VZCZCXYZ0018
RR RUEHWEB

DE RUEHMU #0160/01 0412147
ZNR UUUUU ZZH
R 102147Z FEB 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 3739
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000160 
 
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 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EINV ECON USTR KIDE NU
SUBJECT: NICARAGUA: GON ASSERTS FLEXIBILITY IN RESOLVING U.S. CLAIMS 
 
REFS: (A) MANAGUA 002, (B) 08 MANAGUA 1243, (C) 08 MANAGUA 1546, (D) 08 MANAGUA 1441
 
SUMMARY 
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¶1. (SBU) During the January 29 Property Working Group meeting, Ruth 
Zapata, Head of the Office of Assessment and Indemnification (OCI), 
asserted the government's willingness to find different solutions 
for U.S. claims.  Rebeca Zuniga, coordinator of the liaison office 
for U.S. citizen claims, stated that she would meet with claimants 
without a formal request from the Ambassador to Attorney General 
Hernan Estrada.  Econoff also pressed Zapata to work on claims with 
significant congressional attention.  The GON's change in attitude 
is encouraging, but it remains to be seen whether this cooperation 
translates into the resolution of claims.  We are concerned that the 
government's budget shortfall, as a result of the reduction in donor 
assistance because of the fraudulent November 9, 2008 municipal 
elections, might be used as an excuse not to actively resolve claims 
during the 2009 Nicaraguan fiscal year.  End Summary. 
 
FINDING DIFFERENT SOLUTIONS 
--------------------------- 

¶2. (SBU) On January 29, Econoff met with Ruth Zapata, Head of the 
Office of Assessment and Indemnification (OCI), Jeanette Garcia, 
President of the National Confiscations Review Commission (CNRC), 
Magally Bravo, Executive Coordinator for property issues for the 
Attorney General's Office, and Rebeca Zuniga, coordinator of the 
liaison office for U.S. citizen claims, to hold the Property Working 
Group meeting.  Zapata asserted that the Government of Nicaragua 
(GON) was willing to find different solutions to resolve claims, 
such as removing squatters, engaging in land swaps, and encouraging 
the courts to clarify the ownership of U.S. citizen property already 
controlled by the rightful owner.  Econoff welcomed the government's 
willingness to work with the courts, but pressed for assurances that 
the GON would not transfer the property to squatters or individuals 
who wrongfully asserted control (Ref A). 
 
SCHEDULING MEETINGS WITHOUT FORMAL REQUESTS 
------------------------------------------- 

¶3. (SBU) Zuniga said that she would meet with claimants without a 
formal request to Attorney General Hernan Estrada, as long as the 
Property Office requested the meeting.  She stipulated that a 
claimant seeking an appointment with Estrada still required a formal 
request from the Ambassador.  Econoff asserted that claimants should 
be able to request meetings with GON officials without Embassy 
assistance. 
 
CLAIMS WITH CONGRESSIONAL ATTENTION 
----------------------------------- 

¶4. (SBU) Econoff pressed Zapata to resolve claims that have received 
significant U.S. congressional attention, namely Uri Kollnesher, 
Domingo Calero, Fidelina Arauz, Mary Ruth Silva, Eddy Viquez, and 
Elmer Hidalgo.  Econoff reminded Zapata that the Ambassador had 
raised this objective with Estrada on September 30, 2008 (ref B), as 
did WHA/CEN Office Director Christopher Webster during the bilateral 
review on December 11-12, 2008 (Ref C). 
 
BUDGETARY WOES COULD IMPEDE CLAIMS RESOLUTIONS 
--------------------------------------------- - 

¶5. (SBU) On February 2, the GON paid $100 million to service indemnification bonds used to pay property claimants, including U.S. citizen proprietors, whose property was confiscated during the first Sandinista government from 1979-1990. However, the government's recent budget shortfall, as a result of the reduction in donor assistance to the GON because of the fraudulent November 9 municipal elections, might be used as an excuse not to resolve and compensate claims during the 2009 Nicaraguan fiscal year which runs from January 1 until December 31. GON officials had already stated that the suspension of Millennium Challenge Corporation assistance for the property restitution program would result in a loss of employment and likely limit ability to their work on U.S. citizen claims (Ref D).
 
COMMENT 
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¶6. (SBU) The GON's professed change in attitude is encouraging, but it remains to been seen whether this attributes to the resolution of claims. We reminded GON officials that they had resolved only 10 claims during the current waiver year. We expect that we will have to hammer this point home during the Ambassador's upcoming mid-year review with Estrada, probably in early March. We are concerned that the government's budget shortfall, as a result of the reduction in donor assistance because of the fraudulent November 9, 2008 municipal elections, might be used as an excuse not to actively resolve claims during the 2009 Nicaraguan fiscal year. End Comment.
 
CALLAHAN