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