VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #2494/01 3272031
ZNR UUUUU ZZH
R 232031Z NOV 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 1698
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 002494 
 
SIPDIS 
 
STATE FOR WHA/CEN, EB/IFD/OIA AND L/CID 
STATE FOR WHA/EPSC 
STATE PLEASE PASS TO USTR 
TREASURY FOR INL AND OWH 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EINV ECON USTR KIDE NU
SUBJECT: NICARAGUA: 2007-2008 ACTION PLAN TO RESOLVE U.S. CITIZEN 
PROPERTY CLAIMS 
 
REF: A) MANAGUA 2324  B)  MANAGUA 2006  C) MANAGUA 2376 
 
SUMMARY 
------- 
 
¶1. (SBU) During the current waiver year, the GON has logged the 
poorest performance of any Nicaraguan administration since the U.S. 
Congress passed the FY1994-95 Foreign Relations Authorization Act, 
with its provisions on expropriation cases contained in Section 527. 
 Post has developed an action plan to reengage the Government of 
Nicaragua regarding the resolution of U.S. citizen property claims. 
The plan incorporates the following actions: a) seek GON concurrence 
with USG expectations for the 2007-08 waiver year; b) review 
progress in January 2008; c) improve outreach to U.S. citizen 
claimants; and d) clarify the GON's plan to resolve all property 
claims in two years.  Implementation of the action plan will remind 
the GON that the resolution of U.S. citizen property claims is a 
central issue in the U.S.-Nicaragua bilateral relationship. 
 
CHALLENGES FOR THE 2007-2008 WAIVER YEAR 
-------------------------------------- -- 
 
¶2. (SBU) During the first ten months of the Sandinista 
administration, the Government of Nicaragua (GON) has resolved only 
seven Embassy-registered property claims, five of which linked to 
the same U.S. citizen.  Local courts have settled two claims for two 
U.S. citizens.  These results stand in sharp contrast to the close 
working relationship we enjoyed with the GON during the Bolanos 
administration, when an average of 159 cases were resolved per 
calendar year. 
 
¶3. (SBU) We have been working to reengage the GON on outstanding 
U.S. citizen claims, but have been hampered by limitations on the 
number of working-level meetings placed on us by Attorney General 
Hernan Estrada.  At the monthly working group meeting on October 25, 
Property Superintendent Yara Perez Perez again raised policy issues 
related to GON insistence that the cases of natural-born U.S. 
citizens be prioritized over those of naturalized U.S. citizens. 
Other issues complicating our efforts include frequent staffing 
changes at the Office of the Property Superintendent; infighting 
within the FSLN over property disputes; and, the GON's ongoing 
review of claims resolutions issued by the Chamorro, Aleman and 
Bolanos administrations.  Refs A, B, and C provide additional 
information on these issues. 
 
ACTION PLAN 
----------- 
 
¶4. (SBU) Given these challenges, the Embassy's Property Office has 
developed the following action plan to hopefully nudge the GON back 
on track for the 2007-08 waiver year to resolve Embassy-registered 
U.S. citizen property claims: 
 
a) Seek GON concurrence with USG expectations for the 2007-08 waiver 
year: With the support of the Bureau of Legal Affairs, we will 
provide GON officials with in-depth explanations of Section 527 of 
the 1994 and 1995 Foreign Relations Authorization Act.  We will also 
discuss international and Nicaraguan law as it relates to the 
protection of property rights, and press for claims resolution.  We 
will reemphasize the importance of the monthly working group meeting 
as a regular forum for the GON and Embassy to resolve property 
claims, but stress that this event should not preclude day-to-day 
exchanges to move cases forward.  Along these lines, the Ambassador 
told Foreign Minister Samuel Santos on November 15 that he was 
concerned by the lack of GON progress on claims resolution in recent 
months. 
 
b) Review progress in January 2008: The Ambassador will propose a 
meeting with Attorney General Hernan Estrada in January to discuss 
mid-year progress, assess a full year of the Ortega Administration 
in this area, and propose benchmarks for the remainder of the waiver 
year (The waiver began on August 1, 2007, and ends July 31, 2008). 
 
 
c) Improve outreach to U.S. claimants: The Embassy's Property Office 
will update and modify its database to better track 
Embassy-registered U.S. citizen claims.  The office will reach out 
to claimants with whom there has been little contact in the last 
three years to determine the status of their claims.  The Property 
Office will confer with the Bureau of Legal Affairs on next steps. 
 
d) Clarify the GON's plan to resolve all property claims in two 
years: The Embassy's Property Office will engage GON officials on 
their stated goal to resolve all outstanding property claims in two 
years.  We are concerned that if the GON terminates its 
 
administrative process for settling claims, U.S. citizens will have 
only a corrupt and inefficient court system through which to pursue 
their claims. 
 
COMMENT 
------- 
 
¶5. (SBU) At the very least, implementation of this action plan will 
send a clear message to the GON that the resolution of U.S. citizen 
property claims remains a central issue in the U.S.-Nicaragua 
bilateral relationship.  During the current waiver year, the GON has 
logged the poorest performance of any Nicaraguan administration 
since the U.S. Congress passed the FY1994-95 Foreign Relations 
Authorization Act. 
 
TRIVELLI