860D.6359 International Nickel Company/21: Telegram

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

37. Minister of Foreign Affairs informed me this morning that settlement of Petsamo nickel question is now in sight and would take substantially following form: formation of new Finnish company to take over concession, Finnish Government to hold 51% of stock and Soviet Government 49%, latter subscribing approximately 7 million dollars of 12 to 14 millions total capital. New company could thus deal freely with the ore, distribution presumably to include exports to Germany. British Government has intimated its disinterest in the matter for duration of the present war but will register formal protest, it being understood that following war equitable adjustment will be made. British Government appears also to have given Finns to understand that it is appreciative of their efforts made under difficult conditions during past 7 months to protect British nickel interests.

Schoenfeld