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Viewing cable 08MANAGUA1445, NICARAGUA: GON PREPARES FOR BILATERAL PROPERTY CLAIMS

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Reference ID Created Released Classification Origin
08MANAGUA1445 2008-12-04 13:42 2011-06-23 08:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Managua
VZCZCXYZ0002
RR RUEHWEB

DE RUEHMU #1445/01 3391342
ZNR UUUUU ZZH
R 041342Z DEC 08
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 3475
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
UNCLAS MANAGUA 001445 
 
STATE FOR WHA/CEN, EB/IFD/OIA, AND L/CID 
STATE ALSO FOR WHA/EPSC 
STATE PASS TO USTR 
TREASURY FOR INL AND OWH 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EINV ECON USTR KIDE NU
SUBJECT: NICARAGUA: GON PREPARES FOR BILATERAL PROPERTY CLAIMS 
REVIEW 
 
REF: MANAGUA 1370 
 
SUMMARY 
------- 

1. (SBU) During the November 26 Property Working Group meeting, Ruth 
Zapata, Head of the Office of Assessment and Indemnification (OCI), 
said that she and her colleagues were looking forward to the 
bilateral review to clarify issues of concern to the USG and GON. 
Jeanette Garcia, President of the National Confiscations Review 
Commission (CNRC) complained that the suspension of the Millennium 
Challenge Account's assistance for the title restitution program 
would result in the loss of staff at the CNRC.  Econoff noted that 
the dismissal a U.S. citizen claim under Decree 38 was nothing more 
than a politically-motivated, arbitrary act that lacked transparency 
and a formal appeals process.  Throughout the meeting, Zapata 
asserted that the Attorney General's Office was working diligently 
to resolve claims, and pleaded for patience and understanding.  GON 
officials will find it difficult to explain, however, Decree 3 and 
38 and administrative dismissals, and the lack of fairness and 
transparency in determining settlement offers.  End Summary. 
 
PREPARING FOR BILATERAL REVIEW 
------------------------------ 

2. (SBU) On November 26, Econoff met with Ruth Zapata, Head of the 
Office of Assessment and Indemnification (OCI), Jeanette Garcia, 
President of the National Confiscations Review Commission (CNRC), 
and Magally Bravo, an official from the Office of the Property 
Superintendent, to hold the November Property Working Group meeting. 
 Zapata said they were not fully prepared to discuss the list of 60 
claims that the Embassy Property Office sent to Attorney General 
Hernan Estrada on November 12.  Her excuse was that her work and 
that of her colleagues had focused on preparing for the bilateral 
review on December 11-12.  Zapata said that the GON was looking 
forward to the bilateral review to clarify issues of concern to the 
USG and GON.  Zapata declined to share which issues she was 
referring to. 
 
SUSPENSION OF MCC FUNDING IMPACTS CNRC 
-------------------------------------- 
 
3. (SBU) Garcia complained that the suspension of Millennium 
Challenge Corporation assistance for the property restitution 
program (reftel) would result in the loss of four employees at the 
CNRC.  She said that these employees conducted land surveys that the 
CNRC used to evaluate claims filed against the GON.  She thought 
that these employees would likely be less willing to work on U.S. 
property claims in the time before they lose their jobs.  We expect 
the GON to raise this issue during the bilateral review. 
 
NO CREDIBLE DEFENSE OF DECREES 3 AND 38 
--------------------------------------- 
 
4. (SBU) Econoff raised several claims that received recent U.S. 
congressional attention, particularly those of Domingo Calero, whose 
four claims the Attorney General dismissed based on Decree 38 (1979) 
in February.  Decree 38 mandated the confiscation of property of 
individuals deemed as "allies of Somoza."  Attorney General Hernan 
Estrada reaffirmed these dismissals in a November 11 letter to the 
Ambassador.  Econoff criticized GON officials for dismissing 
Calero's claims, noting that the application of Decree 38 was 
nothing more than a politically motivated, arbitrary act that lacked 
transparency.  Econoff pointed out that there was no formal appeals 
process to challenge Decree 3 (1979) or 38 dismissals.  Zapata and 
her colleagues sat silently, responding that only Attorney General 
Estrada had the authority to overturn these decisions.  Decrees 3 
and 38 dismissals will be contentious issues during the bilateral 
review. 
 
PATIENCE, UNDERSTANDING, AND MORE EXCUSES 
----------------------------------------- 
 
5. (SBU) Throughout the meeting, Zapata asserted that the GON was 
working diligently to resolve claims, but doing so required patience 
and understanding.  For example, she explained that the software 
that calculates compensation appraisals needed to be upgraded to 
allow a detailed explanation of data used to generate the settlement 
offers.  She complained that the Nicaraguan Army does not cooperate 
much with Attorney General's Office, and that this limits her 
ability to work on the property claims under its control.  Zapata 
also blamed U.S. claimants for delays in resolving claims, noting 
that U.S. claimant Juan Barreto, co-owner of the Las Serranias 
complex (this case involves 29 properties confiscated from the 
Barreto family by the Army), has failed to provide the documents 
needed to resolve his claims [Note: We will follow up with Mr. 
Barreto to see if he has provided the documents requested by the 
GON.  End Note.]  We expect the GON to ask for patience and 
understanding during the bilateral review. 
 
COMMENT 
------- 
 
6. (SBU) During the December 11-12 bilateral review, we believe GON 
officials will plead for patience and understanding.  They will 
proclaim that property claims are complex and difficult, that their 
resources are few, that past administrations have mismanaged the 
process, but they are working diligently to "resolve" U.S. claims in 
a fair and timely manner.  Estrada and his staff will find it 
difficult to explain, however, dismissing 141 claims for 
administrative reasons and as a consequence of their interpretation 
of Decrees 3 and 38, as well as the lack of fairness and 
transparency in determining settlement offers. 
 
SANDERS