Cablegate: Nicaragua: Gon Resolves Property Case of Juan Barreto

VZCZCXYZ0018
RR RUEHWEB

DE RUEHMU #1256 3342214
ZNR UUUUU ZZH
R 302212Z NOV 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 0206
INFO WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS MANAGUA 001256

SENSITIVE
SIPDIS
STATE FOR WHA/CEN, EB/IFD/OIA, AND L/CID
STATE ALSO FOR WHA/EPSC

E.O. 12958: N/A
TAGS: EINV ECON KIDE NU
SUBJECT: NICARAGUA: GON RESOLVES PROPERTY CASE OF JUAN BARRETO

REF: 02 MANAGUA 877; 08 MANAGUA 1243

SUMMARY

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1. (SBU) On November 19, U.S. citizen claimant Juan Barreto signed
a settlement document, or "finiquito," for the equivalent of $3.2
million dollars to compensate him for 28 properties expropriated by
the Nicaraguan Army. With the inclusion of Mr. Barreto's case, the
Government of Nicaragua has resolved 39 claims during the current
waiver year. The resolution of the Barreto case represents the
largest number of claims resolved for one U.S. citizen at one time.
The GON deserves credit for sticking to its commitment to resolve
this high-profile property case.

GON RESOLVES BARRETO CASE

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2. (U) On November 19, U.S. citizen Juan Barreto, whose 28
properties the Nicaraguan Army expropriated in 1980 (Ref A), signed
a "finiquito" to accept compensation in the form of indemnification
bonds (BPIs) with a face value of $3.2 million. The GON provided
the Property Office a copy of the finiquito on November 20. Mr.
Barreto will receive his BPIs in December. His case represents 28
property claims registered with the Embassy Property Office.

Type of No. of Type of

Claimant Claim Claims Resolution

-------- ------- ------ ----------

Juan Barreto land 28 bonds

GON RESOLVES 39 CLAIMS SO FAR

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3. (U) With the inclusion of the Barreto case, the GON has resolved
39 claims so far during this waiver year (septel). During the
2008-2009 waiver year, the GON resolved 48 claims. In addition,
the resolution of the Barreto case is the largest number of claims
(28) that has been resolved for one U.S. citizen at one time.
There remain 23 U.S. citizen claims for properties under the
control of the Army.

COMMENT

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4. (SBU) The GON deserves credit for sticking to its commitment to
resolve this high-profile case. When the GON began negotiations
with Mr. Barreto in June 2008, the talks were contentious at times
and each side accused the other of not negotiating in good faith.
However, Attorney General Hernan Estrada told the Ambassador on
September 30, 2008, that he would resolve the case (Ref B), and he
has made good on his promise.
CALLAHAN

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