Foreign Relations of the United States, 1958–1960, Eastern Europe; Finland; Greece; Turkey, Volume X, Part 2

212. Memorandum of Discussion at the 420th Meeting of the National Security Council⁰

Washington, October 1, 1959.

[Here follow a paragraph listing the participants at the meeting and agenda item 1.]

2. U.S. Policy Toward Finland (NSC 5403;¹OCB Report on NSC 5403, dated July 1, 1959;² NSC Action No. 2113;³NSC 5914;⁴ Memo for NSC from Executive Secretary, same subject, dated September 22, 1959⁵)

Mr. Gray presented NSC 5914 to the Council. (A copy of Mr. Gray’s Briefing Note is filed in the Minutes of the Meeting and another copy is attached to this Memorandum.)⁶ In the course of his briefing, Mr. Gray read the last sentence of paragraph 1 of NSC 5914 as follows: “Further more, if Finland is able to preserve its present neutral status—that of a nation able to maintain its independence despite heavy Soviet pressure—it could serve as an example of what the United States might like to see achieved by the Soviet-dominated nations of Eastern Europe.”

Mr. Dillon said the problem was that it might not be in the interest of either Finland or the US to force a row between Finland and the USSR. Economic pressure by the Soviet Union against Finland could be very intense. We had already faced this problem a year ago and had decided we did not have the means to counteract Soviet economic pressure against Finland. In this connection Mr. Dillon suggested that the second sentence of paragraph 21 of NSC 5914 should be amended so that instead of “encouraging efforts” aimed at ensuring some form of association or accommodation between Finland and Western European economic cooperation movements, we would “support efforts consistent with US and Finnish interests.” The change would mean that we would not have to act automatically to “encourage”.

Mr. Gray noted that there appeared to be no objection to Mr. Dillon’s proposal; but pointed out that the point he was making with respect to the last sentence of paragraph 1 of NSC 5914 was different.

Mr. Allen observed that refugee groups were always alert for any implication that the US might support a Communist separatist movement. Such groups are opposed to Tito-type governments in the satellites, since they regard such governments as just as bad as the present Communist governments there. Mr. Allen thought perhaps paragraph 1 of NSC 5914 should say that a Finnish-type government in the satellites would be acceptable for the present but was not the ultimate solution.

Mr. Gates felt it was unnecessary to write overall policy into the paper on Finland. Such a procedure could reflect back on Basic Policy. He believed the last sentence of paragraph 1 did not belong in NSC 5914; he suggested that NSC 5914 be confined to Finland and not mention the Soviet-dominated nations of Eastern Europe.

Secretary Herter asked whether the sentence in question was contrary to Basic Policy. Mr. Gray said it was not, and added that it was not necessary to include the sentence in US Policy toward Finland.

Mr. Dulles preferred to include the sentence in NSC 5914. He would be delighted if a Finnish-type government developed in Poland or Czechoslovakia because Finland was essentially a Western-oriented, democratic country. In effect we are saying to the USSR, you can live with a Western-oriented, democratic Finland, why not with Eastern European countries organized along the same lines?

In response to a question from Mr. Gates, Secretary Herter said he agreed with the last sentence of paragraph 1 of NSC 5914, though he felt it might be out of place.

Mr. Gray said the sentence had been included as a bit of background to our policy of helping Finland stay Western-oriented and democratic. Mr. Gray then called attention to the Financial Appendix which showed that assistance to Finland is in the form of loans and PL–480 rather than grants. The IBRD was the largest single source of aid to Finland. Mr. Gray then summarized a request by Ambassador Hickerson that he be given authority to assure the Finnish Government of limited economic assistance under certain conditions if Finland seeks to associate with the Outer Seven and the Soviets retaliate with threats of economic sanctions. Mr. Gray said the policy guidance in NSC 5914 authorized State to give the Ambassador the authority he requested.

Secretary Herter said that on the financial side the Finns were as honorable as any people he had ever dealt with; and Mr. Dillon added that the Finns were the only people who wanted to pay their World War I debt.

The National Security Council:⁷

a. Discussed the draft statement of policy on the subject contained in NSC 5914; in the light of the views of the Joint Chiefs or Staff thereon, transmitted by the reference memorandum of September 22, 1959.

b. Adopted the statement of policy in NSC 5914, subject to the amendment of the second sentence of paragraph 21 on page 11 by substituting for “encourage efforts” the words “support efforts consistent with the United States and Finnish interests”.

Note:NSC 5914, as amended by the action in b above, subsequently submitted to and approved by the President; circulated as NSC 5914/1 for implementation by all appropriate Executive departments and agencies of the U.S. Government; and referred to the Operations Coordinating Board as the coordinating agency designated by the President.

[Here follow agenda items 3 and 4.]

Marion W. Boggs

0. Source: Eisenhower Library, Whitman File, NSC Records. Top Secret. Prepared by Marion W. Boggs on October 2. Secretary of State Herter presided at the meeting.
1. See footnote 1, Document 179.
2. Document 207.
3. NSC Action No. 2113, in which the National Security Council noted the OCB report of July 1, was taken at the 414th Meeting of the NSC, July 23, and approved by the President the same day. (Department of State, S/S–NSC (Miscellaneous) Files: Lot 66 D 95, Records of Action by the National Security Council)
4. Dated September 10, not printed. (Ibid., S/S–NSC Files: Lot 63 D 351) NSC 5914/1 is printed as Document 213.
5. This memorandum enclosed a memorandum from Chief of Naval Operations Burke, dated September 21, advising the Secretary of Defense that the Joint Chiefs of Staff recommended that he support NSC 5914. (Department of State, S/S–NSC Files: Lot 63 D 351)
6. Not printed. The minutes of all NSC meetings held during the Eisenhower administration are in the National Archives and Records Administration, RG 273, Records of the National Security Council, Official Meeting Minutes File.
7. Paragraphs a–b and the Note that follows constitute NSC Action No. 2132, approved by the President on October 14. (Department of State, S/S–NSC (Miscellaneous) Files: Lot 66 D 95, Records of Action by the National Security Council)