U.S. DEPARTMENT OF STATE Office of the Spokesman January 19, 2001

STATEMENT BY SECRETARY OF STATE MADELEINE K. ALBRIGHT

AUSTRIAN RECONCILIATION, PEACE AND COOPERATION FUND

1\. The United States and the Republic of Austria (\"Austria\") are
proud to have worked together, in close partnership, towards the
establishment of the Fund, \"Reconciliation, Peace and Cooperation\"
(\"Fund\"). The establishment of the Fund is a significant achievement,
as it will provide a measure of justice to over one hundred thousand
victims of the Nazi era.

2\. This statement explains why the establishment of the Fund is in the
foreign policy interests of the United States and why it would be in the
foreign policy interests of the United States for the Fund to be the
exclusive forum and remedy for the resolution of all claims asserted
against Austria and/or Austrian companies involving or related to the
use of slave or forced labor during the Nazi era or World War II, as
well as any other claims covered by the Fund.

3\. The establishment of the Fund will significantly reduce the tensions
surrounding a number of very sensitive issues. It will fund payments to
victims of the Nazi era who otherwise would have to engage in continued
litigation over the subject, without any certainty of recovery. The
United States and Austrian Governments would inevitably be drawn into
ongoing debates among victims\' representatives. The debates would
likely be contentious and, in the United States, result in threats of
sanctions and boycotts, and political and legal action against Austrian
companies and the Austrian Government. This could then trigger
retaliatory action not only by Austria, but by the European Union as
well. Merely the threat of sanctions and boycotts could have a chilling
effect on our political and economic relations with Austria.

4\. It is in the foreign policy interests of the United States to take
steps to address the consequences of the Nazi era, to learn the lessons
of, and teach the world about, this dark chapter in European history and
to seek to ensure that it never happens again. To this end, the Fund,
with 300 million of its capital dedicated to helping the heirs of
deceased slave and forced laborers, significantly advances the United
States\' foreign policy interests.

5\. Establishment of this Fund will strengthen the ties between the
United States and our democratic ally and trading partner, Austria.
Austria has supported our efforts to promote stability and democracy in
Central and Eastern Europe. The end of the Cold War has reinforced
Austria\'s position as an important gateway to Eastern Europe for trade
and investment. Our ties to Austria thus are important to American
interests in Europe, and particularly in Central and Eastern Europe. The
establishment of this Fund will strengthen these ties.

6\. Austrian-American cooperation has been exemplary throughout these
discussions. Our two governments, represented by Deputy Treasury
Secretary Eizenstat and Dr. Schaumayer, have served as facilitators of
this historic effort to continue to reconcile the complex and painful
results of the Nazi era and the Second World War. The cooperation
between Austria and the United States and the strong U.S.-Austrian
relationship enabled the co-chairmen to resolve a series of very complex
and difficult political issues during the negotiations. This cooperation
has reflected the spirit of the close relationship that has developed
between the United States and Austria during the past forty-five years.
It is this relationship that establishment of the Fund will strengthen.

7\. The Fund will cover, under relaxed standards of proof, over
one-hundred thousand forced and slave laborers who worked on the
territory of the present-day Republic of Austria, including those who
worked for Austrian companies now defunct or not subject to U.S.
jurisdiction, including SS companies and companies owned by the
government.

Indeed, the Austrian legislation will permit the partner organizations
in Central and Eastern European countries to even pay forced
agricultural workers. For these groups of people, the Fund represents a
unique avenue for obtaining a measure of long-awaited justice.

8\. The establishment of this Fund will also serve as one of the high
points in the United States\' relationship with the Central and Eastern
European Governments that signed the Joint Statement on the Occasion of
the Signing Ceremony of the Bilateral Agreements relating to the
Austrian Reconciliation Fund. As a result of the close cooperation
between the United States and the participating Central and Eastern
European Governments, thousands of residents of Central and Eastern
Europe, who were not eligible to receive payments under the German
Foundation \"Remembrance, Responsibility, and the Future,\" will be
receiving a long-awaited and deserved measure of justice. One of the
most important achievements of the Foundation will be to provide a
measure of justice not only to Jewish victims of the Nazi era, but
belated recognition and payments to these double victims of two of the
20th Century\'s worst evils \-- Nazism and Communism.

9\. For all of the above reasons, and because the Austrian Government
asked the United States to work as partners with it in facilitating this
historic initiative, from February 2000 until October 2000, the United
States played a central role in facilitating discussions among the
Governments of Austrian, Belarus, the Czech Republic, Hungary, Poland,
Russia, and the Ukraine, and the Conference on Jewish Material Claims to
establish this Fund, which will provide funds for dignified payments to
those who worked as private and public sector forced and slave laborers
during World War II and the Nazi era on the territory of the present-day
Republic of Austria.

10\. The Austrian Federal Government and Austrian companies have agreed
to contribute AS 6 billion to establish this Fund. In return, they seek
and deserve legal peace with respect to claims against Austria and/or
Austrian companies involving or relating to the use of slave or forced
labor during the Nazi era or World War II and any other claims covered
by the Fund.