VZCZCXYZ0003
RR RUEHWEB

DE RUEHMU #0677/01 1481718
ZNR UUUUU ZZH
R 271718Z MAY 08
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 2665
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000677 
 
STATE FOR WHA/CEN, EB/IFD/OIA, AND L/CID 
STATE ALSO FOR WHA/EPSC 
STATE PASS TO USTR 
TREASURY FOR INL AND OWH 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EINV ECON USTR KIDE NU
SUBJECT: NICARAGUA: AMCIT PROPERTY CLAIMS MONTHLY UPDATE: APRIL 
2008 
 
REF: MANAGUA 564 
 
SUMMARY 
------- 
 
¶1.  In April 2008, the Government of Nicaragua (GON) did not report 
the resolution of any Embassy registered property claims.  During 
the April 24 Property Working Group meeting, the GON confirmed the 
dismissal of 84 claims in February and March based on anti-Somoza 
Decree 38.  The widow and legal heir of a U.S. citizen withdrew 1 
claim from the Embassy property database because her family did not 
have the necessary documents to support the claim.  With the 
inclusion of 1 withdrawn claim in April, the Property Office 
database now includes 656 pending registered property claims 
belonging to 309 Amcits.  To date, most resolutions have involved 
compensation via government-issued indemnification bonds ("bonos de 
pago de indemnizacion" or BPIs).  As of March 31, 2008, the GON has 
issued BPIs with a face value of $324,059,784 to Embassy-registered 
claimants.  Since taking office in January 2007, the Ortega 
administration has resolved a total of 17 claims, 12 during this 
waiver year. 
 
GON DISMISSES 84 MORE U.S. CLAIMS 
--------------------------------- 
 
¶2. During the April 24 monthly Property Working Group meeting, the 
GON confirmed the dismissal of 84 claims based on Decree 38 
mentioned in letters dated February 26 and March 31 from Attorney 
General Hernan Estrada to the Ambassador (Ref A).  Decree 38 
authorized the GON to confiscate property of individuals deemed to 
have been "allies of Somoza."  However, during the Ambassador's May 
9 meeting with the Attorney General, Estrada said that he would meet 
with claimants to determine if the decree is indeed applicable to 
their cases. 
 
U.S. CLAIMANT WITHDRAWS ONE CLAIM - NO DOCUMENTS 
--------------------------------------------- --- 
 
¶3. On April 2, 2008, Mrs. Julia Bustamante, the widow and legal heir 
of U.S. citizen Octavio Bustamante, requested that the Property 
Office remove 1 Embassy-registered claim from our database because 
she did not have the necessary documents to support the claim.  We 
have updated our database to reflect this withdrawn claim. 
 
                       Type of            No. of 
Claimant               Property           Claims 
--------               --------           ------ 
 
Bustamante, Octavio    Factory   1 
 
 
STATUS OF AMCIT PROPERTY AS OF 04/30/08 
--------------------------------------- 
 
¶4.  The following is a snapshot of current U.S. citizen property 
claims.  The Embassy maintains separate databases for claims 
registered before and after the July 31, 2005, deadline in the 
Consolidated Appropriations Act. 
 
 
EMBASSY-REGISTERED CLAIMS                         NUMBER 
-------------------------                         ------ 
Total Amcits with pending claims                     309 
 
Total Amcit claims pending resolution                656 
 
 
EMBASSY-REGISTERED CLAIMS BY CALENDAR YEAR        NUMBER 
------------------------------------------        ------ 
Claims resolved in calendar year 2008                  7 
 
Claims resolved in calendar year 2007                 10 
 
Claims resolved calendar year 2006                    81 
 
Claims resolved calendar year 2005                   126 
 
Claims resolved calendar year 2004                   218 
 
Claims resolved calendar year 2003                   243 
 
Claims resolved calendar year 2002                   125 
 
Claims resolved calendar year 2001                   175 
 
Claims resolved calendar year 2000                    70 
 
 
 
EMBASSY-REGISTERED CLAIMS RESOLVED BY WAIVER YEAR NUMBER 
--------------------------------------------- ---- ------ 
Registered claims resolved so far in 2007-08          12 
  (waiver year: August 1, 2007 - July 31, 2008) 
 
