VZCZCXYZ0002
RR RUEHWEB

DE RUEHMU #0545/01 1531508
ZNR UUUUU ZZH
R 021508Z JUN 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 4190
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 000545 
 
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 SEEKS MORE USG COOPERATION ON ADVANCING U.S. 
CITIZEN PROPERTY CLAIMS 
 
REFS: A) MANAGUA 537, B) 02 MANAGUA 877, C) MANAGUA 160, D) MANAGUA 
002, E) MANAGUA 465 
 
SUMMARY 
------- 

¶1. (SBU) During the May 28 Property Working Group meeting, Ruth 
Zapata, Head of the Office of Assessment and Indemnification, 
requested Embassy assistance in encouraging U.S. citizen claimants 
to settle 35 claims with final offers before the end of this waiver 
year.  Jeanette Garcia, President of the National Confiscations 
Review Commission, asked Econoff to contact 52 claimants whose 
claims were dismissed for administrative reasons to submit documents 
to advance their cases.  Garcia also stated that the GON would 
compensate a U.S. citizen whose property had been reportedly 
confiscated.  The GON appears eager to resolve more claims this year 
than last to improve its prospects for a waiver.  End Summary. 
 
GON SEEKS EMBASSY ASSISTANCE TO ADVANCE CLAIMS 
--------------------------------------------- - 

¶2. (SBU) On May 28, 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.  GON officials and the Property Office Staff reviewed 
80 U.S. claims on a case-by-case basis to discuss next steps for 
favorable resolution.  Zapata told us that the GON is working 
diligently on advancing U.S. citizen claims and has adopted a more 
flexible approach in resolving cases.  She acknowledged that 
Attorney General Hernan Estrada is under pressure to resolve as many 
claims as possible before the end of the waiver year (Ref A).  She 
asked Econoff to encourage U.S. claimants to settle their claims 
with pending offers.  She asserted that 35 cases have final 
settlement offers, including the 28 claims of U.S. citizen Juan 
Barreto, whose family's property is under Nicaraguan Army control 
(Ref B). 
 
¶3. (SBU) Zuniga added that the GON is advancing claims that had been 
previously dismissed under Decrees 3 (1979) and 38 (1979), which 
authorized the confiscation of property belonging to Somoza family 
members and "their allies."  She noted that the GON has made a final 
settlement offer for the four claims belonging to U.S. citizen 
Domingo Calero, whose property had been confiscated by the GON under 
Decree 38 (Ref C).  Econoff pressed Zuniga to continue the review of 
Decree 3 and 38 dismissals, noting that there remain over 130 claims 
that await due process. 
 
FLEXIBILITY ON ADMINISTRATIVE DISMISSALS 
---------------------------------------- 

¶4. (SBU) Garcia asked Econoff to contact 52 U.S. claimants whose 
claims were dismissed for administrative reasons, (e.g., a lack of 
proof of ownership and/or confiscation of the property in question) 
to provide the necessary documents so that the CNRC can advance 
their cases.  Econoff responded that the Property Office would 
contact claimants but urged the GON to exercise patience and 
flexibility.  He reminded Garcia that some claimants were physically 
forced from their property without possessions, while others lost 
documents located at regional cadastral registry offices that had 
been destroyed by fire, such as in Matagalpa, or during the civil 
war, such as in Chinandega and Masaya (Red D).  Garcia acknowledged 
this point, noting that not all of the GON's property claims files 
have been properly managed, and some documents could have been 
misfiled or lost. 
 
PROPERTY CONFISCATION AGAINST A U.S. CITIZEN 
-------------------------------------------- 

¶5. (SBU) Econoff raised the reported property confiscation against 
U.S. citizen Leonidas Guadamuz (Ref E).  Garcia said the CNRC would 
be willing to resolve his claim through indemnification bonds and a 
land swap, depending on discussions with Mr. Guadamuz.  On May 30, 
the Property Office contacted Mr. Guadamuz to discuss his claim and 
he responded that he plans to travel to Nicaragua on June 7 to meet 
with GON officials. 
 
COMMENT 
------- 

¶6. (SBU) The GON appears eager to resolve more claims this year than 
last to improve its prospects for a waiver.  That should not be too 
difficult to do, since last year the GON resolved just 42 claims, 
considerably below the annual average.  The Ambassador's May 22 
demarche to Foreign Minister Samuel Santos and Attorney General 
Estrada on this year's Section 527 waiver process has helped to 
increase the pressure on the GON.  GON working-level officials are 
carefully tracking the number of claims that we consider resolved 
cases, and addressing quickly contentious issues that could 
negatively impact Nicaragua's chances for a waiver. 
 
 
CALLAHAN