NICARAGUA: GON SAYS IT WILL FOCUS ON CLAIMS UNDER ARMY CONTROL

UNCLAS MANAGUA 001186 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 SAYS IT WILL FOCUS ON CLAIMS UNDER ARMY CONTROL REF: A) 02 MANAGUA 877, B) MANAGUA 564, C) MANAGUA 1120 SUMMARY -------------- ¶1. (SBU) During the August 28 monthly Working Group meeting on property issues, GON officials reported the establishment of an "ad hoc" committee to settle claims under the control of the Nicaraguan Army. Econoff urged GON officials to explain how they determine settlement offers. Econoff discussed a number of high profile U.S. citizens' property claims that had attracted U.S. Congressional interest and informed GON officials of the upcoming visit of a U.S. Government delegation to discuss government policies pertaining to U.S. property claims. It appears that the GON is committed to resolving U.S. claims under army control during this waiver year. "AD HOC" COMMITTEE TO REVIEW ARMY CONTROLLED CLAIMS -------------- -------------- ¶2. (SBU) During the August 28 monthly Property Working Group meeting, Econoff met with Ruth Zapata, head of the Office of Assessment and Indemnification (OCI),Jeanette Garcia, director of the National Confiscations Review Commission (CNRC),and Maysella Bravo, an official from the Office of the Attorney General, to review the claims of U.S. citizens who have requested assistance from the Embassy. GON officials informed Econoff that President Daniel Ortega had established an ad hoc committee, including representatives from the Attorney General's Office and the Nicaraguan Army, to resolve claims on properties under Army control. Zapata explained that the committee has been working since early August on the Las Serranias residential complex case. This case involves 29 properties confiscated from the Barreto family (Ref B). TRANSPARENCY AND FAIRNESS IN PROPERTY APPRAISALS -------------- --- ¶3. (SBU) Econoff urged GON officials to explain to U.S. claimants how the government determines settlement offers, noting that many U.S. claimants complain about OCI's lack of transparency and fairness in appraising confiscated properties (Ref A). Zapata asserted that according to the law, appraisals are prepared on the basis of historical values recorded in property registries, not current market values. She added that property values are public information that claimants can request this information from the National Cadastral Registry Office or its regional offices. CONGRESSIONAL INQUIRIES AND BILATERAL REVIEW -------------- ¶4. (SBU) Econoff raised several U.S. claims that have recently received U.S. congressional attention, namely citizens Fidelina Arauz and Uri Kollnesher. Zapata replied that these claims are under review. Econoff broached the subject of an upcoming bilateral review by a U.S. Government delegation from Washington in October (Ref C). Zapata said they look forward to holding bilateral discussions with the delegation. COMMENT: -------------- ¶5. (SBU) The formation of a committee to review claims under Army control signals that the GON is committed to resolving these cases during this waiver year. On August 19, our Defense Attache met with a high-ranking general, who occupies a house in Las Serranias that is claimed by the Barreto family. He told our Defense Attache that the Army wanted to resolve these claims during the past waiver year, but Attorney General Hernan Estrada was dragging his feet. We plan to keep this avenue of communication with the Army open while we continue to press Estrada to resolve these claims. CALLAHAN