VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #0106/01 0282159
ZNR UUUUU ZZH
R 282159Z JAN 08
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 2010
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000106 
 
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: GON TO REVIEW PAST PROPERTY CLAIMS DECISIONS 
 
REF: A) 07 MANAGUA 2581, B) 07 MANAGUA 2615, C) 07 MANAGUA 2442, D) 
 
07 MANAGUA 2324, E) 07 MANAGUA 2494,  F) 07 MANAGUA 0002 
 
SUMMARY 
------- 
 
¶1. (SBU) The December 20 monthly Working Property Group meeting 
confirmed that the Attorney General plans to reduce the number of 
outstanding property claims as quickly as possible and that 
dismissing claims is the preferred method to accomplish this goal. 
We believe that we further convinced GON officials of the 
seriousness with which we take U.S. citizen claims and of our full 
intention to follow through on all potential dismissals.  On a 
positive note, GON officials told us that they are reviewing the 12 
claims we highlighted during September and November working group 
meetings involving properties that government entities control. 
 
FRANK DISCUSSION WITHOUT SUPERINTENDENT PEREZ 
--------------------------------------------- 
 
¶2. (SBU) During the December 20 monthly Working Group meeting, 
Econoffs met with three officials from the National Confiscations 
Review Commission (CNRC), and two officials from the Office of 
Assessment and Indemnification (OCI), to clarify the Government of 
Nicaragua's (GON) administrative process to dismiss 18 U.S. citizen 
claims as "no ha lugar" (Refs A and B).  The fact that Property 
Superintendent Yara Perez did not attend gave us our first 
opportunity to explore the views of her often silent colleagues and 
clarify what they were doing to implement changes in policy. 
 
ATTORNEY GENERAL TO DISMISS CASES 
--------------------------------- 
 
¶3. (SBU) It is becoming clear to us that the Attorney General plans 
to reduce the number of outstanding property claims as quickly as 
possible and that dismissing claims is his preferred method to 
accomplish this goal.  As part of his responsibility to safeguard 
the nation's economic resources, GON officials explained, the 
Attorney General will exercise his authority to dismiss claims that 
do not meet a new threshold for proof of ownership and/or 
expropriation. 
 
GON RAISES THE THRESHOLD TO PROVE OWNERSHIP 
------------------------------------------- 
 
¶4. (SBU) To increase the number of claims that the Attorney General 
may consider for dismissal, the GON has raised the threshold for 
proof of ownership and/or expropriation.  Claimants must now produce 
the original title or cadastral records, according to one OCI 
official.  Proof of payment associated with property ownership, such 
as utility or tax receipts, are no longer enough.  Moreover, the 
Attorney General may review and dismiss claims at any time prior to 
final settlement -- and may even dismiss a claim for which the 
government has already negotiated, but not consummated, a 
settlement. 
 
NEW THRESHOLD STRICTER THAN REQUIRED BY LAW 
------------------------------------------- 
 
¶5. (SBU) Econoffs requested a formal explanation of the Attorney 
General's authority to dismiss claims and challenged setting the 
threshold for proof of ownership and/or expropriation so high.  The 
new standard is much stricter than what is required by law and 
clearly disadvantages some claimants.  We argued that Nicaraguan law 
provides for considerable flexibility when it comes to furnishing 
proof of ownership.  In many instances, property titles and 
cadastral records were lost or destroyed when the country drifted 
from revolution into civil war during the 1980s.  This was the 
decade in which the government confiscated some 30,000 properties as 
part of nationalization and land redistribution campaigns, often by 
employing questionable legal practices and creating documents that 
conferred the same property right to more than one party. 
 
¶6. (SBU) Comment: We are not satisfied with the explanation that has 
been presented to us.  We believe that for claimants who have waited 
ten years to have their cases considered, unilateral and 
administrative dismissal based on recently raised thresholds for 
proof is unfair.  Moreover, claimants have only 15 days to appeal 
the Attorney General's decision to dismiss their claims.  We will 
continue to advocate that the government take a more flexible 
approach.  End Comment. 
 
SOME NOT SO REASSURING VERBAL ASSURANCES 
---------------------------------------- 
 
¶7. (SBU) A CNRC official assured Econoffs that the Embassy would be 
afforded sufficient time to contact U.S. claimants before their 
cases were dismissed.  GON officials also assured us that U.S. 
claimants would be given the opportunity to provide additional 
evidence of ownership and expropriation to strengthen their claims. 
When we asked whether the GON had begun notifying claimants that 
their cases had been dismissed, an OCI official replied that this 
was a subject that the Attorney General would discuss with the 
Ambassador.  Begin comment:  We are not reassured by these verbal 
statements.  We will follow any developments related to U.S. 
claimants very closely and will not take any dismissals lightly. 
The Ambassador has already raised the issue with Attorney General 
Estrada (Ref F), and will continue to do so.  End comment. 
 
PROGRESS ON CLAIMS INVOLVING GOVERNMENT AGENCIES 
--------------------------------------------- --- 
 
¶8. (SBU) On a positive note, GON officials told us that they are 
reviewing the 12 claims we highlighted during September and November 
working group meetings (Refs A and D).  These involve properties 
controlled by the Nicaraguan Army, the Ministry of Interior, and 
Jalapa City Police.  GON officials presented detailed updates on 
each and told us that they wanted to resolve these claims as soon as 
possible.  Econoff observed that settling these claims would 
contribute to meeting two out of three benchmarks set by Secretary 
Rice in her July 31, 2007, letter to Foreign Minister Santos 
regarding Section 527 and goals for this waiver year. 
 
COMMENT 
------- 
 
¶9. (SBU) The absence of Property Superintendent Yara Perez allowed 
us to communicate freely with other GON officials and to discuss 
in-depth U.S. citizen claims under GON control.  We have been 
seeking separate working level meetings on a regular basis that 
would serve this purpose, but have been consistently rebuffed by 
Attorney General Estrada and Superintendent Perez. 
 
¶10. (SBU) While confirming the intentions of the Attorney General to 
dismiss cases was not the intended result of the meeting, we were 
prepared for that outcome.  We believe that during the course of the 
meeting, we further convinced GON officials of the seriousness with 
which we take U.S. citizen claims, and our full intention to follow 
through on all potential dismissals.  Indeed, we have completed the 
first round of a campaign to contact all U.S. citizen claimants to 
inform them of the Nicaraguan Government's policy changes and the 
need to contact the Property Superintendent to make sure that their 
files are accurate and complete.  As of January 25, we have sent 296 
of 308 letters.  Almost immediately, we began receiving responses. 
 
TRIVELLI