Registered claims resolved 2006-07 waiver year        34 
 
Registered claims resolved 2005-06 waiver year        86 
 
Registered claims resolved 2004-05 waiver year       187 
 
Registered claims resolved 2003-04 waiver year       214 
 
Registered claims resolved 2002-03 waiver year       183 
 
Registered claims resolved 2001-02 waiver year       160 
 
Registered claims resolved 2000-01 waiver year       142 
 
Registered claims resolved 1999-00 waiver year        77 
 
Registered claims resolved 1998-99 waiver year       156 
 
Registered claims resolved 1997-98 waiver year       204 
 
Registered claims resolved 1996-97 waiver year       145 
 
 
EMBASSY-REGISTERED CLAIMS UNDER GON CONTROL       NUMBER 
 
-------------------------------------------       ------ 
 
Total Amcit properties under GON control              54 
  (subject to revision) 
 
GON-held claims resolved 2007-08 waiver year           0 
 
GON-held claims resolved 2006-07 waiver year           0 
 
GON-held claims resolved 2005-06 waiver year           3 
 
GON-held claims resolved 2004-05 waiver year          16 
 
GON-held claims resolved 2003-04 waiver year          12 
 
GON-held claims resolved 2002-03 waiver year          11 
 
GON-held claims resolved 2001-02 waiver year          26 
 
GON-held claims resolved 2000-01 waiver year           2 
 
GON-held claims resolved 1999-00 waiver year           2 
 
GON-held claims resolved 1998-99 waiver year           5 
 
GON-held claims resolved 1997-98 waiver year          29 
 
GON-held claims resolved (total)                     176 
 
 
CLAIMS DISMISSED BY GON DURING THE 2007-08 
WAIVER YEAR                                       NUMBER 
------------------------------------------        ------ 
 
MARCH 2008                                            63 
 
FEBRUARY 2008                                         21 
 
JANUARY 2008                                          34 
 
NOVEMBER 2007                                         18 
 
 
COURT DECISION AGAINST CLAIMANT 
(CLAIM WITHDRAWN BY AMCIT)                        NUMBER 
-------------------------------                   ------ 
                                                       9 
 
CLAIMS WITHDRAWN BY AMCIT 
(PROPERTY UNDER AMCIT CONTROL)                    NUMBER 
------------------------------                    ------ 
                                                       1 
 
CLAIMS WITHDRAWN BY AMCIT 
 
(LACK OF SUPPORTING DOCUMENTS)                    NUMBER 
------------------------------                    ------ 
                                                       1 
 
 
TOTAL CLAIMS RESOLVED BY LAND SWAPS               NUMBER 
-----------------------------------               ------ 
                                                       6 
 
TOTAL CLAIMS COMPENSATED IN BONDS 
(face value of bonds $324.00 million)             NUMBER 
-------------------------------------              ----- 
                                                   1,862 
 
 
 
NON-REGISTERED RESOLUTIONS BY WAIVER YEAR         NUMBER 
-----------------------------------------         ------ 
Non-registered resolutions 2007-08 waiver year         0 
 
Non-registered resolutions 2006-07 waiver year        12 
 
Non-registered resolutions 2005-06 waiver year        30 
 
Non-registered resolutions 2004-05 waiver year         0 
 
Non-registered resolutions 2003-04 waiver year         6 
 
Non-registered resolutions 2002-03 waiver year        22 
 
Non-registered resolutions 2001-02 waiver year        93 
 
Non-registered resolutions 2000-01 waiver year       300 
 
Non-registered resolutions 1999-00 waiver year       455 
 
Non-registered resolutions 1998-99 waiver year       310 
 
Non-registered resolutions 1997-98 waiver year       230 
 
Non-registered resolutions 1996-97 waiver year       208 
 
 
NON-WAIVER CLAIMS REGISTERED AFTER JULY 31, 2005  NUMBER 
--------------------------------------------- ---  ------ 
Total Amcit claimants registered with Embassy         12 
 
Total Amcit claims pending resolution                 18 
 
TRIVELLI