Socialist Demands Threaten Austro-jewish Restitution Negotiations

Jewish leaders here expressed little hope for a favorable outcome of the restitution talks scheduled to begin tomorrow, in the wake of Socialist demands with respect to property now in the Russian zone. The Socialist demands did not single out Jewish claims, but it was felt that the sense of their remarks was directed against former Jewish owners. The Jewish leaders said that these new demands had helped to diminish Jewish hopes to the “zero point.”

The demands, put forward at a convention of Socialist Party leaders at which Vice Chancellor Adolf Schaerf presided, asked Austria to fulfill restitution demands, in the event of a treaty, only under the following conditions:

1. The time during which the Russians administered the properties originally confiscated by the Nazis, shall not be considered when the Austrian Government makes its accounting of revenue to the former owner. 2. The former owner must pay an appropriate share of the one hundred million dollars which the Austrian Government will have to pay to the Soviet Union for the return of German property.

3. When the above conditions are fulfilled, the Restitution Commission shall make restitution only when the former owner gives ample assurances that present employees will be retained in their jobs. If he cannot do so, the Austrian Government must pay them some equivalent sum in cash. 4. Austria must also pay in cash for all restitution demands for farms and forests.

The Socialists also demanded full compensation for individuals, juridical persons and organizations who suffered special losses under the occupation regime. This obviously points to non-Jewish persons, including former Nazis, whose property was confiscated or damaged by the Russians.

Informed sources here said that former Jewish property seized by the Russians as German property forms a large proportion of total Jewish demands, since the Russians classified even factories for which German banks held mortgages as German property. It is for this reason that they viewed the Socialist demands as a blow to Jewish chances in the talks opening tomorrow.

Earlier, a four-man group representing the Jewish Claims Committee arrived here to participate in the talks. The group included Nehemiah Robinson, Seymour Rubin, Charles Kapralik, and Jehoshua Guvrin. In addition, one member of Vienna’s Jewish community will also participate in the talks. A delegation representing the organization of Jews who converted to Christianity is also expected to take part in the discussions. The conference is expected to last about two or three days. Chancellor Julius Raab, Vice Chancellor Schaerf, Foreign Minister Leopold Figl and Finance Minister Reinhardt Kamitz are to be present on the first day, while experts will continue the talks on succeeding days.