FROM THE OFFICE OF PUBLIC AFFAIRS

The entry of the far-right Freedom Party into a coalition government with one of Austria's mainstream parties, the conservative People's Party, has caused great concern both here and in Europe. The fact that statements of leaders of the Freedom Party have in the past failed to condemn intolerance and extremism, and attempted to explain away the Holocaust, understandably creates great concern. However, in the preamble to the coalition agreement, signed by both parties, the new Austrian government has promised to uphold tolerance and human rights and to condemn discrimination.

Our friends and we will be watching Austria closely to ensure that the government lives up to the preamble of the coalition agreement. In doing so, we will look at what the new government does, as well as what it says. One important benchmark in this regard is how the new government will deal with unresolved Holocaust issues.

In this regard, I am pleased to report two positive developments:

First, Austrian Chancellor Schuessel announced today that, in light of an interim report of the Austrian Historians Commission, he plans to seek prompt compensation for former forced laborers. In addition, he announced the appointment of the former head of the Austrian central bank, Maria Schaumayer, as the head of a new office that will address forced and slave labor compensation.

Second, our first discussions with Austrian officials in the last few days on proposals to address Holocaust issues were very positive.

Secretary Albright and our Ambassador in Vienna discussed our concerns with the new government, and I have already had discussions with Austrian leaders and officials on this matter. In Washington on February 7, I met with Ambassador Moser, Austria's Ambassador here. During our meeting, we had an extensive conference call

with a senior Foreign Ministry official in Vienna. We discussed the new government's commitments to tolerance and to addressing the difficult and painful questions about Austria's Nazi past.

I am pleased to report that my discussions have been very reassuring. Austrian officials have since transmitted to me a position paper that provides a road map for addressing Holocaust-related issues over the next several months. Let me cite the provisions of this paper, and I hope you will allow this document to be submitted into the record of this hearing.

• The Austrian Government will support open access to archives in federal agencies and advocate a similar policy among non-governmental entities.

• Austria's Historians Commission will continue to submit interim reports on all aspects of Holocaust related issues. In this regard, the Government has taken note of the interest of survivor organizations for the adoption of interim measures, which would benefit aging victims, particularly those who live in difficult financial circumstances.

• The Austrian Government will encourage Austrian insurance companies to participate in the work of the International Commission on Holocaust Era Insurance Claims, chaired by former Secretary of State Lawrence Eagleburger. In this regard, the Austrian Government looks forward to the results of the research effort that Austrian insurance companies are conducting into complex historical and legal questions.

• The Austrian authorities will seek to improve the practical application of the 1998 Art Restitution Law, and encourage similar restitution steps among local and regional governmental bodies.

• Finally, the position paper refers to the Chancellor's commitment regarding forced labor compensation and the appointment of a special representative to lead the Austrian team in the talks and negotiations with the other parties.

Thus, the commitments outlined in the position paper constitute a good basis for the new government to address Holocaust-related issues and confront its Nazi past. I plan to have a follow-up discussion with Austrian officials very shortly, and I will work closely with the Austrian government and survivor groups on this critical issue.