[House Hearing, 109 Congress] [From the U.S. Government Publishing Office] REVIEW OF THE REPATRIATION OF HOLOCAUST ART ASSETS IN THE UNITED STATES ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON DOMESTIC AND INTERNATIONAL MONETARY POLICY, TRADE, AND TECHNOLOGY OF THE COMMITTEE ON FINANCIAL SERVICES U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED NINTH CONGRESS SECOND SESSION __________ JULY 27, 2006 __________ Printed for the use of the Committee on Financial Services Serial No. 109-113 U.S. GOVERNMENT PRINTING OFFICE 31-542 WASHINGTON : 2007 _____________________________________________________________________________ For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512�091800 Fax: (202) 512�092250 Mail: Stop SSOP, Washington, DC 20402�090001 HOUSE COMMITTEE ON FINANCIAL SERVICES MICHAEL G. OXLEY, Ohio, Chairman JAMES A. LEACH, Iowa BARNEY FRANK, Massachusetts RICHARD H. BAKER, Louisiana PAUL E. KANJORSKI, Pennsylvania DEBORAH PRYCE, Ohio MAXINE WATERS, California SPENCER BACHUS, Alabama CAROLYN B. MALONEY, New York MICHAEL N. CASTLE, Delaware LUIS V. GUTIERREZ, Illinois EDWARD R. ROYCE, California NYDIA M. VELAZQUEZ, New York FRANK D. LUCAS, Oklahoma MELVIN L. WATT, North Carolina ROBERT W. NEY, Ohio GARY L. ACKERMAN, New York SUE W. KELLY, New York, Vice Chair DARLENE HOOLEY, Oregon RON PAUL, Texas JULIA CARSON, Indiana PAUL E. GILLMOR, Ohio BRAD SHERMAN, California JIM RYUN, Kansas GREGORY W. MEEKS, New York STEVEN C. LaTOURETTE, Ohio BARBARA LEE, California DONALD A. MANZULLO, Illinois DENNIS MOORE, Kansas WALTER B. JONES, Jr., North MICHAEL E. CAPUANO, Massachusetts Carolina HAROLD E. FORD, Jr., Tennessee JUDY BIGGERT, Illinois RUBEN HINOJOSA, Texas CHRISTOPHER SHAYS, Connecticut JOSEPH CROWLEY, New York VITO FOSSELLA, New York WM. LACY CLAY, Missouri GARY G. MILLER, California STEVE ISRAEL, New York PATRICK J. TIBERI, Ohio CAROLYN McCARTHY, New York MARK R. KENNEDY, Minnesota JOE BACA, California TOM FEENEY, Florida JIM MATHESON, Utah JEB HENSARLING, Texas STEPHEN F. LYNCH, Massachusetts SCOTT GARRETT, New Jersey BRAD MILLER, North Carolina GINNY BROWN-WAITE, Florida DAVID SCOTT, Georgia J. GRESHAM BARRETT, South Carolina ARTUR DAVIS, Alabama KATHERINE HARRIS, Florida AL GREEN, Texas RICK RENZI, Arizona EMANUEL CLEAVER, Missouri JIM GERLACH, Pennsylvania MELISSA L. BEAN, Illinois STEVAN PEARCE, New Mexico DEBBIE WASSERMAN SCHULTZ, Florida RANDY NEUGEBAUER, Texas GWEN MOORE, Wisconsin, TOM PRICE, Georgia MICHAEL G. FITZPATRICK, BERNARD SANDERS, Vermont Pennsylvania GEOFF DAVIS, Kentucky PATRICK T. McHENRY, North Carolina CAMPBELL, JOHN, California Robert U. Foster, III, Staff Director Subcommittee on Domestic and International Monetary Policy, Trade, and Technology DEBORAH PRYCE, Ohio, Chair JUDY BIGGERT, Illinois, Vice Chair CAROLYN B. MALONEY, New York JAMES A. LEACH, Iowa BERNARD SANDERS, Vermont MICHAEL N. CASTLE, Delaware MELVIN L. WATT, North Carolina FRANK D. LUCAS, Oklahoma MAXINE WATERS, California RON PAUL, Texas BARBARA LEE, California STEVEN C. LaTOURETTE, Ohio PAUL E. KANJORSKI, Pennsylvania DONALD A. MANZULLO, Illinois BRAD SHERMAN, California MARK R. KENNEDY, Minnesota LUIS V. GUTIERREZ, Illinois KATHERINE HARRIS, Florida MELISSA L. BEAN, Illinois JIM GERLACH, Pennsylvania DEBBIE WASSERMAN SCHULTZ, Florida RANDY NEUGEBAUER, Texas GWEN MOORE, Wisconsin TOM PRICE, Georgia JOSEPH CROWLEY, New York PATRICK T. McHENRY, North Carolina BARNEY FRANK, Massachusetts MICHAEL G. OXLEY, Ohio C O N T E N T S ---------- Page Hearing held on: July 27, 2006................................................ 1 Appendix: July 27, 2006................................................ 39 WITNESSES Thursday, July 27, 2006 Able, Edward H., Jr., President and CEO, American Association of Museums........................................................ 15 Cuno, James, President and Director, Art Institute of Chicago, on behalf of the Association of Art Museum Directors.............. 19 Edelson, Gilbert S., Administrative Vice President and Counsel, Art Dealers Association of America............................. 17 Eizenstat, Stuart E., former Commissioner, Presidential Advisory Commission on Holocaust Assets in the U.S., Covington & Burling 10 Lillie, Catherine A., Director, Holocaust Claims Processing Office, New York State Banking Department...................... 26 Rub, Timothy M., Director, Cleveland Museum of Art............... 23 Taylor, Gideon, Executive Vice President, Conference on Jewish Material Claims Against Germany, Inc........................... 13 APPENDIX Prepared statements: Able, Edward H., Jr.......................................... 40 Cuno, James.................................................. 61 Edelson, Gilbert S........................................... 94 Eizenstat, Stuart E.......................................... 104 Lillie, Catherine A.......................................... 125 Rub, Timothy M............................................... 145 Taylor, Gideon............................................... 149 Additional Material Submitted for the Record Hon. Shelley Berkley: Copies of pictures drawn by Deena Babbott at Auschwitz....... 209 Hon. Carolyn B. Maloney: New York Times article....................................... 214 Responses to questions submitted to Gilbert S. Edelson....... 217 Hon. Debbie Wasserman Schultz: Responses to questions submitted to Gideon Taylor............ 221 REVIEW OF THE REPATRIATION OF HOLOCAUST ART ASSETS IN THE UNITED STATES ---------- Thursday, July 27, 2006 U.S. House of Representatives, Subcommittee on Domestic and International Monetary Policy, Trade, and Technology, Committee on Financial Services, Washington, D.C. The subcommittee met, pursuant to notice, at 10:00 a.m., in room 2128, Rayburn House Office Building, Hon. Deborah Pryce [chairwoman of the subcommittee] presiding. Present: Representatives Pryce, Leach, Kennedy, Maloney, Sherman, Wasserman-Schultz, and Frank. Also present: Representatives Kelly, Israel, and Berkley. Chairwoman Pryce. The Subcommittee on Domestic and International Monetary Policy, Trade, and Technology will come to order. Without objection, all members' opening statements will be made a part of the record. Mr. Frank. Madam Chairwoman? Chairwoman Pryce. Yes. Mr. Frank. Could I ask unanimous consent to have participation by one Member who is on the Full Committee, but not on the subcommittee, and one Member who is not on the committee, both of whom have a great interest in and knowledge of this subject, the gentleman from New York, Mr. Israel, and the gentlewoman from Nevada, Ms. Berkley. Chairwoman Pryce. Without objection, so ordered. Mr. Frank. Thank you. We will begin by thanking all of you who are here at this hearing to review the Repatriation of Holocaust Art Assets in the United States. I would like to thank Ranking Member Frank and Ranking Member Maloney for their work on the hearing, and for bringing to the subcommittee's attention the need to review this very important issue. I would also like to recognize the efforts of Mr. Leach over the years in keeping the focus on this, and he will be presiding later on in the morning. In 1993, and continuing through the second world war, countless pieces of art were looted throughout Europe. After being seized by the Nazis, some of the art made its way to the United States, funneled into American collections through various undetectable methods. In addition, some art remained in Europe, arriving in the United States several years after they were stolen. This committee held a series of hearings, led by then- Chairman Leach, from 1997 until 2000, to discuss the progress of returning the looted property to the victims of the Holocaust. At those hearings, witnesses from various organizations such as the American Jewish Committee, the Department of the Treasury, and museum representatives testified on the process of searching for the art and the difficulties in returning it. Although much progress was determined to have been made at that point, little attention since those hearings has been given to the restitution of the Holocaust artwork and other properties. It is my hope that this hearing can bring us up-to-date on efforts made by museums, and examine issues involving the ease of transporting art across international borders, such as the lack of public records documenting original ownership, the difficulty of tracing our transactions over many decades, and the lack of a central authority to arbitrate the claims for artwork. The struggles of the Jewish people affected by the Holocaust continue to this day, as survivors and their families struggle with governments and museums to recapture their heritage and their culture. Art is very personal, and each piece that is returned is a way to bring what was lost in those years back to them. So much of their lives, families, and homes were destroyed in the war that returning this art allows them to throw off the vestiges of the Holocaust in some small way. Each piece of art is a symbol of hope, a freeing of the spirit, and a healing of the soul. Many survivors spend years working to get their property returned, dogged by foreign governments and museums who will try to wait them out until they resign in defeat or pass from this world. The efforts of the U.S. museums who have such a rich and treasured history of support by the Jewish people has been inspirational. I commend the yeoman's work of the Museum Associations, the Conference on Jewish Claims, and the--New York to set up its own claims office. Although American museums hold but a small percentage of art that would qualify, they work tirelessly, using vital time and resources to research the problems of the art in their collections and build a searchable database. I appreciate the witnesses being here with us today, discussing this important issue, and I look forward to your testimony. Chairwoman Pryce. The ranking member of the Full Committee, Mr. Frank, is recognized. Mr. Frank. Thank you, Madam Chairwoman. I appreciate your having this hearing, and I want to again note the work that the former chairman of the Full Committee, the gentleman from Iowa, who joins us today, has done on this. I am very pleased to be having this hearing, and I do want to say at the outset that I think we should make it clear to everyone that this is not, in my mind, and I hope in the minds of our colleagues, anything adversarial, and certainly not prosecutorial. There are times when people on Congressional committees regard witnesses as opponents or potentially uncooperative. I think, as a result, in part, of some of the urging that members of this committee did under the gentleman from Iowa's leadership, but also because of the goodwill of people here, that we have made progress in working together. I was pleased in reading the summary that just came out of the Claims Conference, dated just a couple of days ago. Basically, what they said is, in summary, there has been some progress, but there is still a lot to do, and they acknowledge that, in principle, there was broad agreement here, and we need to work to keep it up, and I am pleased that is the spirit. Something uniquely terrible in human history happened 60 years ago and more, and we are still dealing with the consequences of that, not just of the lives lost but of the lives scarred, and those of us who are Jewish, particularly, feel scarred, also, indelibly by this experience. So, we come together to do what we can, not to undo what happened--that would be ridiculous to even talk about, but to the extent that it is humanly possible to mitigate the terrible effects, and I think it is important to recognize that yes, we are dealing with as emotional a subject as has existed in human history, and anyone who does not deeply feel this emotion is flawed, and our job is to make sure that the deep emotions we feel--that all of those things are kept in context and that they do not become reasons that we turn on each other, and the people here engaged in this are not each other's opponents. We are, I hope, people who are going to be working together on this small part of the task of addressing on an ongoing basis the terrible history of the Holocaust. So, I appreciate that sentiment. I want to acknowledge that the gentleman from New York, Mr. Israel, who is here, who has joined us, has had a particular interest in this, and as a member of our committee, the Committee on Financial Services, has been one of the ones taking the lead. I know our colleague, Ms. Berkley, has a particularly relevant situation in her own district with regard to an individual who was so tragically involved in this. Others who are here, the gentlewoman from New York, Ms. Maloney, and the gentleman from California, Mr. Sherman, have had an ongoing interest. So, I think this is a chance for Congress to be at its constructive best, to help be a catalyst to get people of good will together to work on a task which is both intellectually challenging and emotionally wrenching, and I hope we will all be able to go forward in that spirit. Thank you, Madam Chairwoman. Chairwoman Pryce. Thank you, Mr. Frank. Mr. Leach? Mr. Leach. Thank you, very much. First, I want to commend you for holding this hearing, and for your thoughtful opening statement. Also, Mr. Frank's words, I think, were as wise as any I have heard in this committee. In the late 1990's, this committee undertook a task of reviewing history, which is a very unusual thing for any Congressional committee. We worked closely with the Clinton Administration and particularly with one extraordinary figure in that Administration, who is with us today, Stuart Eizenstat, and I do not know of anyone on any issue who dedicated more effort, with greater professionalism, than Mr. Eizenstat did at that time. We all know of the depth of the Holocaust, as Mr. Frank has indicated. The committee attempted to undertake the