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### Viewing cable 08MANAGUA1183, AMBASSADOR MEETS WITH FM SANTOS -- PROPERTY, CIVIL

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08MANAGUA1183 | 2008-09-19 23:03 | 2011-06-23 08:00 | CONFIDENTIAL | Embassy Managua

`

    VZCZCXRO7336
    PP RUEHLMC
    DE RUEHMU #1183/01 2632303
    ZNY CCCCC ZZH
    P 192303Z SEP 08 ZDK
    FM AMEMBASSY MANAGUA
    TO RUEHC/SECSTATE WASHDC PRIORITY 3181
    INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY
    RUMIAAA/CDR USSOUTHCOM MIAMI FL PRIORITY
    RUEAIIA/CIA WASHDC PRIORITY
    RHEFDIA/DIA WASHINGTON DC PRIORITY
    RUEHLMC/MILLENNIUM CHALLENGE CORP WASHDC PRIORITY
    RHEHNSC/NSC WASHINGTON DC PRIORITY

` `

    C O N F I D E N T I A L SECTION 01 OF 02 MANAGUA 001183

    SIPDIS

    STATE FOR WHA/CEN
    STATE PASS USAID FOR LAC - CARDENAS
    NSC FOR FISK/GARCIA

    E.O. 12958: DECL: 09/17/2018
    TAGS: PREL PGOV KDEM PHUM NU
    SUBJECT: AMBASSADOR MEETS WITH FM SANTOS -- PROPERTY, CIVIL
    SOCIETY AND MANPADS

    REF: A. MANAGUA 1118
         ¶B. MANAGUA 1151
         ¶C. MANAGUA 1153

    Classified By: Ambassador Robert J. Callahan Reasons 1.4 (b and d)

    ¶1. (C) Summary.  In a courtesy call on Foreign Minister
    Samuel Santos on September 11, Ambassador Callahan urged the
    Nicaraguan government to make further progress on resolving
    property claims, especially those under the control of the
    government and armed forces.  Santos gave assurances that
    cooperation would continue while contending that a "new
    order" was in place to prevent abuses in the settlement of
    claims, as had happened under previous governments.
    Ambassador raised concern about the increasingly negative
    public attacks on civil society, and especially on
    U.S.-funded NGOs, noting that our activities are in full
    compliance with U.S. and Nicaraguan law and are consistent
    with democracy activities worldwide.  Santos pushed back,
    accusing unspecified groups of violating the law, seeking to
    cause a rupture in U.S.-Nicaraguan relations, and of not
    being honest with the funds and with their political goals.
    He asserted that the GON is engaged in an effort to ensure
    "full compliance" with the electoral law and regulations
    governing NGOs.  On Nicaragua's man-portable air defense
    systems (MANPADS), Ambassador reiterated that our offer
    remains on the table and that we hope to receive a formal
    response from the government to the proposal.  Santos pledged
    to raise it with President Daniel Ortega, who would be
    handling the issue personally.  End Summary.

    PROPERTY
    --------

    ¶2. (C) Ambassador noted that in the first six months of the
    review period, the GON had made very little progress on
    resolving outstanding property issues.  In the last six
    months, the GON had made positive efforts and Ambassador
    expressed the hope that this trend would continue.  The issue
    of property continues to have the attention of the U.S.
    Congress and further progress, especially on properties held
    by the government and armed forces, will be necessary.
    Santos replied that the previous Liberal governments had
    demonstrated "exaggerated flexibility" in resolving cases, to
    the detriment of Nicaragua's national interests.  The Ortega
    government, under Attorney General Estrada, had to use those
    first months to "establish order," review cases to determine
    the legitimacy of claims and focus on the issue of
    citizenship before further progress could be made.  The
    previous government "abused the process," he asserted.  Now
    that the system and cases were in order, progress could be
    made and Santos gave assurances that regular meetings with
    the Embassy would continue to seek further progress on
    resolving cases.

    USG DEMOCRACY PROGRAM AND NGOS
    ------------------------------

    ¶3. (C) Ambassador expressed deep concern over the GON's
    decision to seek criminal and administrative charges against
    the International Republican Institute (IRI) and the
    unfounded public attacks in official media by senior GON
    officials against USG-funded democracy activities in
    Nicaragua (refs a and b).  Ambassador emphasized that
    USG-funded democracy activities in Nicaragua are transparent,
    in full compliance with both U.S. and Nicaraguan law, and are
    consistent with activities that we fund around the world.
    Furthermore, Ambassador cautioned Santos that the closure of
    IRI, the National Democratic Institute, or other prominent
    NGOs would have the potential to create serious problems for
    Nicaragua, especially with the U.S. Congress.  In addition,
    the campaign of discrediting Nicaraguan civil society leaders
    and, in particular the accusations that they are agents of
    the USG, was particularly worrisome.  The rise in
    anti-democratic rhetoric as well as the recent recognition of
    South Ossetia and Abkhazia (ref c) could have a negative
    effect on many areas where we are seeking cooperation,
    including on U.S. private sector investment.

    ¶4. (C) Santos was unusually combative and defensive of the
    GON's attacks on democratic NGOs in his response.  Santos
    emphasized that all these activities need to be in strict
    compliance with the law and the GON was engaged in a "process
    to make sure laws are complied with.  There was too much
    flexibility in the past."  While many of the activities
    funded by USAID and other parts of the USG are very organized
    and transparent, some programs "do and say things that are
    not allowed." IRI, for example, has engaged in activities
    that "border on the edge of the law" and has interfered in
    the internal political process.  Furthermore, the USG and its
    NGOs would need to be sure that the work they do is very
    careful, that they obey all the laws, and that they account
    for the work they do and the funds they receive to the proper
    Nicaraguan authorities.

    ¶5. (C) Santos accused the U.S. and USG-funded NGOs of
    "excessive participation" in internal politics in the past.
    "They talked too much and made mistakes" in violation of
    Nicaraguan electoral laws.  Now, he claimed, those same
    groups are interested in breaking relations between the U.S.
    and Nicaragua for their own personal and political reasons.
    He asserted further that these groups were interested in
    destabilizing the Nicaraguan government, which could not be
    permitted.  Ambassador reaffirmed our view that USG-funded
    democracy activities were in keeping with U.S. and Nicaraguan
    law and renewed our commitment to work in as open a manner as
    possible, to discuss and share information and expressed the
    hope that both sides would avoid making public accusations
    without talking to each other first.

    MANPADS
    -------

    ¶6. (C) Ambassador reiterated that the offer to provide
    Nicaragua with funding for healthcare and medical equipment
    in exchange for the destruction of Nicaragua's stockpile of
    MANPADS remained "on the table" and that we hoped to receive
    a formal reply from the GON.  Santos replied that it was
    "unfortunate" that the details of the proposal had been
    leaked to the press (Note: Santos ignored the fact that it
    was Ortega who publicly stated the key elements of the
    Nicaraguan proposal and U.S. counter-proposal. End Note.)
    Santos promised to talk personally with Ortega during their
    travel to the U.N. and that Ortega would "be looking at the
    proposal" personally.

    CALLAHAN

`