LITHUANIA: RESTITUTION LEGISLATION FOR JEWISH

UNCLAS SECTION 01 OF 03 VILNIUS 000146

SIPDIS

STATE FOR EUR/OHI, EUR/NB

SENSITIVE

E.O. 12958: N/A
TAGS: PGOV KNAR PHUM LH
SUBJECT: LITHUANIA: RESTITUTION LEGISLATION FOR JEWISH
COMMUNAL PROPERTY TO PROCEED TO PARLIAMENT

REF:A) 2005 VILNIUS 1222

B) 2005 VILNIUS 283
C) 2004 VILNIUS 1065


1. (SBU) SUMMARY: Lithuania is moving ahead with plans for
the restitution of former Jewish communal property, an
important element in addressing its Nazi and Soviet legacy.
The government's support for restitution remains solid, and
the GOL plans to submit the necessary legislation to
Parliament for approval within a month. The Prime Minister
and other political leaders have given us assurances of
their support. Public opinion, however, will likely be
against restitution. That, combined with internal disputes
es
within the Jewish community, could mean that the
legislation faces a turbulent ride through Parliament.
Passage of the restitution law is not guaranteed. Given
the USG's longstanding support for restitution, we will
expand our outreach efforts to shore up support for the
legislation. END SUMMARY.

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Background
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2. Lithuania has struggled for much of the past 15 years
since regaining independence with making restitution for
the damages of Nazi and Soviet occupation. It has had some
success in this struggle. The government has returned
almost all confiscated religious property to Lithuania's
various religious communities, and the process of
restituting Lithuanian citizens for lost private property
is underway. An important exception to this success has
been in the area of Jewish communal property ? community
centers, clinics, libraries and other property that
Lithuania's prewar community held communally. We have
worked intensively with U.S. Jewish community
representatives and the Brazauskas Government in support of
legislation that will establish a restitution process, the
proceeds of which will fund the revival of Jewish community
life in Lithuania.


3. The government has conducted extensive research on
restitutable properties and worked with the Jewish
Community of Lithuania and international experts to draft
the necessary legislative amendment (ref A). One point,
regarding restitution of former health care institutions,
remains on the table, but the government plans to introduce
the draft legislation during the regular parliamentary
session that begins in March.

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The Draft Legislation
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4. Lithuania's 1995 law on restitution places significant
restrictions on claims for communal property and, as a
result, the Jewish community has regained only a fraction
of the communal property owned by the country's pre-war
Jewish population of over 200,000. The government-drafted
legislation amends the 1995 law to broaden the definition
of communal property and to establish a foundation that
will manage the property restituted (or compensation paid)
to the Jewish community. A board of directors, consisting
of six representatives appointed by the local Jewish
community and six by international parties, will manage
this foundation. The amendment to the law would allow for
the restitution of approximately 150 properties, with an
estimated value of USD 200 million. It would also leave
open the possibility of further restitution in the future,
should experts find evidence that additional properties
qualify.

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Timeline
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5. The government and the Jewish community are putting the
final touches on the draft legislation. Final negotiations
center on whether to specify health care facilities as a
type of restitutable property. (The Jewish community wants
the language in; the government out.) The government
intends to submit the draft to Parliament within a month,
in time for the next regular session, which begins March

10. It is not clear when Parliament will actually take up
the bill, and deliberations could be lengthy.

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Government Support Solid...
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6. (SBU) Prime Minister Algirdas Brazauskas has long been a
driving force of the restitution process. Although his
Social Democratic party is now a junior partner in the
governing coalition, the backing of his government remains
firm. Coalition partner Parliamentary Speaker Arturas
Paulauskas is also sympathetic, and recently told the
Ambassador that he is "guardedly optimistic" the
restitution legislation will successfully pass through
Parliament. President Valdas Adamkus, an ex-American
citizen, has made well known his support for the cause.
Although the Labor Party has avoided any public
commitments, Labor leader Viktor Uspaskich has repeatedly
assured the Ambassador that he supports restitution and
promised to deliver his party's votes.

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...But a Rocky Road Ahead?
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7. Jewish property restitution has long been a
controversial issue in Lithuania. Public opinion,
sometimes influenced by anti-Semitism, will almost
certainly run against restitution. Some politicians are
perplexed as to why there needs to be a "special" process
for Jewish property restitution, and argue that the
government should be taking care of "Lithuanians" first.
Radical politicians from the opposition Liberal Democratic
Party have already spoken out loudly against restitution,
with some media outlets happy to provide them a forum.


8. (SBU) Internecine conflict within the Jewish community
itself also threatens to hamper passage of the bill. Much
of the controversy centers on restitution. Several Jewish
community and religious leaders contend that Simonas
Alperavicius, the official chairman of the Jewish Community
of Lithuania, has mismanaged the restitution process, has
had difficulty coordinating with local and international
experts, and has not always been actively engaged on the
matter. Others say he has pushed restitution solely for
the benefit of his associates. Most of Alperavicius's
detractors have their own vested interests. Leaders of the
tiny Kaunas Jewish Religious Community oppose this
restitution amendment, having themselves filed competing
claims for some of the properties involved. Rabbi Sholom
Ber Krinsky has consistently complained that the other
Jewish actors in this process have marginalized his Chabad
Lubavitch organization, although community leaders have
assured him that his group will also benefit (ref C).


9. Meanwhile, Vilius Kavaliauskas, the Prime Minister's
advisor for cultural affairs and long-time point man for
Jewish property restitution, is embroiled in his own
personal scandal involving allegations of Soviet-era
activities that may force him to resign. Kavaliauskas'
case is pending in the courts but will undoubtedly draw to
conclusion before the restitution legislation passes.

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Comment: Light at the End of the Tunnel
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10. (SBU) Lithuania's work on Jewish communal property
restitution is finally approaching the home stretch, but
passage is far from certain. Success depends on party
discipline: the willingness and ability of the PM, Speaker,
and Labor Party leader to deliver their members' votes to
get the amendment through; and the ability of the Jewish
Community to overcome internal differences and not provide
a reason for legislators to hesitate.


11. (SBU) We have already begun an outreach campaign with
parliamentarians from all parties to help familiarize them
with the issue and international interest in it. We also
intend to encourage support from Lithuania's Catholic
Church hierarchy, which would positively impact public
opinion. We will release a public statement praising the
government when it introduces the legislation, and work
with President Adamkus to examine how he might be
supportive. Encouraging Lithuania to make a just
recompense for its Holocaust legacy remains a top Mission
goal, and we believe the restitution of Jewish communal
property will be an important step forward.

MULL