VZCZCXYZ0024
RR RUEHWEB

DE RUEHMU #1029/01 1132106
ZNR UUUUU ZZH
R 232106Z APR 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 9910
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 001029 
 
SIPDIS 
 
STATE FOR WHA/CEN, EB/IFD/OIA, WHA/EPSC L/LEI/EDAUGHTRY 
TREASURY FOR INL/MDONOVAN, GCHRISTOPOLUS, 
OWH/ASCHWARTZMAN 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EINV ECON NU
SUBJECT: NICARAGUA: NO PROPERTY RESOLUTIONS IN FIRST 
QUARTER 2007 
 
REF: 
 
¶A. MANAGUA 00626 
¶B. MANAGUA 00381 
¶C. MANAGUA 00591 
¶D. MANAGUA 00862 
 
¶1. (SBU) Summary: In the three-month period following the 
January 10th inauguration of President Daniel Ortega, the 
Government of Nicaragua has failed to resolve any claim 
involving the restitution of or compensation for U.S. 
citizen property illegally expropriated in the 1980s. 
Since 1995, when Section 527 of the Foreign Relations 
Authorization Act (FY 1994 and 1995) came into effect, 
there has been only one month without the resolution of a 
claim, so the current lack of progress is unprecedented. 
Deputy Attorney General Yara Perez explained to Emboffs 
that no new property claims would be settled until a 
thorough review of property resolution procedures by the 
new Attorney General had been completed.  EconCouns is 
requesting a meeting with Property Superintendent Molina 
during the month of April to stress the importance of 
making progress on property claims in the remaining 
months of this waiver year.  End Summary. 
 
¶2. (SBU) In the three-month period following the January 
10th inauguration of President Daniel Ortega, the 
Government of Nicaragua has failed to resolve a single 
claim involving the restitution of or compensation for 
U.S. citizen property illegally expropriated in the 1980s 
(Refs A, B, and C Q i.e., monthly reports).  Section 527 
of the Foreign Relations Authorization Act (FY 1994 and 
1995) prohibits certain U.S. assistance and support for a 
government of a country that has confiscated U.S. citizen 
property, unless the government has taken sufficient 
remedial steps.  Since 1995, when Section 527 came into 
effect, there has been only one month without the 
resolution of a claim. 
 
¶3. (SBU) The year began on an optimistic note.  Property 
Superintendent-designate Mireya Molina paid an unexpected 
courtesy call to the Embassy on January 18, 2007, a week 
before she assumed office (Ref A).  A lawyer by 
profession, Molina told Emboffs that she wanted to work 
cooperatively to resolve outstanding property claims, and 
that it was the full intention of the Ortega 
Administration to advance the claims process. 
 
¶4. (SBU) On January 18, Emboffs provided Molina with a 
list of claims closest to resolution.  During the 
discussion that ensued, Molina displayed intimate 
knowledge of many of the claims on the list.  Molina 
expressed her desire to engage all parties, encourage 
compromise, and resolve all claims as soon as possible. 
 
¶5. (SBU) In subsequent meetings, Emboffs distributed the 
aforementioned list to the Minister of Foreign Affairs, 
the Attorney General and Deputy Attorney General, and 
President of the National Confiscations Review 
Commission.  On January 29, Emboffs supplied the list to 
Ambassador-designate to Washington Arturo Cruz.  Cruz 
stated that he understood the importance of resolving all 
outstanding claims, and promised to assist as much as 
possible from his end.  We continue to pursue this angle. 
 
¶6. (SBU) Embassy staff requested a meeting in February 
with Attorney General Hernan Estrada, who passed the 
meeting to Deputy Attorney General Yara Perez.  On March 
1, Perez told Emboffs that the government could not work 
on new resolutions until a review of agencies involved in 
the process had been completed, whenever that might be. 
Perez said that priority attention was being given to 
claims settled after the November 5 presidential 
elections, especially those involving unexplained 
increases in settlement values that had been previously 
rejected or estimated at lower levels. 
 
Comment 
------- 

¶7. (SBU) Post believes there may be three reasons for the 
governmentQs inactivity during the past three months. 
One, new appointees are learning their jobs, including 
the Property Superintendent, her assistant, the Property 
Assessment Director, and the Assistant to the Minister of 
Finance for Property Issues.  Two, the Ortega 
administration wants to assert authority and control over 
all agencies to accomplish a clean break with the Bolanos  
Administration.  Three, new officeholders are reluctant 
to move on outstanding claims involving properties in the 
possession of military authorities, Sandinista party 
members, or the government. 
 
¶8. (SBU) One way or another, inaction brings government 
intentions into doubt.  EconCouns is requesting a meeting 
with Property Superintendent Molina in April to stress 
the importance of making progress in the remaining months 
of this waiver year.  Post will report on the outcome of 
that meeting septel. 
 
TRIVELLI