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### Viewing cable 07MANAGUA1029, NICARAGUA: NO PROPERTY RESOLUTIONS IN FIRST

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07MANAGUA1029 | 2007-04-23 21:06 | 2011-06-21 08:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Managua

`

    VZCZCXYZ0024
    RR RUEHWEB

    DE RUEHMU #1029/01 1132106
    ZNR UUUUU ZZH
    R 232106Z APR 07
    FM AMEMBASSY MANAGUA
    TO RUEHC/SECSTATE WASHDC 9910
    INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
    RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

` `

    UNCLAS MANAGUA 001029

    SIPDIS

    STATE FOR WHA/CEN, EB/IFD/OIA, WHA/EPSC L/LEI/EDAUGHTRY
    TREASURY FOR INL/MDONOVAN, GCHRISTOPOLUS,
    OWH/ASCHWARTZMAN

    SENSITIVE
    SIPDIS

    E.O. 12958: N/A
    TAGS: EINV ECON NU
    SUBJECT: NICARAGUA: NO PROPERTY RESOLUTIONS IN FIRST
    QUARTER 2007

    REF:

    ¶A. MANAGUA 00626
    ¶B. MANAGUA 00381
    ¶C. MANAGUA 00591
    ¶D. MANAGUA 00862

    ¶1. (SBU) Summary: In the three-month period following the
    January 10th inauguration of President Daniel Ortega, the
    Government of Nicaragua has failed to resolve any claim
    involving the restitution of or compensation for U.S.
    citizen property illegally expropriated in the 1980s.
    Since 1995, when Section 527 of the Foreign Relations
    Authorization Act (FY 1994 and 1995) came into effect,
    there has been only one month without the resolution of a
    claim, so the current lack of progress is unprecedented.
    Deputy Attorney General Yara Perez explained to Emboffs
    that no new property claims would be settled until a
    thorough review of property resolution procedures by the
    new Attorney General had been completed.  EconCouns is
    requesting a meeting with Property Superintendent Molina
    during the month of April to stress the importance of
    making progress on property claims in the remaining
    months of this waiver year.  End Summary.

    ¶2. (SBU) In the three-month period following the January
    10th inauguration of President Daniel Ortega, the
    Government of Nicaragua has failed to resolve a single
    claim involving the restitution of or compensation for
    U.S. citizen property illegally expropriated in the 1980s
    (Refs A, B, and C Q i.e., monthly reports).  Section 527
    of the Foreign Relations Authorization Act (FY 1994 and
    1995) prohibits certain U.S. assistance and support for a
    government of a country that has confiscated U.S. citizen
    property, unless the government has taken sufficient
    remedial steps.  Since 1995, when Section 527 came into
    effect, there has been only one month without the
    resolution of a claim.

    ¶3. (SBU) The year began on an optimistic note.  Property
    Superintendent-designate Mireya Molina paid an unexpected
    courtesy call to the Embassy on January 18, 2007, a week
    before she assumed office (Ref A).  A lawyer by
    profession, Molina told Emboffs that she wanted to work
    cooperatively to resolve outstanding property claims, and
    that it was the full intention of the Ortega
    Administration to advance the claims process.

    ¶4. (SBU) On January 18, Emboffs provided Molina with a
    list of claims closest to resolution.  During the
    discussion that ensued, Molina displayed intimate
    knowledge of many of the claims on the list.  Molina
    expressed her desire to engage all parties, encourage
    compromise, and resolve all claims as soon as possible.

    ¶5. (SBU) In subsequent meetings, Emboffs distributed the
    aforementioned list to the Minister of Foreign Affairs,
    the Attorney General and Deputy Attorney General, and
    President of the National Confiscations Review
    Commission.  On January 29, Emboffs supplied the list to
    Ambassador-designate to Washington Arturo Cruz.  Cruz
    stated that he understood the importance of resolving all
    outstanding claims, and promised to assist as much as
    possible from his end.  We continue to pursue this angle.

    ¶6. (SBU) Embassy staff requested a meeting in February
    with Attorney General Hernan Estrada, who passed the
    meeting to Deputy Attorney General Yara Perez.  On March
    1, Perez told Emboffs that the government could not work
    on new resolutions until a review of agencies involved in
    the process had been completed, whenever that might be.
    Perez said that priority attention was being given to
    claims settled after the November 5 presidential
    elections, especially those involving unexplained
    increases in settlement values that had been previously
    rejected or estimated at lower levels.

    Comment
    -------

    ¶7. (SBU) Post believes there may be three reasons for the
    governmentQs inactivity during the past three months.
    One, new appointees are learning their jobs, including
    the Property Superintendent, her assistant, the Property
    Assessment Director, and the Assistant to the Minister of
    Finance for Property Issues.  Two, the Ortega
    administration wants to assert authority and control over
    all agencies to accomplish a clean break with the Bolanos
    Administration.  Three, new officeholders are reluctant
    to move on outstanding claims involving properties in the
    possession of military authorities, Sandinista party
    members, or the government.

    ¶8. (SBU) One way or another, inaction brings government
    intentions into doubt.  EconCouns is requesting a meeting
    with Property Superintendent Molina in April to stress
    the importance of making progress in the remaining months
    of this waiver year.  Post will report on the outcome of
    that meeting septel.

    TRIVELLI

`