President asks firms to back Nazi fund

President Johannes Rau asks firms to support the fund

Companies should join a fund to compensate victims of the Nazi's slave labour programs during the War, said German President Johannes Rau on Wednesday.

I know that many companies are hesitating to join the fund because they believe they could be seen as admitting to guilt that they do not personally bea

President Johannes Rau

The president urged companies that have not yet joined a fund that will compensate the victims to do so immediately.

There are still about 1,000 companies that should take part, he said.

"I know that many companies are hesitating to join the fund because they believe they could be seen as admitting to guilt that they do not personally bear," Rau said in a statement.

"I wish to assure you that participating in the fund has nothing to do with an admission of guilt."

"This is about a small contribution toward reconciliation with people who became a unique type of victim of the National Socialist dictatorship, and about the image of Germany in the world and the good name of German companies abroad," he said.

Public pressure

Many German newspapers and a Jewish organization have relased detailed lists of companies founded before World War II that have refused to back the compensation scheme.

And in a separate development, a German radio station was told that companies that have commented publicly on their decission not to take part in the fund should expect criticism from the public.

The comment, from chief negotiator on compensation for former slave laborers under the Nazis, Otto Graf Lambsdorff, came at at time when the compensation fund is having difficulties reaching its target figure of 10bn marks (5bn euros, $4.5bn).

Payments in March

The federal German government and German industry have agreed to finance one half each of the fund.

So far, 5,500 German firms have agreed to support the fund, but they have only managed to raise 3.4bn marks of their 5bn marks share.

Even so, they expect the money to be there by March when payments to victims are due to start.

The fund was engineered by US negotiators.

Germany agreed to raise the money in exchange for US officials encouraging the judiciary to dismiss class action suits by victims.