Austria offers Holocaust survivors another $150 million

WASHINGTON (CNN) -- Austria on Thursday offered another $150 million to Holocaust survivors for property seized during the Nazi era. But the United States said "gaps remain" on a final settlement.

Austria, Austrian companies and Jewish groups representing Holocaust survivors and victims' families held a fresh round of talks at the State Department on Thursday. Discussions in November in Vienna failed to produce a comprehensive agreement.

Ambassador Ernst Sucharipa, Austria's special envoy for property issues, said the negotiations "have set in motion a process of close scrutiny and widespread debate" in Austria about the need to make restitution to Holocaust survivors.

He said the proposed settlement marks "an acknowledgment of moral responsibility" by Austria, and asked that the restitution be "placed in context" of the funds already paid by Austria and the programs already established in the country to benefit Holocaust survivors.

On Thursday Austria agreed to pay $150 million toward a general settlement fund for property restitution. In addition, Austria will "liberalize" social benefits for Holocaust survivors and return property now publicly held.

This comes on top of another $150 million that Austria agreed in October to pay to Holocaust survivors for small businesses, apartment leases and personal effects that were taken from them and liquidated during the Holocaust. The money should be distributed starting this March, Sucharipa said.

A near $400 million settlement for forced labor in Austria during that time has also been agreed upon.

Deputy Treasury Stuart Eizenstat, who has been facilitating the negotiations, said Austria has made great progress in its efforts to take responsibility for its involvement in the Holocaust.

While "significant progress was made" Thursday, he said "there is still work to be done."

Eizenstat urged Austria to fulfill its remaining commitments to return works of art seized from Jews during the Holocaust, settle unpaid insurance claims and pay an undetermined amount towards compensation for specific claims on property. This would be apart from the "general fund," by which the group of claimants is being paid.

"We are closer to an agreement than we were before and both sides have shown flexibility," Eizenstat said, adding that the negotiations have reached a "critical stage."

Sucharipa said Thursday's agreements marked a "serious attempt to arrive at a comprehensive settlement." He added that any final settlement must lead to "legal closure" for Austria.

The next round of talks will be held January 10 in Vienna, followed by another round January 16 in Washington.

See related sites about US

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.