File No. 860d.48/164
The Minister in Sweden ( Morris) to the Secretary of State 1
[Received March 16, 11.17 a.m.]
1707. Concerning the furnishing of cereals to Finland and the negotiations which took place at London between the British Government and representative of the Finnish Senate as summed up in a letter addressed to Doctor Holsti by the British Government on February 28, British Minister has been approached by representative of the Finnish Senate here to continue this discussion. Allied Ministry [Page 579] have considered this quite in the light of altered conditions created by publication of Finnish treaty with Germany and have examined the desirability of permitting exports of cereals or other commodities to Finland in return for: (1) return to Sweden of Russian goods in Finland; (2) release of British vessels in Finnish waters; (3) sale or charter to Allies of Russian vessels in Finnish waters.
Allied Ministers are of the opinion [1] that in view of control of Finnish commerce now obtained by Germany any arrangement is prima facie undesirable as it would presumably be made only with German consent and is therefore presumably in German interest; (2) that [as] the import of wheat which Germany has promised must be presumed to be sufficient to keep Finland from starvation, any import of cereals from the Allies would therefore possibly enable the creation of a reserve; (3) that as Germany may have great difficulty in carrying out her promise to supply cereals and import, the Allies would assist Germany in this respect.
The Finnish Government have asked permission to retain all Finnish transit goods in Sweden against the return of Russian transit goods in Finland. As we have no legal right to detain the goods in Sweden, or at any rate we are liable to be forced to release them and are having great difficulty in this respect, Allied Ministers are at once negotiating an arrangement on these lines. The matter is particularly urgent as information has been received that Russian goods at Tornea are already being conveyed to Scandinavia. We consider that we should at any rate obtain all the Russian goods at Tornea in exchange for Finnish goods in Sweden. Of the remaining goods in Finland only some 2,500 tons appear, from the particulars available, to be of any military importance. If it is necessary to give something extra, giving them comparatively small quantity of goods, we are opposed to cereal being shipped by the Allies to Finland for the purpose and deem it preferable to ask the Swedish Government to purchase these goods for sale to approved firms in Sweden upon such terms as to compensation as they can arrange with the Finnish Government. If the Swedish Government are obliged to give cereals at a rate not exceeding ton for ton, Allied Governments could undertake to replace later Swedish cereals so used. For the above objects therefore no shipment of cereals from the United States of America to Finland is necessary, and we consider for the reasons above stated that such a shipment in present circumstances is undesirable.
With regard to the British ships in Finland, British Minister is at once demanding a guarantee that they will be permitted to leave as soon as ice permits. If this request is refused we wish for your views as to the desirability of some bargain being made for their release, and for this purpose it is safe to permit some import to Finland of cereals or other goods from the Allies. We will be glad of [Page 580] instructions as to the terms you would be prepared to offer the Finnish Government if release of ships is refused. We shall advise you of progress of the negotiations with Finnish representatives as regards exchange of Russian goods for Finnish as stated above.
We consider that the question of the Russian ships should form the subject of separate negotiations for purchase or charter and should be glad of the views of the Chartering Committee in London on this head. Allied Ministers are sending similar telegrams to their Governments. Copy sent Sheldon.
- Copy to L. P. Sheldon, War Trade Board representative at London (see last paragraph).↩