Identifier
Created
Classification
Origin
07MANAGUA1207
2007-05-09 21:45:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Managua
Cable title:  

NICARAGUA: NEW PROPERTY SUPERINTENDENT ON PROSPECT FOR

Tags:  EINV ECON USTR KIDE NU 
pdf how-to read a cable
VZCZCXYZ0004
RR RUEHWEB

DE RUEHMU #1207 1292145
ZNR UUUUU ZZH
R 092145Z MAY 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 0156
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
UNCLAS MANAGUA 001207 

SIPDIS

STATE FOR WHA/CEN GSCHIFFER, EB/IFD/OIA, L/CID AND WHA/EPSC
TREASURY FOR INL MDONOVAN AND GCHRISTOPOLUS, OWH/MSHWARZMAN
STATE PASS TO USTR

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EINV ECON USTR KIDE NU
SUBJECT: NICARAGUA: NEW PROPERTY SUPERINTENDENT ON PROSPECT FOR
RESOLUTIONS BEFORE WAIVER YEAR ENDS

REF: (A) MANAGUA 0626

(B) MANAGUA 0862

UNCLAS MANAGUA 001207

SIPDIS

STATE FOR WHA/CEN GSCHIFFER, EB/IFD/OIA, L/CID AND WHA/EPSC
TREASURY FOR INL MDONOVAN AND GCHRISTOPOLUS, OWH/MSHWARZMAN
STATE PASS TO USTR

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EINV ECON USTR KIDE NU
SUBJECT: NICARAGUA: NEW PROPERTY SUPERINTENDENT ON PROSPECT FOR
RESOLUTIONS BEFORE WAIVER YEAR ENDS

REF: (A) MANAGUA 0626

(B) MANAGUA 0862


1. (SBU) SUMMARY: EconCouns and Econoff met with Property
Superintendent Mireya Molina on April 25 to stress the importance of
accelerating resolutions for confiscated and expropriated American
citizen properties in Nicaragua. As of the date of that meeting,
the Office of the Property Superintendent had not produced a single
resolution since Molina assumed her position on January 25, 2007.
In July, the Secretary of State must decide whether to grant a
waiver to Section 527 of the Foreign Relations Authorization Act
(Fiscal Years 1994 and 1995). Molina told EconCouns that as of
April 25, the Office of Quantification and Indemnification was
actively reviewing claims. She warned that valuations would be
lower than before. END SUMMARY.


2. (SBU) On April 25, EconCouns and Econoff met with Property
Superintendent Mireya Molina (Ref A) to stress the importance of
accelerating resolutions for confiscated and expropriated American
citizen properties in Nicaragua. As of the date of that meeting,
the Office of the Property Superintendent had not produced a single
resolution since Molina assumed her position on January 25, 2007
(Ref B). EconCouns explained that, in July, the Secretary of State
must decide whether to grant a waiver to Section 527 of the Foreign
Relations Authorization Act (Fiscal Years 1994 and 1995). Section
527 prohibits U.S. economic assistance to, or support in,
international financial institutions for any country where U.S.
citizens have not received adequate or effective compensation for
outstanding claims against the government for confiscated property.
Section 527 may be waived if the Secretary deems that it is in the
interest of national security.


3. (SBU) Molina told EconCouns that as of April 25, the Office of
Quantification and Indemnification was in fact actively reviewing
American citizen claims. She reported that 43 claims were
undergoing assessment, 119 had moved to first appeal status, and 76
were already in second appeal status. (Note: Claimants are
entitled to two appeals if they disagree with the government's
valuation of their property. The second appeal is the last chance
to maximize settlement, which may be accomplished via Property
Indemnification Bonds (BPIs),landswap, or the rare return of
property. Bonds issued by the government are frequently
unacceptable to American claimants because resale values are low.)


4. (SBU) Molina's numbers are at some variance with those provided
by Hortensia Aldana (please protect),former Head of the Office of
Quantification and Indemnification and current advisor to Property
Superintendent Molina. Prior to our meeting with Molina, Aldana
provided us with a copy of the "Plan to Evaluate and Perform
Activities to Resolve Waiver Database Property Claims." The Plan
details the status of American citizen claims and a timetable for
their review and settlement, listing 46 cases in assessment status,
146 cases in first appeal status, and 88 cases in second appeal
status.


5. (SBU) Molina warned EconCouns that from now on valuations would
be lower than those based on a matrix of values interpolated from
the Cadastral Index used in the past as a guide. She did not
explain how much lower they would be, but indicated that the reason
was the lack of funds. She argued that upcoming offers, though
lower in value than before, should be "treated seriously."

TRIVELLI