Restitution of Aryanised Property

After intensive negotiations with the US Administration as well as victims' organisations and plaintiffs' lawyers, agreement was reached on 17 January 2001 on a final settlement of all open questions regarding restitution and compensation for victims of the National Socialist regime. The substance of this agreement was enshrined in a Joint Statement by all the participants in the negotiations and in an Exchange of Notes between the Austrian and US governments. Under this so-called Washington Agreement a sum of $150m will be made available as immediate compensation for surviving victims. In addition, it is foreseen that a General Settlement Fund will be set up with a capital of $210m as well as a social package for victims of Nazism amounting to about $112m over the next 10 years. The agreement also addresses the return of works of art, the maintenance of Jewish cemeteries, the Hakoah sporting club, and improved access to archives.

In accordance with the agreement Austria has made available $150m for immediate payments to surviving victims of the Nazi regime as a final settlement of all claims arising from the loss of apartment and small business leases, household property and personal valuables and effects. The relevant amendment to the National Fund Act took effect on 23 February 2001. Since April the Austrian National Fund for Victims of National Socialism has paid out $7,000 to each of over 15,000 victims, most of them very elderly.

The legislation implementing the Washington Agreement was passed unanimously by the National Council (First House of the Austrian Parliament) on 31 January, and by the Federal Council on 23 February, again unanimously. After the fund capital had been assured, the Act took effect on 28 May and the General Settlement Fund commenced its activities under the auspices of the National Fund. Applications for compensation can be made to the General Compensation Fund within two years of this date.

The Claims Committee of the Fund, which will decide the claims for compensation for losses sustained as a result of persecution, was formally constituted on 12 November 2001. The chairman of the three-member committee is Sir Franklin Berman of the United Kingdom. The Austrian government nominee is Kurt Hofmann, former Vice President of the Austrian Supreme Court, and the US Administration nominated former legal adviser Robert Rosenstock. Several weeks previously, on 5 October, an Arbitration Panel for the in rem restitution of publicly-owned real property was set up. The three-member panel is chaired by Professor Josef Aicher with former ambassador Erich Kussbach as the Austrian and Professor August Reinisch as the US government nominees.

On 6 June 2001 Austria informed the US Administration in a diplomatic note that all of the Austrian commitments under the Washington Agreement had already been implemented - much more quickly than had been foreseen. With this, the exchange of notes with the US entered into force, an important step towards the legal closure of all restitution claims brought against Austria and Austrian companies. Under the terms of this international agreement the United States commits itself to support "all-embracing and enduring legal peace", and to achieve the dismissal of all outstanding and future property claims against Austria or Austrian companies in US courts by submitting a so-called Statement of Interest. At the end of 2001 there were still two class actions for property restitution pending before US courts. The establishment of legal closure is, however, a precondition for payments to the victims.

Even if the immeasurable suffering that was caused to the victims of National Socialism cannot be compensated in monetary terms, Austria is committed to ensure that, through the swiftest possible implementation of the Washington Agreement and the dismissal of the still outstanding lawsuits, some measure of justice will nevertheless be done to the surviving elderly victims of the Nazi regime within their lifetimes.