NICARAGUA: GON SEEKS BETTER COOPERATION WITH U.S. CITIZEN CLAIMANTS

UNCLAS MANAGUA 000190 SENSITIVE SIPDIS STATE FOR WHA/CEN, EEB/IFD/OIA, AND L/CID STATE ALSO FOR WHA/EPSC STATE PASS TO USTR TREASURY FOR INL AND OWH E.O. 12958: N/A TAGS: EINV ECON CASC KIDE NU SUBJECT: NICARAGUA: GON SEEKS BETTER COOPERATION WITH U.S. CITIZEN CLAIMANTS SUMMARY -------------- ¶1. (SBU) During the January 28 Property Working Group meeting, Government of Nicaragua (GON) officials stated that the GON wants to improve its cooperation with U.S. citizen claimants to advance their claims, noting that the GON hopes to exceed the number of claims resolved during the last waiver year by February. One GON official reported that the National Property Appeals Court has been closed and all of the cases have been transferred to civil court. Econoff pressed officials to advance claims with favorable court decisions, as well as non-waiver cases. Econoff also emphasized the importance of confirming dates for the bilateral review, noting that these consultations are considered one of the benchmarks in granting a Section 527 waiver. We believe that GON officials are promoting cooperation with U.S. claimants, and promising more progress on resolving claims, so that Attorney General Hernan Estrada can argue that his participation in a bilateral review during this waiver year is not necessary. IMPROVING COOPERATION WITH CLAIMANTS -------------- ¶2. (SBU) On January 28, Econoff held the monthly Property Working Group meeting with Ruth Zapata, Head of the Office of Assessment and Quantification (OCI); Magally Bravo, the Attorney General????s Executive Coordinator for Property Issues; Alfonso Solorzano, member of the National Confiscations Review Commission (CNRC); and Rebeca Zuniga, Coordinator of the Office of U.S. Citizen Claims. Zapata stated that the GON seeks to improve its cooperation with U.S. claimants to resolve more claims during this waiver year compared to the 2008-2009 waiver period (48) by February. Zuniga provided Econoff a list of claimants and asked him to contact them so that she could either call or meet with them to discuss their claims. CLOSURE OF NAT'L PROPERTY APPEALS COURT -------------- ¶3. (SBU) Solorzano mentioned that the Nicaraguan Supreme Court closed the National Property Appeals Court (Ref A) on December 8, 2009, because it had been slow and inefficient in adjudicating cases (septel). He said that all of the cases have been transferred to civil court. Econoff inquired whether the National Assembly amended Law 278/1997, which established the court, to close it. Solorzano responded that he was not aware of the authority the Supreme Court invoked to close the court. Econoff asked GON officials to provide information on how this appellate body had been closed to inform U.S. claimants with pending cases in the court. [Note: There are at least 15 U.S. claimants who have cases that await a decision in the National Property Appeals Court. End Note]. CLAIMS WITH FAVORABLE COURT RULINGS AND NON-WAIVER CASES -------------- -------------- ¶4. (SBU) Econoff pressed GON officials to advance claims with favorable court decisions and non-waiver cases. Econoff noted that there are at least five claims with favorable court decisions that order the return of property to claimants, but the GON has failed to act. With regard to non-waiver cases, he 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. property claims should be afforded equal due process to defend their property rights. BILATERAL REVIEW -------------- ¶5. (SBU) Econoff urged GON officials to confirm the dates for the bilateral review during this waiver year. He explained that the bilateral review is considered one of the benchmarks in granting a Section 527 waiver. Zuniga said that Attorney General Hernan Estrada would respond to the Ambassador's December 17, 2009 letter regarding possible dates for the bilateral review in March. COMMENT -------------- ¶6. (SBU) The GON's expression of improved cooperation with U.S. claimants should be interpreted with a degree of skepticism. We believe that Attorney General Estrada is promoting this cooperation, and asserting further progress on resolving claims, to avoid his participation in the bilateral review in March or any time during this waiver year. CALLAHAN