NICARAGUAN GOVERNMENT PROMISES BETTER TRANSPARENCY IN

UNCLAS MANAGUA 000953 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: NICARAGUAN GOVERNMENT PROMISES BETTER TRANSPARENCY IN ADVANCING U.S. CITIZEN CLAIMANTS REFS: A) MANAGUA 537, B) MANAGUA 706, C) MANAGUA 902, D) 02 MANAGUA 877 SUMMARY -------------- ¶1. (SBU) During the September 24 Property Working Group meeting, Government of Nicaragua (GON) promised better transparency on U.S. claims that have exhausted their appeals in the administrative process. Econoff pressed officials for more information on U.S. claims that were allegedly not filed with the National Confiscations Review Commission. GON officials asserted that the case of U.S. citizen Juan Barreto, whose 28 properties are under the control of the Nicaraguan Army, is close to resolution pending receipt of one document. Econoff reminded officials that the Embassy advocates on behalf of all U.S. citizen property cases regardless of whether they fall under Section 527 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995. We will work with government officials to address Attorney General Hernan Estrada's concerns regarding some Section 527 claims, but this cooperation requires more transparency on how the government determines settlement offers. CLAIMS THAT HAVE EXHAUSTED APPEALS -------------- ¶2. (SBU) On September 24, Econoff held the monthly Property Working Group meeting with Ruth Zapata, Head of the Office of Assessment and Quantification (OCI); Jeanette Garcia, President of the National Confiscations Review Commission (CNRC); Magally Bravo, the Attorney General4s Executive Coordinator for Property Issues; Alfonso Solorzano, CNRC member; and Rebeca Zuniga, Coordinator of the Office of U.S. Citizen Claims. Econoff asked GON officials for more information on the status of the list of 19 claimants who could no longer pursue their claims through the administrative process. He explained that several claimants had not received notification that they had exhausted their administrative appeals, or that the government had published notice that their claims were resolved in the Official Gazette and deposited compensation in escrow (Ref A). ¶3. (SBU) Zuniga responded that she would meet with U.S. claimants to discuss their claims and settlement offers. Econoff urged her to provide clear, detailed explanations, as she did in the case of U.S. citizen Domingo Calero (Ref B). He stated that the lack of transparency in the settlement process undermines our joint efforts to work with claimants to advance their claims. UPDATE ON ADMINISTRATIVE DISMISSALS -------------- ¶4. (SBU) Econoff provided an update on the revised list of 24 U.S. claimants whose claims the GON dismissed for administrative reasons; some lack of proof of ownership and/or confiscation of the property in question, and other claims were never filed with the CNRC (Ref C). He explained that claimants were reviewing their files to find documents that demonstrated the legitimacy of their claims. He noted that on September 21 the Ambassador wrote to Attorney General Estrada to provide him information that the Embassy Property Office had on file for each claim. Econoff asked GON officials to provide more time as claimants continue searching for their documents. STATUS OF THE BARRETO CASE -------------- ¶5. (SBU) Econoff raised the case of U.S. citizen Juan Barreto, whose 28 properties are under control of the Nicaraguan Army (Ref D). Zuniga said the only document pending was the Barreto family's corporate charter. She underscored that the GON was eager to resolve this case. DEFENDING ALL U.S. CITIZEN PROPERTY RIGHTS -------------- ¶6. (SBU) Solorzano stated that the GON is working only on Section 527 waiver claims and asked the Embassy not to raise non-waiver cases. Garcia added that the USG and GON should focus our efforts on these waiver claims to maximize our time during the working group meetings. Econoff reminded them that the Embassy advocates on behalf of all U.S. citizen property claims regardless whether they fall under Section 527. He emphasized that all U.S. claimants should be afforded equal due process to defend their property rights. COMMENT -------------- ¶7. (SBU) GON officials are under pressure from Attorney General Estrada to pursue only his agenda for U.S. citizen claims during our monthly working group meetings. We told officials that we will work with them to address Estrada's concerns for some claims, as long as there is more transparency on how the government determines settlement offers. So far, we sense that Estrada is attempting to bully us and U.S. claimants to accept settlement offers without negotiation. CALLAHAN