examination, not just of the largest mass murder in history, but also the greatest mass theft in history. We looked at the dimensions of the holocaust from a mass theft dimension, which is our committee's jurisdiction, and we began with Swiss and other bank accounts. We looked at issues of gold, life insurance, and the whole spectrum of issues, of which, in one sense, art is a subset, and maybe even a footnote, but it is not a small footnote. Art is part of culture. Preceding the Holocaust, we had international law that suggests as much. One of the great quotations comes from a sculpturist named Emmerich de Vattel who wrote in the Law of Nations in the 18th century, ``For whatever cause a country is ravaged, we ought to spare those edifices which do honor the human society and do not contribute to increase the enemy's strength, and it is to call oneself an enemy to mankind to deprive people of monuments of art,'' and I think that is part of the aspect of why art is important. We all know there were the Nuremberg trials, which held, symbolically, a very few people accountable for genocide. These Congressional hearings have been duplicated and quite possibly precipitated by this committee's action in a dozen other countries in Europe and elsewhere. Each of these hearings has raised the notion of accountability, and the precept that there is not a statute of limitations on genocide. There are also monetary implications: there was a multi-billion-dollar recompense that Stuart Eizenstat negotiated. The settlement may be minuscule compared to the losses, but it is symbolic and profoundly significant. I will just conclude with this: WWII caused the greatest displacement of art in history. The notion that avarice might have played a small role in the mass genocide has to be looked at as more than a monetary issue. Genocide and theft go hand in hand, and that is why this committee entered this field. It is also why I think the Clinton Administration should be commended most highly for its effort to end this all by the end of the 20th century, which it largely succeeded in doing. But we are looking at elements that go beyond that, which is why this hearing is today. Thank you. Chairwoman Pryce. Our ranking member, my good friend, the gentlelady from New York. Mrs. Maloney. I would like to thank Deborah Pryce, the chairwoman and my good friend, for calling this incredibly important hearing. I also want to publicly congratulate Stuart Eizenstat for his commitment and really effective work with the Swiss bank accounts, with the art, with so many areas, and thank him for the support that he gave me with the Nazi War Crimes Disclosure Act, which has now been turned into a book, and is probably the biggest opening of records during that period for scholars, and I was proud to have authored it and passed it. I also particularly want to mention that one of my constituents, Catherine Lillie, is here from New York. Catherine is the director of the Holocaust Claims Processing Office of the New York State Banking Department, and she is representing Diana Taylor, our banking commissioner, and for 10 years, they have been assisting claimants, and do a very, very fine job. In the interest of time, I am going to place my comments in the record, but I do want to know that the Claims Conference noted that about a third of the museums did not respond to the survey, and those that did did not provide complete information, which is discouraging, and we need to work on that, but I am proud of one of the institutions that I represent, the Metropolitan Museum of Art, which was cited in a New York Times article, and I would like permission to place it in the record. Not only do we have to work to make museums and institutions comply, but we should also applaud those that have transparency and have obeyed the law and have responded to it and have worked hard on it. Chairman Leach, you played a very vital role in this, in creating this legislation in 1998, the Presidential Advisory Committee on Holocaust Assets, and I am indebted to you, as are many of my constituents, some of whom are Holocaust survivors. I often associate my comments with the distinguished ranking member of this Committee on Financial Services, Barney Frank, but today, I particularly would like to associate my feelings and support of his comments and be associated with them. Again, we have several panelists here. I thank the chairwoman for responding to the minority's request for representatives on this panel, and I request permission to place my long statement in the record, but I am really anxious to hear what our panel has to say today. Thank you for being here on this important issue. I yield back. Chairwoman Pryce. Without objection. We will recognize members for opening statements, and realize that your full statements can be submitted for the record, and because we have such a large panel, just ask you to be brief, if possible. Mr. Sherman. Mr. Sherman. Thank you for holding these hearings. They are important. I served with our distinguished witness, Stuart Eizenstat, on the Presidential Advisory Commission on Holocaust Assets in the United States, and as others have said, his tremendous work on this shows a real dedication. With 600,000 pieces of artwork stolen by the Nazis and their collaborators, obviously stolen art during the Holocaust is a very important problem, but an even greater problem are the other assets stolen during the Holocaust, during World War II, and even during World War I and the Armenian genocide that followed. We should recognize that in terms of a family portfolio, even in Europe last century, art would have been, for most families, a small percentage of their total assets, and that art, unlike almost everything else that you would invest in, is not centrally recorded. There are bad records or no records as to who owns all but the most valuable paintings. So, to put a value for restitution we would be able to achieve even if we worked diligently is modest compared to the total value of all the assets stolen in the Holocaust in World War II and the Armenian genocide. We are the Financial Services Committee, and I hope that we will focus on financial institutions, as well as brokerage accounts, bank accounts, and insurance policies. Right now, we have seen some restitution from the banks, but I have been very concerned about life insurance companies who have said that they sold policies to Armenians in the 1800's or the first decade of the last century and no one has made a claim, so they do not have to pay, or they sold policies in Poland to gentiles and Jews in the 1930's, and no one has made a claim, and they have not heard from the families, so they do not owe any money. I have introduced legislation, and I hope that we can move forward to hearings and markup on legislation that would require every insurance company doing business in this country and its European affiliates to simply post on a central Internet site a list of insurance policies, life insurance policies, where the insured is over 100 years old, where it is likely that the insured perished in the great tragedies of Europe and west Asia of the last century, and where families could come forward and show that they are the next of kin. The same steps should be taken with regard to bank accounts and brokerage accounts. I think it is important that we have these hearings on artwork, but the records are available, the power is in this committee. Every one of those major European companies wants to do business through affiliates here in the United States, and it is about time that we protect American consumers from companies so rapacious that they would sell policies and then hide behind the Holocaust so that they do not have to pay. Chairwoman Pryce. The gentleman's time has expired. I ask unanimous consent that Ms. Kelly be permitted to deliver an opening statement. No objection. So ordered. The gentlelady is recognized. Ms. Kelly. Thank you very much, Chairwoman Pryce, for allowing me to come to the hearing. Your commitment to ensuring that the victims of Nazi tyranny can reclaim the possessions that were stolen from them so long ago is really to be commended. As all of our witnesses know, the Nazi leadership had a unique relationship with the artistic world. Their hatred of modernity and the work of Jewish artists and writers did not stop them from illegally acquiring some of the largest art collections in the world, not only for resale but for personal display in such places as Hermann Goering's Carin Hall and Hitler's planned Nazi Art Museum in Linsk. Specific orders were issued to military and paramilitary forces entering occupied territories to seize, survey, and transfer collections of art and music to the Third Reich. This pillage, unseen since the fall of the Roman Empire, stripped tens of thousands of Jewish families of their possessions. Many have not been recovered and are still in the hands of private collectors and art museums worldwide. This committee has an important responsibility to ensure that not only do we return this art to its rightful owners and their heirs but that we do more to stop the smuggling of art, and especially the use of art as a means of moving value between nations. Thanks to the diligent work of Chairman Oxley and others on the financial offenses against terrorists using our banking system, we are stronger than we have ever been. Unfortunately, terrorists and money launderers have responded and are increasingly using the smuggling of cash, gold, and diamonds. Of particular interest to this subcommittee will be the fact that they are also using the movement of higher value goods such as art to move terrorist money. Items of high value and high density store a value that has a ready market worldwide. Numerous reports exist that money launderers are using the art world as a safe way to do business. I would ask each of the witnesses from the art and curatorial industries to discuss what procedures they have in place to detect money laundering in the sale and purchase of art. Again, I compliment you on holding this important hearing, and thank you for allowing me to sit in. Chairwoman Pryce. The gentleman from New York, Mr. Israel, is recognized. Once again, members can put their entire statements in the record, and please be brief. Mr. Israel. Thank you, Madam Chairwoman. That is exactly what I intend to do, and to repay you for the courtesy of allowing me to sit in on this hearing, although I am not a member of the subcommittee--the reason I asked to participate in the hearing is because this issue, for me, is personal. Before my election to Congress, I founded and organized the Institute on the Holocaust and the Law, which explored the role of judges, lawmakers, lawyers, and law schools in advancing the Holocaust. Prevailing up to recent times was that the Holocaust was an act of lawlessness. It was not an act of lawlessness, it was an act of law, and it was a collective act of law and decrees and decisions organized, created, and codified in order to discriminate, annihilate, and confiscate, and that involved not just lawmakers but art dealers, museums, businesses, and insurance companies. Throughout my experience with the Institute on the Holocaust and the Law, I often asked myself, what would I have done then if I were in a position of power to help? Well, there is nothing that I could do about what happened then. This venue gives me an opportunity to do something now. This is one of those lingering issues that still requires justice and still requires an aggressive response by the U.S. Congress and the Administration, and that is why I have asked to participate in this hearing. Again, I want to thank the chairwoman and our ranking member, Mr. Frank, for their support. I was pleased to join the letter requesting this hearing, and I look forward to hearing the views of our panelists. Thank you, Madam Chairwoman. Chairwoman Pryce. Thank you. We welcome your participation. Ms. Wasserman-Schultz, do you have a statement? All right. Mr. Kennedy? Okay. Ms. Berkley? Ms. Berkley. Thank you, Madam Chairwoman, and I appreciate the courtesy that you and Mr. Frank have extended me to allow me to participate. When we talk about this issue as being very personal and emotional, I certainly believe we can all agree on that. I want to share with you very briefly a story that is very personal to me. I have been in Congress now for 8 years. During my first year, I received a visit from a woman whose family lives in my Congressional district, and this is her story. She is a Czechoslovakian Jew. In February of 1943, this woman, at the age of 20, was shipped to Auschwitz, along with her mother and 3,600 other Czechoslovakian Jews. By the time the war was over, there were only 22 Czechoslovakian Jews left, and Deena Babbott and her mother were 2 of the 22 that managed to survive. The way she managed to survive is that Deena Babbott, at the age of 20, was a very talented artist, and she had painted a Disney character or a few of the characters on the barrack walls of the children's barrack at Auschwitz. Josef Mengele saw her art, and he asked her, told her, ordered her to start drawing pictures of the gypsy inmates. What he would do--the reason he could not take photos of them is because he could not capture in the photos of those times the skin tone of the gypsies, and he wanted Deena Babbott to do this. What he would do is point out gypsy inmates at Auschwitz and have her draw them. When she completed the drawing, he would have the gypsy killed. Now, Deena drew--there are seven of her drawings that remain. When she was liberated, obviously she and her mother left Auschwitz rather quickly, like everybody else. She did not take her art with her. It was not hers at the time, although she had created it, to take with her. Many years later, in the 1970's, Deena Babbott was