184. Telegram From the Embassy in Finland to the Department of State0

95. Reflecting further on Department’s message 102,1 I am not of course, appreciative of the obstacles that stand in the way of a government loan to Finland at this time. I nevertheless urge as strongly as I can that every possible avenue be explored to try to give a favorable answer to the Waris mission. It is not too much to say that Finland now stands at the cross roads. The government which is just taking over was organized only after the greatest difficulty. From our standpoint it is a good government bringing together as it does all of the political elements which stand most firmly for preservation of both Finland’s real independence and her western orientation. Unless the new government can make visible progress toward solution of basic economic problems, including especially a start toward expanding production with an attendant [Page 496] increase in employment, it will almost certainly fall within a few months. The alternatives would then appear be either a minority government, seeking and dependent upon Communist support, or a majority government including Communists. Either of these would involve a severe weakening of the solid anti-Communist front maintained in domestic politics since 1948. And this might well be but the beginning, with the final result being over a period of years a disastrous instance of a free people voluntarily giving Communists a real voice in their affairs.

I am not so sanguine as to believe US loan will guarantee success for the present government. I am convinced, however, that failure to secure a loan will greatly increase the difficulties that the government would encounter. At the same time, it would probably lead to irresistible pressure to utilize the proffered Soviet credit of 400 to 500 million rubles with its serious implications for the rational economic development of the country and for its economic orientation.

  1. Source: Department of State, Central Files, 860E.10/9–258. Confidential; Priority.
  2. See Document 182.