German Industry Ready to Free Nazi Labor Funds

German industry indicated Tuesday that it is ready to free its half of a $4.6-billion compensation fund for Nazi-era slave and forced laborers, clearing one of the last major hurdles for payments to aging survivors.

A statement by German industry said a U.S. judge’s dismissal of a crucial lawsuit signaled the protection from legal action that German companies have demanded as their part of the deal.

Even before the announcement, a spokesman for German companies contributing to the government-industry fund, Wolfgang Gibowski, said Monday’s decision by District Judge Shirley Wohl Kram made it “very well possible” that money would be paid to survivors by July.

And Chancellor Gerhard Schroeder’s envoy on slave labor issues, Otto Lambsdorff, said he believes that German companies now had the “legal peace” they have demanded to begin payments to an estimated 1 million survivors of Nazi labor, mostly non-Jews from Eastern Europe.

Schroeder issued a statement welcoming the industry announcement and voicing confidence that compensation would start quickly.

However, Czech chief negotiator Jiri Sitler said he would only be satisfied when German industry transfers the $2.3 billion to the fund. Sitler represents about 80,000 Czech forced laborers who have applied for payments.

Under the fund rules, the German parliament has to declare itself satisfied that German companies are adequately protected from future lawsuits by victims of Nazi labor. Lawmakers said that decision could come next week.