Identifier
Created
Classification
Origin
09MANAGUA228
2009-03-03 13:55:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Managua
Cable title:
NICARAGUA: GON "RECONFISCATES" U.S. CITIZEN PROPERTY
how-toVZCZCXYZ0011 RR RUEHWEB DE RUEHMU #0228 0621355 ZNR UUUUU ZZH R 031355Z MAR 09 FM AMEMBASSY MANAGUA TO RUEHC/SECSTATE WASHDC 3820 INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
UNCLAS MANAGUA 000228
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 "RECONFISCATES" U.S. CITIZEN PROPERTY
REFS: A) 08 MANAGUA 1546, B) 08 MANAGUA 1244
SUMMARY
-------
UNCLAS MANAGUA 000228
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 "RECONFISCATES" U.S. CITIZEN PROPERTY
REFS: A) 08 MANAGUA 1546, B) 08 MANAGUA 1244
SUMMARY
--------------
1. (SBU) The Government of Nicaragua (GON) has recently sent notices
to several U.S. citizens to "reconfiscate" their properties. The
notices said the administrative action had been based upon Decrees 3
(1979) and 38 (1979),which authorize the confiscation of property
belonging to the Somoza family and their allies. With this action,
Attorney General Estrada has broken his pledge issued in our
bilateral review of December 2008 (Ref A) not to review previously
settled claims. The decision to review previously settled U.S.
citizen claims is a serious setback to our efforts to resolve U.S.
citizen cases. End Summary.
RECONFISCATION OF RESOLVED CLAIMS
--------------
2. (SBU) In February, two U.S. citizens informed the Embassy
Property Office that the National Confiscations Review Commission
(CNRC) had notified them that their previously resolved claims had
been ruled null. The notices said the administrative action had
been based upon Decrees 3 (1979) and 38 (1979),which authorize the
confiscation of property belonging to the Somoza family and their
allies.
3. (SBU) On February 3, U.S. citizen Otto Zamora reported that he
received a CNRC notification stating that his two claims had been
dismissed under Decree 38. Mr. Zamora had already received
indemnification bonds (BPIs) for one of his claims ten years ago and
was waiting to settle the other claim. He believes that he will be
forced to return the bonds he received, and that his pending claim
will be dismissed.
4. (SBU) On February 10, U.S. citizen Frances Guillen received a
CNRC notification dated July 2008. The notification said the CNRC
determined that her property in the city of Somoto, northern
Nicaragua, was subject to Decree 3. The notification stated that
this decision overrides a September 21, 1995, CNRC resolution that
returned the property to her. Mrs. Guillen's family sold the
property in June 2008 and the new owner has a clear title to the
land. The Assistant Attorney General in Somoto recently filed a
lawsuit against Mrs. Guillen for selling "state-owned property" and
has threatened to evict the new owner.
5. (SBU) In October 2008, post reported that nine resolved claims
belonging to U.S. citizen Jose Arguello Cardenal were listed on the
Attorney General's website as Decree 38 dismissals (Ref B). Mr.
Arguello Cardenal told us that he had sold six of the nine
properties and worried about possible legal action from his buyers
should the GON insist on the return of the property. He filed a
suit in civil court in October 2008 to request that the Attorney
General's Office remove his properties from the list of dismissed
claims. During October, November, and December 2008 Property
Working Group meetings, CNRC President Jeanette Garcia insisted that
the listing of Arguello Cardenal's claims was a mistake.
Notwithstanding, the Attorney General's Office has not yet removed
the properties from its website.
BROKEN PROMISE
--------------
6. (SBU) During the bilateral review of Nicaragua's property claims
resolution process on December 11-12, 2008, Attorney General Estrada
promised that he would not review previously settled claims,
including those cases that were Decree 3 and 38 dismissals but
subsequently resolved in favor of U.S. claimants. To date, we have
not recognized these dismissals because they have not been
accompanied by due process and the dismissals have not been properly
substantiated.
