DRAFTING JEWISH PROPERTY RESTITUTION LAW,

C O N F I D E N T I A L VILNIUS 000115 SIPDIS DEPARTMENT FOR EUR/OHI E.O. 12958: DECL: 02/26/2019 TAGS: PHUM PGOV LH SUBJECT: DRAFTING JEWISH PROPERTY RESTITUTION LAW, GOVERNMENT FAILS TO CONSULT WITH KEY JEWISH ORGANIZATIONS Classified By: Ambassador John A. Cloud for reasons 1.4(b) and (d). ¶1. (U) The GOL on February 24 published its latest proposal to resolve the long-festering issue of restitution of communal Jewish property seized by the Nazi and Soviet occupiers of Lithuania. The draft calls for the government to pay 113 million LTL (about USD 42 million) in installments from 2011 to 2021, but includes no provision for return of any real estate. The amount is only two-thirds the 170 million LTL (USD 63 million) discussed by the previous government just three months ago. The new draft says the GOL retains the right to alter the payment schedule if the government determines itself to be in financial difficulty. Funds would be funneled to a foundation that the GOL would define Later. The process by which the government reached its valuation remains opaque. ¶2. (C) At a February 20 meeting with leaders of the Lithuanian Jewish Community (LJC),Prime Minister Kubilius had committed to using the Lithuanian Jewish Heritage Foundation, which had been set up by the LJC and the World Jewish Restitution Organization (WJRO) as the mechanism for effecting restitution, with the government having no say in its operation. However, we understand because of the PM,s concerns that including specific information about the foundation in the bill would generate too much opposition from a small, but vocal, group, the bill is purposefully silent on this issue. ¶3. (C) COMMENT: We believe that Kubilius truly wants the restitution issue resolved, quickly and in good faith. However, it remains unclear whether the local or international Jewish communities will accept a draft that ignores six years of delicate negotiations. End comment. CLOUD