contacted by the Polish Government. They had discovered her art in a broom closet at Auschwitz, and they asked her to come and authenticate the art. She was under the impression that she was going to Poland to reclaim her art. She is absolutely convinced that the only thing that kept her and her mother alive was the fact that Mengele thought she was of some value. It is these pictures that saved her life. The Polish Government has refused to give Deena Babbott her artwork back. Now, when I was part of the delegation that Mr. Israel and I, I guess, were a part of that, that represented Congress at the 60th anniversary of the liberation of Auschwitz, we, in fact, saw Mrs. Babbott's art, and what they told me--there are seven pictures remaining, and I've got them here, if you're interested. I would like to submit them for the record. I think she is entitled to her art back. Now, she has agreed to compromise with the Polish Government and only take three of the seven, at her selection, and we still cannot get them. I have gotten a resolution from Congress saying that this art is her artwork. We have put something in the Authorization Act saying that the Polish Government ought to return this art. I am at my wit's end, and I think this woman is entitled to her art as much as any family that lost their art and had it confiscated. There is nothing more personal than something that was created by her hand. Chairwoman Pryce. The gentlelady's time has expired. Ms. Berkley. I would appreciate any guidance you could give me to make this happen for this woman before she passes away. Thank you very much. Chairwoman Pryce. Thank you. Now, the reason we are here is to hear from you, and I would like to introduce our panel at this time, and we will start to my left, and that is the order in which you will testify. Mr. Stuart Eizenstat is a former commissioner for the Presidential Advisory Commission on Holocaust Assets in the United States, and we have already heard much about your good work, sir. Mr. Gideon Taylor is the executive vice president for the Conference on Jewish Material Claims Against Germany. Welcome. Mr. Edward Able is the president and CEP of the American Association of Museums. Mr. Able, welcome. Mr. Gilbert Edelson is the administrative vice president and counsel at the Art Dealers Association of America. Mr. Jim Cuno is the president and director of the Art Institute of Chicago. He is here today on behalf of the Association of Art Museum Directors. Mr. Timothy Rub is the director of the Cleveland Art Museum in the great State of Ohio. Our final witness, Catherine Lillie, is the director the Holocaust Claims Processing Office in the State of New York Banking Department. Mr. Frank. Madam Chairwoman, I have to leave, but I just wanted to commend the majority and minority, and particularly our staffs, who do all this work, for putting together really a first-rate panel. I am just impressed, as you read off the names, of how well we have represented that spectrum. It is always a pleasure to have Mr. Eizenstat, who has contributed so much, but to all of you, I am grateful for your being here, and I think we have really achieved what we would like to, which is a very balanced and thoughtful panel, and while I have to leave, I want to express my appreciation to all of them for joining us. Chairwoman Pryce. Thank you, Ranking Member Frank. Without objection, all of your written testimonies will be made a part of the record. Each of you will be recognized for 5 minutes for a summary of your testimony, and we will begin with Stuart Eizenstat. STATEMENT OF STUART E. EIZENSTAT, FORMER COMMISSIONER, PRESIDENTIAL ADVISORY COMMISSION ON HOLOCAUST ASSETS IN THE U.S., COVINGTON & BURLING Mr. Eizenstat. I want to thank the leadership of the committee for holding these hearings and the Claims Conference for championing them. The hearings will bring renewed attention to the restitution of art looted by the Nazis during World War II, which, after a burst of activity in the late 1990's, has lost momentum and threatens to fall off the pages of history, particularly abroad, where most nations lack the continued commitment shown by the American Association of Museums. At a time when almost all other Holocaust-related restitution and compensation matters have been completed, or are nearing completion, Holocaust-era art recovery remains a major unresolved challenge. There is a certain art restitution fatigue that has set in, particularly in many foreign countries, and I hope these hearings will change that process. Our work on art restitution in the Clinton Administration was part and parcel of our negotiations over the recovery of bank accounts, property, insurance, and slave-enforced labor compensation. While the looting of artworks is as old as war, like the Holocaust itself, the efficiency, brutality, and scale of the Nazi art theft was unprecedented. As many as 600,000 paintings were stolen, of which 100,000 are still missing some 60 years later. There was nothing casual about this massive plunder; it was well organized. Hitler viewed the amassing of art as a necessary project in his creation of an Aryan master race, and the cultural centerpiece of his Thousand Year Reich was to be a Fuhrermuseum in Linz, Austria, where he was raised. In my lengthy written statement, I have provided, as I was asked by the committee, a history of how the issue of art restitution, long forgotten for decades, suddenly thrust itself on the world's agenda. Suffice it to say here they were doing the work of four academics, a barred college seminar in 1995, the adoption of principles of art restitution by the American Association of Museum and Museum Directors, under the part of Chairman Leach at the 1999 hearings, our work in the Clinton Administration, leading to the adoption by 44 countries of the Washington principles of art at the 1998 Washington conference on Holocaust-era assets, which, in effect, internationalized the AAM principles. Congressman Leach was part of our team. He presided over the art portion of that conference, and deserves our unwavering thanks. I also want to thank Ed O'Donnell and John Becker of the State Department's Holocaust Era Assets Office for their continuing interest. These Washington principles, Madam Chairwoman, changed the way in which the art world did business. They required museums, governments, auction houses, and others to cooperate in tracing looted art through stringent provenance research to put the results in an accessible form, to be lenient in accepting claims, and to adopt a system of conflict resolution to avoid protracted litigation. I'll spend the bulk of my testimony, as I did in my written testimony, on developments abroad, but let me say the following, in a paragraph or two, at home. Under the leadership of the AAM and the AAMD, many American museums and virtually all major American museums have demonstrated a real commitment to implementing our Washington principles, as well as their own. They have created, for example, a Nazi era provenance information Internet portal, a tremendously important, searchable central registry, so people can go to one place that will then connect to over 150 museums. There are now 18,000 objects from 151 participating museums on that portal, but as the Claims Conference survey indicates, there is still much work to be done, with half of the AAM membership not yet participating and with a potential universe of at least 140,000 covered objects. I also want to applaud the work of the New York State Holocaust Claims Processing Office, created by Governor Pataki, which has led to the return of 12 pieces of art. I want to note that litigation since the U.S. Supreme Court case of Maria Aldman is another potential avenue. In the United States, the focus should be on art dealers, since it is in the commercial art market where most Holocaust- era art is sold. Art auction houses like Christy's and Sotheby's, which have to publish their catalogs and they have public auctions, have done a commendable job of implementing the Washington principles, with dedicated full-time experts at Sotheby's and Christy's on the restitution effort. I am pleased to learn from Mr. Gil Edelson that the Art Dealers Association of America has, contrary to my understanding in my written statement, adopted principles and best practices for the art dealers. I would say to you, Gil, that this is a well-kept secret, and I hope that it will be published. I have relied on some of the best experts in the world who are unaware of this. I think it is a tremendously important thing that you have done, and I would only ask that you make more public use of it and implement it thoroughly. So, I congratulate you on the fact that you did, and I hope that they will be better published. Let me make the following concrete suggestions for the Congress in the U.S. area: First, encourage all American museums that belong to the AAM to complete and regularly update their databases and to have all 140,000 covered objects on the central portal within 3 years. Second, encourage American museums who litigate cases to do so on the merits rather than on technical defenses like the statute of limitations. Third, encourage the Art Dealers Association to give the widest publication and the broadest implementation to the guidelines which, again, I am pleased, Gil, to learn this morning that you have published in 1998, and importantly, to pass bipartisan legislation to create a federally funded memory foundation. There is a bill pending to do this, to assist U.S. citizens in pursuing Holocaust-era claims, including for art, as the New York State office is doing. And suggestions for abroad: While American museums still have additional work to do, their progress is light years ahead of other countries abroad, who are signatories to the Washington principles. There are bright spots, like Austria and the Netherlands, but the vast majority have done no provenance research at all, or only on a limited basis, and have large quantities of looted art or cultural property in Europe that is unidentified. Where countries have published databases abroad of potential Holocaust looted art, it is in inaccessible languages, lacks the detail necessary for each identification, and is not based on any comprehensive provenance standards. There is no international centralized database like the one the U.S. museums have created. Only four countries have national processes for resolving claims, and most, including the U.K., Italy, Hungary, and Poland, have absolutely no restitution laws, so that even if art is identified, there is no realistic way to have it returned, as well as strict time limits on claims. I have detailed the status, Madam Chairwoman, and members of the committee, of implementation of the Washington principles on a country-by-country basis in my testimony. Suffice it to say here that the real focus should be on a few key countries which have the largest quantity of Holocaust looted artworks: Russia, Germany, France, Hungary, Poland, the Czech Republic, and Switzerland. Russia, for example, has refused to follow through on their commitments or to follow their own law, which is actually, on its face, a positive law for restitution. German museums have ignored repeated pleas from the German Government at the federal, provincial, and municipal levels to do basic provenance research. Where it has been done by a few museums, it has been a great treasure trove of identifying art. Some of my recommendations for what I would ask you to do for the countries abroad: One, convene an international conference in 2007 for the 44 countries who signed the Washington principles to encourage foreign governments to implement the principles by doing serious provenance research based on internationally accepted standards to publish an accessible database, to work cooperatively with claimants, and to avoid using technical defenses to block claims. Second, for the Executive Branch, at senior levels, to work bilaterally with Russia, Germany, in particularly, but also with France, Poland, Hungary, and Switzerland, to make progress and open up their archives. Third, to work to create an international Internet art restitution portal managed by a neutral intergovernmental body into which all nations, museums, art dealers, and auction houses could place their provenance research. This would be the single most effective step, Madam Chairwoman, for restitution abroad. And finally, to urge foreign governments to develop transparent procedures to handle claims fairly, justly, and on the merits, without technical defenses. In conclusion, if the U.S. Government and this Congress does not take the lead, as Chairman Leach did before, and as we did in the Clinton Administration, then, indeed, art restitution abroad will revert to the dormant status it had 50 years ago, and art fatigue will continue. [The prepared statement of Mr. Eizenstat can be found on page 104 of the appendix.] Chairwoman Pryce. I really thank you for your testimony, and we will read it in its entirety, and we will continue on with Mr. Gideon. Thank you. STATEMENT OF GIDEON TAYLOR, EXECUTIVE VICE PRESIDENT, CONFERENCE ON JEWISH MATERIAL CLAIMS AGAINST GERMANY, INC. Mr. Taylor. Thank you, Chairwoman Pryce, and members of the subcommittee. Art is about family, it is about memory, and it is about history. It is about the history of paintings and drawings and sculptures, but more importantly, it is about the history of people. For many, it is the last tangible connection with a past that was destroyed and with a family that was lost. The looting of art by the Nazis was a systematic, widespread, unrelenting extension of their racial theories. The Jews who were to be exterminated in body were also to be plundered of all their assets. During the past decade, this committee has established itself as a leading force in the