760D.61/1437: Telegram

The Minister in Finland (Schoenfeld) to the Secretary of State

273. My telegram No. 261, June 13, and despatch No. 1753, May 9.33 Minister for Foreign Affairs informed me this morning that Finnish Government would be obliged to pay some compensation to the Soviet Government for industrial equipment removed from plants in ceded areas contrary to treaty of peace in cases where such equipment could not conveniently be restored. He did not specify amount of compensation which will probably not be known until the Joint Commission dealing with these matters completes its work. He made, it plain that Finland is not in a position to refuse even unreasonable demands in this respect but gave me the impression that the Russians were not showing unreasonable attitude.

He is apparently persuaded that for the present Soviet Government is not placing Finland in the same category with south Baltic States where he said frankly Soviet policy is based upon preparation for defense against Germany.

  1. Despatch not printed.