740.00119 EW/9–1945: Telegram

The Chargé in Finland ( Hulley ) to the Secretary of State

552. Agreement on restitution goods to Soviets under armistice article 14 reported my 496 August 31,73 includes 100,000 standards sawn timber, 10,400 cubic meters plywood, 300,000 square meters prefabricated houses, equal about 5,000 houses, 30,000 cubic meters timber for piling, 300,000 cubic meters pulpwood, 30,000 tons cellulose, 15,000 tons newsprint, 5,600 tons other paper and cardboard.

Delivery to be completed by end 1946 and most will go last half 1946. Above at 1938 dollar value plus 10% is valued at 14 million dollars. Soviets agreed goods already returned valued at 7 million and restitution goods valued at 1 million were received prior to agreement. Hence total deliveries under article 14 will be 22 million dollars worth.

Effect on Finnish exportable surplus very serious and deliveries expected by British under recent trade agreement will be much reduced unless production increases materially.

Soviet claims under article 1574 still unsettled and penalty provisions in reparations agreement contribute to uncertainty regarding further claims on Finnish production. Whole picture confirms Finnish expectation no exportable surplus for USA before 1947.

Hulley
  1. Not printed.
  2. Article 15 of the armistice agreement between the United Kingdom, the Soviet Union and Finland, September 19, 1944, provided: “Finland undertakes to transfer as booty to the disposition of the Allied (Soviet) High Command all war material of Germany and her satellites located on Finnish territory, including naval and other ships belonging to these countries in Finnish waters.” See British and Foreign States Papers, vol. cxlv, p. 513.