860d.51/383
Memorandum of Conversations, by the Adviser on International Economic Affairs (Feis)
The Finnish Minister came in to see me this afternoon in regard to this matter of financial assistance. He said that he had spoken to the Secretary of the Treasury about it, and that this morning the Secretary of the Treasury had informed him that the only way in which any further financial help could be given to Finland would be by action of Congress. He stated that he would discuss that with the President in the near future.
I corroborated this fact and explained why the Export-Import Bank could not undertake the financing of arms, munitions, and implements of war.
The Finnish Minister then said that they had out of funds in hand enough to pay not only for the airplanes whose purchase is now in prospect but also for anti-tank and anti-aircraft guns which they desperately needed. He said he was informed that these weapons were only made in Government arsenals and could only be procured by purchase from the American Government. I confirmed the fact that if this was the only source, legislative authority from Congress would be required. He said he greatly hoped that the Administration would make some such proposal to Congress.27
[Page 1031]I conferred with Mr. Green. He gave me to understand that private firms in the United States could make these weapons (later Mr. Green, however, explained deliveries would be months delayed). As regards questions of priority in delivery, I said that I thought the matter was one for consideration by the Army and Navy Munitions Board, who, however, did submit unusual questions to the President.
He emphasized his belief that the power to obtain these weapons promptly would make all the difference between the power to survive or defeat, and that the decisive time was short; and that if Finland went under,28 it would probably usher in other momentous events.
- A bill was introduced in the Senate on January 8, 1940, by Senator Prentiss M. Brown to enable loans to be made to Finland not to exceed $60,000,000. On March 2, 1940, an Act was approved (54 Stat. 38) whereby the lending authority of the Export-Import Bank of Washington was increased to $200,000,000. It was provided, however, that the amount of loans to any one foreign country outstanding at any one time should not exceed $20,000,000, in addition to loans already authorized.↩
- Finland was compelled to conclude a treaty of peace, with protocol, with the Soviet Union, which was signed at Moscow, March 12, 1940. For translation of the text of the treaty and protocol, see Department of State Bulletin. April 27, 1940, p. 453.↩