Identifier
Created
Classification
Origin
09MANAGUA244
2009-03-06 21:26:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Managua
Cable title:  

NICARAGUA: GON DENIES "RECONFISCATION" POLICY AGAINST U.S.

Tags:  EINV ECON USTR KIDE NU 
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VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #0244/01 0652126
ZNR UUUUU ZZH
R 062126Z MAR 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 3845
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
UNCLAS MANAGUA 000244 

STATE FOR WH/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 DENIES "RECONFISCATION" POLICY AGAINST U.S.
CITIZEN PROPERTY

REFS: (A) MANAGUA 228, (B) 08 MANAGUA 1546, (C) 02 MANAGUA 877, (D)
MANAGUA 236

SUMMARY
-------

UNCLAS MANAGUA 000244

STATE FOR WH/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 DENIES "RECONFISCATION" POLICY AGAINST U.S.
CITIZEN PROPERTY

REFS: (A) MANAGUA 228, (B) 08 MANAGUA 1546, (C) 02 MANAGUA 877, (D)
MANAGUA 236

SUMMARY
--------------


1. (SBU) During the February 26 Property Working Group meeting,
Jeanette Garcia, President of the National Confiscations Review
Commission (CNRC),asserted there is no government policy to
"reconfiscate" U.S. property related to previously settled claims.
Ruth Zapata, Head of the Office of Assessment and Indemnification
(OCI),said the GON was working diligently to resolve claims under
the control of the Nicaraguan Army, particularly in the case of U.S.
citizen Juan Barreto. Zapata also expressed her willingness to meet
with some U.S. claimants to provide a detailed explanation of their
final settlement offers. Econoff pressed Magally Bravo, Executive
Coordinator for property issues for the Attorney General's Office,
to help resolve claims in court that have easy solutions. While the
GON has recently demonstrated a willingness to resolve claims, we
continue to remind our GON counterparts that, with 11 claims
resolved so far this waiver year, much work remains to be done. End
Summary.

RECONFISCATION OF RESOLVED CLAIMS
--------------


2. (SBU) On February 26, 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, to hold the Property Working
Group meeting. Econoff raised concerns about the CNRC's recent
notices to two U.S. citizens notifying them that their previously
settled claims had been ruled null (Ref A). Garcia asserted that
the GON does not have a policy to "reconfiscate" property related to
settled claims, explaining that only exceptional cases had been
ruled null. Econoff responded that during the bilateral review of
Nicaragua's property claims resolution process on December 11-12,
2008, Attorney General Hernan Estrada stated that he would not
review previously settled claims (Ref B). Garcia agreed to take a
look at the two U.S. settlements that had been ruled null.


CLAIMS UNDER NICARAGUAN ARMY CONTROL
--------------


3. (SBU) Zapata reported that she met with Samuel Barreto, brother
and legal representative of U.S. citizen Juan Barreto, co-owner of
the Las Serranias residential complex (Ref C),on February 26 to
discuss the status of the family's 28 claims under Nicaraguan Army
control. (Embassy's Property Office assistant also attended the
meeting) She said the government was assessing which 28 properties
could be returned to the Barreto family and reappraising occupied
individual lots to increase the final settlement offer. Zapata
stated that it was the GON's goal to resolve the Barreto family's
claims during this waiver year. She complained that the Army has
been unwilling to share needed information on some properties.

EXPLAINING SETTLEMENT OFFERS
--------------


4. (SBU) Zapata offered to meet with some claimants to explain how
the government determined their final settlement offers. She
acknowledged that some claimants did not understand why OCI
sometimes reduces the settlement offers proposed by previous
governments. Econoff welcomed Zapata's willingness to explain the
appraisal process and offered to schedule meetings the following
week.


RESOLVING CLAIMS IN COURT
--------------


5. (SBU) Econoff pressed Bravo to help resolve claims with easy
solutions in court. There are several claims that await a single
court order to transfer legal title to a claimant. There are other
claims in which claimants have asked for an eviction order from a
judge to remove squatters or occupants from their property. Econoff
also asked Bravo for assurances that the GON would not transfer
property to squatters or individuals who wrongfully took control of
U.S. citizen property. Bravo responded that she would do all that
she could to help advance U.S. citizen claims languishing in court.

COMMENT
--------------


6. (SBU) During the last three property working group meetings, the
GON has attempted to demonstrate a willingness to work with us to
resolve claims. In this meeting, GON officials and the Property
Office identified numerous U.S. citizen claims that could be
resolved during this waiver year. While we welcome any cooperation
we can get, to date the GON has resolved only 11 claims during this
waiver year (Ref D). We continue to remind our GON counterparts
that much work remains to be done.

CALLAHAN