700.00/12–348
Memorandum of Conversation, by the Director of the Office of European Affairs (Hickerson)
| Participants: | Dr. K. T. Jutila, Minister of Finland |
| Mr. John Hickerson, Director for European Affairs | |
| Mr. Benjamin M. Hulley, Chief, Division of Northern European Affairs |
Mr. Jutila came in for a periodic exchange of views on general matters. After telling me of his recent visit to New Orleans he asked [Page 787] my views of recent developments in the international field, particularly in the UN Paris Assembly. I said that developments were, of course, disappointing but did not surprise us. With regard to the airlift, I said that this had surpassed our expectations and we would continue it. He referred to the grave situation in the Far East and to a recent report that Turkey was reducing its mobilization.
He then reviewed the current situation in Finland stressing that for the moment it is quiet politically while economically it continues to show steady and gratifying improvement. He mentioned the fact that the Social Democratic Government headed by Fagerholm is doing a fall housecleaning on State Police and other matters which he thinks will be a valuable basis for the future even if it should prove necessary to set up a coalition Government to follow this one. In sum, he feels that Finland is getting along all right as long as it is left alone. I asked about the current exports of woodpulp and newsprint to the United States and he said they were coming at a good volume in the neighborhood of 200,000 tons of each annually.
With respect to relations with the Soviets he said that one never knew what they would do but he did not expect direct action. He realized that pressure could be exerted through the current trade talks in Moscow but he would await developments there. The press report on excessive Soviet demands for metal products was completely unfounded as his Government had informed him.
He expressed his great appreciation of the recent Exim Bank credit1 and commented that the credits totalling $130 million extended in the past three years while he has been Minister have made all the difference to Finnish recovery and have, in fact, placed export production on its feet. He said the two experts from the International Bank who had recently visited Finland had brought back an optimistic report. His own guess was that the Finns might hope for around $25 million credits from this Bank out of the $100 million requested.
In walking down the hall with Mr. Hulley the Minister said that the Finnish method of getting along with the Soviets was, briefly, by repeating that all Finland wants is peace and work and that with this the Soviets invariably agree. He added that he was more and more impressed by the wisdom of Minister Hamilton’s2 friendly advice to Finland while he was there to keep quiet and avoid antagonizing Russia. He believed that Paasikivi was being pressed by some Finns to take a more positive public stand but Jutila believes this would only start trouble.
- The reference here is to a credit of $10,000,000 authorized by the Export-Import Bank on November 11, 1948, for the purchase of U.S. equipment and raw materials. The Bank had previously made loans of $1,950,000 and $675,000 on February 18 and May 12, 1948, respectively.↩
- Maxwell G. Hamilton, U.S. Minister in Finland 1944–1946.↩