In the history of the fight for the restitution of Holocaust victims’ property, 1998 will go down as the year when certain fruits of victory began to be plucked. Who, in January 1998, would have believed that Swiss banks would succumb and pay out $1.4 billion? Who would have thought that the British government would completely reverse its policy of the past five decades? Who would have expected mammoth insurance companies to launch an investigation process and shell out advance payments?
Pivotal to all these developments, of course, was the August 12th agreement with the Swiss banks. Months of successive grave crises, culminating in a US decision to impose sanctions on the banks, finally yielded an agreement: the banks would pay $1.25 billion over a three year period, together with $150-200 million in interest. Not more than four years ago, the banks were growling that they would not pay a penny; this June, they announced $600 million as their final offer.
The ripples of this successful confrontation with the Swiss banks spread to encompass dozens of nations and financial bodies. In 1998, at least two countries decided to spare themselves the embarrassing pickle into which Switzerland had manoeuvred itself. The government of Norway finally approved a $50 million payment in compensation for the looting of Jewish property in its jurisdiction. The British government allocated Stg 25 million for the restitution of assets seized by the Custodian of Enemy Property.
Next in line, after the banks, were the insurance companies, from whom a reluctant admission was to all intents and purposes elicited, that they had failed to duly compensate either the victims or the survivors of the Holocaust. Six leading companies - Generali, Allianz, AXA, Life, Wintertur and Basel Life - formed an international commission of enquiry, and have already allocated an advance of $90 million for aid to needy Holocaust survivors.
1998 also shed light on the issue of looted works of art. In December, the Washington Conference, at which forty four nations first addressed the problem of Holocaust victims’ property, adopted certain principles of wide ranging import, for locating looted artworks and returning them to their owners. The conference also reiterated the call for archives to be opened up and community property to be restored. In this way, the Jewish property issue was placed squarely on the international agenda.
One chord repeatedly struck at the Washington Conference was that 20th century business must be completed before the 21st century began. In practical terms, this means that the US government, with other governments following suit, wants still outstanding Jewish property questions to be settled in 1999. This will probably not happen, however, and the process may well continue into the next millennium.
The commission of enquiry for insurance affairs was allotted two years in which to complete its business, and has only just begun. The artworks issue is one of great complexity. The task of locating the relevant works will take many months, not to mention determining compensation or restoring the works to their rightful owners. The private property question, especially in Eastern Europe, appears incapable of resolution. Austria has only now begun to look into its obligations, while France’s pursuit of the matter is most unhurried.
1998 was a year of major progress in the fight for justice to the Jewish people in general and Holocaust victims’ heirs in particular. The next few years will show whether this progress will continue and expand as appropriate.
Published by Israel's Business Arena December 31, 1998