attempt to secure a measure of justice for Holocaust victims and their heirs. On their behalf, we applaud your continuous efforts. Without information regarding looted artworks, survivors and their heirs will not know where to look, and the last opportunity we will have to right a historic injustice will be gone. The average age of Holocaust survivors is over age 80. The generation of the survivors is slipping away, and with them will go the personal recollections and memories that may help connect a family with its past. The report of the Presidential Advisory Commission, as well as other experts, have described how, despite efforts to prevent it, some looted art made its way to the United States during and after the war. The Washington Conference on Holocaust Era Assets, initiated by Deputy Secretary Eizenstat and hosted by the State Department, at which the Claims Conference participated, established a set of international principles. The common thread that runs through those international commitments is the need, firstly, to identify looted art; secondly, to publicize such items; and thirdly, to resolve the issue of its return in an expeditious, just, and fair manner. Guidelines were adopted by the American Association for Museums. We applaud the AAM and the AAMD for undertaking this major effort. In an important development, a special Web site was established by the AAM to provide a searchable registry of objects. Seven years have now elapsed since the Washington conference. In order to obtain an overview of what has been achieved, in February 2006, the Claims Conference sent a survey to 332 art museums throughout the United States. All responses were made publicly available on a Web site. In general, while some museums had made excellent progress, others had lagged behind. We welcome the progress that has been made, and look forward to the rapid completion of this task. In many cases, looted art is in the hands of private individuals, and often, the only time it is known to the general public is when it changes hands. We also, at last, learned today of guidelines for art dealers on these issues, and would urge that they be made publicly and widely available so the claimants will be aware of their contents. We also would request that procedures regarding how provenance research is done, in what way and in what manner, be adopted by the appropriate organizations of dealers and also be made publicly and widely available. When dealers learn that an object may have been looted, we believe that there should be an obligation, rather than a discretion, as included in the guidelines presented today, to inform the appropriate authorities. This would be the most effective step to ensure that looted items do not become part of the U.S. art market. In addition, although purchases often involve client confidentiality issues, we believe that the restitution of looted art raises sufficient moral questions that, for this small group of transactions, records of previous and prospective purchases and sales should be fully and completely accessible to claimants. In light of the unique concerns related to Holocaust-era restitution issues, we believe that ways to deal with claims need to be found outside of the courts, and perhaps through a central panel system, especially given the age of the claimants. The Claims Conference is also creating a limited database on looted items based on Nazi records. This will certainly not obviate the need for provenance research from museums and art dealers, but we believe that it can be a significant additional component of the steps to be taken when provenance of artwork is researched. In conclusion, while there has been significant progress, there is clearly more to do. Since the Washington conference, a number of other countries have been dealing with the Holocaust-era looted art, as we have heard. The progress in this area varies greatly from country to country, but generally has been disappointing. We urge greater efforts in this area. The United States has in the past, and can in the future, show leadership in this field. In view of its distinguished role in reviewing these issues in the past, we respectfully urge this committee to take the following steps in the future: First, to maintain its oversight of the progress in the United States in carrying out the agreed national and international principles; second, to strongly encourage the private art community in the United States to implement these principles with regard to provenance research and handling of claims; and finally, to encourage the U.S. Government to make a renewed effort regarding this issue in its discussions with governments in Europe and around the world. We also believe that an international conference on this subject would be tremendously important. We thank this committee for its efforts in the past, and request your involvement in the future. Thank you. [The prepared statement of Mr. Taylor can be found on page 149 of the appendix.] Chairwoman Pryce. Thank you very much for your testimony. Mr. Able. STATEMENT OF EDWARD H. ABLE, JR., PRESIDENT AND CEO, AMERICAN ASSOCIATION OF MUSEUMS Mr. Able. Chairwoman Pryce, Representative Maloney, and members of the subcommittee, I'm Ed Able, president and CEO of the American Association of Museums. The topic of today's hearing is one that is complex and difficult to distill into a 5-minute presentation, but as you indicated, Madam Chairwoman, my entire statement and many attached documents are at your disposal. First, I would like to be clear that we share with the Claims Conference a strong passion for, and commitment to, correcting the injustices to the victims of the Holocaust. The museum community has taken thoughtful and aggressive steps befitting the seriousness with which we take this issue. Briefly, today, there are four key areas that I would like to focus on in my oral testimony. At the end of the statement, I will respond to two additional questions raised in your invitation. First, guidelines for museums. After extensive consultation with the museum field, legal experts, and the President's Advisory Commission on Holocaust Assets, AAM published its guidelines in the fall of 1999, and amended them in the spring of 2001. This document and the Association of Art Museum Directors report in spring 1998 represent the standards for the museum community. Second, technical information and training. It is very important to understand that, in 1999, there were very few museum professionals trained in the highly specialized and unusual research skills necessary to conduct Nazi-era provenance research, and few people with the experience and language skills required to investigate recently opened archives and other information sources. AAM commissioned three of the world's leading experts to write a 300-page state-of-the-art how-to manual which immediately became the ``bible'' for the field. AAM also embarked on a multi-year training program designed to spread technical information throughout the field. We have conducted seminars at the National Archives, convened an international research colloquium, presented education sessions at all of our annual membership meetings, and launched an online discussion forum for museum professionals conducting provenance research. Third, let us talk about research. It is expensive. For objects with no prior indication of Nazi looting, the costs range anywhere from $40 to $60 per hour, and the time needed to document just one object can vary enormously, from a week to a year, and if initial research suggests an object has a history that may include unlawful appropriation by the Nazis, time and expense can double or triple. One museum spent $20,000 plus travel and expenses over the course of 2 years to have a researcher resolve the history of just three paintings. Fourth, sharing the results with the public. Parallel with our training efforts and technical information, AAM fulfilled the museum community's commitment to create a central, searchable, online database for publicly sharing collections information and provenance research. In September 2003, AAM publicly launched the Nazi-era provenance Internet portal, which has been broadly reported in the media. The portal now includes more than 150 participating museums that have collectively registered more than 18,000 objects from their collections that meet the definition of covered objects, a comprehensive and objective definition recommended by the claimants' advocates. That is, any object that may have changed hands in continental Europe between 1932 and 1946 under any circumstances. Thus, finding an object on the portal simply means that it may have been in continental Europe between 1932 and 1946, and may have changed hands one or more times. It is important to have a clear understanding of this definition, which is easily misunderstood and can unintentionally taint thousands of objects as, ``Nazi loot.'' To illustrate, I will offer an example. A photographer working in Paris in 1934 takes a picture and makes 20 prints. He sells those prints to 20 customers, one of which is a U.S. museum. Even though the photo has an ironclad provenance and no taint of looting, it is, and always will be, a ``covered object.'' The willingness of museums to work with this broad definition for covered objects is a testament to our commitment to public transparency. So, how many potentially looted objects are located in U.S. museums? Prior to the 1970's, the entire art trade was conducted on a centuries-old tradition of handshake deals and little or no paperwork, resulting in enormous provenance gaps. However, after several years of intensive activity by the museum field, I can state with confidence, not many. After 8 years of museum research and more than 100,000 searches through the portal, there have been 22 public settlements concerning Nazi-era looting claims for works of art found in American museums, and six pending cases. Our greatest concern for completing provenance research is financial resources, particularly for small and medium-size museums. AAM encourages Congress to consider appropriating additional funding to the Institute of Museum and Library Services aimed specifically at provenance research. Finally, with respect to the claims process, experience with previously settled cases clearly demonstrates that direct respectful engagement between museums and claimants leads to the most rapid settlement of meritorious claims with the least cost to all, and there is, in our view, no better system. I thank you for your attention, and I am happy to respond to any questions during the colloquy. [The prepared statement of Mr. Able can be found on page 40 of the appendix.] Mr. Leach. [presiding] Thank you, Mr. Able. Mr. Edelson. STATEMENT OF GILBERT S. EDELSON, ADMINISTRATIVE VICE PRESIDENT AND COUNSEL, ART DEALERS ASSOCIATION OF AMERICA Mr. Edelson. I thank the committee for its invitation to appear this morning, and I hope that my testimony will be helpful to you. I have submitted written testimony which I suggest be made part of the record. We deal today with a very serious problem, a serious and difficult problem, the looting of art during the Nazi era, one of the most horrible periods in the history of mankind. For many years, we did not face this problem, but in the 1990's, as a result of the efforts of some really outstanding people, one of whom, Stuart Eizenstat, is seated here today, we began to deal with the problem with the seriousness and intensity that was previously lacking. This committee held hearings in 1998 on the subject. The hearings were chaired by Congressman Leach, who won the respect of the art community for his deep and sympathetic knowledge. I was one of the witnesses then. Now, as I understand it, we are dealing with a follow-up to those hearings. The ADAA is a not-for-profit organization of dealers in works of the fine arts--paintings, sculpture, and works on paper. It is selective in its membership; it has 165 members across the country. We are, and have been, concerned about the problem of art looted during the Nazi period. Shortly after the committee's hearings in 1998, the association, after consulting with its members, issued its guidelines regarding art looted during the Nazi era. They were, we thought, publicized and made widely available, but not everybody was interested, and it appears that memories are short. Having heard the testimony this morning, I think we will re-issue the guidelines, and we will send copies to Christy's and Sotheby's, the auction houses, who have become very important dealers through their private transactions, and we hope that the guidelines would cover the auction houses, as well. The guidelines are recommendations. They set a standard for professional behavior, but they are really based on common sense. I have attached a copy of the guidelines to my written testimony so that you will have them in full. In summary, they deal with two situations; what a dealer should do with respect to consignments and sales, and what a dealer should do with respect to claims of ownership that may be asserted in connection with objects they have for sale or may have sold. The guidelines say that, when the Nazi-era provenance is incomplete, the dealer should do the necessary research. The problem here, of course, is that the necessary research is time consuming and could be very expensive. If there is sufficient evidence of looting, the dealer should not acquire the work or offer it for sale, and should notify the seller. Depending on the facts, additional steps may be necessary, such as notifying others of the dealer's findings. All claims of ownership should be handled promptly and with seriousness and respect. If the work is presently being offered for sale, it should be withdrawn until the claim is resolved. If the dealer has sold the work in the past, the dealer