Identifier
Created
Classification
Origin
09MANAGUA574
2009-06-11 15:31:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Managua
Cable title:
NICARAGUA: 2009 EXPROPRIATION REPORT
how-toVZCZCXYZ0004 RR RUEHWEB DE RUEHMU #0574 1621531 ZNR UUUUU ZZH (CCY ADX773D67 MSI6412 - 648) R 111531Z JUN 09 FM AMEMBASSY MANAGUA TO RUEHC/SECSTATE WASHDC 4226 INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
UNCLAS MANAGUA 000574
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
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\
C O R R E C T E D C O P Y - YEAR CHANGED
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\
E.O. 12958: N/A
TAGS: EINV ECON USTR KIDE OPIC CASC NU
SUBJECT: NICARAGUA: 2009 EXPROPRIATION REPORT
REFS: A) STATE 49477, B) 08 MANAGUA 1546
UNCLAS MANAGUA 000574
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
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\
C O R R E C T E D C O P Y - YEAR CHANGED
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\
E.O. 12958: N/A
TAGS: EINV ECON USTR KIDE OPIC CASC NU
SUBJECT: NICARAGUA: 2009 EXPROPRIATION REPORT
REFS: A) STATE 49477, B) 08 MANAGUA 1546
1. (U) This cable provides proposed language for the
Nicaragua chapter of the 2009 Report on Investment Disputes and
Expropriation Claims. Embassy will e-mail a comprehensive annex
with details of confiscated property claims by June 15 per reftel
request.
2. (U) Property claims resolutions in Nicaragua continue to consume
the time and energy of former owners and government officials.
Since 1990, thousands of Nicaraguans and other nationals registered
more than 28,000 claims with the Nicaraguan government for homes,
farms, bank accounts, and other assets expropriated during the
1979-1990 Sandinista era. Although most were Nicaraguans at the
time of expropriation, some were, or subsequently became, U.S.
citizens.
3. (U) Between January 1995 and June 1, 2009, a total of 1,137 U.S.
citizens registered 3,193 property claims with the Embassy. Of
these, 2,584 have been resolved, primarily through compensation in
the form of long-term, low-interest, government issued bonds. The
estimated face value of these bonds is US$339,755,164. In isolated
cases, claims have been resolved through the return of property,
cash compensation or, in one instance, a land swap. Most claimants
(i.e., 870 of the 1,137) who have registered their claims with the
Embassy were not U.S. citizens at the time of expropriation.
Another 2,020 U.S. citizen claims not registered at Embassy Managua
have been resolved by government authorities without Embassy
assistance.
4. (U) As of June 1, 2009, 284 U.S. citizens await the resolution of
592 Embassy-registered active claims. Fifty-eight claimants,
accounting for 106 of these outstanding claims, were U.S. citizens
at the time of confiscation. Embassy Managua employs one American
officer, one Nicaraguan attorney, and one Colombian-trained attorney
who is an Eligible Family Member to assist U.S. citizen claimants.
5. (SBU) During the course of the last 12 months, the Nicaraguan
government has improved its cooperation with the Embassy to advance
U.S. claims. Between August 1, 2008, and June 1, 2009, the
government resolved 34 U.S. citizen claims registered with the
Embassy, including 12 out of 146 U.S. claims previously dismissed in
a nontransparent manner and without due process (Ref A).
6. (SBU) On December 11-12, 2008, senior State Department officials
held a bilateral review of Nicaragua's property claims resolution
process. The results of the bilateral review were a clear
articulation of U.S. policy against the dismissal of 146 U.S.
claims, the establishment of a Liaison Office for U.S. Citizen
Claims, the formation of a Nicaraguan Government commission to
review cases involving U.S. citizen claims that have languished in
court, and the publication of the Nicaraguan Government's property
claims compensation process on the Attorney General's website (Ref
B).
7. (SBU) Although the Liaison Office for U.S. Claims has improved
communication between the Embassy and Nicaraguan Government, the
Ortega administration has limited cooperation on casework between
Embassy and Nicaraguan working-level officials to once-a-month
meetings. All other communication is conducted through official
correspondence between the Ambassador and the Attorney General. In
May 2008, the Nicaraguan government lifted a ban on Embassy
officials' participation in meetings between U.S. citizen claimants
and the Attorney General.
