VZCZCXYZ0019
PP RUEHWEB

DE RUEHMU #0706 1971929
ZNR UUUUU ZZH
P 161929Z JUL 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC PRIORITY 4356
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS MANAGUA 000706 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/CEN, EB/IFD/OIA, AND L/CID 
STATE ALSO FOR WHA/EPSC 
 
E.O. 12958: N/A 
TAGS: ECON EINV NU
SUBJECT: NICARAGUA: GON RESOLVES PROPERTY CASE FOR DOMINGO CALERO 
 
REFS: A) MANAGUA 160, B) MANAGUA 694 
 
SUMMARY 
------- 
 
¶1. (SBU) On July 13, U.S. citizen claimant Domingo Calero signed a 
settlement document, or "finiquito," for the equivalent of $750,000 
in the form of indemnification bonds (BPIs) to resolve his four 
property claims.  Mr. Calero's claims had been previously dismissed 
by the Government of Nicaragua under Decree 38 (1979).  During this 
waiver year, Mr. Calero's case received significant congressional 
attention, which may have prompted the GON to settle his claims. 
Including Mr. Calero's claims, the GON has resolved 47 claims during 
the 2008-2009 waiver year. 
 
GON RESOLVES CLAERO CASE 
------------------------ 
 
¶2. (U) On July 13, U.S. citizen Domingo Calero, whose land, cattle, 
and vehicles were confiscated by the Government of Nicaragua (GON)in 
1980, signed a "finiquito" to accept compensation of $865,297 in the 
form of BPIs.  The GON provided the Property Office a copy of the 
finiquito on July 13.  Calero's case represents four property claims 
registered with the Embassy Property Office. 
 
                     Type of     No. of    Type of 
Claimant             Claim       Claims    Resolution 
--------             -------     ------    ---------- 

Domingo Calero       Land,    4  bonds 
                      Cattle, 
                      Vehicles 
 
PERSISTENCE PAYS OFF 
-------------------- 
 
¶3. (U) In February 1980, the GON confiscated Mr. Calero's property 
under Decree 38 (1979), which authorized the government to 
confiscate property belonging to "allies" of the Somoza family.  In 
1990, Mr. Calero filed claims against the GON and sought 
compensation.  In 2006, Mr. Calero and the GON negotiated a 
settlement of approximately $950,000, but in March 2008 the Ortega 
Government dismissed his claims under Decree 38 (Ref A).  After 
constant pressure from the Ambassador and the Embassy Property 
Office to resolve his claims, the GON reopened negotiations with 
Calero in May.  Mr. Calero accepted the GON's settlement offer in 
June and both sides finalized the deal in July.  During this waiver 
year, his case received significant U.S. congressional attention 
which may have prompted the GON to finally settle his claims for a 
face value of $865,297. 
 
GON RESOLVES 47 CLAIMS SO FAR 
----------------------------- 
 
¶4. (SBU) Including Mr. Calero's claims, the GON has resolved 47 
claims during the 2008-2009 waiver year.  Between July 29, 2008, and 
July 13, the GON compensated 44 U.S. citizen claims belonging to 28 
U.S. citizens via BPIs issued with a face value of 161,679,400 
cordobas, approximately $7,935, 886.  A thin secondary market exists 
for the sale of the bonds, the current price for which ranges 
between 37 and 50 cents on the dollar.  In addition, the courts 
ruled during the course of this waiver year that property be 
returned to one U.S. claimant.  One claimant signed a lease 
agreement with the Nicaraguan National Police (NNP) while the NNP 
builds a new office in order to return the property.  The GON also 
conducted a land swap with one U.S. citizen claimant for another 
property of comparable value (Ref B). 
 
CALLAHAN