Restitution of Holocaust assets : hearings before the Committee on Banking and Financial Services, U.S. House of Representatives, One Hundred Sixth Congress, second session, February 9, 10, 2000

388 Pages·2000·14.2 MB·English

by  United States. Congress. House. Committee on Banking and Financial Services

RESTITUTION OF
HOLOCAUST ASSETS
Y 4.B 22/1:106-44 -
I
Restitution ofHolocaustAssets, Serial No. 106-44, 't^^^q
February9, 10, 2000 (106-2Hearings)
BEFORETHE
COMMITTEE ON BANKING AND
FINANCIAL SERVICES
HOUSE OF REPRESENTATIVES
U.S.
ONE HUNDRED SIXTH CONGRESS
SECOND SESSION
FEBRUARY 9, 10, 2000
Printed for the use ofthe Committee on Banking and Financial Services
Serial No. 106-44
JUL

RESTITUTION OF
HOLOCAUST ASSETS
HEARINGS
BEFORETHE
COMMITTEE ON BANKING AND
FINANCIAL SERVICES
HOUSE OP REPRESENTATIVES
U.S.
ONE HUNDRED SKTH CONGRESS
SECOND SESSION
FEBRUARY 9, 10, 2000
Printed for the use ofthe Committee on Banking and Financial Services
Serial No. 106-44
U.S. GOVERNMENT PRINTING OFFICE
62-679CC WASHINGTON :2000
SuperintendentofFDoorcsuamleenbtys,thCeonUg.rS.esGsoivonearlnmSealnetsPOrfifnitcien,gWOafsfhiicnegton,DC 20402
ISBN 0-16-060650-0
HOUSE COMMITTEE ON BANKING AND FINANCIAL SERVICES
JAMESA. LEACH, Iowa, Chairman
BILLMcCOLLUM,Florida, ViceChairman
MARGE ROUKEMA,NewJersey JOHNJ. LaFALCE, NewYork
DOUGK. BEREUTER,Nebraska BRUCE F.VENTO, Minnesota
RICHARDH. BAKER, Louisiana BARNEYFRANK, Massachusetts
RICKLAZIO,NewYork PAULE. KANJORSKI, Pennsylvania
MSIPCEHNACEELRBN.ACCAHSUTSLEI,II,DAellaabwaarmea MCAAXRIONLEYNWAB.TEMRASL,ONCEaUYf,omNieawYork
PETERT. KING, NewYork LUISV. GUTIERREZ, Illinois
TOMCAMPBELL, California NYDL\M. VELAZQUEZ, NewYork
EDWARDR. ROYCE,California MELVINL. WATT, NorthCarolina
FRANKD. LUCAS,Oklahoma GARYL. ACKERMAN, NewYork
JACKMETCALF,Washington KENNETHE. BENTSENJr.,Texas
ROBERTW. NEY, Ohio JAMES H. MALONEY, Connecticut
BOB BARR, Georgia DARLENE HOOLEY, Oregon
SUE W. KELLY, NewYork JULIAM. CARSON, Indiana
RONPAUL,Texas ROBERTA. WEYGAND, RhodeIsland
DAVEWELDON,Florida BRADSHERMAN, California
JIMRYUN, Kansas MAXSANDLIN, Texas
MERRILLCOOK, Utah GREGORYW. MEEKS, NewYork
BOB RILEY,Alabama BARBARALEE, California
RICKHILL, Montana FRANKR. MASCARA, Pennsylvania
STEVENC. LaTOURETTE,Ohio JAYINSLEE,Washington
WDAOLNTAELRDBA..JMOANNEZSULJLr.O,,NoIrltUnhoiCsaroUna JDAENNINCIESDM.OSOCRHEA,KKOaWnSsaKsY, Illinois
PAULRYAN, Wisconsin CHARLESA. GONZALEZ,Texas
DOUGOSE, California STEPHANIE TUBESJONES, Ohio
JOHNE. SWEENEY, NewYork MICHAELE. CAPUANO, Massachusetts
JUDYBIGGERT, Illinois MICHAELP. FORBES, NewYork
LEETERRY, Nebraska
MARKGREEN,Wisconsin BERNARDSANDERS,Vermont
PATRICKJ. TOOMEY, Pennsylvania
(II)
CONTENTS
Page
Hearingheldon:
February9,2000 1
February 10,2000 71
Appendix:
February9,2000 145
February 10,2000 247
WITNESSES
Wednesday, February 9, 2000
Baker, Rabbi Andrew, Director of European Affairs, The American Jewish
Committee 65
Eizenstat,Hon. StuartE.,DeputySecretary,DepartmentoftheTreasury 5
Hirchson, Avraham, Chairman, Knesset Committee for the Return ofJewish
Property 48
KLeanmtb,sdRoorfmFa,n,DrC.haOittromaGnr,afA,meSpreicciaanlGRaetprheesreinntgatoifvJeewoifsthheHoGleocramuasntSCuhravnicveolrlsor. 56
fortheFoundation"Remembrance,Responsibility,andtheFuture" 11
Lerman,Miles,Chairman,U.S.HolocaustMemorialCouncil 63
Singer,RabbiIsrael,SecretaryGeneral,WorldJewishCongress 50
