Vicious Circle of Forced Labor Compensation

German Chancellor Gerhard Schroeder has announced that the first payments as compensation for Third Reich forced labor might be made well before the German parliament goes into recess, i.e., before June. The chancellor’s optimism stems from the promise of German companies, which used the slave labor of Central and Eastern European ostarbeiteren during World War II, to contribute their share of funds — half of a total DM 10 billion — to the Memory, Responsibility, and Future Foundation specially set up two years ago. The other half is to be made available by the German government. German officials have stuck to last year’s agreement and immediately disbursed their money to the foundation. But the companies, which had supposedly initiated compensation negotiations, proved quite inconsistent in their actions. Moreover, April is the deadline for applications from former ostarbeiteren. German entrepreneurs settled the problems of their share in the foundation only this week. Yet, the Mutual Understanding and Reconciliation Foundation, which directly deals with compensation disbursements in this country, has told The Day it has not yet received official confirmation of the German companies’ decision. However, even if we admit that Germany has finally managed to collect the compensation funds, it is too early to speak about payments to former ostarbeiteren. It is perhaps for this reason that Mr. Schroeder, saying that payments could begin by June, emphasized, to be on the safe side, that he could not give a 100% guarantee.

This uncertainty of the Germans has been caused by the United States’ noncompliance with all demands the Americans accepted after lengthy talks. The point is in lawsuits against German companies. And although, according to Mutual Understanding and Reconciliation, all suits have in fact been dismissed, the situation is still hanging in midair. Both the Americans and Germans demand guarantees. The former wish to make sure German businessmen have really filed the foundation with their share of funds, while the latter do not want American courts to consider any new lawsuits filed by former ostarbeiteren against German companies. All this looks like a vicious circle, and the payment of compensation will depend on who first dares to break it.

All Ukraine, on whose territory 610,000 former concentration camp prisoners and slave laborers reside, can do is wait (will those eligible for these payments live to see them?). The Ukrainian foundation claims Kyiv possesses no levers to exert pressure on the German companies. Neither the numerous written appeals to German authorities nor protests in front of the German embassy have yet enjoyed success. Ukraine would perhaps do better in this case to file lawsuits against the German companies: this might prod the latter to speed up their decision-making. Yet, the Ukrainian foundation is certain that this will not solve the problem, for it could take years to handle the suits. Is there any guarantee that such German “charitableness” will not drag on for years also?