VZCZCXYZ0001
RR RUEHWEB

DE RUEHMU #0998 2191741
ZNR UUUUU ZZH
R 061741Z AUG 08
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 2985
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000998 
 
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 PROMISES BETTER COOPERATION ON U.S. CLAIMS 
UNDER GOVERNMENT CONTROL 
 
REF: A) STATE 81714, B) MANAGUA 883, C) MANAGUA 173 
 
SUMMARY 
------- 
 
¶1. (SBU) During the July 31 monthly Working Group meeting on 
property issues, Government of Nicaragua (GON) officials promised to 
provide more attention to resolving U.S. citizen claims under 
government control during the 2008-2009 waiver year.  GON officials 
stated the government will dismiss more claims for administrative 
reasons and under Decrees 3 and 38, noting that "allies of Somoza" 
cases can only be overturned by Attorney General Hernan Estrada. 
Econoff urged the GON to build upon its cooperation and progress in 
resolving U.S. claims during the second half of the last waiver 
period for this year.  While we must wait and see if the GON will 
honor its commitment to improve cooperation with us on case 
resolution, we are cautiously optimistic that the GON will be off to 
a better start this waiver year than last to resolve U.S. claims. 
 
 
MORE ATTENTION TO CLAIMS UNDER GON CONTROL 
------------------------------------------ 
 
¶2. (SBU) During the July 31 monthly Property Working Group meeting, 
Econoff met with the head of the Office of Assessment and 
Indemnification (OCI), two officials from the National Confiscations 
Review Commission (CNRC), and an official from the Office of the 
Property Superintendent to review 85 claims that the Embassy 
Property Office considered ready for resolution.  Ruth Zapata, head 
of OCI, promised better cooperation with the Property Office to 
advance and resolve U.S. claims under GON control, including those 
pertaining to the Nicaraguan Army.  She said that President Ortega 
had requested a report from the Nicaraguan Army regarding the 
property claims still under its control without resolution.  Econoff 
noted that there were 54 claims under GON control and urged his 
interlocutors to resolve more of these cases.  He reminded GON 
officials that the government resolved only one case under its 
control during the 2007-08 waiver period and none under control of 
the Nicaraguan Army since 2006 (Refs A, B). 
 
MORE DISMISSALS COMING IN 2008-2009 
----------------------------------- 
 
¶3. (SBU) GON officials warned Econoff that the government will 
dismiss more claims for administrative reasons (lack of proof of 
ownership and/or confiscation of the property in question) and under 
Decrees 3 and 38, which mandated the confiscation of property of 
Somoza family members and their allies (Ref C).  Econoff responded 
by pressing the GON for better cooperation and flexibility with 
claimants to allow them to resolve their claims.  Jeanette Garcia, 
director of the CNRC, asserted that she would do what she can to 
provide some claimants an opportunity to resolve administrative 
dismissals, but noted that only Attorney General Estrada can 
overturn Decree 3 and 38 dismissals. 
 
BETTER COOPERATION ON RESOLVING CLAIMS 
-------------------------------------- 
 
¶4. (SBU) Throughout the meeting, Econoff pressed GON officials to 
build upon the cooperation and communication that the Property 
Office and GON established during the second half of the last waiver 
period to resolve more claims for this year.  The Property Office 
staff suggested more meetings between the Embassy and GON with U.S. 
claimants to resolve longstanding, complex cases.  Zapata believed 
that this idea had merit and added that she would provide us a list 
of U.S. claims to explore additional follow-up meetings with U.S. 
claimants during the August 28 Property Working Group meeting. 
 
COMMENT 
------- 
 
¶5. (SBU) During the first meeting of the new waiver year, we were 
surprised by the GON's verbal commitment to improve cooperation on 
claims under government control and longstanding, complex cases. 
While we must wait and see if the GON will honor its commitment to 
work with us on these cases, we are cautiously optimistic that the 
GON will be off to a better start this waiver year than last to 
resolve U.S. claims. 
 
TRIVELLI