World Jewish Congress President Edgar M. Bronfman Tuesday indicated Communist East Germany will pay reparations to Holocaust victims and their families.

He also said he hoped for improved contacts between East Germany and Israel. The two countries never have had diplomatic relations."I have been given the understanding that serious consideration is being given to some renewal of relationship between the two countries and I hope that will happen in the not-too-distant future," Bronfman said.

Before his meeting Tuesday with East German leader Erich Honecker, Bronfman said he expected his three-day visit to East Berlin would lead to a reparations agreement for Jewish victims. East Germany had said it would provide unspecified humanitarian aid to Holocaust victims.

At a news conference in East Berlin at the end of his trip, Bronfman declined to be specific on exactly what compensation he expects.