VZCZCXYZ0004
RR RUEHWEB

DE RUEHMU #1207 1292145
ZNR UUUUU ZZH
R 092145Z MAY 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 0156
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 001207 
 
SIPDIS 
 
STATE FOR WHA/CEN GSCHIFFER, EB/IFD/OIA, L/CID AND WHA/EPSC 
TREASURY FOR INL MDONOVAN AND GCHRISTOPOLUS, OWH/MSHWARZMAN 
STATE PASS TO USTR 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EINV ECON USTR KIDE NU
SUBJECT: NICARAGUA: NEW PROPERTY SUPERINTENDENT ON PROSPECT FOR 
RESOLUTIONS BEFORE WAIVER YEAR ENDS 
 
REF: (A) MANAGUA 0626 
 
     (B) MANAGUA 0862 
 
¶1. (SBU) SUMMARY: EconCouns and Econoff met with Property 
Superintendent Mireya Molina on April 25 to stress the importance of 
accelerating resolutions for confiscated and expropriated American 
citizen properties in Nicaragua.  As of the date of that meeting, 
the Office of the Property Superintendent had not produced a single 
resolution since Molina assumed her position on January 25, 2007. 
In July, the Secretary of State must decide whether to grant a 
waiver to Section 527 of the Foreign Relations Authorization Act 
(Fiscal Years 1994 and 1995).  Molina told EconCouns that as of 
April 25, the Office of Quantification and Indemnification was 
actively reviewing claims.  She warned that valuations would be 
lower than before.  END SUMMARY. 
 
¶2. (SBU) On April 25, EconCouns and Econoff met with Property 
Superintendent Mireya Molina (Ref A) to stress the importance of 
accelerating resolutions for confiscated and expropriated American 
citizen properties in Nicaragua.  As of the date of that meeting, 
the Office of the Property Superintendent had not produced a single 
resolution since Molina assumed her position on January 25, 2007 
(Ref B).  EconCouns explained that, in July, the Secretary of State 
must decide whether to grant a waiver to Section 527 of the Foreign 
Relations Authorization Act (Fiscal Years 1994 and 1995).  Section 
527 prohibits U.S. economic assistance to, or support in, 
international financial institutions for any country where U.S. 
citizens have not received adequate or effective compensation for 
outstanding claims against the government for confiscated property. 
Section 527 may be waived if the Secretary deems that it is in the 
interest of national security. 
 
¶3. (SBU) Molina told EconCouns that as of April 25, the Office of 
Quantification and Indemnification was in fact actively reviewing 
American citizen claims.  She reported that 43 claims were 
undergoing assessment, 119 had moved to first appeal status, and 76 
were already in second appeal status.  (Note:  Claimants are 
entitled to two appeals if they disagree with the government's 
valuation of their property.  The second appeal is the last chance 
to maximize settlement, which may be accomplished via Property 
Indemnification Bonds (BPIs), landswap, or the rare return of 
property.  Bonds issued by the government are frequently 
unacceptable to American claimants because resale values are low.) 
 
¶4. (SBU) Molina's numbers are at some variance with those provided 
by Hortensia Aldana (please protect), former Head of the Office of 
Quantification and Indemnification and current advisor to Property 
Superintendent Molina.  Prior to our meeting with Molina, Aldana 
provided us with a copy of the "Plan to Evaluate and Perform 
Activities to Resolve Waiver Database Property Claims."  The Plan 
details the status of American citizen claims and a timetable for 
their review and settlement, listing 46 cases in assessment status, 
146 cases in first appeal status, and 88 cases in second appeal 
status. 
 
¶5. (SBU) Molina warned EconCouns that from now on valuations would 
be lower than those based on a matrix of values interpolated from 
the Cadastral Index used in the past as a guide.  She did not 
explain how much lower they would be, but indicated that the reason 
was the lack of funds.  She argued that upcoming offers, though 
lower in value than before, should be "treated seriously." 
 
TRIVELLI