VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #0465/01 1261424
ZNR UUUUU ZZH
R 061424Z MAY 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 4114
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000465 
 
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 UNDER PRESSURE TO RESOLVE CLAIMS 
 
REFS: A) 08 MANAGUA 1370, B) 08 MANAGUA 1243, C) MANAGUA 160, D) 08 MANAGUA 274, E) 08 MANAGUA 1546,
 
SUMMARY 
------- 

¶1. (SBU) During the April 30 Property Working Group meeting, Ruth 
Zapata, Head of the Office of Assessment and Indemnification, said 
the Government of Nicaragua (GON) is taking a more flexible approach 
to work on U.S. citizen claims.  Rebeca Zuniga, Coordinator of the 
Liaison Office for U.S. Citizen Claims, told us that the GON is 
working diligently to resolve claims subject to U.S. congressional 
attention and those that had been dismissed under Decrees 3 (1979) 
and 38 (1979).  Econoff raised concerns about a reported 
confiscation involving the property of a U.S. citizen, and the 
Attorney General's policy of arguing in favor of illegal occupants 
in court.  As the end of the 2008-09 waiver year draws near, GON 
officials seem to be feeling the pressure to qualify for another 
Section 527 waiver.  End Summary. 
 
MORE FLEXIBILITY IN ADVANCING CLAIMS 
------------------------------------ 

¶2. (SBU) On April 30, 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.  Zapata asserted that the GON is adopting a 
more flexible approach in working on U.S. citizen claims.  She 
acknowledged pressure from Attorney General Hernan Estrada to 
resolve as many claims as possible before the end of the waiver 
year.  For this reason, OCI was willing to pay the higher 
settlements proposed by previous governments (Ref A).  Zapata 
instructed Zuniga to draft detailed explanations of settlement 
offers to claimants, such as Bayardo Alfaro and Uri Kollnesher, so 
that they understood the offers or to propose alternative solutions 
to settle their claims (Ref B). 
 
ADVANCING CLAIMS WITH USG ATTENTION 
----------------------------------- 

¶3. (SBU) Zuniga told us that the GON is working diligently to 
resolve claims that have received significant U.S. congressional 
attention and those that had been dismissed under Decrees 3 (1979) 
and 38 (1979), which authorized the confiscation of property 
belonging to Somoza family members and "their allies."  Zuniga said 
the she hopes to settle the cases of Domingo Calero, Juan Barreto 
and Eddy Viquez during this waiver year (Ref C).  Zuniga added that 
she would propose final settlements to five U.S. citizens subject to 
Decrees 3 and 38 with a total of 12 dismissed claims in May and June 
[Note: The claims of Domingo Calero are also subject to Decree 38. 
End Note.] 
 
PROPERTY CONFISCATION AGAINST A U.S. CITIZEN 
-------------------------------------------- 

¶4. (SBU) Econoff raised concern about a reported property 
confiscation against U.S. citizen Leonidas Guadamuz (Ref D).  On 
April 15, the legal representative of Mr. Guadamuz told the Embassy 
Property Office that the GON had confiscated his property without 
compensation.  On April 23, the Ambassador inquired about the case 
in a letter to Attorney General Estrada.  Econoff asked CNRC 
President Garcia to look into it, noting that any confiscation 
against U.S. citizen property would negatively impact the GON's 
effort to get a Section 527 waiver.  Garcia assured Econoff that she 
would investigate the case and that Estrada would formally respond 
to the Ambassador's letter. 
 
CLAIMS IN COURT 
--------------- 

¶5. (SBU) Econoff also raised the claim of U.S. citizen Yolando Diaz, 
who went to court to recover possession of her property only to have 
the National Property Appeals Court, the highest court for property 
matters, rule in favor of the illegal occupant.  Econoff highlighted 
that the Attorney General's Office withdrew its support on behalf of 
Mrs. Diaz and instead filed a petition on behalf of the illegal 
occupant.  Econoff noted that this is the third court case where 
U.S. claimants have complained about the Attorney General switching 
sides in court [Note: Under Nicaraguan law, the Attorney General is 
supposed to pursue property restitution on behalf of aggrieved 
claimants.  End Note.] Econoff argued that this action undermines 
the rule of law in Nicaragua and discourages claimants from using 
the GON to advance claims in court (E).  Bravo promised to look into 
the case. 
 
COMMENT 
------- 

¶6. (SBU) As the end of waiver year draws near, GON officials are 
feeling the pressure.  GON officials have started contacting the 
Property Office to request that we persuade claimants to accept 
compensation offers.  During the Working Group meeting, GON 
officials asked the Embassy to contact several U.S. claimants to 
inform them that their compensation offers are ready.  We suspect 
that Estrada believes that Nicaragua would be in a good position to 
receive a waiver if he can equal or better the number of claims 
resolved last year, i.e., 42. 
 
CALLAHAN