should make available such records as will serve to clarify issues of ownership. Finally, when reasonable and practical, dealers should seek equitable methods other than litigation to resolve claims. This makes good sense. Litigation, I can tell you from my personal experience, is time consuming and can be very costly. There are alternative methods of dispute resolutions, such as mediation, which I strongly recommend. I have mediated several disputes in this area, and the results have been more than satisfactory. I believe that dealers have been careful in what they offer for sale. I know at least one litigation involving an ADAA member, now retired, who sold a work many years ago that was now claimed to have been looted. Although the dealer was advised that he had a number of solid defenses, he settled the matter promptly and satisfactorily. I can also testify that I have personal knowledge of a number of situations where dealers declined to sell works, not because they knew that the works were looted but because they were not certain that the works were not looted, because there were unanswered questions about the works. No responsible dealer wants to sell a looted work. First, it is not the right thing to do; and second, it is not good business. You do not want to sell a possible problem to someone who is spending a great deal of money, especially in an industry where people love to talk. As I have said, many problems of provenance will never be solved. We may never know for sure. For the reasons I have set forth in my written testimony, many works have gaps in their chains of title. Provenance research, as I have said, is difficult, and all too frequently, it is unrewarding, but it is the only tool we have. Finally, there are no records to quantify the number of looted works that have been sold in this country over the years. There are not even any Census Bureau figures on how much art is sold every year. The Census Bureau does not gather information in this field, although it does in other industries. Whatever we may guess, the problem exists. ADAA's position is simple and straightforward: Looted art should be returned to its rightful owners, and dealers should cooperate, to the extent possible, in these efforts. Thank you. [The prepared statement of Mr. Edelson can be found on page 94 of the appendix.] Mr. Leach. Thank you very much, Mr. Edelson. Before turning to Mr. Cuno, let me place on the record that I am personally very indebted to Mr. Cuno for his museum's generosity in lending America's Gustav Klimt--that is, the Grant Wood's American Gothic--to a museum here in Washington. Your museum has led the country in the area that we are discussing today in terms of the provenance research on Holocaust-era work. It has also led the country in generosity, and I am very appreciative to the Art Institute of Chicago. Mr. Cuno. STATEMENT OF JAMES CUNO, PRESIDENT AND DIRECTOR, ART INSTITUTE OF CHICAGO, ON BEHALF OF THE ASSOCIATION OF ART MUSEUM DIRECTORS Mr. Cuno. Thank you, Congressman. My name is Jim Cuno, and I am president and director of the Art Institute of Chicago. I testify today on behalf of the Association of Art Museum Directors, where I served as president of the board in 2000 and 2001, and on behalf of the Art Institute, where I have been president and director since 2004. I thank the committee for holding these hearings. It is important that Congress and the American people have periodic updates on the work U.S. art museums are doing to research the provenance records of works of art in our collection, especially those which may have been looted during World War II and not restituted to their rightful owners. It is my understanding that today's hearing is the second such hearing since the committee's initial hearing under then- Chairman Congressman Leach 8 years ago. In addition, AAMD testified before the Washington Conference on Holocaust Era Assets in 1998. I am a child of a 30-year career U.S. Air Force officer. My father served in World War II, the Korean War, and the Vietnam War. He was taken prisoner during the Korean War, and for the greater part of a year, we did not know if he was alive or dead. I am aware of the physical and psychological trauma of warfare, and like everyone, I deplore the circumstances during World War II that resulted in the unjust deaths of millions of people and the illegal taking of their personal property. All of us want to resolve any and all legitimate claims against U.S. art museums regarding the possible existence within our collections of works of art looted during World War II and not restituted to their rightful owners. To that end, we have been diligently researching our collections since and even before this committee first met on the subject in 1998. AAMD, which has approximately 170 members and was founded in 1916, has been a consistent champion of the highest standards for art museums, standards that enable art museums to bring important works of art to the public we serve. Since 1973, AAMD has included in its professional practices in art museums the admonition that museums must not acquire works that have been stolen or removed in violation of a treaty or convention to which the United States is a party. In 1998, AAMD published its much-praised report of the AAMD task force on spoliation of art during the Nazi World War II era, which gives specific guidance regarding provenance research and how to handle claims. I was pleased to have served on the committee that drafted those guidelines. As early as 1999, 100 percent of the AAMD members who had collections that could include Nazi stolen art reported that they had begun in-depth research required by the AAMD report. That research is now available on each museum's Web site, which, in turn, is linked to the AAM portal. Of all of the art museums in the United States, approximately half have no permanent collection or have collections of only contemporary art. By definition, these hundreds of art museums cannot have Nazi-era looted art in their possession. Thirty percent of the AAMD's 170 member museums fall into this category. The 120 AAMD member museums that may have Nazi-era looted art in their collections have collections comprising 18 million works of art, many thousands of which were acquired before World War II. Unlike eastern and western Europe, the United States was never a repository for any of the 200,000 works of art recovered after the war. Any Nazi-era looted art that may be in U.S. art museums is there as a result of second-, third-, or even fourth-generation good-faith transactions. I mention this only to remind us of the scale of the potential problem in this country. The likelihood of there being problems in U.S. art museums is relatively low. Nevertheless, the amount of research to be undertaken on the tens of thousands of works of art that, by definition, may have Nazi-era provenance problems is significant, requiring large allocations of staff time and money, allocations U.S. art museums have made, and will make, until the job is finished. Of the tens of thousands of potential problems in U.S. art museums' collections, only 22 claims have resulted in settlements of the restitution of works of arts from U.S. art museums since 1998, some of these at the initiative of the museums themselves, others in response to claims on works of arts by their rightful owners, and I refer to Appendix A in my written testimony. In the most recent case of restituted art, the Kimbell Art Museum in Fort Worth, Texas, returned its only painting by the celebrated and important English landscape painter, Joseph Mallord William Turner to the heirs of a legitimate owner. The Kimbell, which purchased the painting in 1966, was contacted by one of the heirs in September 2005, after the heirs' decade-long search to restore to his family works of art that had been part of a forced sale. After reviewing the documentation of the heirs and conducting its own research, the Kimbell Art Museum determined that the painting had been part of a forced sale and that the heirs did represent the legitimate owner. On May 17, 2006, the Kimbell agreed to restore the painting to the heirs, who have since taken physical possession of it. In another case in 2002, the Detroit Institute of Art had a painting shipped from a dealer in London for further study pending acquisition. In researching the work, the museum suspected that it may have been looted during the Nazi era and not restituted to its rightful owner. The museum contacted the London dealer. After 18 months of intensive examination of archives in several countries, it was determined that the work had, indeed, been looted by the Nazis. Incurring substantial legal fees for a painting it did not own, the museum continued its efforts to locate the heirs of the original owner. It eventually found the owner, who then sold the painting to the museum for full market value. Let me now testify quickly on behalf of the Art Institute of Chicago, if only as further illustration of how U.S. art museums are addressing this important issue. Our permanent collection includes some 250,000 works of art in 10 curatorial departments. Our efforts focused especially on Holocaust-era provenance questions began with a survey of our collection in 1997, even before the AAM issued its guidelines and before the AAMD report and the Washington conference principles of 1998. Our 1997 survey sought to determine the number of paintings, sculptures, and drawings in our collection that were created before 1946 and acquired by the museum after 1932. Our survey thus exceeded the expectations established in the AAM and AAMD guidelines, which suggested that the initial focus of research should be European paintings and Judaica. At present, based on our current database search capabilities, we estimate that our collection includes 7,481 works of art made before 1946 and acquired by the museum after 1932. Our curatorial staff has analyzed whether, in addition to being made before 1946 and acquired by the museum after 1932, the work of art underwent a change of ownership between 1932 and 1946, and was or might reasonably have been thought to have been in continental Europe between those dates. This is the definition of a covered object, as you know very well. Although our research is constantly ongoing, our curatorial staff has determined that 2,832 of the 7,481 works of art fall within this definition. All of the objects of the provenance research project pages of our Web site are accessible through the AAM's Nazi-era provenance Internet portal. Nearly 2,000 of the 2,832 works of art in our collection that meet the terms of our inquiry will be posted in full on our Web site, together with all of their provenance information in which we are confident, this September, in a much improved searchable database, and I refer again to my written testimony which has pages from the Web site, so you can see exactly how that is. In addition to providing information about our collection, our Web site contains information on provenance bibliography to help guide people in their own research in their own collections or other museums in their research. Provenance research is an integral part of the work of the Art Institute of Chicago's staff and all curatorial departments. Such research is performed on a daily basis. In addition to ongoing research efforts in the departments, we maintain an inter-departmental provenance committee comprising curators, researchers, library staff, and other staff with relevant skills and knowledge that meets to share information and focus efforts specifically on Nazi-era provenance research. Funding for provenance research comes from our operating budget, department funds, gifts from individual donors, and grants for projects that include provenance research as a fundamental, but not sole, piece of the project. All together, since 1998, we have spent well over half-a-million dollars researching our provenance records, not to mention the annual operating funds we use for the salaries of permanent professional staff, including conservatives, curators, registrars, photographers, Web masters, and lawyers, who spend a part of each year on this project. We have hired long-term researchers and project researchers. We have sent them to Europe to consult archives, and we have purchased copies of archival materials. The Art Institute strives to resolve claims of ownership in an equitable, appropriate, and mutually agreeable manner. We are pleased that, in those cases that have arisen to date, the Art Institute has resolved the claims amicably. There have been only two, and I refer again to my written testimony, to the particulars of those instances. Like many museums and art museums in the United States, our institute has received a letter from the Claims Conference inviting us to participate in the survey. The letter was dated February 27, 2006, and instructed us to answer 24 detailed questions and to return the survey by April 14th, 7 weeks later. We responded with a detailed five- page letter answering, we believe, the survey's questions in full. In conclusion, let me say that the U.S. art museums will continue to respond to claims made against works in their collection, as they have done in the past. We will continue to work diligently to provide as much provenance information on our Web sites as soon as it becomes available. By continuing to link our Web sites to the AAM portal, potential claimants may go to one source for information, but again, I stress that, after more than 8 years of intensive investigation, we have been able to verify very few claims. I do not expect that to change dramatically, for the reasons that I have mentioned. There are few Holocaust looted works of art in American museums, but even one such work is one too many. U.S. art museums will continue to do everything we can to restore