Austria increases Holocaust pay-out

WASHINGTON (CNN) -- Austria has offered a further multi-million package to Jewish victims of the Nazi era, this time for property restitution and medical costs.

The country has already offered about $550 million (Austrian schillings, ATS, 8.2 billion) to settle various claims including forced labour, acquisition of small businesses and personal items.

The $215 million (ATS 3.2 billion) proposed on Thursday was agreed between Austria, Austrian companies and Jewish groups representing Holocaust survivors and victims' families during talks at the State Department in the U.S.

The talks, which had been resumed after discussions in November in Vienna had failed to produce a comprehensive agreement, still "left gaps" on a final settlement, the U.S. says.

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 added 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 programmes already established in the country to benefit Holocaust survivors.

Austria agreed to pay $150 million (ATS 2.2 billion) toward a general settlement fund for property restitution.

In addition, in a move worth roughly $65 million (ATS 970 million), Austria will "liberalise" social benefits for Holocaust survivors, including medical costs. It will also 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 acquired and liquidated during the Holocaust. The money should be distributed starting this March, Sucharipa said.

A near $400 million (ATS 6 billion) settlement for forced labour in Austria during that time has also been agreed upon.

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

While "significant progress was made" on Thursday, he said "there is still work to be done." Eizenstat urged Austria to fulfil 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 on January 10, 2001, in Vienna, followed by another round January 16, 2001, in Washington.

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The American Jewish Committee

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