760D.61/1544: Telegram

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

11. Former Foreign Minister Hackzell7 who has conducted negotiations with Russians regarding restoration of and compensation for movable, property in ceded areas, told me last night that agreement had been reached on all points save amount of monetary compensation payable as to which Russians were very “rough”.

Hackzell also expressed opinion that conflict between Soviet Union and Germany is certain and frankly expected on both sides as soon as Germany is free to move east. He shares view of number of Finnish leaders that main hope of keeping Finland free lies in speedy end of present war and prevention of eventual German collapse. This pro-German school of thought does not ignore possibility of German consent to renew Baltic-Soviet aggression8 here if pressure on Germany makes this necessary, which explains Hackzell’s further statement [Page 3] that he, and these who see situation in same way as he, are hopeful our policy will not cause destruction of Germany as strong power but rather expedite peace without victory.

  1. Antti Hackzell was Chairman of the Finnish Commission on War Damage.
  2. For correspondence on the forcible occupation of the Baltic States and their incorporation into the Soviet Union, see Foreign Relations, 1940, vol. i, pp. 357 ff.