Concern has been raised in Germany recently that the law suit filed by class action claimants against IBM in federal court will endanger the legal peace for German companies sought by last year's Foundation Agreement. The United States wishes to re--assure the government of Germany and German companies that the United States will seek legal peace for claims against German companies in accordance with the Executive Agreement that Germany and the United States signed on July 17, 2000.

The Foundation covers all Nazi era claims against German companies and the US will file a statement of interest in all such cases. The Foundation does not cover claims against U.S. companies for actions unrelated to that of German companies. The lawyers who filed the suit against IBM have indicated that they have no intent to raise claims against German companies. If it is determined that the IBM suit is a suit against a U.S. company unrelated to actions of a German company, then it is irrelevant to the Foundation and to "legal peace" for German companies.

There is no reason why the IBM lawsuit should hold up payments to victims. It was not a case pending when the Foundation Agreement was signed. New claims were expected to be filed after the Agreement, and commitment of the U.S. Government to file Statements of Interest in future cases was designed to deal with that eventuality. The United States believes that payments to the victims should begin promptly after the last class actions listed in the agreement are dismissed. The United States will continue to live up to its obligations in connection with subsequent litigation.

We have been fully implementing our commitments under the Agreement and we will continue to do so. We have every confidence that the last few cases will soon be dismissed; that the German companies will fulfill their obligation to contribute to the Foundation; and -- most importantly -- that the victims who have waited so long for some measure of justice will soon receive payments. A measure of justice for the victims should remain the primary focus of all parties.

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