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Cablegate: Demarche On Wto Article Xxi Procedure

VZCZCXYZ0008
RR RUEHWEB

DE RUEHMU #1624 1832220
ZNR UUUUU ZZH
R 022220Z JUL 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 0693
INFO RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS MANAGUA 001624

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR WHA/CEN, WHA/EPSC, EB/TPP
DEPT PLEASE PASS TO USTR/AMALITO
USDA FOR FAS/OCRA/WHA/CMARSTON, FAS/ONA/MED/LCOONROD, AND
FAS/LPAO/CCHURCH
USDOC FOR 4332/ITA/MAC/WH/MSIEGELMAN, AND
3134/ITA/USFCS/OIO/WH/MKESHISHIAN/BARTHUR

E.O. 12958: N/A
TAGS: ETRD ECON WTRO NU
SUBJECT: DEMARCHE ON WTO ARTICLE XXI PROCEDURE

REF: SECSTATE 60296

1. (SBU) Embassy delivered reftel points in May to Director
General for Trade Sonia Somarriba, who promised to respond
later as to whether Nicaragua would seek compensation.
Since, the Ministry of Trade, Industry, and Development
(MIFIC) has undergone high-level changes, including the
minister and both vice ministers (septel). Orlando Solorzano
was sworn in as minister on June 22. On the margins of a
June 27 meeting at MIFIC, Somarriba informed Econoff that the
preliminary conclusion on the issue was that Nicaragua should
negotiate some form of compensation with the United States.
She could not elaborate, however, as there had been no
closure on the subject. Econoff reiterated reftel arguments,
which Somarriba took on board. Comment: We are not surprised
at the proclivity to seek compensation, and will inform
Washington as soon as we learn of MIFIC's final decision.
TRIVELLI

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