Taylor, Gideon, Executive Vice President, Conference on Jewish Material
ClaimsAgainstGermany 54
Volcker, Hon. Paul A., Chairman, Independent Committee of Eminent
Persons 40
APPENDIX
Preparedstatements:
Leach,Hon.JamesA 146
Bentsen,Hon. KennethE.Jr 148
Forbes,Hon.MichaelP 150
LaFalce,Hon.JohnJ 151
Lazio,Hon. Rick 153
Waters,Hon.Maxine 155
Baker,RabbiAndrew 239
Eizenstat,Hon.StuartE.(withattachments) 159
LambsdorfT,Dr.OttoGraf 188
Lerman,Miles 233
Singer,RabbiIsrael 227
Taylor,Gideon 231
Volcker,Hon.PaulA 200
(III)
Page
AdditionalMaterial Submitted forthe Record
Eizenstat,Hon.StuartE.:
AustriaPositionPaperonHolocaust-RelatedIssues 186
FederalPresidentJohannesRaustatement 185
Lerman,Miles:
WrittenresponsetoaquestionfromHon.JamesA. Leach 238
Volcker,Hon.PaulA.:
Summary of Findings and Recommendations, Independent Committee
ofEminentPersons 209
Netherlandsgovernmentstatement 243
WITNESSES
Thursday, February 10. 2000
Eagleburger, Hon. Lawrence S., Chairman, International Committee on
HolocaustEraInsuranceClaims 72
KinMgN,,LaynnddeCl,haDiirrmeactno,r,AAFrMedDerAirctkIRs.sueWseiCsommmainttAeret Museum ofMinneapolis, 98
Lauder, Ronald S., Chairman, Commission for Art Recovery, World Jewish
LoCwornyg,rGelsesnn,Director,MuseumofModemArt,NewYork,NY 19343
NPiaegree,nSbhearrgo,nM,aHrtehaad,oAfrttheCoSlelcercettoarriat,TateGallery,London,UK 112051
Petropoulos, Jonathan, Research Director for Art and Cultural Property,
Presidential Advisory Commission on Holocaust Assets in the United
States 104
TPoawueblelr,,ERaornlaAl.d,SI.l,l,CDhiarierctmoarn,,NTathieonAarltGLaolslserRyegoifstAerrt,,IWnacs.,hiNnegwtoYno,rkD,CNY 19006
van Rappard-Boon, Charlotte E., Chief Inspector for Cultural Heritage,
MinistryofEducation,CultureandScience,TheNetherlands 129
APPENDIX
Preparedstatements:
Leach,Hon.JamesA. 248
Lee,Hon.Barbara 250
King,Lyndel 295
Lauder,RonaldS.(withattachment) 346
Lowry,GlennD 288
Nierenberg,Martha 334
Page,Sharon 304
Petropoulos,Jonathan 311
Powell,EarlA,III 281
Tauber,RonaldS 326
vanRappard-Boon,CharlotteE 340
Additional Material Submitted forthe Record
Eagleburger,Hon. LawrenceS.:
International Commission on Holocaust Era Insurance Claims Informa-
tionPack 256
LettertoInsuranceRegulators,January 19,2000 252
MemorandumofUnderstanding 253
(IV)
RESTITUTION OF HOLOCAUST ASSETS
WEDNESDAY, FEBRUARY 9, 2000
U.S. House of Representatives,
Committee on Banking and Financial Services,
Washington, DC.
The committee met, pursuant to call, at 10:05 a.m., in room
2128, Rayburn House Office Building, Hon. James A. Leach,
[chairman ofthe committee], presiding.
Present: Chairman Leach; Representatives Lazio, Royce, Ose,
LaFalce, Frank, Waters, C. Maloney of New York, Bentsen, J.
Maloney of Connecticut, Sherman, Inslee, Schakowsky and Moore.
Chairman Leach. The hearingwill come to order.
Let me note first to the witnesses that the Congress is not in
session today due to the funeral ofthe former Speaker Carl Albert,
and many Members are in attendance, and for that reason not as
many as would otherwise be the case will be attending this
hearing.
This hearing and tomorrow's hearings are a continuation of the
committee's review of efforts of the United States and countries
abroad to establish greater accounting and accountability for
economic aspects of history's most heinous crime, and belatedly
provide a measure ofcomfort to its victims and theirfamilies.