that work to its rightful owner. Thank you again for holding this important hearing, and thank you for allowing me to submit this testimony and my written testimony. [The prepared statement of Mr. Cuno can be found on page 61 of the appendix.] Mr. Leach. Thank you, Mr. Cuno. Mr. Rub. STATEMENT OF TIMOTHY M. RUB, DIRECTOR, CLEVELAND MUSEUM OF ART Mr. Rub. Thank you, and good morning. I am Timothy Rub, the director of the Cleveland Museum of Art, and I speak to you today on behalf of the Association of Art Museum Directors and the trustees of the Cleveland Museum of Art. I would like to express our thanks for this opportunity you've given me to share with you the significant efforts that American museums have undertaken since the subcommittee first held hearings on this important subject in February 1998, but before I do, I should pause and encourage this group, following on the Congressman's suggestion, to see the Grant Wood exhibition nearby, and to see the greatest Grant Wood collections in Ohio, Daughters of the Revolution, in the collection of the Cincinnati Art Museum. It is a wonderful picture. Over the past 8 years, a considerable amount of progress has been made by the many museums whose collections might have included works that were illegally appropriated during the Holocaust. Even though provenance research is time consuming and costly, the several institutions I have had the privilege to lead during this period, the Cleveland Museum of Art today, and before this, the Cincinnati Art Museum, and the Hood Museum of Art at Dartmouth College, as well as the members of the AAMD, all have made a firm commitment to undertake this work and to make the results of their research available to the public. In doing so, we have complied with the guidelines articulated in the AAMD's June 1998 report on the spoliation of art during the Nazi World War II era. Notably, in terms of the work that has been done thus far, we have focused our initial efforts on our collections of European paintings. American museums embraced this responsibility and acted upon it quickly and with great resolve, in my opinion. For example, the AAMD surveyed its members in 1999, and determined that 100 percent of those whose collections included art that might have been looted during the Holocaust period had, in fact, completed or were in the process of undertaking provenance research. Furthermore, in that survey, 100 percent of AAMD members indicated that access to their provenance records was open. While we consider provenance research to be critically important, and have made a broad commitment to undertake this work, it is vital for you, the members of the subcommittee, to understand how complicated and labor intensive such research can be. It requires a detailed review of primary and secondary documents, often scattered in many different places throughout the world, and in many instances where such documents do not exist or cannot be found, substantial inferential analysis. In many cases, we have not been able to fill all the gaps, and must recognize that we may never be able to do so. Others can help, and for this reason, the posting of provenance records on our Web sites and on the portal maintained by the AAM is an essential tool. It is also important for the members of the subcommittee to understand that a gap in the provenance of a work of art during the Holocaust period does not mean that this work was seized illegally by the Nazis or was the subject of a forced sale and not restituted. Rather, a gap in provenance indicates that we have been unable to find documentation or other evidence that allows us to determine the ownership of a particular work of art during a certain period of time. In other words, this means, quite literally, the absence of information on an object, not the presence of information that gives rise to or may constitute a justification for a claim that it was illegally taken and not restituted. Given the extensive research that has been done by American museums, without, it should not go unremarked, any appreciable public funding, the number of claims received by American museums, as my colleagues have mentioned, has been very small. To date, only 22 works have been restituted by American museums because they were looted by the Nazis and not returned to their rightful owners after the war. For those who claim that hundreds or even thousands of spoliated works remain in the collections of American museums, the work done during the last decade, as a statistical point, simply indicates otherwise. In this regard, I would not suggest that the extensive efforts that have been undertaken to research the provenance of Holocaust-era works has been inappropriate or that they should be curtailed, but our experience indicates the magnitude of this problem does not match the sometimes often strongly emotional appeal made on occasion by those who seek to recover art that is believed to have been lost and not restituted. Furthermore--and I think this is the important point--it confirms that the course taken by American museums, who hold their collections in trust for the benefit of the public, is fair and designed to achieve the best possible outcomes for both our institutions and those who may have valid claims on works of art that were confiscated or illegally taken from them or their families during the Holocaust. Finally, some critics have questioned the wisdom of continuing the Federal immunity that is granted or accorded to works of art that are in the United States on loan to American museums, and whether such a protection should apply when there might be a Holocaust issue. Please note the emphasis I have placed on the possibility of a Holocaust-related issue, such as a gap, as opposed to an outstanding claim that may be valid but is, as yet, unresolved. If this issue comes before the subcommittee in the future, I urge you to continue to support the Federal immunity program. The immunity program is a time-honored and valuable instrument that enables American museums to present to the public great works of art from around the world. Absent such protection, many foreign-owned works might not be made available to American museums because of the fear that such works will become encumbered with litigation in the United States courts, and here I should add that we have all agreed-- we, the American museum community--that we must carefully evaluate all loan requests to make sure that we are not requesting illegally confiscated or Holocaust-era art, and this is a part of the immunity process, as well. When museums apply for immunity for loans, they are required to address Holocaust issues as part of the application process. I should also add in this regard that the very fact of exhibiting a painting with a gap in its provenance can, in fact, help the process of restitution, because the public presentation of this work in the United States can bring to the attention of a claimant its existence or make available information that an individual would need in order to make a claim. Let me conclude by stating once again that the 8 years since the subcommittee's first hearings on this subject have witnessed significant progress in the development of a broader knowledge of provenance information that has now been made available to potential claimants and the public at large. While this work is not yet complete, research regarding most of the works of art that may be at issue has certainly been undertaken, and America, as many of my colleagues have said, can be very proud of the leadership role that its art museums have played in this effort. Thank you. [The prepared statement of Mr. Rub can be found on page 145 of the appendix.] Mr. Leach. Thank you, Mr. Rub. Ms. Lillie. STATEMENT OF CATHERINE A. LILLIE, DIRECTOR, HOLOCAUST CLAIMS PROCESSING OFFICE, NEW YORK STATE BANKING DEPARTMENT Ms. Lillie. Thank you. Good morning, Mr. Chairman, Ranking Member Maloney, and members of the subcommittee. Thank you for this opportunity to testify before you today on Holocaust-era asset restitution. The New York State Banking Department has 10 years of hands-on experience working with, and advocating on behalf of, claimants seeking the return of assets lost, looted, or stolen during the Holocaust. The Banking Department's involvement in these issues goes back to 1996, when the world finally began to pay attention to the fate of assets deposited in Swiss financial institutions. Governor Pataki, at the urging of then-Superintendent Neil Levin, encouraged the Banking Department to use its influence, expertise, and international reach to rationally resolve these emotionally charged and politically complex estates. The department has been actively committed ever since, first with our investigation into the war-time activities of the Swiss banks' New York agencies and then by establishing the Holocaust Claims Processing Office as a separate and unique division. Our involvement was extended further still with the establishment of the International Commission on Holocaust Insurance Claims, also a legacy of the late Neil Levin, and ultimately, the department took on the task of assisting claimants in their quest for works of art lost, looted, or stolen during the Holocaust. The HCPO has a long tradition of quality and substance. It remains the only government agency in the world to offer Holocaust survivors or the heirs of Holocaust victims and survivors assistance with a vast array of multinational claims processes. To date, the HCPO has received approximately 5,000 claims from 48 States and 37 countries, and has secured the return of more than $55 million to claimants, as well as 13 works of art. The knowledge and assistance of the HCPO staff have alleviated burdens and costs often incurred by claimants who attempt to navigate the diversity of international claims processes by themselves. Our successes are a direct result of the importance attached to, and attention paid by, the HCPO to individualized analysis. Many of the claimants we work with have lost everything and everyone, resulting in the need for archival and genealogical research to confirm family relationships and to uncover details regarding the fate of many original owners. All of our services are provided free of charge. The HCPO has, over the past decade, worked directly and intimately with almost all restitution and compensation processes in existence today. As a result, we have close working relationships with archival and historical commissions, financial institutions, trade associations, and our colleagues in federal, state, and local governments in Europe. At the same time, many claims processes have sought the HCPO's advice. Put another way, almost all paths to restitution and/or compensation for Holocaust-era assets have converged at the HCPO at one point or another. Throughout, the HCPO has had a single purpose: to resolve claims as promptly as possible, and in a sensitive manner, given the singularity of the events that preceded them. The passage of time, the ravages of war, the lack of documentation that you heard about, and the mortality of claimants make this a complex task. The HCPO owes its success to a dedicated team of multilingual and multi-talented professionals. Possessing a broad and long traditional legal, historical, economic, and linguistic skill set, coupled with the ability to communicate with, and conduct research in, a vast number of European government and private offices, the HCPO staff research, investigate, and secure documentation, building upon the foundation provided by claimants. Let there be no mistake about it. Even claims with documentation are a time-consuming task, and the paucity of published records often complicates matters further. For significant works of art, the odds of there being academic publications which serve as vital tools in our research efforts are high, but the Nazis did not limit their spoliation to museum-quality pieces. Ordinary middle-class collections, second-tier painters, decorative arts, tapestries, and antiquities, as well as Judaica, were looted. In some of these areas, the art historical literature is anything but deep. To complicate matters further, information, much like the objects themselves, have often ended up scattered all across the globe. Claimants seeking the return of such low monetary value but high emotional and spiritual value items face daunting hurdles, given the lack of historical significance, not to mention the enormous logistical and legal challenges. The HCPO, earlier this year, successfully completed the return of a Torah cover from the Jewish Museum in Vienna. The obvious inestimable emotional value is without question, but without the HCPO, where would claimants have gone for help, given its limited monetary value? Overall, art claimants, as you have heard, are piecemeal work, which unlike financial assets such as bank accounts or insurance policies, do not lend themselves to wholesale centralized settlements. Instead, given the individualized nature of these cases, they must be painstakingly resolved painting by painting, object by object, and Torah cover by Torah cover. The publication of provenance information is critically important to our endeavors, as is the ease of access to such information. As we work piece together each claims complex mosaic, accessibility is paramount. The AAM's Web portal is an excellent illustration of what is possible. While far from perfect, it is a major step in the right direction, currently allowing 151 museums to make their provenance research available via a single point of entry, with more museums joining all the time, as evidenced by the Claims Conference's recent report. There remains, of course, a significant difference between the work done by museums and public collections and such information as is available for private collections in the art market as a whole. The