Identifier
Created
Classification
Origin
09BUDAPEST453
2009-06-25 15:26:00
UNCLASSIFIED
Embassy Budapest
Cable title:
HUNGARY'S INPUT ON PROPERTY RESTITUTION FOR
how-toVZCZCXRO8905 RR RUEHKW DE RUEHUP #0453 1761526 ZNR UUUUU ZZH R 251526Z JUN 09 FM AMEMBASSY BUDAPEST TO RUEHC/SECSTATE WASHDC 4269 INFO RUEHBM/AMEMBASSY BUCHAREST 1449 RUEHPG/AMEMBASSY PRAGUE 0661 RUEHRA/AMEMBASSY RIGA 0107 RUEHVL/AMEMBASSY VILNIUS 0203 RUEHWR/AMEMBASSY WARSAW 0519 RUEHKW/AMCONSUL KRAKOW 0006
UNCLAS BUDAPEST 000453
SIPDIS
DEPARTMENT FOR L/CID SHARLA DRAEMEL, EUR/OHI JOHN
BECKERAND, EUR/CE JAMIE LAMOUR
E.O. 12958: N/A
TAGS: ECON ODIP PREL HU
SUBJECT: HUNGARY'S INPUT ON PROPERTY RESTITUTION FOR
HOLOCAUST SURVIVORS AND HEIRS
REF: SECSTATE 62772
UNCLAS BUDAPEST 000453
SIPDIS
DEPARTMENT FOR L/CID SHARLA DRAEMEL, EUR/OHI JOHN
BECKERAND, EUR/CE JAMIE LAMOUR
E.O. 12958: N/A
TAGS: ECON ODIP PREL HU
SUBJECT: HUNGARY'S INPUT ON PROPERTY RESTITUTION FOR
HOLOCAUST SURVIVORS AND HEIRS
REF: SECSTATE 62772
1. Presently, property restitution issues appear to have
minimal impact on the real estate market in Hungary. Most
claimants seek financial compensation under the 1991
Hungarian Compensation Act rather than reacquiring
properties. The title search process can be lengthy, but
rarely are title disputes due to restitution reasons.
2. POLOFF accompanied a U.S. Holocaust services attorney to
the Compensation Office in November 2008. Dr. Lajos Szabo,
the General Deputy Director of the Compensation Office, told
us that of the 5,600 claims from the U.S. in which a final
decision has been issued, 4,500 --nearly 80 percent-- were
denied. The majority of claims filed by U.S. Holocaust
survivors are denied due to the onerous documentation
requirements imposed by the Hungarian government.
3. In 2005, the GOH adopted a resolution to fast-track
property restitution negotiations in order to close
outstanding claims in 2006 rather than by 2011 as the
original law set forth. Three religious groups (Roman
Catholic, Jewish and Budai Serb Orthodox) chose to use the
new procedure. As of January 2009, 2,502 properties (worth
approximately USD 623 million) were restituted, and a total
of USD 418 million was paid as compensation. The Catholic,
Protestant, and Lutheran churches had 196 outstanding cases
valued at USD 23.5 million at the end of 2008.
4. While most participants generally considered the procedure
satisfactory, members of the Jewish community viewed the
restitution process as generally fair but wanted to see
compensation paid for the estimated USD 2.3 to 18 billion
worth of heirless Jewish properties specifically excluded
from the restitution process. On November 27, 2007, the GOH
issued a resolution to establish a joint commission, which
included representatives of the government and the Jewish
communities, to agree on the financial compensation for
heirless Jewish properties. Based on the agreement, the GOH
agreed to transfer USD 21 million over five years to the
Jewish Heritage of Hungary Public Endowment (MAZSOK). In
December 2007, the first payment, USD 12.6 million, was
transferred to MAZOK,s account. The Federation of Jewish
Communities in Hungary plans to use the funds to benefit
Holocaust survivors.
Levine
SIPDIS
DEPARTMENT FOR L/CID SHARLA DRAEMEL, EUR/OHI JOHN
BECKERAND, EUR/CE JAMIE LAMOUR
E.O. 12958: N/A
TAGS: ECON ODIP PREL HU
SUBJECT: HUNGARY'S INPUT ON PROPERTY RESTITUTION FOR
HOLOCAUST SURVIVORS AND HEIRS
REF: SECSTATE 62772
1. Presently, property restitution issues appear to have
minimal impact on the real estate market in Hungary. Most
claimants seek financial compensation under the 1991
Hungarian Compensation Act rather than reacquiring
properties. The title search process can be lengthy, but
rarely are title disputes due to restitution reasons.
2. POLOFF accompanied a U.S. Holocaust services attorney to
the Compensation Office in November 2008. Dr. Lajos Szabo,
the General Deputy Director of the Compensation Office, told
us that of the 5,600 claims from the U.S. in which a final
decision has been issued, 4,500 --nearly 80 percent-- were
denied. The majority of claims filed by U.S. Holocaust
survivors are denied due to the onerous documentation
requirements imposed by the Hungarian government.
3. In 2005, the GOH adopted a resolution to fast-track
property restitution negotiations in order to close
outstanding claims in 2006 rather than by 2011 as the
original law set forth. Three religious groups (Roman
Catholic, Jewish and Budai Serb Orthodox) chose to use the
new procedure. As of January 2009, 2,502 properties (worth
approximately USD 623 million) were restituted, and a total
of USD 418 million was paid as compensation. The Catholic,
Protestant, and Lutheran churches had 196 outstanding cases
valued at USD 23.5 million at the end of 2008.
4. While most participants generally considered the procedure
satisfactory, members of the Jewish community viewed the
restitution process as generally fair but wanted to see
compensation paid for the estimated USD 2.3 to 18 billion
worth of heirless Jewish properties specifically excluded
from the restitution process. On November 27, 2007, the GOH
issued a resolution to establish a joint commission, which
included representatives of the government and the Jewish
communities, to agree on the financial compensation for
heirless Jewish properties. Based on the agreement, the GOH
agreed to transfer USD 21 million over five years to the
Jewish Heritage of Hungary Public Endowment (MAZSOK). In
December 2007, the first payment, USD 12.6 million, was
transferred to MAZOK,s account. The Federation of Jewish
Communities in Hungary plans to use the funds to benefit
Holocaust survivors.
Levine