We began a little over three years ago with an historical look
into the role of Swiss banks, including the Central Bank, in the
Nazi war effort. Soon the investigation, propelled by self-generated
moral imperatives, was expanded to include the role of other
neutral countries, then allies, and not least the United States
itself.
Historical inquiries such as these into the nature ofthe evil and
how to behave in the face of evil are not normally the subject of
congressional hearings. In this case, however, these questions were
central to our own moral duties as legislators and public officials
to learn from the past so such horrors will never again happen. As
a Princeton theologian told this committee, "The map, with the
help ofwhich we try to orient ourselves as human beings trying to
live good and decent lives, is a map withAuschwitz on it."
It has been the goal ofthis committee and the Executive Branch
to conclude these proceedings by the end ofthe 20th Century. This
deadline has not been precisely met, but hopefully the resolution
ofmost ofthe economic issues is close at hand.
As I look back through the hearings of this committee on this
subject and the more than one-hundred witnesses from more than
a dozen countries who have appeared here over the past three
years, I am struck by the magnitude ofthe undertaking. After an
(1)
unconscionable, stumbling start, Switzerland, where this inquiry
began, has reacted by submitting itself to the most profound and
perhaps brutal act ofnational introspection in its history.
The Volcker and Bergier Commissions, which studied the coun-
try's behavior in World War II deserve praise for the rigor oftheir
work.
More than a dozen other countries, including the United States,
have formed similar commissions, and two large international con-
ferences in London and Washington have been devoted to wartime
gold transferand restitution ofHolocaust-ca assets respectively.
After a hiatus offifty years, the mass theft aspects ofthe Holo-
caust, those aspects which partly precipitatedthe chambers ofmur-
der at camps like Auschwitz and Buchenwald, have assumed their
rightful place at the forefrontofourcollective conscience.
Even more important, perhaps, several national foundations have
been formed and funded, and money has at last begun to flow to
Holocaust victims. And we are in the last stages oftwo large settle-
ments with Switzerland and Germany which promise financial re-
dress to still more victims.
The monetary compensation to Holocaust victims, however,
should not obscure the fact that in the end the funds are but a
sjTTibol ofmoral restitution. In a stirring address at the opening of
the Washington Conference, Elie Wiesel noted, "Usually, anti-
Semites say about us Jews that we speak about lofty things, but
we mean money. Just the opposite. Here we speak about money,
but we thinkofotherthings."
And so today and tomorrow we will speak about bank accounts
and insurance policies, forced labor and uncompensated work, as
well as stolen art works, and how to restitute those things to those
who lost them and to their families. We want to return what has
been stolen to its rightful owners. We are here because we want
to provide needy survivors with medical care and homes for their
old age. But above all, we are here because we remember and we
are convinced that crimes which occur without subsequent account-
abilityare crimes whichtoo easily maybe replicated.
It is more than a little ironic that as we strive to bring closure
to this darkest chapter ofthe 20th Century, the specter ofintoler-
ance and racism is rising again over a country which has been at
the forefront ofscience, economics and art. Austria, the land ofMo-
zart, but also the birthplace of Hitler, appears in recent weeks to
have chosen through the ballot box to turn xenophobicallynational-
istic. The European Union's strong reaction toJoerg Haider and his
cohorts suggests that civilized Europeans are committed to seeing
that history does not repeat itself. But it also indicates that with-
out a continued commitment to conscience and memory, the threat
ofmindless extremism will not die.
This committee's goal in this series of hearings was to bring
these issues to the public's attention and to demonstrate for all to
see thatwe in the Ajnerican people's House will notforget.
At this point I would like to turn to Mr. LaFalce.
[The prepared statement of Hon. James A. Leach can be found
on page 146 inthe appendix.]
Mr. LaFalce. Thankyou very much, Mr. Chairman.
Mr. Chairman, I want to thank you very much for the leadership
that you have shown on this issue and for your continued dedica-
tion to ensuring that we do all that is humanly possible to obtain
compensation for these egregious injustices ofthe past.
I think the issue before us is one of great public policy impor-
tance, great historical significance. As policymakers, we must take
very seriously our responsibility to right the wrongs ofthe past and
to provide restitution to the extent possible, to the maximum
amount possible to Holocaust victims unjustly stripped of their
hard-earned assets. It would be unconscionable if we were to ever
lose sight ofthe horrors perpetrated by the Nazi regime.
