German Chancellor Helmut Kohl and Polish Prime Minister Tadeusz Mazowiecki arrived Thursday in the border town of Frankfurt an der Oder for one-day talks on the relations between the two countries.

Their reception was fairly low-key, and there was none of the flag-waving that marked many of Kohl's recent trips to eastern Germany.Only one man among the dozens who watched the leaders enter the historic 18th century city hall held aloft a tiny German flag.

The two leaders immediately started talks expected to focus on Germany's recognition of its loss of territories ceded to Poland in 1945, the status of ethnic Germans in Poland and cooperation between the two countries.

They were to discuss details of a border treaty and a friendship treaty that are under negotiation.

Sources close to the talks said the two are also likely to discuss the issue of compensation for claims resulting from German firms' use of Poles as slave laborers during World War II.

One possibility under consideration is the establishment of a special fund by the Bonn government and German firms to compensate victims of the Nazi system under which slave laborers were used by many German firms.

The sources said such a system would enable Poles to claim compensation without legal action against the German government.

Officials said the outline of the two treaties was largely agreed upon and that the united Germany will formally recognize its eastern border with Poland as final and inviolable.