NICARAGUA: GON SEEKS MORE USG COOPERATION ON ADVANCING U.S.

UNCLAS MANAGUA 000545

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 SEEKS MORE USG COOPERATION ON ADVANCING U.S.
CITIZEN PROPERTY CLAIMS

REFS: A) MANAGUA 537, B) 02 MANAGUA 877, C) MANAGUA 160, D) MANAGUA
002, E) MANAGUA 465

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


1. (SBU) During the May 28 Property Working Group meeting, Ruth
Zapata, Head of the Office of Assessment and Indemnification,
requested Embassy assistance in encouraging U.S. citizen claimants
to settle 35 claims with final offers before the end of this waiver
year. Jeanette Garcia, President of the National Confiscations
Review Commission, asked Econoff to contact 52 claimants whose
claims were dismissed for administrative reasons to submit documents
to advance their cases. Garcia also stated that the GON would
compensate a U.S. citizen whose property had been reportedly
confiscated. The GON appears eager to resolve more claims this year
than last to improve its prospects for a waiver. End Summary.

GON SEEKS EMBASSY ASSISTANCE TO ADVANCE CLAIMS
-------------- -


2. (SBU) On May 28, 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, for the monthly Property Working
Group meeting. GON officials and the Property Office Staff reviewed
80 U.S. claims on a case-by-case basis to discuss next steps for
favorable resolution. Zapata told us that the GON is working
diligently on advancing U.S. citizen claims and has adopted a more
flexible approach in resolving cases. She acknowledged that
Attorney General Hernan Estrada is under pressure to resolve as many
claims as possible before the end of the waiver year (Ref A). She
asked Econoff to encourage U.S. claimants to settle their claims
with pending offers. She asserted that 35 cases have final
settlement offers, including the 28 claims of U.S. citizen Juan
Barreto, whose family's property is under Nicaraguan Army control
(Ref B).


3. (SBU) Zuniga added that the GON is advancing claims that had been
previously dismissed under Decrees 3 (1979) and 38 (1979),which
authorized the confiscation of property belonging to Somoza family
members and "their allies." She noted that the GON has made a final
settlement offer for the four claims belonging to U.S. citizen
Domingo Calero, whose property had been confiscated by the GON under
Decree 38 (Ref C). Econoff pressed Zuniga to continue the review of
Decree 3 and 38 dismissals, noting that there remain over 130 claims
that await due process.

FLEXIBILITY ON ADMINISTRATIVE DISMISSALS
--------------


4. (SBU) Garcia asked Econoff to contact 52 U.S. claimants whose
claims were dismissed for administrative reasons, (e.g., a lack of
proof of ownership and/or confiscation of the property in question)
to provide the necessary documents so that the CNRC can advance
their cases. Econoff responded that the Property Office would
contact claimants but urged the GON to exercise patience and
flexibility. He reminded Garcia that some claimants were physically
forced from their property without possessions, while others lost
documents located at regional cadastral registry offices that had
been destroyed by fire, such as in Matagalpa, or during the civil
war, such as in Chinandega and Masaya (Red D). Garcia acknowledged
this point, noting that not all of the GON's property claims files
have been properly managed, and some documents could have been
misfiled or lost.

PROPERTY CONFISCATION AGAINST A U.S. CITIZEN
--------------


5. (SBU) Econoff raised the reported property confiscation against
U.S. citizen Leonidas Guadamuz (Ref E). Garcia said the CNRC would
be willing to resolve his claim through indemnification bonds and a
land swap, depending on discussions with Mr. Guadamuz. On May 30,
the Property Office contacted Mr. Guadamuz to discuss his claim and
he responded that he plans to travel to Nicaragua on June 7 to meet
with GON officials.

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


6. (SBU) The GON appears eager to resolve more claims this year than
last to improve its prospects for a waiver. That should not be too
difficult to do, since last year the GON resolved just 42 claims,
considerably below the annual average. The Ambassador's May 22
demarche to Foreign Minister Samuel Santos and Attorney General
Estrada on this year's Section 527 waiver process has helped to
increase the pressure on the GON. GON working-level officials are
carefully tracking the number of claims that we consider resolved
cases, and addressing quickly contentious issues that could
negatively impact Nicaragua's chances for a waiver.


CALLAHAN