VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #0344/01 0911357
ZNR UUUUU ZZH
R 011357Z APR 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 3965
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000344 
 
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 REVERSES NULLIFICATIONS OF SETTLED CLAIMS
 
REFS: A) MANAGUA 244, B) MANAGUA 228, C) MANAGUA 313, D)08 MANAGUA 830, E) 08 MANAGUA 724, F) 08 MANAGUA 564, G) 08 MANAGUA 1546
 
SUMMARY 
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¶1. (SBU) During the March 26 Property Working Group meeting, Receba Zuniga, Coordinator of the Liaison Office for U.S. Citizen Claims, told us that the National Confiscations Review Commission reversed its notices to two U.S. citizens notifying them that their previously resolved claims had been ruled null. The GON highlighted the resolution of one claim dismissed under Decree 38 (1979). Econoff raised concerns about the GON's policy of depositing indemnification bonds (BPIs) in escrow and publishing the "resolution" of claims in the Official Gazette without settling the cases with the claimants. Ruth Zapata, Head of the Office of Assessment and Indemnification, designated Zuniga to meet with U.S. claimants to provide a detailed explanation of their final settlement offers. Despite the government's constant refrain regarding its commitment to work with us, GON cooperation continues to be inconsistent. End Summary.
 
CNRC REVERSES NULLIFICATION OF SETTLED CLAIMS 
--------------------------------------------- 

¶2. (SBU) On March 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 for the monthly Property Working Group meeting. Zuniga reported that the CNRC reversed its recent nullification notices to two U.S. citizens (Francis Guillen and Jaime Arana) notifying them that their previously settled claims had been ruled null (Ref A). Econoff welcomed the news and pressed CNRC President Garcia to reverse the nullifications against the previously settled claims of U.S. citizen Jose Arguello Cardenal (Ref B).
 
FAVORABLE RESOLUTION OF A DECREE 38 CLAIM 
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¶3. (SBU) Zuniga also reported that the GON favorably resolved a claim dismissed under Decree 38 (1979), which authorized the confiscation of property belonging to "allies" of the Somoza family, for U.S. citizen Irene Dona (septel). Zapata asserted that this resolution demonstrated the GON's good faith effort in resolving controversial, politically sensitive claims. Econoff welcomed this resolution and added that the Embassy looks forward to working with the GON to advance 70 more U.S. citizen claims dismissed under Decrees 3 and 38 as pledged by Attorney General Hernan Estrada to the Ambassador (Ref C).
 
"RESOLUTION" OF CLAIMS THROUGH OFFICIAL PUBLICATION 
--------------------------------------------- ------ 

¶4. (SBU) Econoff raised concern about the GON's policy of depositing BPIs in escrow and publishing the "resolution" of claims belonging to 25 U.S. citizens in the Official Gazette (Refs D,E, F), including one claim belonging to U.S. citizen Armando Astorga who has a suit in court seeking the return of his property. [Note: On March 25, Property Office staff attended a meeting between Mr. Astorga's legal representative and Zuniga to clarify the status of his claim in court. Zuniga acknowledged that she did not read Mr. Astorga's letters requesting that his claim be removed from the administrative process. She said that she would review the legal status of the claim with Attorney General Estrada. End Note.] Zapata said that most of these claimants could no longer pursue their cases via the administrative process, but they could take their cases to court if they do not want to accept the BPIs. Econoff stated that the USG does not recognize these claims as resolved and urged Zapata to work with claimants to advance their cases.
 
EXPLAINING SETTLEMENT OFFERS 
---------------------------- 

¶5. (SBU) Econoff suggested that one way to advance claims is to 
explain to claimants how the government determined its final 
settlement offers (Ref G).  Zapata agreed and designated Zuniga to 
meet with U.S. claimants to explain the GON's appraisal process and 
their final settlement offers.  Econoff also pressed Zapata to help 
claimants gain access to cadastral tables in the Land Appraisal 
Registry to allow them to corroborate the government's final 
compensation offer. 
 
COMMENT 
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¶6. (SBU) As we enter the final stretch of the 2008-09 waiver year, 
GON officials claim that they are doing all that they can to advance 
Embassy registered claims to improve the GON's chance of receiving a 
Section 527 waiver.  In the last two months, however, we have seen 
the GON nullify previously resolved claims and publish case 
resolutions in the Official Gazette that were not finalized with 
claimants.  Despite the government's constant refrain regarding its 
commitment to work with us, GON cooperation on resolving claims 
remains inconsistent as we take a few small steps forward together 
only to have the government take a significant step backward. 

CALLAHAN