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

251. Deptel 228.1 Conveyed points to Waris and Kaila in joint meeting. Choice these two based upon fact had talked to them re finnmark allocation (Embtel 250).2 Do not feel wise for Embassy to relay to others this stage view delicacy present situation and danger misunderstanding or distortion motives.

Emphasized US had no intention trying interfere Finnish domestic affairs; also that US does not wish create situation that would appear US and USSR engaged in economic struggle over Finland. In connection latter, point out US has no intention try influence Finland to modify neutral position, a position we accepted as in Finland’s best interest. Said our only concern was to insure that proper authorities in considering possible alternatives of Finns in present situation would have reliable indication US position so they would be able judge extent they had freedom of choice.

Kaila and Waris made clear they viewed the statement as of major importance. They expressed their appreciation for position US is taking [Page 519] and showed complete understanding of the motives underlying it. They stated that they would immediately inform appropriate Ministers of Government, indicating at same time that some choice would be involved so as to reduce chances misunderstanding and distortion our motives. [6 lines of source text not declassified] Same meeting Waris informed us he and board mortgage bank had decided following receipt information this morning of finnmark allocation (Embtel 250) to take chance and announce immediately credits for domestic ship orders without however, reference prospective loan. He and Kaila felt announcement, which is being given press this evening, would have highly beneficial effect in relieving pressure on shipbuilding industry. Both [garble—had earlier?] expressed satisfaction over finnmark loan development and had urged earliest possible finalization.

Re overall prospects, seems certain some reorganization government will have to take place. Issue is whether essential character present general alignment will be maintained. Embassy convinced position taken in Department will greatly encourage those resisting capitulation. Even now, however, we of course feel no assurance as to final outcome.3

  1. Source: Department of State, Central Files, 460E.6141/11–2658. Secret; Niact.
  2. Document 196.
  3. In telegram 250 from Helsinki, November 26, transmitted at 2 p.m., Harvey reported that the Embassy was informing Waris and Kaila that the U.S. Government had allocated a $5 million finnmark loan to Finland from 1958 P.L. 480 funds. (Department of State, Central Files, 760E.13/11–2658)
  4. In telegram 267 from Helsinki, December 2, Ambassador Hickerson reported that on November 28 he had reviewed the aid matter with Secretary of State Vahervuori who had “expressed warm thanks for the offer.” He added that besides himself, only Kekkonen, Fagerholm, Virolainen, Waris, and Kaila knew of the U.S. proposal and expressed the hope that “for the present, no others be informed.” He stated that although the U.S. credits were “probably too late to help the present government,” they might be of great importance to its successor. (Ibid., 860E.10/12–258)