VZCZCXYZ0005
RR RUEHWEB

DE RUEHMU #1528 1662117
ZNR UUUUU ZZH
R 152117Z JUN 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 0558
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 001528 
 
SIPDIS 
 
STATE FOR WHA/CEN, EB/IFD/OIA, WHA/EPSC L/LEI/EDAUGHTRY 
TREASURY FOR INL/MDONOVAN, GCHRISTOPOLUS, OWH/ASHWARZMAN 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EINV ECON PGOV KIDE OPIC CASC NU
SUBJECT: NICARAGUA: 2007 EXPROPRIATION REPORT 
 
REF: STATE 055422 
 
¶1. (U) This cable provides proposed language for the Nicaragua 
chapter of the 2007 Report on Investment Disputes and Expropriation 
Claims.  Embassy will e-mail comprehensive annex with details of 
confiscated property claims by June 15 per reftel request. 
 
Property Confiscation Claims 
---------------------------- 
 
¶2. (U) Property claim 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, many were or subsequently became U.S. 
citizens. 
 
¶3. (U) Between January 1995 and June 1, 2007, a total of 1,137 U.S. 
citizens registered 3,193 property claims with the Embassy.  Of 
these, 2,509 claims 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$319,700,000.  In isolated cases, claims have been resolved 
through the return of property, cash compensation or, in one 
instance, a landswap.  Most claimants (i.e., 870 of the 1137) who 
have registered their claims with the Embassy were not U.S. citizens 
at the time of expropriation.  Another 2020 U.S. citizen claims not 
registered at Embassy/Managua have been resolved by government 
authorities without Embassy assistance. 
 
¶4. (U) As of June 1, 2007, 298 U.S. citizens await resolution of 684 
Embassy-registered active claims. Sixty-four claimants, accounting 
for 117 of these outstanding claims, were U.S. citizens at the time 
of confiscation.  Embassy/Managua employs an American officer and 
two Nicaraguan attorneys to assist U.S. citizen claimants. 
 
¶5. (SBU) Between August 1, 2006 and January 9, 2007, the government 
resolved 29 U.S. citizen claims registered with the Embassy. 
Between January 10, 2007 and June 1, 2007, the Sandinista 
administration did not resolve any U.S. citizen claims registered 
with the Embassy, a period of inactivity which is unprecedented.  In 
a series of approaches, post has insisted on the need for the 
government to resume progress. 
 
¶6. (SBU) On June 13, 2007, Nicaraguan Attorney General Hernan 
Estrada convoked a meeting attended by Ambassador Trivelli, Embassy 
property staff, and Nicaraguan property officials.  Estrada stated 
that the Sandinista government would demonstrate goodwill through 
achieving prompt resolution of up to 56 additional U.S. citizen 
claims.  The Ambassador requested final proof of resolution because, 
as of June 13, the Embassy had been made aware of only a handful of 
settlements in progress.  Comment: It seems as if the Sandinista 
government is counting claims as having been settled once some 
interagency agreement has been reached to make an offer.  End 
Comment.  As the Ambassador exited, Estrada invited the media into 
the room to expound on his efforts toward ending the longstanding 
property conundrum with the United States. 
 
¶7. (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 other claims. 
 
TRIVELLI