VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #0244/01 0652126
ZNR UUUUU ZZH
R 062126Z MAR 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 3845
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000244 
 
STATE FOR WH/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 DENIES "RECONFISCATION" POLICY AGAINST U.S. 
CITIZEN PROPERTY 
 
REFS: (A) MANAGUA 228, (B) 08 MANAGUA 1546, (C) 02 MANAGUA 877, (D) 
MANAGUA 236 
 
SUMMARY 
------- 

¶1. (SBU) During the February 26 Property Working Group meeting, 
Jeanette Garcia, President of the National Confiscations Review 
Commission (CNRC), asserted there is no government policy to 
"reconfiscate" U.S. property related to previously settled claims. 
Ruth Zapata, Head of the Office of Assessment and Indemnification 
(OCI), said the GON was working diligently to resolve claims under 
the control of the Nicaraguan Army, particularly in the case of U.S. 
citizen Juan Barreto.  Zapata also expressed her willingness to meet 
with some U.S. claimants to provide a detailed explanation of their 
final settlement offers.  Econoff pressed Magally Bravo, Executive 
Coordinator for property issues for the Attorney General's Office, 
to help resolve claims in court that have easy solutions.  While the 
GON has recently demonstrated a willingness to resolve claims, we 
continue to remind our GON counterparts that, with 11 claims 
resolved so far this waiver year, much work remains to be done.  End 
Summary. 
 
RECONFISCATION OF RESOLVED CLAIMS 
--------------------------------- 

¶2. (SBU) On February 26, 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.  Econoff raised concerns about the CNRC's recent 
notices to two U.S. citizens notifying them that their previously 
settled claims had been ruled null (Ref A).  Garcia asserted that 
the GON does not have a policy to "reconfiscate" property related to 
settled claims, explaining that only exceptional cases had been 
ruled null.  Econoff responded that during the bilateral review of 
Nicaragua's property claims resolution process on December 11-12, 
2008, Attorney General Hernan Estrada stated that he would not 
review previously settled claims (Ref B).  Garcia agreed to take a 
look at the two U.S. settlements that had been ruled null. 
 
 
CLAIMS UNDER NICARAGUAN ARMY CONTROL 
------------------------------------ 

¶3. (SBU) Zapata reported that she met with Samuel Barreto, brother 
and legal representative of U.S. citizen Juan Barreto, co-owner of 
the Las Serranias residential complex (Ref C), on February 26 to 
discuss the status of the family's 28 claims under Nicaraguan Army 
control. (Embassy's Property Office assistant also attended the 
meeting)  She said the government was assessing which 28 properties 
could be returned to the Barreto family and reappraising occupied 
individual lots to increase the final settlement offer.  Zapata 
stated that it was the GON's goal to resolve the Barreto family's 
claims during this waiver year.  She complained that the Army has 
been unwilling to share needed information on some properties. 
 
EXPLAINING SETTLEMENT OFFERS 
---------------------------- 

¶4. (SBU) Zapata offered to meet with some claimants to explain how 
the government determined their final settlement offers.  She 
acknowledged that some claimants did not understand why OCI 
sometimes reduces the settlement offers proposed by previous 
governments.  Econoff welcomed Zapata's willingness to explain the 
appraisal process and offered to schedule meetings the following 
week. 
 
 
RESOLVING CLAIMS IN COURT 
------------------------- 

¶5. (SBU) Econoff pressed Bravo to help resolve claims with easy 
solutions in court.  There are several claims that await a single 
court order to transfer legal title to a claimant.  There are other 
claims in which claimants have asked for an eviction order from a 
judge to remove squatters or occupants from their property.  Econoff 
also asked Bravo for assurances that the GON would not transfer 
property to squatters or individuals who wrongfully took control of 
U.S. citizen property.  Bravo responded that she would do all that 
she could to help advance U.S. citizen claims languishing in court. 
 
COMMENT 
------- 

¶6. (SBU) During the last three property working group meetings, the 
GON has attempted to demonstrate a willingness to work with us to 
resolve claims.  In this meeting, GON officials and the Property 
Office identified numerous U.S. citizen claims that could be 
resolved during this waiver year.  While we welcome any cooperation 
we can get, to date the GON has resolved only 11 claims during this 
waiver year (Ref D).  We continue to remind our GON counterparts 
that much work remains to be done. 
 
CALLAHAN