740.60D112A/2: Telegram
The Chargé in Finland ( Gullion ) to the Secretary of State
[Received May 18—2:37 a, m.]
401. 1. Proposal to extend Proclaimed List to Finland as explained in Department’s 878, May 10, to Stockholm is welcome to Legation at Helsinki chiefly for political reasons. In our efforts to induce Finland to rid herself of the German association we have, in my opinion, been handicapped by lack of real sanctions to apply. Threat to break relations has been employed so often that it begins to lose force. Our resort to economic warfare pressures might usefully be interpreted by Finns as a stiffening of our attitude. Listing should be helpful in gathering information on enemy economy, in mobilizing commercial and financial pressures on Finnish Government in direction of peace and when tactfully employed, as an instrument to further our other political objectives.
2. It should be fairly easy on basis of groundwork laid down in telegram in reference and facts in possession of Legation to select with assistance of Stockholm limited number of firms for early listing. To extend and maintain a listing control for whole field of Finnish economy would be a far more complicated operation. Extent to which Finnish foreign trade has come to be absorbed by enemy can be illustrated by following summary estimate: 1938, Germany supplied 18.1% of Finnish imports and absorbed 14.8% of exports. At that time combined share in imports of United States and United Kingdom was 28.8% and of exports, 51.85%. England slightly surpassed the United States of America as supplier and was far better customer. However, in 1943 (on basis of incomplete estimates) Germany supplied 75% of imports and took 67% of exports. Denmark was second supplier and buyer, Sweden third supplier and Italy third buyer in 1943.
3. Trade with enemy is spread over entire range of Finnish commerce and in certain industries is predominant. Number of borderline cases to be considered is roughly delimited by spread between prewar and wartime trade with Germany, indicating the number of firms which, while habitual traders with Western Allies, have either through inclination or force of circumstances come to deal with the enemy. On other hand it is doubtful whether, in comparison with other countries, the overall effect of Finnish trade has been particularly damaging to United States or until now relatively helpful to enemy with exception of nickel exports, wood products and some ship building. (Department’s telegram does not mention nickel exports, [Page 170] as special representation on these may well be contemplated. See my 351, April 25.)46
4. If policing by Black List of the whole Finnish industry is envisaged an expert should be stationed here on full time basis. Even to set on foot limited program it is suggested that some one familiar with administration of Black List who can adequately screen cases for presentation to Inter-Departmental Committee be assigned temporarily to this post. I understand that such a person is not available in Stockholm and it is suggested that some one from London be selected as soon as possible if he can be spared. As Department is aware there is now only one officer at this post, whose time is already well occupied.
5. Inasmuch as a copy of British Statutory List is not available here nor I understand in Stockholm, London is respectfully requested to forward one as soon as possible. I should like also to have Finnish names from British and American Watch or Gray Lists for further investigation and such names as Stockholm may be able to supply including those in categories indicated by Department’s telegram if possible to present the first names to Inter-Departmental before the end of this month.
7. To extract earliest and maximum political advantage I believe that I should be authorized to make some statement to Finnish Foreign Office as soon as lists have gone forward to Washington to effect that our Government can no longer overlook the assistance given enemy by a part of Finnish trade and industry and that we have decided to extend Proclaimed Lists to Finland. Release of names from Washington should follow at earliest possible moment following statement to Foreign Office.
1 believe it would be useful for me to add, at Department’s discretion, either officially or as my personal opinion, that Black List may continue for indeterminate time into post-war period.
Repeated to Stockholm as my 104 for Surrey,47 Fagen and Poteat.48 Will Stockholm please transmit to London as my 8?