The recent events in Europe underscore our moral responsibility
to preserve the memory ofthe Holocaust in our collective conscious-
ness. Sentiments that should concern all democratic governments
and all their citizenry are still being expressed today. The most re-
cent example comes from Austria, not simply from a layperson, a
citizen, but from the party leader ofan extreme right-wing anti-im-
migrant party that has become part ofa coalition government who
has expressed sympathies with nazism. To ease the European
Union's concerns, the United States' concern, and other countries'
concerns about this development, the ruling coalition did issue a
statement intended to reassure the world that the new government
does not subscribe to Nazi beliefs. However, shortly after the state-
ment's release, it was reported that the Freedom Party's leader in-
validated the intent and spirit ofthat statement by indicating that
it was an affront toAustria to have to issue such a statement.
The United States has appropriately called its Ambassador back
for consultation, while citizens all over Europe, including Austria,
have taken to the streets to express their outrage and distaste.
Mr. Chairman, I raise this troubling development only to empha-
size how important these hearings are. We are honored to have
Treasury Deputy Secretary Stuart Eizenstat with us today, who,
along with his partner in Germany, Otto Count Lambsdorff, have
played an important role in mediating a resolution to the enforced
slave labor claims of Holocaust victims. I join in the Chairman's
welcome ofboth ofyou to our committee and look forward to your
testimony today.
[The prepared statement of Hon. John J. LaFalce can be found
on page 151 in the appendix.]
Chairman Leach. Thankyou.
Mrs. Maloney.
Mrs. Maloney. Thank you, Mr. Chairman. I want to thank you
for scheduling these two days ofhearings on the Holocaust issues,
including the slave labor, Swiss bank accounts, insurance claims
and stolen art objects. I am very pleased to see Deputy Secretary
Stuart Eizenstat before the committee again, and I want to extend
to him on behalf of my constituents our gratitude for his efforts
and those ofPaul Volcker on these issues. I have been closely mon-
itoring the progress of Secretary Eizenstat's negotiations and the
work ofthe Volcker Commission, and I look forward to reading the
testimony ofall ofthose who will be testifying today.
Mr. Chairman, I would like to bring to the attention ofthe com-
mittee my bill, H.R. 3105, the Holocaust Education Act, that I in-
troduced in October along with Appropriations Committee Chair-
man Bill Young. The bill will provide grants through the Depart-
ment of Education to Holocaust organizations for teacher training
and to provide materials to schools and communities that increase
Holocaust education.
Thankyou again, Mr. Chairman, I lookforward to the testimony.
Chairman Leach. Thankyou.
Mr. Bentsen.
Mr. Bentsen. I will ask unanimous consent that my statement
be inserted inthe record.
Chairman Leach. Without objection, so ordered.
Mr. Bentsen. I believe this is the sixth hearing that the com-
mittee has held on this issue, and I am glad to see Secretary
Eizenstat here, who has worked a great deal on this in his current
position and at State prior to coming to Treasury. And I am eager
to hearfrom Mr. Lambsdorffon behalfofthe German government's
and industry's involvement in this.
I wouldjust say that I want to associate myselfwith the Chair-
man's remarks as well as Mr. LaFalce's remarks that I think this
hearing today should send a very important message to Europe
where the U.S. stands with respect to the situation in Austria, and
I commend the Chairman for making that point very clear, and I
yieldbackthe balance ofmy time.
[The prepared statement of Hon. Kenneth E. Bentsen can be
found on page 148 in the appendix.]
Chairman Leach. Thankyou.
Mr. Inslee.
Mr. Inslee. Nothing, Mr. Chairman.
Chairman Leach. Ms. Schakowsky.
Ms. Schakowsky. Thank you, Mr. Chairman. I would like to
make a short statement.
I first want to thank you and commend you for convening this
hearing and on your continuing leadership on this important issue,
Mr. Chairman. You understand the importance ofcommemorating
the Holocaust and in seeking to provide, when possible, some small
measure of restitution for those who have suffered this tragic pe-
riod in our history. Members of Congress have a responsibility to
address this issue fairly and completely for our constituents, for
those who perished at the hands ofthe Nazi regime and those who
were able to survive, and forhumanity.
My district, which includes Skokie, Illinois, and many Holocaust
survivors and families ofvictims ofthe Holocaust, are watching us
today. We are profoundly aware of victims and survivors of the
Holocaust who were robbed ofmuch more than art, insurance poli-
cies, bank accounts, property and other material and financial as-
sets. Millions lost their lives. Countless others were brutalized,
were enslaved, raped, deprived of the opportunity to observe their
religion. Additionally, those who lived to tell the gruesome tales of
the Holocaust era from a firsthand perspective were robbed oftheir
childhood and livelihood and had their family history and indeed
theirwhole world stripped away.
We cannot attempt to repay them for the suffering and the loss,
but what we can do is honor the Holocaust victims and survivors
by never allowing our children to forget what happened and by de-
nouncing in the strongest of terms rhetoric and behavior that is