740.00119 EW/10–1845: Telegram
The Chargé in Finland ( Hulley ) to the Secretary of State
[Received 4:45 p.m.]
614. In view of expected efforts of Finnish officials arriving in U S to obtain credits a review of policy outlined in Department’s 2550 December 19 to Stockholm78 seems desirable.
Policy of refusing loans to enable reparations payments is most sound and should not be modified in any way. But this is not taken to preclude credits of all kinds to a nation which pays reparations. Paragraph 6 of above cited cable indicates consideration can be given to specific projects to facilitate production and export of non-reparations goods. Such projects in Finland may include chiefly: Essential items such as road transport equipment needed to restore basic wood products export industry to full production. 2. Consumer goods such as clothing and food to assist stabilization of internal economy. 3. Necessary medical and scientific supplies formerly obtained from Germany for which no other source of supply is yet found.
Motives for modest assistance of this kind would be to regard our place in this market and to help Finland recover economic health. At present most imports to Finland come from Sweden, USSR and Britain. No American products arrived this year except motion pictures which come on credit in sense that proceeds pile up in Finmarks which cannot be converted for indefinite time. No [If] other goods are to come within year or two there seems no way but credit. However an unknown factor is possible annual increase of 15 million dollars in exportable goods due to recent extension of reparation delivery period but until details are arranged this can not be relied on.
Neither of our great Allies has granted credits to Finland. USSR besides taking reparations and restitution goods receives a large part of remaining exportable surplus in exchange for minimum of necessities. Practically all of balance goes to Britain to pay for other necessities. Britain since opening mission year ago has gone after trade tooth and nail and though disappointed at smallness of Finnish exports available has not extended commercial credits. Trade with both countries and with Denmark is based on bilateral trade agreements amounting to barter. Sweden also has granted credits of approximately 50 million dollars apparently activated by political motives to keep Finland on its feet. Credits from Brazil are being sought this month.
[Page 659]With many requests before US, Finland’s place is presumably far down the line and must fit into general picture. Probably it would be unwise to help Finland before Soviet request is decided. Many nations are more deserving than Finland but none is more likely to pay up assuming that it will remain sovereign nation. Though absorption by USSR now appears unlikely final answer may depend on international developments.