8. (U) The Embassy will continue to press for swift and suitable
resolution of outstanding U.S. citizen property claims in accordance
with Section 584 (c) (i) of H.R. 4818, the Consolidated
Appropriations Act, 2005. Section 584 specifically precludes adding
claims registered after August 1, 2005, for inclusion in waiver
determinations based on Section 527 of the Foreign Relations
Authorization Act of FY 1994/1995. The Embassy also assists U.S.
citizens seeking restitution for claims not registered under the
aforementioned act.
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
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\
C O R R E C T E D C O P Y - YEAR CHANGED
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\
E.O. 12958: N/A
TAGS: EINV ECON USTR KIDE OPIC CASC NU
SUBJECT: NICARAGUA: 2009 EXPROPRIATION REPORT
REFS: A) STATE 49477, B) 08 MANAGUA 1546
1. (U) This cable provides proposed language for the
Nicaragua chapter of the 2009 Report on Investment Disputes and
Expropriation Claims. Embassy will e-mail a comprehensive annex
with details of confiscated property claims by June 15 per reftel
request.
2. (U) Property claims resolutions in Nicaragua continue to consume
the time and energy of former owners and government officials.
Since 1990, thousands of Nicaraguans and other nationals registered
more than 28,000 claims with the Nicaraguan government for homes,
farms, bank accounts, and other assets expropriated during the
1979-1990 Sandinista era. Although most were Nicaraguans at the
time of expropriation, some were, or subsequently became, U.S.
citizens.
3. (U) Between January 1995 and June 1, 2009, a total of 1,137 U.S.
citizens registered 3,193 property claims with the Embassy. Of
these, 2,584 have been resolved, primarily through compensation in
the form of long-term, low-interest, government issued bonds. The
estimated face value of these bonds is US$339,755,164. In isolated
cases, claims have been resolved through the return of property,
cash compensation or, in one instance, a land swap. Most claimants
(i.e., 870 of the 1,137) who have registered their claims with the
Embassy were not U.S. citizens at the time of expropriation.
Another 2,020 U.S. citizen claims not registered at Embassy Managua
have been resolved by government authorities without Embassy
assistance.
4. (U) As of June 1, 2009, 284 U.S. citizens await the resolution of
592 Embassy-registered active claims. Fifty-eight claimants,
accounting for 106 of these outstanding claims, were U.S. citizens
at the time of confiscation. Embassy Managua employs one American
officer, one Nicaraguan attorney, and one Colombian-trained attorney
who is an Eligible Family Member to assist U.S. citizen claimants.
5. (SBU) During the course of the last 12 months, the Nicaraguan
government has improved its cooperation with the Embassy to advance
U.S. claims. Between August 1, 2008, and June 1, 2009, the
government resolved 34 U.S. citizen claims registered with the
Embassy, including 12 out of 146 U.S. claims previously dismissed in
a nontransparent manner and without due process (Ref A).
6. (SBU) On December 11-12, 2008, senior State Department officials
held a bilateral review of Nicaragua's property claims resolution
process. The results of the bilateral review were a clear
articulation of U.S. policy against the dismissal of 146 U.S.
claims, the establishment of a Liaison Office for U.S. Citizen
Claims, the formation of a Nicaraguan Government commission to
review cases involving U.S. citizen claims that have languished in
court, and the publication of the Nicaraguan Government's property
claims compensation process on the Attorney General's website (Ref
B).
7. (SBU) Although the Liaison Office for U.S. Claims has improved
communication between the Embassy and Nicaraguan Government, the
Ortega administration has limited cooperation on casework between
Embassy and Nicaraguan working-level officials to once-a-month
meetings. All other communication is conducted through official
correspondence between the Ambassador and the Attorney General. In
May 2008, the Nicaraguan government lifted a ban on Embassy
officials' participation in meetings between U.S. citizen claimants
and the Attorney General.
8. (U) The Embassy will continue to press for swift and suitable
resolution of outstanding U.S. citizen property claims in accordance
with Section 584 (c) (i) of H.R. 4818, the Consolidated
Appropriations Act, 2005. Section 584 specifically precludes adding
claims registered after August 1, 2005, for inclusion in waiver
determinations based on Section 527 of the Foreign Relations
Authorization Act of FY 1994/1995. The Embassy also assists U.S.
citizens seeking restitution for claims not registered under the
aforementioned act.
CALLAHAN