Foreign Relations of the United States Diplomatic Papers, 1941, General, The Soviet Union, Volume I

860D.51/478: Telegram

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

Helsinki, February 25, 1941—2 p.m.
[Received 6 p.m.]

56. My telegram No. 31, February 4. I have received letter dated February 21³² from Finnish Minister of Supply³³ outlining desire of his Ministry to obtain a loan of $20,000,000 from the United States for civilian needs in this country, this amount being estimated as sufficient for requirements during current year if used sparingly. Letter states that it would be desired to purchase through Federal Surplus Commodities Corporation margarine, oils, pure lard, fatbacks, wheat and wheat flour, oil cakes and cotton amounting to about $7,000,000 and that remainder of the loan would be intended for purchase of further foodstuffs, raw materials and other commodities which Finland “absolutely needs from the United States.” Letter states that other possible loan negotiations for Finland are beyond scope of this proposal and should be considered separately.

Ministry of Foreign Affairs informed me in confidence today that Finnish Government is considering sending special representative to the United States for loan negotiations but that no decision has been reached and I understand from another source that Finnish Minister at Washington has again been asked to express opinion as to when it would be a suitable time to initiate formal conversations regarding loan. Hence it appears that no such conversations have been initiated.³⁴

Letter from Minister of Supply above mentioned expresses the hope that I will support granting further loan to Finland to purchase American products which are stated to be imperatively necessary for population and industry in this country.

Schoenfeld

32. Not printed.
33. Väinö Aleksanteri Kotilainen.
34. The Finnish Minister told Assistant Secretary of State Berle on March 3 that he had talked with Mr. Jesse Jones, who “had told him that the Reconstruction Finance Corporation would not grant any further credits to Finland at this time.” (860D.51/478) In an interview on March 11, the Finnish Minister informed Secretary of State Hull of the need for a further loan by Finland, and left a long aide-mémoire setting forth the facts in justification. The Secretary stated that he was sympathetic to the application, and would continue to give the matter attention in his discussions with Mr. Jesse Jones and others. (860D.51/480)