760D.61/1513: Telegram
The Ambassador in the Soviet Union (Steinhardt) to the Secretary of State
[Received September 19—12:50 a.m.]
1186. (1) The Swedish Minister informed me yesterday that he has been advised by the Finnish Minister that the recent Finnish-Soviet railway agreement does, as reported in the Embassy’s 1173, September 15, provide that Soviet troops passing through Finland to Hango shall not be accompanied by their arms. This agreement is a modification of the original Soviet demands.
(2) With respect to the Soviet demands regarding the leasing of the Petsamo nickel mines reported in the Embassy’s 822, July 6, Paasikivi informed Assarsson that the Soviets at one time proposed that 60 percent of the output of the nickel mines should be allocated to Germany; that an amount adequate to meet normal Finnish requirements should go to Finland; and that the balance should be taken by the Soviet Union. During the last few days however the Soviet Government has intimated to the Finnish Government that it is desired that no nickel shall go to Germany and that after satisfying legitimate Finnish demands all the nickel should be taken by the Soviet Union.
(3) As to the Åland Islands last discussed in the Embassy’s telegram 909, July 25,55 the Soviet Government has now proposed as an alternative to the required demolition of all fortifications that the Islands be jointly fortified by the Soviet Union and Finland. The Finnish Minister informed the Swedish Minister that it was his opinion that the Finnish Government would reject the alternative proposal. During the discussion of this question it is understood that Molotov replied to a suggestion by Paasikivi that the other powers interested in the Islands as a result of the convention of 1921 should [Page 345] be consulted regarding their final status with a statement which disposed of the countries concerned with the exception of Sweden. Molotov said that Germany was “too far away to bother consulting”; that the Baltic States is essentially now a part of the Soviet Union and that England and France had no interest in the Baltic and in any event had no means of access thereto.
In respect to Sweden, Molotov told the Finnish Minister that the Soviet Government had no objection to the [their?] consultation with the Swedish Government or if the Finnish Government so desired, to Sweden being a party to the convention. In this connection the Swedish Minister informed me that he had already received advices to the effect that his Government did not wish to be a party to the new convention concerning the Åland Islands ostensibly on the grounds that since Sweden had always been the strongest advocate of demilitarization of the Islands it would be inconsistent with its previous position to take any part in the negotiations between Finland and the Soviet Union looking toward the demilitarization [remilitarization?] of the Islands. The Minister added that the real reason for Swedish reluctance to becoming involved in a question of the Åland Islands was a desire to avoid Swedish participation in Finnish-Soviet negotiations or relations. In conclusion the Minister confirmed the opinion previously expressed (see Embassy’s 1152, September 11, 1 p.m.56) that there had recently been a distinct lessening of tension in Soviet-Finnish relations and that Paasikivi had told him a few days ago that for the first time in recent weeks he was beginning to discount the possibility of a Soviet move against Finland. Assarsson added that this lessening of tension had found its reflection in a more conciliatory and friendly attitude on the part of the Soviet Government towards Sweden and towards himself personally. The Minister added that Paasikivi attributed this lessening of tension in large measure to the elimination of Tanner from the Finnish Government since his presence there had been strongly resented by the Soviet Government which had regarded his retention as an anti-Soviet gesture on the part of Finland.