BERLIN MEETING OF FORCED LABOR AGREEMENT BOARD OF

C O N F I D E N T I A L SECTION 01 OF 02 BERLIN 001753

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/23/2021
TAGS: SOCI SCUL PHUM PGOV GM
SUBJECT: BERLIN MEETING OF FORCED LABOR AGREEMENT BOARD OF
TRUSTEES, JUNE 21-22


Classified By: Acting PolCouns Michael B. Martin. Reason: 1.4(b) and (
d)

Summary
--------------


1. (U) The Board of Trustees (Kuratorium) of the "Foundation
Remembrance, Responsibility, and Future," responsible for
oversight of compensation programs for Nazi-era forced
laborers and for promoting tolerance and anti-Semitism in the
future, met in Berlin June 21-22. There were two key issues
before the Trustees: 1) Considering how the Foundation could
work with the Commission (ICHEIC) administering paying
insurance policy claims to beneficiaries or their heirs on a
number of claims that did not reach ICHEIC from other
institutions before ICHEIC's application deadline had closed.
No clear solution was arrived at, though conversations on
the margins suggested a way forward. 2) Electing a new Board
of Directors for the Foundation, an issue complicated by the
desire of some Trustees to simplify Foundation management as
it completes its major task of making forced-labor payments
and focuses on the long-term effort of promoting tolerance
and combating anti-Semitism (Future Fund). End Summary.

ICHEIC "Post-Deadline" Cases
--------------


2. (U) Maura Rudman, an ICHEIC lawyer and representative,
briefed the Trustees on ICHEIC successful handling of its
claims and on its plans to close down its operations.
Responding to earlier comments about a relatively small but
as yet non-specified number of cases that were forwarded to
ICHEIC by Austrian and Swiss institutions, Rudman reiterated
ICHEIC,s view that applications not received by ICHEIC until
after its deadline (even if filed elsewhere before the
deadline) were &post-deadline8 cases and not actionable.
She said a solution could be found, but offered only the
suggestion that Switzerland and Austria accept that they
handle these cases as a trade-off for ICHEIC having
previously handled some of their cases under its 8(a)(1) and
8(a)(2) processes. Several Trustees indicated their
disappointment with this position. Board Chairman Kastrup
sought to end the discussion with a statement praising
ICHEIC,s work but regretting that ICHEIC might be seen now
as lagging because of its attitude on these cases.


3. (C) Rudman responded with some heat to this comment -
saying that she would convey the Trustees' views but that she
did "not accept (the Kuratorium,s) right to criticize
(ICHEIC)" and that she &would not be lectured to.8 This
prompted a number of statements by trustees praising
ICHEIC,s work but urging a flexible approach in order to
reach a solution.


4. (C) In subsequent side-bar conversations, Rudman
indicated there might be a possibility of getting ICHEIC to
transfer funds to the Foundation to cover what it considers
to be post-deadline cases. She asked that the Foundation
provide details as to the number of cases involved and the
cost as a basis for further discussion. Foundation Spokesman
Hennig seemed optimistic that a solution to the problem could
be found on this basis.

Restructuring of the Board/Election
--------------


5. (C) Background: Prior to the Board meeting, The Jewish
Claims Conference (JCC) and the American Jewish Committee had
contacted the Embassy to raise their concern about the
process for nominating replacements to retiring Directors
Braeutigam (Chairman of the Board of Directors) and Bopp.
The process was apparently transparent only to Trustees from
the Foundation's funding organizations. In particular, only
on June 21 were all Trustees given the name of the candidate
nominated to replace Bopp. In addition, the JCC and Dieter
Nietan (a Deputy Trustee from the Social Democratic Party) on
June 21 reported that the German government, at the urging
of the business members of the Trustees, sought to reduce the
Board of Directors to a single member by mid-2007. According
to Nietan, Thomas de Maiziere, head of the Chancellor's
Office, personally intervened with MdBs Wiefelsputz (SPD) and
Bosbach (CDU),two trustees, in support of such a
restructuring.


6. (C) The restructuring was to be accomplished by the
resignation after one year of the Chairman of the Directors
(slotted to be Michael Jansen) and his replacement as
Chairman by the replacement for Dr. Bopp (slotted to be Dr.
Martin Salm, see below). In addition, after one year, when
forced labor payments are expected to be completed, Director

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Saathoff would be downgraded to a financial overseer ) not a
full board member. This would leave a one-member Board of
Directors. The motives for this are unclear, but most
contacts attributed it to a desire by industry to enhance
their standing and increase their voice in the programming of
Future Fund monies. Foundation Spokesman Hennig confirmed
the plan, but maintained that the reason was simply the fact
that, with the close-out of the payments function, there was
no need for a larger Board of Directors. He said there would
be no change to the Kuratorium or U.S. interests by this
development. Others suggested an additional motive: that
Director Saathof,s past role as a Greens party activitist on
behalf of the Nazi victims was not appreciated.


7. (C) In the event, there was a very tough and lengthy
discussion the morning of June 22 during which Dr. Kastrup
repeatedly tried to get the trustees to accept a proposal
that would have led to the changes outlined above, even
though a majority (composed of POs and some Bundestag
members) were clearly opposed. In the end, he was forced to
accept a proposal tabled by Beck (Greens) for a three-year
Board term for Saathof, which the trustees passed by a vote
of 16 for (including U.S.) to 6 against. Saathof himself was
then elected with 17 votes for (inlcuding U.S.) to 6 against.
With Saathof's position and an (at least) two-person board
secure, the elections of Jansen for one year as Chairman of
the Directors and of Salm as Bopp's replacement were not
controversial. Dr. Salm, formerly with Caritas International
(bio faxed to EUR/OHI),was elected by a vote of 16
for(including U.S.) to 4 against -- several Partner
Organizations had expressed concern that he had not
previously been directly engaged in Holocaust or forced
labor-related work. As part of his election the trustees
agreed that he will become Board Chair when Jansen leaves
after a year. Jansen, well known from his previous service
as Board Chairman, was elected by 20 (including U.S.) to 1
for a one-year term.


8. (C) Because Jansen will leave in a year and there was
general acceptance that the Board will be reduced to two, the
law governing the Foundation will have to be reopened to
change, at a minimum, the obligation that the Board consist
of three persons. Whether other changes to the Board of
Trustees or other provisions might be considered is unclear,
though there was widespread speculation that the business
community and parts of the German government believe it would
be a good idea to consider reducing the size of the Board of
Trustees as well. However, given the fight over Director
Saathoff's nomination, many contacts connected to the
government indicated considerable skepticism about the
chances of success for such a maneuver.
TIMKEN