860D.51/454: Telegram
The Minister in Finland (Schoenfeld) to the Secretary of State
[Received July 31—5:05 p.m.]
339. The Prime Minister informed me today that he was planning to instruct the Finnish Government [Minister] at Washington to take up again the possibility of a United States Government loan to Finland. Ryti said he understood that nothing could be done about this until after November next but it seemed possible that preliminary work might be accomplished in order that the matter could be [Page 336] handled expeditiously thereafter. The amount mentioned by him remains $100,000,000 which has been under discussion since last year.
Ryti said that barring unforeseen contingencies the Finnish budget would be balanced by the latter part of next year and that already there had been a great improvement there being weeks when income and expenses were almost in balance. There could be no publication of figures for the present because they were still treated secretive [according?] to law but the situation was getting steadily better. Meanwhile supplies of all kinds both for subsistence and essential manufactures were coming along in satisfactory style. Unemployment was well under control, incomes rising and prices likewise under control in some cases even falling. Exports to European markets were reviving but they would represent little free exchange which remained dependent on access to overseas markets through the restricted facilities of Petsamo so long as the war in its present phase continued. He pointed out that the war damage compensation bill now awaiting third reading in Parliament would work out substantially in practice as originally rendered by the Government. The Prime Minister was cautiously confident about the financial situation of Finland.