GERMAN GOVERNMENT TO WEIGH IN AGAINST HOLOCAUST

C O N F I D E N T I A L BERLIN 001919

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E.O. 12958: DECL: 10/22/2017
TAGS: PREL PGOV GM
SUBJECT: GERMAN GOVERNMENT TO WEIGH IN AGAINST HOLOCAUST
INSURANCE LEGISLATION

Classified By: Acting Political Counselor Jeffrey Rathke for reasons 1.
4 (b,d).


1. (C) German Ministry of Foreign Affairs Legal Director
George Witschel told Special Envoy for Holocaust Issues, J.
Christian Kennedy October 18 that the German Government is
"quite concerned" about the Holocaust Insurance Bill (HR
1746) scheduled for mark-up on October 23 as it would upset
the "legal peace" that was established by the Agreement
Concerning Holocaust Era Insurance Claims. The Agreement
allowed the International Committee on Holocaust Era
Insurance Claims (ICHEIC) to provide humanitarian
compensation to Holocaust victims and their heirs who owned
previously uncompensated Holocaust-era insurance claims.
Such legislation, he added, would call into question whether
such claims agreements or the U.S. government's commitment to
such agreements could be trusted.


2. (C) Witschel told Ambassador Kennedy that even if the
mark-up does not take place as scheduled, "it is time for the
German government to act." German Ambassador to the U.S.
Klaus Sharioth has been instructed to weigh in with key
members of Congress, including Representatives Tom Lantos and
Barney Frank, Witschel said. He added that Chancellor Merkel
or her staff might be raising the issue later that day
(October 18) with visiting Deputy Treasury Secretary Kimmit.
(Note: This issue was also raised by the Chancellor's Senior
Economic Advisor, Jens Weidmann, in a meeting with Deputy
Secretary Kimmit on October 17. Report to follow septel.)

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In addition, Witschel said that Minister of Finance Peer
Steinbrueck may raise the issue with Treasury Secretary
Paulson and Foreign Minister Steinmeier may raise it with
Secretary Rice. He said that members of the Bundestag

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foreign affairs committee may also raise the issue with their
contacts in the U.S. Congress.


3. (C) Ambassador Kennedy noted that the U.S. Administration
opposes the bill and that senior U.S. officials have made
this position known to Congress. He noted that the
Congressional Financial Services Committee is aware of the
bill and, at the staff level, agreed it is not a good one.
Ambassador Kennedy shared with Witschel other outreach
efforts.


4. (C) On another issue, Ambassador Kennedy mentioned the
proposal to have another conference on Holocaust-Era assets
as was held in Washington in 1998. He noted that U/S Burns
would be writing to his German counterpart, Volker Stanzel,
about this issue. Ambassador Kennedy said that it would be
appropriate if the next conference were to take place in
Europe, rather than in Washington, and that a June or July
2008 date is being considered. Witschel noted Germany is
considering hosting. Kennedy added that the French
government is enthusiastic about perhaps holding it in Paris.
The Washington Conference was a milestone, Witschel
highlighted, and agreed with Ambassador Kennedy that the
conference should have a focus on the recovering of artwork.
Witschel did not offer further comment when Ambassador
Kennedy mentioned other themes, like a stock-taking on
compensation. (Comment: The Germans have expressed concern
that talking about any subject other than art could open the
door to criticism of German compensation programs.)
TIMKEN JR