The Acting Secretary of State to the Minister in Finland (Hamilton)
262. Urtel 709, Sep 30  and 713, Sep 30. Dept keenly aware Finland’s need of credit. In July Eximbank asked Finnleg to present info on Finn situation (mytel July 911) before deciding to receive Finn special delegation for discussion further 1946 credit. Bank felt data presented by Finnleg did not demonstrate sufficient need for [Page 248] further 1946 credit to justify discussion with special delegation. Bank indicated Finnleg info was not complete and Bank conclusion not final. If Finns wished to present further data, Bank would review it. Finnleg planned provide more info (mytel 166, Aug 212). Then urtel 560, Aug 9 recd and mytel 177, Aug 12, sent to head off delegation to US.
Situation now is Eximbank always willing to examine critically and sympathetically any info re credit needs Finn Govt may present. In this spirit Graesbeck was told Dec 1945 Eximbank willing to enter further discussion at some future time if Finn Govt should request consideration additional credit. Eximbank prefers rec such info from Leg rather than special mission, to avoid any implication of commitment and possible disappointment and embarrassment to Finn Govt. Dept concurring.
When Finnleg asked if Bank would discuss 1947 credit requirements Bank replied (July 2) unless situation changed materially, this was function of International Bank. Now unlikely that Finland could become member of International Bank to obtain 1947 credit. In light of this situation Eximbank would be willing to review 1947 credit, if Dept consents.
So long as uncertainty re reparations exists, Dept most reluctant have Eximbank consider any loan application from Finnland or discuss such application. Should it appear this uncertainty will continue indefinitely, and if loan needed to avoid economic crises in Finland, Dept will consider recommendation to Eximbank to proceed. Advice from Secdel, Paris,13 being sought re reparations and Dept will advise you further. Prefer not inform Paasikivi until further advice received from Secdel.
Nobody at Bank or Dept, urtel 714, Sep 30,14 is responsible for story or knows anything about it. Bank denied, Oct 7, another story that it had refused loan application, adding Finn situation being actively reviewed.
Repeated to Secdel Paris Dept’s 5415.
- Telegram 126, not printed.↩
- Not printed.↩
- Secretary of State Byrnes, who was head of the American delegation at the Paris Peace Conference which met from July 29 to October 15, 1946.↩
- Not printed. The telegram reported an item from Washington in the Finnish newspaper Helsingin Sanomat for September 29, attributed to a representative of the Export-Import Bank, which stated that the Bank was awaiting information from Finland on its need for credit, after which the Bank would decide whether there was any use for Finnish negotiators to come to discuss a new credit. (860d.51/9–3046)↩