Swiss Central Bank Rejects Holocaust Agreement

The Swiss central bank refused Friday to contribute to the $1.25-billion Holocaust settlement by the country’s two biggest commercial banks, saying Switzerland had already met its obligations under international law.

The Swiss National Bank made the decision at a special three-hour meeting of its 40-member board. It has been criticized by Jewish organizations for accepting large quantities of gold from Nazi Germany during World War II.

Bank President Hans Meyer said at a news conference that the board rejected making a contribution by a large margin, but he declined to give voting figures.

United Bank of Switzerland and Credit Suisse had indicated that they hoped SNB would join Swiss companies and institutions to help finance the out-of-court settlement with Holocaust survivors reached last week in New York.

Spokesmen for UBS and Credit Suisse expressed regret Friday over the refusal.

The settlement released all U.S. claims against the two banks, the central bank, the Swiss government, other commercial banks and Swiss industry.

The government welcomed the SNB’s decision and said the commercial banks were aware before the settlement that it opposed payments by itself or the central bank.

Although welcoming the accord, a statement from the SNB said it was not involved in the settlement negotiations.

It “holds the view that its subsequent participation in the costs of the settlement would lend this an official character, which is not in the interests of the country as a whole,” the statement said.

The SNB, the central relay point for gold the Nazis sold to neutral nations during World War II, restated its position that any obligations arising from its dealings were settled in a 1946 treaty with the United States, Britain and France.

“The National Bank once more regrets the dark sides of its conduct in this difficult period,” it said Friday.