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- <text id=90TT1778>
- <title>
- July 09, 1990: Whose House Is This Anyway?
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1990
- July 09, 1990 Abortion's Most Wrenching Questions
- The Reunification of Germany
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- GERMANY, Page 78
- Whose House Is This Anyway?
- </hdr>
- <body>
- <p>Questions of ownership and tenants' rights in the East are
- likely to dominate the political discussion
- </p>
- <p> Amid the run-down villas in East Berlin's once genteel
- Pankow district, the lovely stucco house at Am Iderfenngraben
- 23 looks decidedly out of place. The wrought-iron gate is
- freshly painted; the clay roof shingles gleam in the afternoon
- sun. Rudolf Musch, a construction engineer, has spent most of
- his savings renovating the 1920s home since his family moved
- in eleven years ago. But the Musches, who pay $92 a month in
- rent for their 1,658-sq.-ft. space, may soon find themselves
- on the street. Hilmar Schneider, the owner of the house, who
- left the East in 1961 and lives in Kiel, wants to reclaim his
- home--and perhaps sell it. He has agreed to let the Musches
- stay on for now but has rejected their offer to buy the place
- for $89,000--barely half the estimated market value. "In the
- long run," concedes Musch, "I don't think I have a chance of
- staying here."
- </p>
- <p> The Musch vs. Schneider confrontation is one of many such
- struggles over property in East Germany today. They all turn
- on the question of who owns what. What does a 1930s deed mean
- in a country where almost everything has been Volkseigentum,
- or property of the people, for the past 40 years? Who is
- entitled to a house built on land confiscated by the state?
- What are the rights of longtime renters? The All-German
- Institute, a West German authority, estimates that West Germans
- have claims to more than 1 million homes, factories and parcels
- of land in the East. So sensitive is the issue of ownership
- that it was left out of the state treaty that went into effect
- last Sunday.
- </p>
- <p> Ibrahim Bohme, the former chairman of the East German Social
- Democrats, calls the struggle over ownership a "latent civil
- war." The problem dates back to the founding of the G.D.R. in
- 1949, when the government began confiscating most land and
- businesses. During the following four decades, the regime also
- borrowed against some of the seized properties.
- </p>
- <p> In some cases, former owners have in fact been compensated.
- Since the late 1940s, the West German government has paid the
- equivalent of $5.4 billion in 535,000 settlements for left or
- lost property in East Germany. The average recipient pocketed
- just a few thousand marks. Under West German law, those who
- were compensated still have the right to regain property--as
- long as they repay the money they received.
- </p>
- <p> The most politically sensitive question concerns the
- millions of East Germans who rent. Wolfgang Ullmann, deputy
- president of the Volkskammer, the East German parliament,
- argues that renters should be compensated for improvements they
- have made to properties. Says he: "For years Western owners
- didn't care, and now they're back at the doorstep. Those people
- fled to prosperity."
- </p>
- <p> Real estate is not the only battleground. A law passed in
- March stipulates that former owners may reclaim businesses
- seized by the Communists; about 50,000 petitions are expected.
- State-owned enterprises have been placed under the control of
- a new government authority, the Treuhandanstalt, which will
- liquidate uneconomic plants and shift viable businesses toward
- private enterprise. So far, however, only a fraction of the
- 9,000 or so targeted firms have been privatized.
- </p>
- <p> One major obstacle: determining the real value of
- businesses. Says Wolfgang Nagel, a member of the West Berlin
- state government: "Compensating all these claims could lead to
- economic, political and social catastrophe in East Germany."
- Says Richard Motzsch, an expert on East German property claims
- at the West German Ministry for Inter-German Affairs: "Emotions
- are running very high on this issue, but we must be careful not
- to commit new injustices while trying to correct old ones."
- </p>
- <p>By Barbara Rudolph. Reported by James L. Graff/Berlin.
- </p>
-
- </body>
- </article>
- </text>
-
-