760D.61/1477: Telegram
The Minister in Finland (Schoenfeld) to the Secretary of State
[Received 3:35 p.m.]
327. Minister for Foreign Affairs informed me today that negotiations with the Russians for settlement of outstanding questions have been progressing successfully. Among questions settled the following are the principal ones: [Page 334]
- 1.
- The agreement regarding Åland Islands will place Soviet Union in position analogous to that of signatories of Geneva Convention of 1921, and the Soviet Consul to be appointed to reside in provincial capital39 will have the right similar to that of local representative of any such signatory to assure himself by occasional personal inspection that provisions of that Convention are complied with in respect of demilitarization.
- 2.
- Agreement has been reached regarding railroad traffic over Finnish lines from junction points and to leased area at Hango. One Russian train consisting of 47 freight cars and 3 locomotives with equipment for leased area recently arrived here and was divided by the Finnish authorities into two trains owing to shortness of curves on local roads, this having given rise to unwarranted sensational reports.
- 3.
- There is agreement also regarding state and municipal and private property in Hango and elsewhere affected by the peace treaty of last March. Finland substantially accepted Russian view regarding restoration and compensation and will have to pay estimated amount of 200 million Finnish marks less undetermined credits to be settled in clearing.
The Minister expressed annoyance at reports by United Press correspondent at Stockholm regarding alleged ultimatum40 to Finland last week and told me Finnish Minister at Washington would be instructed to bring this informally to the attention [of] the officials of press organization mentioned.
With reference to possible support by the Soviet authorities of a small dissident group in the Social Democratic Party here the Minister pointed out that such party splits were of long standing and their significance had been explained to the Kremlin. He seemed to attribute no great importance to this matter which is the subject of recent despatches to the Department.
Answering my query as to German and Swedish view of the agreement between Finland and the Soviet Union regarding the Åland Islands, the Minister told me that those two Governments had been apprised of it and made no comment or objection.