issue becomes trickier once claimants locate items in private collections or, indeed, in the market. Sale rooms have learned much in the past decade, and certainly, the large auction houses have dedicated staff who have worked well with the HCPO and our claimants to determine whether items submitted to auctions have a problematic provenance. Smaller sale rooms both in the United States and Europe still need encouragement and education. Not all are as willing to pull lots from sales when questions arise. Few of them are sensitive to the labor- intensive, and therefore time-consuming, research these cases require. As a result, the HCPO still finds more resistance to clarifying title in these contexts than we would like to see. So, continued education of active market participants remains a critical piece in all this if buyers and sellers are to understand and ultimately accept that transactions conducted in seemingly good faith many years ago may nonetheless be questionable. In closing, I would like to share the following thought. We have a unique challenge in a complex market, but we also have the potential to help so many. If we are to achieve our mission, we must encourage open, transparent cooperation both internally and in the larger universe of Holocaust-era restitution and compensation programs. Cross-functional and interagency dialogue between such claims processes encourages new perspectives, expands and enhances coalitions, fosters partnerships, and ensures a more comprehensive approach. By finding creative solutions and mechanisms, agencies can work together to streamline the prolonged claims processes for claimants, many of whom are in their 80's and 90's, and for whom time is a disappearing luxury. Finally, let me return briefly to the Torah cover I mentioned earlier. Marpe Lanefesch, the name of the congregation that was in effect the Torah cover's birthplace, translates to ``the healing of the soul.'' How better to summarize what I think our collective intent is: the attempt by a few people committed to doing what is right, rather than what is easy, to repair, to the extent possible, a lasting rend in the fabric of life. Thank you. [The prepared statement of Ms. Lillie can be found on page 125 of the appendix.] Mr. Leach. Thank you very much, Ms. Lillie, and thank you all for extraordinary testimony. I want to begin briefly with Mr. Eizenstat. Stuart, your testimony was extraordinary and comprehensive. As principally a lawyer, I think you symbolize the best ``lawyer'' approach in terms of not only the law, but in the legal way of thinking. One of the interesting legal issues that exists, as you note the problems in Europe, is the difference between the Napoleonic codes and the common law on the issue of theft. That is, in common law countries like ours and Great Britain, if a thief sells an item to a party and the party sells that item to a third party, if the original owner has a claim, that owner can make a claim directly to the current owner, whereas under the Napoleonic codes, if there was a good faith process at any point, the original owner only has a claim against the thief. This means that, theoretically, if you have a piece of art with dubious provenance, you would rather sell it in Europe than in the United States. Thus, it is very difficult to return stolen art in Napoleonic code countries unless there is will. What you have suggested is that several countries have exhibited will and others have not. Could you comment on this? Mr. Eizenstat. Mr. Chairman, this is really an excellent point, and you are quite correct about the difference in the legal structures. We tried to overcome that with the Washington principles, but as you will remember, in the late hours of negotiation, only partially, because in order to get over 40 countries to ascribe to the principles, which were based on the AAMD principles, with some modifications, we needed to put in language that assured countries that they could apply their only law. It is the only way we could get that done. But the principles are there, and they are meant, and some of them say very clearly, to facilitate claims resolution, to have non-litigable ways to do so, and a number of countries-- for example, Austria has passed a specific law recognizing that the Napoleonic issue--that Holocaust looted art should be treated differently, and they passed a law which has permitted hundreds and hundreds of pieces to be returned. The Netherlands has done the same. Russia, theoretically, has done the same, but it has not applied it. So, what we need to do is to get countries to apply special restitution laws for this area, so that you do not have the kind of complication that you have just indicated. One of the advantages of trying to get an international conference together and to at least encourage, Mr. Chairman, Mrs. Maloney, the publication of lists as the portal has done in the United States, is at least we will know what the universe is. Once we know what the universe is, then even with the Napoleonic problem, we can facilitate settlements, we can facilitate monetary recoveries, which are not precluded by the Napoleonic code. We can facilitate arbitrated or mediated solutions, but we can't do any of those if we do not have the basic raw data, and because so few countries have published, even in Germany, anything like what the AMD museums have done, we do not have the basis to apply settlements that could be done outside of the strictures of the Napoleonic code. Mr. Leach. Let me just ask one follow-on question. It appears that Russia, in many regards, is the great laggard, not so much in law but in the classic instance have not wanting to publish what it has, and one has a sense that part of it relates to this issue. Most of it may relate to issues itself in museums. Powerful people walk away with great art. Do you have a sense of this problem? Mr. Eizenstat. Yes. Let me explain, if I may, as best I can, the Russian situation. Of course there is a broader picture in Russia of the rule of law which we have seen trampled on in recent years in a whole range of areas. They were the only delegation in the 1998 Washington conference that participated separately in the closing news conference. The Russian legislation was once vetoed, but ultimately legislation was signed that separated two types of art. One was what they call trophy art, which was art that the Red Army took, after the war or in the closing days of the war, from German museums and public institutions as what they viewed as compensation for their massive loss of life and property from the German invasion. The law that President Putin signed makes it clear they will never return that, but they also made it clear in that legislation that art which was taken by the Red Army from the Germans, which, in turn, was taken from Jews or Jewish institutions or for racial reasons should be returned--and they committed themselves to publish the provenance of their major museums, and they have a claims process. There has been a very small amount of publication of their provenance by a very few museums, not the major ones, the Hermitage and others, and there is basically no claims process. This is a very key matter where a good bilateral discussion, let alone an international conference, could bring the Russians, as they did in 1998, to come up to international standards. I think there is no question but that the Russians have the greatest treasure trove of looted art, and if we assure them that no one is trying to get their--that we are focusing on art taken from Holocaust victims and we put enough political muscle behind it at senior enough level, perhaps we can make progress. Mr. Leach. Thank you. Ms. Maloney. Mrs. Maloney. Thank you. I thank all of you for your testimony. I would like to ask Mr. Edelson--you mentioned that we should focus a little bit on the dealers. How can dealers best be encouraged to make their records available to bona fide researchers, claimants, and claimant representatives? Mr. Edelson. So far as I know, ma'am, dealers do make their records available. I can tell you now that I was speaking to one dealer the other day who said that he had opened his records to the Metropolitan Museum, for example, who was doing some research in provenance, and I have not, myself, had a complaint from anyone that a dealer has not cooperated. Now, it does not mean, necessarily, that all dealers are cooperating. I hope they are, and we urge them to do so. Mrs. Maloney. I would like to ask Ms. Lillie the same question. Have you, in your work with your office, reached out to art dealers and gotten their cooperation, or do you think they should be part of the central registry? Ms. Lillie. We have had, I think, examples of just about every form of cooperation you can imagine, which ranges from very productive to almost none at all, and that is true not just in the United States but across Europe, as well. Your question, whether we would like to see a more centralized venue for this, is one that resonates very deeply with me. The portal, where we worked extensively with Mr. Able and his organization in terms of technical assistance, the sort of information that ought to be put up that would be helpful to claimants and researchers but also finding common denominators between and amongst museums and the information they have has been very, very helpful. There is a single point of entry. It is a starting point. Even if we do not find specific paintings, we often find information held within museum records that will lead us to other sources of information. If we could work with Mr. Edelson on finding some sort of central venue for dealers, as well, that would be superb. One of the difficulties, of course, is, as he mentioned, would owners be willing to share that information? From my vantage point, the more transparency we have in the market, the better and more efficienct marketplace it would surely be. Mrs. Maloney. Mr. Cuno and Mr. Rub, thank you for your leadership and the work of your museums. What can we do to accelerate the speed of provenance research and publication of such research while the present generation of Holocaust survivors is still with us? Obviously, the sense of urgency is, simply put, not our friend, and when you lose the last living memories of these items, then where will we go, and I just want to ask the question--the reports that came out--they said many of the museums had cooperated, but others had not, and they mentioned some very prominent museums that had not cooperated. What is the enforcement or the incentive for museums to cooperate? They cited some, such as your own, that have done remarkable work, but they cited others who did not fill out the survey, would not respond, said they did not have the time or finances to respond. Mr. Cuno. I am afraid my answer to the first question will not necessarily be satisfactory, because the answer has got to be assistance with funding, and funding not necessarily to individual museums in their research but to the creation of centralized databases such as we have begun to undertake but could use additional resources to perpetuate or to deepen. To step back just one second to the question about the dealers, I do not know the extent to which this is possible, but it would be greatly advantageous to the work of museums and museum researchers, not just on the question of Holocaust-era provenance research but generally in provenance research, if there were a way, when dealers go out of business, for example, that those records would not necessarily disappear. It has been one of the obstacles that we face in our research, not just in this country but among European art dealers, is when they do go out of business, there is no perpetuation, necessarily, of the records that they had, and so, we lose track of those records, and the loss is sometimes insurmountable. To your question about what it is that museums can do, and also to your question about why it is that some museums have not responded to the survey, I do think it is a matter of time and money, and we have competing calls on our time and money, as you can well understand, as every institution, and that is with regard to the education that we do in our cities, where we are ultimately and increasingly responsible for the arts education and some of the civic education of our citizens. So, we could use some assistance in that regard, perhaps on an individual basis but certainly in a collective basis, to provide the resources that we need to advance our research, and to work cooperatively with our colleagues outside of museums. To the question about why some museums did not return the survey, I cannot speak for them. Mrs. Maloney. Do you feel like there is a difference between a large museum and a small museum? Mr. Cuno. A very big difference. My quick count of the list of museums that did not respond--out of the 108 listed that did not respond, only 26 of them belong to the AAMD, and to belong to the AAMD, you have to have a budget of at least $2 million for 2 years. It is the minority of museums that have the significant resources to apply toward research. Of the museums on the list of 108 that did not respond, many have budgets less than $2 million, and many of those museums, 19 of them, to my count, are small community college or small college museums. So, it is very difficult for those museums to marshall the resources, financial and human resources to respond to the complicated questions asked in the survey. The assistance would have to be material, I am afraid. Mr. Able. Jim, may I add something to that? Mrs. Maloney, if you look at the chart, it does not mean that all these museums are not cooperating in the work. It means they did not respond to the survey. There is a chart in the report of 25 major museums, and it is pointed out that five did not respond. Well, they did not respond