CHANCELLERY WEIGHS IN FAVORABLY ON SPEED OF

C O N F I D E N T I A L BERLIN 000500 SIPDIS SIPDIS E.O. 12958: DECL: 04/22/2018 TAGS: PREL KNAR PHUM KIRF GM SUBJECT: CHANCELLERY WEIGHS IN FAVORABLY ON SPEED OF RESTITUTION CLAIMS PROCESSING REF: A. STATE 23500 ¶B. BERLIN 399 Classified By: Political Minister Counselor Jeffrey Rathke for Reasons 1.4 (b) and (d) ¶1. (C) On April 17, Embassy Poloffs met with the Chancellery Budgetary Policy Chief Ludger Schlief to discuss facilitating property restitution to Nazi-era victims (see reftels). Schlief acknowledged that the Finance Ministry was not making adequate progress on the processing of restitution claims related to the Nazi-era (reftel A). He conveyed his appreciation for informing the Chancellery of this problem so that his office could take action. ¶2. (C) Onno Hueckmann of the Foreign Office's Legal Section had already shared with Schlief Ambassador Kennedy's letter which expresses concerns about planned staffing reductions in the office responsible for processing restitution claims, which would further slow the Finance Ministry's ability to process such claims. Schlief said that he agrees with the spirit of Kennedy's letter and has already expressed to the Finance Ministry the Chancellery's interest that personnel reductions in the office related to restitutions do not take place. He said that he will continue to communicate with the Finance Ministry on this issue. ¶3. (C) Schlief said that he believes the problem is getting worse, since 5,000 new restitution claims are filed each year, but many fewer are resolved, thereby adding to the balance of 77,000 outstanding restitution claims which currently exist. He shares the USG's desire to successfully resolve all pending cases, since the German government pays 6% interest on unresolved cases for which it is liable. Schlief is optimistic that the Finance Ministry's staff reductions will not take place, but cannot be certain. ¶4. (SBU) The federal government's budget negotiations are ongoing; the window is still open to influence funding for the office responsible for processing restitution claims. The Finance Ministry will send a budget to Parliament in mid-June. TIMKEN JR