760d.61/321: Telegram

The Minister in Sweden (Sterling) to the Secretary of State

158. I had a conversation this morning with Sandler who gave me the following in strictest confidence.

The situation in connection with Finland and Russia is very grave. We shall know more about it early next week when Paasikivi returns to Moscow. The outrageous demands made by the Soviet Government are entirely plain to Finland. They not only infringe upon her integrity and sovereignty but impair her political independence. He could not divulge them specifically since he felt that only the Finnish Government should do so. Sweden is most grateful to President Roosevelt for his démarche in Moscow but the Soviet Government has not yet withdrawn or modified these demands. In them is a threat to all of Scandinavia, particularly to Sweden, to Norway and to Denmark in a lesser degree. The four northern countries are working in the closest harmony. He could not state what Sweden would do in assistance to Finland if war broke out between Finland and Russia until the situation was further developed. He felt that a further message from President Roosevelt to Moscow, if the events of next week warranted, might have a repeated restraining effect and he would perhaps call me to discuss the matter.

Sterling