VZCZCXRO2269
PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHSF #1494/01 3001238
ZNY CCCCC ZZH
P 271238Z OCT 06
FM AMEMBASSY SOFIA
TO RUEHC/SECSTATE WASHDC PRIORITY 2741
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

C O N F I D E N T I A L SECTION 01 OF 02 SOFIA 001494 
 
SIPDIS 
 
SIPDIS 
 
EUR/OHI FOR JOHN BECKER 
 
E.O. 12958: DECL: 10/26/2016 
TAGS: PREL PGOV KNAR BU
SUBJECT: BULGARIA: END GAME IN SIGHT ON JEWISH RESTITUTION 
 
REF: 05 SOFIA 1318 
 
Classified By: Ambassador John Beyrle, for reasons 1.4 B & D 
 
¶1.  (C)  SUMMARY: A report submitted to the Prime Minister by 
the government-appointed Restitution Commission sidesteps the 
controversial Rila hotel case (reftel), but recognizes Jewish 
claims on MOD property in Varna and urges the Ministry of 
Health (MOH) to give Shalom some space at the 
already-restituted hospital (which it has so far refused to 
relinquish).  Jewish community leader Kalo and JDC local rep 
Djerassi seemed in complete agreement in their assessment: 
the government is open to finally settling the Varna and Rila 
claims (Rila through a creative "gift" arrangement), but 
MOH's unresponsiveness is a major roadblock.  The DCM 
reiterated our readiness to help but stressed the need for 
all -- the Jewish community here and the American JDC -- to 
speak with one voice and seek one outcome.  All agreed that 
the community will approach the government to set timelines, 
and we will follow to make sure the government sticks to 
them.  With the implementation of the Commission's 
recommendations, this long and frustrating battle may finally 
come to the end.  END SUMMARY. 
 
¶2.  (C)   The DCM met with Shalom's Kalo and JDC's (JOINT 
Distribution Committee) Djerassi to discuss their response to 
the Commission's report. (PM Stanishev formed the Commission 
in March, following President Parvanov's informal commitment 
to review all outstanding claims of the Jewish community.) 
The DCM noted that with the report in the PM's hands, now was 
the time for the Jewish community and JDC, both here and in 
NY, to speak with one voice on the issue.  He encouraged all 
to share information, to clarify their goals, and to develop 
a common strategy. 
 
¶3.  (U)   The three main properties addressed in the report 
were the Rila hotel, the Varna property occupied by MOD, and 
the Sofia hospital, restituted in 1997 but still occupied by 
MOH. The following are the Commission's recommendations, the 
community's reactions, and our proposed way forward.  Our 
unofficial copy of the report will be sent via septel email. 
 
¶4.  (SBU)  Rila hotel: The Commission considers the case 
closed. Since the court decided against restitution, the 
Commission sees no grounds to reopen the case (reftel).  The 
community expected this and is reconciled to it. 
Nevertheless, it is looking for a "gift" (not compensation -- 
they specifically want to avoid the term because it implies 
circumventing the judicial system) from the Bulgarian 
government. Under Bulgarian law, the state can gift 
properties to NGOs. 
 
¶5.  (SBU)  The "gift" Shalom and Djerassi identified is the 
top two floors of the Saborna street building, near the site 
of the former U.S. Embassy. The bottom four floors had 
previously been restituted, but the top two had not been part 
of that settlement since they had been added during the 
period of state ownership.  Gaining control of the whole 
building is an enviable deal, especially considering its 
location in the center of town and the current boom in 
property values.  The alternative, given the court decision, 
is to get nothing.  We found that Kalo and Djerassi were in 
complete agreement that Saborna was the optimum, and perhaps 
only, way to settle the Rila issue with the community getting 
something of value. 
 
¶6.  (SBU)  Varna Property (Synagogue and Rabbi's House):  The 
Commission acknowledges Shalom's rightful claim to the 
property. Since MOD opposes returning it for national 
security reasons, the Commission recommends compensating 
Shalom with comparable value property elsewhere.  The MOD has 
already proposed several options and seems open to negotiate 
with Shalom.  The key, however, is for the MOD to offer 
suitable properties rather than leaving the onus on Shalom to 
try to identify them. 
 
¶7.  (SBU)  Hospital: The Commission recognizes the 
community's unequivocal claim to the property and recommends 
the Ministry of Health gives Shalom at least six rooms while 
it vacates the property. This is a clearly egregious case. 
The cash-strapped MOH has failed to abide by the court 
decision that restituted the property, has stopped paying 
rent, and is avoiding giving Shalom the six rooms it 
requested to start a hospice. The community has been 
reasonable in not trying to identify or specify which rooms 
it will receive, but the MOH has been completely 
unresponsive.  Djerassi and Kalo agreed that getting the six 
rooms will be their first priority. 
 
¶8.  (C)  COMMENT: This has been a long, complicated, and 
often frustrating battle, but we may be approaching the end 
 
SOFIA 00001494  002 OF 002 
 
 
game.  Shalom and the local JDC rep seem to be in sync on 
what they want -- the two floors on Saborna, comparable 
compensation from the MOD, and the six hospital rooms -- and 
are ready to approach the government for concrete timelines. 
If Shalom and JDC are united, they will have a better shot at 
success. We will push Bulgarians to live up to their 
commitments in both letter and spirit in our upcoming 
meetings with the President and Prime Minister. 
BEYRLE