East Germany Agrees to Pay Reparations to Nazi Victims

UNITED NATIONS — East Germany has agreed in principle to pay reparations to Jewish victims of the Holocaust, the executive director of the World Jewish Congress said today.

Diplomatic sources said the communist country’s refusal to pay reparations or accept legal responsibility for war crimes has been a major stumbling block in improving relations with the West and in receiving most-favored-nation trade status with the United States.

The World Jewish Congress and a spokesman for the embassy of the German Democratic Republic in Washington confirmed that talks are being held on reparations.

“I can say that talks are under way between the German Democratic Republic and interested organizations in the United States,” said Frank Mader, press officer of the embassy in Washington.

“But it was agreed to keep the contents of the talks confidential,” he said in answer to a question about the reparations issue.

Elan Steinberg, executive director of the World Jewish Congress in New York, said: “East German officials have told World Jewish Congress representatives that they are no longer opposed in principle to payments of reparation to victims of Nazism.

“That represents a significant shift in policy. Details have to be worked out, but it is a very positive development.”

Informed sources said Edgar M. Bronfman, president of the World Jewish Congress, has been invited to East Germany to meet its leader, Erich Honecker, and may be visiting this year.

The sources, who spoke on condition of anonymity, said the recent thaw in East-West relations has improved the atmosphere for such discussions. Hungary and Poland both have established low-level diplomatic relations with Israel following visits by Bronfman to both those nations.