760d.61/334: Telegram

The Ambassador in the Soviet Union (Steinhardt) to the Secretary of State

792. For the President, the Secretary and Under Secretary. My telegram No. 790, October 24.54 I am informed in strict confidence, with an urgent request for secrecy, that the two meetings in the Kremlin last night at which Stalin and Molotov, the Finnish representative Paasikivi and the Finnish Finance Minister were present went very badly and ended in an impasse. This was due, it was said, to the Soviet insistence upon a base and the right to station troops at Hango and the refusal of Stalin to modify the territorial extent of the Soviet demand for the cession of the Finnish communes north of Leningrad. As had been anticipated the other Soviet proposals involving the Finnish Islands in the Gulf of Finland and the Rybachi Peninsula presented no difficulties. The Finnish delegate Paasikivi and the Minister for Finance may return to Helsinki tonight. I received the impression that the negotiations had virtually broken down over the question of a Soviet base at Hango Bar. Unless Stalin alters his [position?] a serious situation will arise.

In view of the delicacy of the present situation the foregoing was conveyed with the urgent request that it be held in absolute secrecy for the information of the President, Secretary and Under Secretary alone as there is particular concern lest this information return to Helsinki via the Finnish Minister in Washington.

Steinhardt
  1. Not printed.