The cabinet is to discuss a proposal to open direct negotiations with Poland regarding the restoration of Jewish property to the heirs of Polish Jews.

Israel has never conducted direct negotiations with a foreign government for this purpose, but rather has left the task to umbrella organizations like the Claims Conference.

The proposal is to be presented by Minister Rafi Eitan (Pensioners Party), now in charge of the issue of restitution of Jewish property lost during World War II. Eitan is to propose a detailed survey of Jewish property in Poland and the establishment of a corporation to handle claims.

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The Foreign Ministry has been opposed to government involvement in restitution of Jewish property from Poland and other countries in Eastern Europe due to concerns that it might harm relations between Israel and these countries. However, Eitan, who met two weeks ago with Polish government officials on the matter, told Haaretz that he believed the Poles would not oppose the direct involvement of the Israeli government.

Polish Prime Minister Jaroslaw Kaczynski announced at the beginning of March that he had met with representatives of Jewish organizations dealing with the matter and that by the end of the year, a compensation law would be on the books. The rate of compensation would be around 15 to 20 percent of the property's value. The Israeli and American ambassadors were present at the meeting with Kaczynski.

After the survey in Poland, Eitan's proposed corporation would deal with all resulting claims, cut bureaucracy and protect the heirs from fraud. Eitan says the body could be jointly owned by the Israeli government and the Claims Conference.

Germany, Austria, France and most of western and central European countries already have arrangements for restoring stolen Jewish property. Most of the heirs in these countries have already filed their claims. However, Eastern European countries have done almost nothing on this matter. Poland, which had 3.5 million Jewish inhabitants before the war, is the most important country in this respect. Figures presented to the ministerial committee on Jewish property matters estimate assets in Poland to be worth approximately $30 billion to $40 billion.

Private groups dealing with the restitution of Jewish property have reacted skeptically to Eitan's initiative. Shlomo Taub, director of a private corporation dealing with such claims, said past experience shows that public and governmental bodies cannot move matters forward.