VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #0753 1641539
ZNR UUUUU ZZH
R 121539Z JUN 08
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 2736
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000753 
 
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 OPIC CASC NU
SUBJECT: NICARAGUA: 2008 EXPROPRIATION REPORT 
 
REF: STATE 43784 
 
¶1. (U) This cable provides proposed language for the 
Nicaragua chapter of the 2008 Report on Investment Disputes and 
Expropriation Claims.  Embassy will e-mail a comprehensive annex 
with details of confiscated property claims by June 15 per reftel 
request. 
 
¶2. (U) Property claims 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, some were, or subsequently became, U.S. 
citizens. 
 
¶3. (U) Between January 1995 and June 1, 2008, a total of 1,137 U.S. 
citizens registered 3,193 property claims with the Embassy.  Of 
these, 2,535 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$324,730,382.  In isolated 
cases, claims have been resolved through the return of property, 
cash compensation or, in one instance, a land swap.  Most claimants 
(i.e., 870 of the 1,137) who have registered their claims with the 
Embassy were not U.S. citizens at the time of expropriation. 
Another 2,020 U.S. citizen claims not registered at Embassy Managua 
have been resolved by government authorities without Embassy 
assistance. 
 
¶4. (U) As of June 1, 2008, 305 U.S. citizens await the resolution of 
647 Embassy-registered active claims.  Sixty-three claimants, 
accounting for 113 of these outstanding claims, were U.S. citizens 
at the time of confiscation.  Embassy Managua employs one American 
officer, one Nicaraguan attorney, and one Columbian-trained attorney 
who is an Eligible Family Member to assist U.S. citizen claimants. 
 
 
¶5. (SBU) Between August 1, 2007, and June 1, 2008, the government 
resolved 21 U.S. citizen claims registered with the Embassy.  Four 
U.S. citizen claimants withdrew a total of 11 claims registered with 
the Embassy between August 1, 2007, and June 1, 2008, because they 
did not have sufficient evidence to support their cases. 
 
¶6. (SBU) During the course of the last 12 months, the Nicaraguan 
government's lack of full cooperation with the Embassy has stifled 
progress on U.S. claims.  Between August 1, 2007, and June 1, 2008, 
the Nicaraguan government dismissed more than 130 U.S. claims in a 
nontransparent manner and without due process.  The Ortega 
administration has limited communication between Embassy and 
Nicaraguan working-level officials to once-monthly meetings.  All 
other communication is conducted through official correspondence 
between the Ambassador and the Attorney General.  Until May 2008, 
the Nicaraguan government refused to allow Embassy officials to 
attend meetings between U.S. citizen claimants and the Attorney 
General, a practice that was common in the past. 
 
¶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 claims not registered under the 
aforementioned act. 
 
TRIVELLI