COMMENT
--------------
7. (SBU) The GON's actions to "reconfiscate" U.S. citizen properties
are a serious setback to our effort to resolve cases. We believe
that more "reconfiscation" notices are on the way. We will raise
the issue with Attorney General Estrada during the Ambassador's
mid-year review, which we are seeking in March.
CALLAHAN
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 "RECONFISCATES" U.S. CITIZEN PROPERTY
REFS: A) 08 MANAGUA 1546, B) 08 MANAGUA 1244
SUMMARY
--------------
1. (SBU) The Government of Nicaragua (GON) has recently sent notices
to several U.S. citizens to "reconfiscate" their properties. The
notices said the administrative action had been based upon Decrees 3
(1979) and 38 (1979),which authorize the confiscation of property
belonging to the Somoza family and their allies. With this action,
Attorney General Estrada has broken his pledge issued in our
bilateral review of December 2008 (Ref A) not to review previously
settled claims. The decision to review previously settled U.S.
citizen claims is a serious setback to our efforts to resolve U.S.
citizen cases. End Summary.
RECONFISCATION OF RESOLVED CLAIMS
--------------
2. (SBU) In February, two U.S. citizens informed the Embassy
Property Office that the National Confiscations Review Commission
(CNRC) had notified them that their previously resolved claims had
been ruled null. The notices said the administrative action had
been based upon Decrees 3 (1979) and 38 (1979),which authorize the
confiscation of property belonging to the Somoza family and their
allies.
3. (SBU) On February 3, U.S. citizen Otto Zamora reported that he
received a CNRC notification stating that his two claims had been
dismissed under Decree 38. Mr. Zamora had already received
indemnification bonds (BPIs) for one of his claims ten years ago and
was waiting to settle the other claim. He believes that he will be
forced to return the bonds he received, and that his pending claim
will be dismissed.
4. (SBU) On February 10, U.S. citizen Frances Guillen received a
CNRC notification dated July 2008. The notification said the CNRC
determined that her property in the city of Somoto, northern
Nicaragua, was subject to Decree 3. The notification stated that
this decision overrides a September 21, 1995, CNRC resolution that
returned the property to her. Mrs. Guillen's family sold the
property in June 2008 and the new owner has a clear title to the
land. The Assistant Attorney General in Somoto recently filed a
lawsuit against Mrs. Guillen for selling "state-owned property" and
has threatened to evict the new owner.
5. (SBU) In October 2008, post reported that nine resolved claims
belonging to U.S. citizen Jose Arguello Cardenal were listed on the
Attorney General's website as Decree 38 dismissals (Ref B). Mr.
Arguello Cardenal told us that he had sold six of the nine
properties and worried about possible legal action from his buyers
should the GON insist on the return of the property. He filed a
suit in civil court in October 2008 to request that the Attorney
General's Office remove his properties from the list of dismissed
claims. During October, November, and December 2008 Property
Working Group meetings, CNRC President Jeanette Garcia insisted that
the listing of Arguello Cardenal's claims was a mistake.
Notwithstanding, the Attorney General's Office has not yet removed
the properties from its website.
BROKEN PROMISE
--------------
6. (SBU) During the bilateral review of Nicaragua's property claims
resolution process on December 11-12, 2008, Attorney General Estrada
promised that he would not review previously settled claims,
including those cases that were Decree 3 and 38 dismissals but
subsequently resolved in favor of U.S. claimants. To date, we have
not recognized these dismissals because they have not been
accompanied by due process and the dismissals have not been properly
substantiated.
COMMENT
--------------
7. (SBU) The GON's actions to "reconfiscate" U.S. citizen properties
are a serious setback to our effort to resolve cases. We believe
that more "reconfiscation" notices are on the way. We will raise
the issue with Attorney General Estrada during the Ambassador's
mid-year review, which we are seeking in March.
CALLAHAN