Identifier
Created
Classification
Origin
07BUDAPEST1730
2007-10-16 16:27:00
UNCLASSIFIED
Embassy Budapest
Cable title:  

NIERENBERG ART RESTITUTION UPDATE

Tags:  PGOV PREL PHUM KDEM HU 
pdf how-to read a cable
VZCZCXYZ0002
RR RUEHWEB

DE RUEHUP #1730 2891627
ZNR UUUUU ZZH
R 161627Z OCT 07
FM AMEMBASSY BUDAPEST
TO SECSTATE WASHDC 2093
UNCLAS BUDAPEST 001730 

SIPDIS

SIPDIS

DEPARTMENT FOR OHI/EUR JOHN BECKER, EUR/NCE MARC NORDBERG;
PLEASE PASS TO NSC FOR ADAM STERLING

E.O. 12958: N/A
TAGS: PGOV PREL PHUM KDEM HU
SUBJECT: NIERENBERG ART RESTITUTION UPDATE

UNCLAS BUDAPEST 001730

SIPDIS

SIPDIS

DEPARTMENT FOR OHI/EUR JOHN BECKER, EUR/NCE MARC NORDBERG;
PLEASE PASS TO NSC FOR ADAM STERLING

E.O. 12958: N/A
TAGS: PGOV PREL PHUM KDEM HU
SUBJECT: NIERENBERG ART RESTITUTION UPDATE


1. (U) Summary: In an October 3 meeting with Commission for
Art Recovery lawyers Agnes Peresztegi (Amcit) and Tamas
Vargas, little doubt remains that time is running out for
action in the Nierenberg art restitution case. After nearly
a decade of deliberations, this case is in the final stage of
judicial process. A hearing, which will render a final
decision, is set for January 10, 2008. Peresztegi and Vargas
were very pessimistic about the decision going in
Nierenberg's favor and believed that withdrawing the case
from the court system was the best short-term strategy to
avoid defeat. They asked for U.S. assistance in convincing
the Hungarians to withdraw the case and resume out-of-court
negotiations. Post has begun engaging the GOH to this end.
End Summary.

Case Still in Judicial Process
==============================


2. (U) According to the lawyers, the most recent court
decision in November 2006 returned only one of the paintings,
the El Greco. The remaining nine stayed with the Hungarians.
Grounds for the court decision were based upon unclear
ownership of the paintings, and a still disputed claim that
the statue of limitations for possession had lapsed. Both
parties appealed this decision, with Nierenberg claiming that
if one painting should be returned, then why not the other
ten? The GOH made a similar appeal, stating that if only one
should be returned, why return any at all? Written appeal
arguments have been forwarded to the court, and both parties
are waiting for the January 10, 2008, hearing.


3. (U) Three judges will review the written appeal arguments
and will either render a decision on January 10, 2008, or two
weeks thereafter. Additionally, they could reschedule the
court case for continuation. The lawyers believe the
decision will be against Nierenberg, stating that these same
three judges have already ruled against another plaintiff in
a looted art case. Peresztegi felt it was no accident that
these judges were assigned to this case. She has considered
raising the issue of bias with the court, but had previously
been told that judges' decision records cannot be used to
claim bias.

Hungary's Request for Return of Art
===================================


4. (U) Ironically, concurrent with the Nierenberg case, the
GOH is also pursuing the return of cultural objects taken
from Hungary during World War II. The Montreal Museum of
Fine Art has already returned one painting to the GOH.
However, the GOH has not been successful in receiving such
items from Russia, who is not eager to return the objects
without GOH assurance that the objects would be returned to
their rightful owners and not remain with the GOH.

Moving Forward
==============


5. (U) Approximately ten weeks remain until the
non-appealable decision could be rendered in the Nierenberg
case. The lawyers have stated that post's engagement with
the GOH to consider resuming negotiations would be very
helpful in this case. Resuming negotiations would remove the
case from the judicial process, delaying the final decision
and giving the parties an opportunity to reach some kind of
compromise. The most recent negotiations in this case failed
years ago. Post has noted to the GOH the substantial U.S.
interest in this case, including recent letters from the
Helsinki Commission and Senator Kennedy. We will continue to
engage on this issue using Washington visitors and visits to
help carry our message.
LEVINE