FROM THE OFFICE OF PUBLIC AFFAIRS

The good judgement of Chancellor Schuessel in appointing Dr. Maria Schaumayer was never more evident than in yesterday's eight-hour marathon session of discussions on the Austrian slave and forced labor fund, followed by a working dinner thereafter, hosted by Ambassador Hall.

I appreciate the personal attention that Chancellor Schüssel has continued to show on this important moral issue. His leadership has been indispensable. Yet we would not have achieved as much as we have in such a short period of time without Dr. Schaumayer. Her focus, drive, and vision, as well as her commitment and creativity, have been evident since the first time we met three months ago. But these qualities were most evident yesterday in what we accomplished in taking an historic step together with the representatives from the Czech Republic, Belarus, Hungary, Poland, Russia, and Ukraine.

We made significant progress in dealing with the Austrian initiative, and we took a major step forward towards the time when dignified payments can be made to slave and forced laborers who worked in Austria during the World War II period.

First, we reached agreement with all the delegations on the per capita amounts that will be paid to each category of victims:

• 105,000 schillings to slave laborers,
• 35,000 schillings to forced laborers in industry, and

• 20,000 schillings to forced laborers in agriculture.

• 5,000 schillings to women who bore children while they were forced laborers, and a separate payment to children under 12 years of age who were deported with their parents. These children of forced laborers would receive a payment equal to that of their parents.

Second, we reached agreement on the approximate number of victims. The total number of forced and slave laborers to be covered by the Austrian Fund is expected to be around 150,000. Some 25,000 of this total are believed to reside outside of the six Central and East European countries who participated in the Conference. All delegations are working to finalize their numbers as quickly as possible.

Third, we discussed in detail the Austrian draft law, which, in its initial form, already incorporates many important issues that need to be addressed. We made progress in those areas where changes are necessary. We recognize and respect the constitutional role of the Austrian Parliament and understand that it is its prerogative to approve the legislation. However, everyone involved in the process must recognize that the final legislation needs to be supported by all of the parties who will participate in this process, including the plaintiffs' attorneys. The legislation must also create a structure and a process which will be fair and transparent to the U.S. courts and will lead to the legal peace that Austrian companies are seeking.

Fourth, and finally, the U.S. delegation met with the plaintiffs' and defense attorneys yesterday morning. We feel that we reached a better understanding of their respective positions. We hope to continue to make progress on legal closure at our next legal Working Group meeting, set for May 30 in Washington. It will be important to involve all participants in this process, including attorneys for victims in U.S. court cases in the United States, to help achieve the legal peace that Austria and Austrian companies desire.

While we are pleased with Austrian commitments and progress on forced and slave labor, there are other issues that need to be addressed. Art restitution needs continued invigoration. Austrian insurance companies need to join the International Commission on Holocaust Era Insurance Claims. The work of the Austrian Historians Commission should continue and it should issue interim reports. Property restitution is a matter of particular priority for the United States. There are potential gaps in the Austria's restitution efforts in the 1950s and 1960s, and there may have been problems with implementation of earlier Austrian restitution laws.

We agree with Austria and with the Central and East European countries represented at this historic conference that the slave and forced labor initiative should be done on an urgent basis, given the age and failing health of the surviving workers. But we also believe that it is time now to begin the process of addressing property restitution issues.

I just had the privilege of meeting yesterday with President Klestil and this morning with Chancellor Schuessel to discuss property restitution issues. I specifically urged the Chancellor to appoint a special envoy to deal with these issues, as Dr. Schaumayer has done so remarkably well with the labor issue. The Chancellor told me that he is positive and open minded and seriously considering the issue of a Special Envoy within the Foreign Ministry who might operate under the guidance of Hans Winkler. I know from my meeting with President Klestil that he wants to stay involved and informed with respect to any work in which such a Special Envoy would participate, and that he will do so.

I was also informed by the Chancellor with respect to insurance matters that the insurance commission in Austria has asked former Foreign Minister Jankowitsch to establish contact with the Eagleburger Commission, and to consider cooperating with that Commission. They are also considering retaining Price Waterhouse to investigate all potential cases, and the Chancellor informed me that he would be positively disposed to amending Austrian law to reopen closing dates for applications on these policies.

I am confident that Austria's actions on the range of Holocaust issues will be important in how we judge the way Austria has lived up to the commitments embodied in the coalition government's own program, and thus will play a crucial role in any decision we might make about future engagement between the U.S. and Austrian governments.