continues to have the attention of the U.S. 
Congress and further progress, especially on properties held 
by the government and armed forces, will be necessary. 
Santos replied that the previous Liberal governments had 
demonstrated "exaggerated flexibility" in resolving cases, to 
the detriment of Nicaragua's national interests.  The Ortega 
government, under Attorney General Estrada, had to use those 
first months to "establish order," review cases to determine 
the legitimacy of claims and focus on the issue of 
citizenship before further progress could be made.  The 
previous government "abused the process," he asserted.  Now 
that the system and cases were in order, progress could be 
made and Santos gave assurances that regular meetings with 
the Embassy would continue to seek further progress on 
resolving cases. 
 
USG DEMOCRACY PROGRAM AND NGOS 
------------------------------ 
 
3. (C) Ambassador expressed deep concern over the GON's 
decision to seek criminal and administrative charges against 
the International Republican Institute (IRI) and the 
unfounded public attacks in official media by senior GON 
officials against USG-funded democracy activities in 
Nicaragua (refs a and b).  Ambassador emphasized that 
USG-funded democracy activities in Nicaragua are transparent, 
in full compliance with both U.S. and Nicaraguan law, and are 
consistent with activities that we fund around the world. 
Furthermore, Ambassador cautioned Santos that the closure of 
IRI, the National Democratic Institute, or other prominent 
NGOs would have the potential to create serious problems for 
Nicaragua, especially with the U.S. Congress.  In addition, 
the campaign of discrediting Nicaraguan civil society leaders 
and, in particular the accusations that they are agents of 
the USG, was particularly worrisome.  The rise in 
anti-democratic rhetoric as well as the recent recognition of 
South Ossetia and Abkhazia (ref c) could have a negative 
effect on many areas where we are seeking cooperation, 
including on U.S. private sector investment. 
 
4. (C) Santos was unusually combative and defensive of the 
GON's attacks on democratic NGOs in his response.  Santos 
emphasized that all these activities need to be in strict 
compliance with the law and the GON was engaged in a "process 
to make sure laws are complied with.  There was too much 
flexibility in the past."  While many of the activities 
funded by USAID and other parts of the USG are very organized 
and transparent, some programs "do and say things that are 
not allowed." IRI, for example, has engaged in activities 
that "border on the edge of the law" and has interfered in 
the internal political process.  Furthermore, the USG and its 
NGOs would need to be sure that the work they do is very 
careful, that they obey all the laws, and that they account 
for the work they do and the funds they receive to the proper 
Nicaraguan authorities. 
 
5. (C) Santos accused the U.S. and USG-funded NGOs of 
"excessive participation" in internal politics in the past. 
"They talked too much and made mistakes" in violation of 
Nicaraguan electoral laws.  Now, he claimed, those same 
groups are interested in breaking relations between the U.S. 
and Nicaragua for their own personal and political reasons. 
He asserted further that these groups were interested in 
destabilizing the Nicaraguan government, which could not be 
permitted.  Ambassador reaffirmed our view that USG-funded 
democracy activities were in keeping with U.S. and Nicaraguan 
law and renewed our commitment to work in as open a manner as 
possible, to discuss and share information and expressed the 
hope that both sides would avoid making public accusations 
without talking to each other first. 
 
MANPADS 
------- 
 
6. (C) Ambassador reiterated that the offer to provide 
Nicaragua with funding for healthcare and medical equipment 
in exchange for the destruction of Nicaragua's stockpile of 
MANPADS remained "on the table" and that we hoped to receive 
a formal reply from the GON.  Santos replied that it was 
"unfortunate" that the details of the proposal had been 
leaked to the press (Note: Santos ignored the fact that it 
was Ortega who publicly stated the key elements of the 
Nicaraguan proposal and U.S. counter-proposal. End Note.) 
Santos promised to talk personally with Ortega during their 
travel to the U.N. and that Ortega would "be looking at the 
proposal" personally. 
 
CALLAHAN