VZCZCXYZ0004
RR RUEHWEB

DE RUEHMU #0574 1621531
ZNR UUUUU ZZH (CCY ADX773D67 MSI6412 - 648)
R 111531Z JUN 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 4226
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000574 
 
STATE FOR WHA/CEN, EB/IFD/OIA, AND L/CID 
STATE ALSO FOR WHA/EPSC 
STATE PASS TO USTR 
TREASURY FOR INL AND OWH 
 
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SENSITIVE 
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E.O. 12958: N/A 
TAGS: EINV ECON USTR KIDE OPIC CASC NU
SUBJECT: NICARAGUA: 2009 EXPROPRIATION REPORT 
 
REFS: A) STATE 49477, B) 08 MANAGUA 1546 
 
¶1. (U) This cable provides proposed language for the 
Nicaragua chapter of the 2009 Report on Investment Disputes and 
Expropriation Claims.  Embassy will e-mail a comprehensive annex 
with details of confiscated property claims by June 15 per reftel 
request. 
 
¶2. (U) Property claims resolutions in Nicaragua continue to consume 
the time and energy of former owners and government officials. 
Since 1990, thousands of Nicaraguans and other nationals registered 
more than 28,000 claims with the Nicaraguan government for homes, 
farms, bank accounts, and other assets expropriated during the 
1979-1990 Sandinista era.  Although most were Nicaraguans at the 
time of expropriation, some were, or subsequently became, U.S. 
citizens. 
 
¶3. (U) Between January 1995 and June 1, 2009, a total of 1,137 U.S. 
citizens registered 3,193 property claims with the Embassy.  Of 
these, 2,584 have been resolved, primarily through compensation in 
the form of long-term, low-interest, government issued bonds.  The 
estimated face value of these bonds is US$339,755,164.  In isolated 
cases, claims have been resolved through the return of property, 
cash compensation or, in one instance, a land swap.  Most claimants 
(i.e., 870 of the 1,137) who have registered their claims with the 
Embassy were not U.S. citizens at the time of expropriation. 
Another 2,020 U.S. citizen claims not registered at Embassy Managua 
have been resolved by government authorities without Embassy 
assistance. 
 
¶4. (U) As of June 1, 2009, 284 U.S. citizens await the resolution of 
592 Embassy-registered active claims.  Fifty-eight claimants, 
accounting for 106 of these outstanding claims, were U.S. citizens 
at the time of confiscation.  Embassy Managua employs one American 
officer, one Nicaraguan attorney, and one Colombian-trained attorney 
who is an Eligible Family Member to assist U.S. citizen claimants. 
 
 
¶5. (SBU) During the course of the last 12 months, the Nicaraguan 
government has improved its cooperation with the Embassy to advance 
U.S. claims.  Between August 1, 2008, and June 1, 2009, the 
government resolved 34 U.S. citizen claims registered with the 
Embassy, including 12 out of 146 U.S. claims previously dismissed in 
a nontransparent manner and without due process (Ref A). 
 
¶6. (SBU) On December 11-12, 2008, senior State Department officials 
held a bilateral review of Nicaragua's property claims resolution 
process.  The results of the bilateral review were a clear 
articulation of U.S. policy against the dismissal of 146 U.S. 
claims, the establishment of a Liaison Office for U.S. Citizen 
Claims, the formation of a Nicaraguan Government commission to 
review cases involving U.S. citizen claims that have languished in 
court, and the publication of the Nicaraguan Government's property 
claims compensation process on the Attorney General's website (Ref 
B). 
 
¶7. (SBU) Although the Liaison Office for U.S. Claims has improved 
communication between the Embassy and Nicaraguan Government, the 
Ortega administration has limited cooperation on casework between 
Embassy and Nicaraguan working-level officials to once-a-month 
meetings.  All other communication is conducted through official 
correspondence between the Ambassador and the Attorney General.  In 
May 2008, the Nicaraguan government lifted a ban on Embassy 
officials' participation in meetings between U.S. citizen claimants 
and the Attorney General. 
 
¶8. (U) The Embassy will continue to press for swift and suitable 
resolution of outstanding U.S. citizen property claims in accordance 
with Section 584 (c) (i) of H.R. 4818, the Consolidated 
Appropriations Act, 2005.  Section 584 specifically precludes adding 
claims registered after August 1, 2005, for inclusion in waiver 
determinations based on Section 527 of the Foreign Relations 
Authorization Act of FY 1994/1995.  The Embassy also assists U.S. 
citizens seeking restitution for claims not registered under the 
aforementioned act. 
 
CALLAHAN