to the survey, and that is regrettable, but four of them are registered and have registered, collectively, 621 objects on the portal. So, I think that there needs to be some clarification of some of the statements in the report as to the accuracy, that they can be somewhat misleading. Mr. Rub. Let me add that I--I should say I think it is unfortunate that some of our colleagues or fellow institutions did not respond to the survey. However, I do not think that lack of response should be taken for--taken in any way to mean that they are not, as Ed mentioned a moment ago, participating actively in this kind of work, particularly if they have collections that include covered objects. It should also be pointed out that it is not entirely clear to me, at least, whether or not many of these institutions on the list that did not respond actually have covered objects in their collections. We have a number of members of the AAMD, and there are many more institutions that are not, that either collect contemporary art, and so do not work in this field and never have collected in this field, or collect American art or some other types of objects that would not fall under the heading of covered object, as well. I would also like to come back to points that my colleague, Jim Cuno, made a moment ago, and that is the enormity of the task that is facing many of these institutions in terms of how to fund this work on an ongoing basis. I have been, as I mentioned in my testimony, at three institutions during the past 8 years that have decided to undertake this work, and in each case, it was a formidable challenge to find the time and the human resources to do this on an ongoing basis. In each case, we did, but we had to carve the funds to do that out of existing work, and it is a complicated issue to deal with during a time of diminishing resources for support of museums in general. Mrs. Maloney. Thank you. Mr. Taylor. Our only request with the survey was that we felt it was important that museums, even if they have no covered objects, would simply answer that, and many did. Many who had no covered objects or where it was not applicable very kindly wrote back, and all of those answers are publicly available on the Web site for people to see. So, we would just respectfully urge museums, even if their answer is that it does not apply to them, or only to a certain extent, to do so, and maybe my colleagues will assist, so that there is a public record of museums reporting what they have done. The survey does include, also, some larger museums, some of whom are AAM accredited that did not respond. We welcome responses so that the public can check and look and see what museums are doing, and we just urge them to report that for the benefit of the public. Mr. Leach. Mrs. Wasserman-Schultz. Ms. Wasserman-Schultz. Thank you, Mr. Chairman. Welcome to all of you, and I appreciate the opportunity to listen to your testimony today. I have questions far beyond the 5-minute time allotment that I have. So, Mr. Taylor, specifically, I would request that, if you can, come and make an appointment with me so that we can spend some expanded time talking about issues that go beyond just the topic that we are covering here today. I would surely appreciate it. Mr. Eizenstat, when you have an opportunity to do that, if you would be willing to do so, as well, I would surely appreciate it. I represent a district in south Florida that is home to one of the largest, if not the largest, survivor population in the country, and it is a rapidly aging population, one in which even child survivors are now well into their 70's, and some older than that, and there are not many more years left, obviously, that we are going to be able to do anything for them to either improve the quality of life or achieve restitution for them in material ways. I am wondering, particularly at the Claims Conference, Mr. Taylor, to what degree you've already recovered art, and to what degree--well, let me back up for a second. I know that you already hold title to a large inventory of property in Germany, and there was not a great deal of understanding as to what that is, what is in your--what is in the Claims Conference's possession, the value of it, and I know a lot of that is land parcels and buildings, but what I am wondering is if any of those holdings are outstanding claims that include art and cultural property. Additionally, how much in compensation has the Claims Conference received to date from the German authorities for artwork and cultural objects, and if you could elaborate on that, I would appreciate it. Mr. Taylor. Firstly, when we recover buildings and properties, we sell those properties and then allocate those funds primarily for social programs for Holocaust survivors, and for programs of Holocaust education. That is regarding our allocations program, and it is a long and complicated issue. I would be very happy to meet with you and look forward to that opportunity. Regarding art, we have tried to pursue art claims in the former East Germany, where the Claims Conference has a special status. We have had limited success. I think it is probably less than about half-a-dozen so far, but there are about 80 claims pending. Of the handful that we have received, those have been recovered and turned over to heirs, and we have worked with the heirs of those to return those. We filed about 80 claims which cover some hundreds of objects, maybe up to about 1,000 objects, but it is about 80 claims. There is a list of them posted on our Web site, where there is a full listing of the individual claims. When we meet, I can certainly point out where that is. Most claimants have come forward, and we are assisting and working with them on those art claims in the former East Germany, but there are, I should say, also a number of claimants in Germany who have filed claims directly. We have given some indirect assistance, but those are filed directly, particularly for the former West Germany, where the deadlines have expired, but efforts still continue to recover items of looted art. Ms. Wasserman-Schultz. I can appreciate your testimony about the creation of the databases that you currently hold about stolen artwork, because obviously, access to that information is important. Does the Claims Conference publish a similar database of real estate property in Germany, listing things like property parcels, Jewish families who originally owned them? What kind of identification have you been able to surmise, and what about looted property? Is there no property that you hold title to? How quickly do you sell it? I am just not really knowledgeable about that process. Mr. Taylor. There were certain items that we had recovered, and there was a period for dealing with this issue, and there was a publication of a database which related to these items, and there was a period for dealing with this issue. So, yes, there was a publication. Ms. Wasserman-Schultz. Is that still available? Mr. Taylor. It is not. The period for claiming for those particular items has expired, but it was available, and there were claims, and there was a claims period after publication. Ms. Wasserman-Schultz. What happened to the property that was not claimed? Mr. Taylor. The Claims Conference uses those funds recovered from items that are not claimed largely for programs of home care, social assistance, and other programs, particularly for programs for needy Holocaust survivors, including some in your district. In over 60 countries around the world, we operate programs providing assistance to Holocaust survivors: food packages; home care; shelter; social care; and various forms of assistance. Ms. Wasserman-Schultz. How many voting members of the Claims Conference board are survivor groups? Mr. Taylor. There are three organizations of survivor groups but there are many Holocaust survivors on the board of the Claims Conference, a very significant number of Holocaust survivors. I do not have the specific number. Ms. Wasserman-Schultz. Three groups out of how many? Mr. Taylor. Twenty-four groups, but the other groups are Jewish organizations, many of whom have Holocaust survivors and are represented on the Claims Conference by Holocaust survivors. Ms. Wasserman-Schultz. Mr. Chairman, I have a number of other questions, and I do not want to take up the committee's time, because they are not quite as relevant to the topics at hand, but I would like them answered, and if I could ask unanimous consent to submit those questions for the record, I ask that the panelists answer them in written form. Mr. Leach. Without objection, they will be submitted for the record and transmitted. Ms. Wasserman-Schultz. Thank you, very much. Mr. Leach. Thank you for your contribution. Let me thank you all. It is apparent that the United States leads in this effort. Yet, it may be the case that there is some art fatigue. More can be done. Each of you represented here have contributed impressively to the effort, and so, the committee is very appreciative of your efforts. I might just suggest, because I do not know how significant this is, but to Mr. Cuno, who heads what, in effect, is an accrediting body, as I understand it--you head an accrediting body of museums? Mr. Cuno. Yes. No, I do not head the--I headed for one time the AAMD. Accrediting of museums is done through AAM. Mr. Leach. Oh, I am sorry, through AAM. Mr. Able, I do not know how significant in the accreditation the attention to the Holocaust art issue is, but I would hope that you would put it front and center. Is that a credible request, or is it a request that has already been-- Mr. Able. Accreditation deals with that issue, Congressman, but in a wider view and way. Accredited museums are required to demonstrate that they are taking every step to ensure that any item in their collection is legally held. If they had an item that was illegally appropriated by the Nazis, that would be covered in that area. So, it actually captures a much wider--and it is very carefully looked at by the accrediting visiting evaluators, in their self-study of the institution itself, and then carefully reviewed by the accreditation commission when the accreditation review is done on its regular basis. Mr. Leach. I appreciate that very much. I think the only footnote would be that there is theft and then there is Holocaust theft, and so, to raise this to particular significance, I think, would be good social policy. Mr. Able. Actually, that was done much earlier, back in the late 1990s, when we passed our guidelines. It has been extensively discussed at the commission meetings and with all the site evaluators. Mr. Leach. Well, I appreciate you being well ahead of the committee. Mr. Eizenstat. Mr. Eizenstat. I just wanted to make a concluding remark. I first want to thank you for your continuing interest, and Mrs. Maloney for her continuing interest, the chairwoman for having the hearing, but you know, we all have a limited amount of time and resources. The question is where you devote to it, and for sure, American museums can be encouraged to do more, but they have made a huge step forward with this portal. We ought to get as many to contribute as possible, but they really have done a tremendous job. The real focus, Mr. Chairman, Mrs. Maloney, really needs to be abroad. That is where the real problem is. That is where most of the art is that is potentially looted. That is not going to happen unless Congress focuses attention on it and encourages senior people in the Administration to make this an issue they care about. The art issue has not gotten a huge amount of attention, to say the least, from the Administration. It has sort of fallen off the radar screen. There are a lot of other issues, anti-Semitism and so forth, they have done a very good job with, but now with the art that we are concerned with. The bulk of it, is going to be in a few countries abroad, and I would just urge the committee to be creative in focusing attention there and focusing the attention of the Executive Branch on pursuing that. In particular, again, an international conference is a way of elevating it. It is an action-forcing device. If countries knew they had to come and report on their progress, you would see a lot more action coming. Mr. Leach. I appreciate that very much. I agree. I would just add to that, because of the steps that you in this panel have taken, the United States is in a much better position to lead. That is, if the American museums had not been as attentive, I do not think we could stand on a very solid basis, and so, your efforts have made our country's position, I think, far more credible than would otherwise be the case. With that, let me thank you all very much, and I am personally very impressed with each of your statements and with your commitment. The committee is adjourned. [Whereupon, at 11:58 a.m., the subcommittee was adjourned.] A P P E N D I X July 27, 2006 [GRAPHIC] [TIFF OMITTED] T1542.001 [GRAPHIC] [TIFF OMITTED] T1542.002 [GRAPHIC] [TIFF OMITTED] T1542.003 [GRAPHIC] [TIFF OMITTED] T1542.004 [GRAPHIC] [TIFF OMITTED] T1542.005 [GRAPHIC] [TIFF OMITTED] T1542.006 [GRAPHIC] [TIFF OMITTED] T1542.007 [GRAPHIC] [TIFF OMITTED] T1542.008 [GRAPHIC] [TIFF OMITTED] T1542.009 [GRAPHIC] [TIFF OMITTED] T1542.010 [GRAPHIC] [TIFF OMITTED] T1542.011 [GRAPHIC] [TIFF OMITTED] T1542.012 [GRAPHIC] [TIFF OMITTED] T1542.013 [GRAPHIC] [TIFF OMITTED] T1542.014 [GRAPHIC] [TIFF OMITTED] T1542.015 [GRAPHIC] [TIFF OMITTED] T1542.016 [GRAPHIC] [TIFF OMITTED] T1542.017 [GRAPHIC] [TIFF OMITTED] T1542.018 [GRAPHIC] [TIFF OMITTED] T1542.019 [GRAPHIC] [TIFF OMITTED] T1542.020 [GRAPHIC] [TIFF OMITTED] T1542.021 [GRAPHIC] [TIFF OMITTED] T1542.022 [GRAPHIC] [TIFF OMITTED] T1542.023 [GRAPHIC] [TIFF OMITTED] T1542.024 [GRAPHIC] [TIFF OMITTED] T1542.025 [GRAPHIC] [TIFF OMITTED] T1542.026 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