1941: Finland

During 1941 Finland faced the dilemma of losing the good will of the friendly Western democracies, or risking occupation by Germany and at the same time passing up an excellent opportunity to regain territory seized by Russia in 1940. On Jan. 4 a new Finnish Cabinet was formed with Jukka Rangell as Prime Minister. Since it included practically the same personnel as the previous Government of Risto Ryti, who had become President of the Republic at the end of 1940, little change in policy was expected. Before the year ended, however, Finland was allied with Germany in an aggressive campaign against Russia, and was at war with Britain — one of the leading sources of assistance for the Finns in their 1939-40 conflict with the U.S.S.R.

Reconstruction.

Finland began the year with grim determination to carry on its tremendous task of reconstruction, despite the lack of help from neighboring countries which were absorbed in their own vital problems. In the first half of the year, the Finns issued many foreign appeals for food and clothing, but devoted their primary efforts to rearmament. The people regarded their peace with Moscow as a temporary cessation of hostilities which would give them time to repair damage and reform their lines. They carried out the provisions of the peace treaty, however, and constructed the Kemijarvi-Salla Railroad, for which they had to build 25 bridges — one over 1,000 feet long. Before the outbreak of hostilities in June 1941, it was announced that the railroad would be ready for use in September.

The British blockade intensified reconstruction problems, although it was eased somewhat in the spring. Early in January the British agreed to permit United States relief supplies to reach Finland if the Finns would refrain from giving any kind of assistance to Germany. In February and March Britain began to grant navicerts for the passage of food, clothing and sufficient gasoline to move each cargo from the seaport of Liinahamari (Petsamo) to the nearest railhead at Rovaniemi, 340 miles to the south. Nevertheless, Finland's stores of food gradually decreased, and by the middle of May supplies of meat and eggs were estimated at only one-fifth of normal requirements, fats at about one-half, sugar at two-thirds.

Reconstruction was financed mainly by large domestic loans. The First Reconstruction Loan of a billion markka ($20,000,000) — the largest loan in Finland's history — was completely subscribed between Feb. 17 and March 15. The Second Reconstruction Loan was scheduled for May 5. Indemnification payments for the 400,000 Finns who had left parts of the Karelian Isthmus after March 1940, when their homeland was ceded to Russia, were raised by a special graduated tax imposed on all persons holding real and personal property valued at more than $800. Levies were augmented 40 per cent for childless persons over 24 years of age. On April 29 Parliament passed the Emergency Powers Bill, authorizing the Government to exercise virtually dictatorial power over Finland's economy until the end of 1942. In order to stave off inflation as the outbreak of war approached, the importation of Finnish bank notes into the country was prohibited by a decree of June 12, effective at once.

War against the U.S.S.R.

When Germany prepared to attack the Soviet Union, the Finns saw a chance to regain territory and sovereign rights they had forfeited in the Moscow peace treaty of 1940. Although Finland did not acknowledge being at war with Russia until June 28, war measures were apparent as early as June 18, when government officials called all Finnish reserves for service, and restricted railroad travel. Newspapers warned that in the event of a Russo-German war Finland was likely to become involved in hostilities, and the evacuation of women and children from Helsinki proceeded rapidly. Observers had reported on June 4 that Germany was recruiting Finns and training them for service in the German army. On June 21 automobile owners were ordered to report their vehicles to civic guard headquarters. Soviet planes bombed Finnish coastal fortifications and shipping on June 22, for which Finland issued a strong protest to Moscow the following day. On June 25 the Russians bombed Turku (Åbo), Lappeeranta, Lahti and Kotka, where damage to the Enzogitzeit wood and cellulose factory amounted to about 45,000,000 markka (approximately $1,000,000); bombing of Helsinki soon followed.

Without any official declaration of war, on June 26 President Risto Ryti urged his people to fight against Russia. June 28 Helsinki dispatches stated that Finnish artillery had begun bombardment of the Russian military and naval base on the Hangö Peninsula, which the Soviet Union had leased from Finland under terms of the 1940 peace treaty. It was also reported that German troops were crossing northern Finland en route to the Russian port of Murmansk, and crossing southern Finland en route to Leningrad. Field Marshal Mannerheim's order of the day for June 29 asked all Finns to follow him in a 'holy war' against the Soviet Union. On July 1 it was reported that Finnish and German troops were approaching Kandalaksha, which the Russo-Finnish peace pact had specified as the Russian terminus of the railroad that was to have been built jointly by Russia and Finland across northern Finland to Sweden. The Finns and Germans continued to advance on this front toward Leningrad, winning former Finnish cities on the Karelian Isthmus. The Finns announced on July 4 that they had occupied the Aaland Islands, which could be conveniently used as a springboard for attacking the Russian Hangö base. Finnish-German victories on the Karelian Isthmus continued, and on July 26 the Finnish High Command stated that Finland had regained control over the territory north of Lake Ladoga ceded to the Soviet Union in 1940. The Finns recaptured Viipuri (Viborg) in August and engaged in heavy fighting on the Karelian Isthmus throughout September. On Oct. 1 Helsinki announced that Finnish troops had occupied Aanislinna (Petrozavodsk), the capital of Soviet Karelia. Official statements on Nov. 4 claimed the strategic Koivisto Islands in the Gulf of Finland. A Finnish communiqué for Dec. 3 said that Soviet forces were evacuating Hangö and that Finland had thereby reconquered all of its pre-1940 territory from the Russians. The Finns, however, were not content with reestablishing their former boundaries; Baron Mannerheim revealed that Finland expected to obtain the Russian territory which had been used as bases of attack the preceding year.

The Diplomatic Front.

During the first part of their 1941 war the Finns insisted that they were fighting only against the U.S.S.R., and that they were allies of Germany merely by coincidence. They frequently expressed the desire to remain on friendly terms with Britain and the United States. Sweden, however, was the only country outside the Axis which gave material aid to Finland; Swedish volunteers were allowed to join the Finnish Army, although Sweden dispatched no official troops. On July 10 the Helsinki Government published a 'Blue-White Book' describing Soviet-Finnish relations since March 1940. The book accused the U.S.S.R. of communistic pressure to force excessive demands on Finland, expropriation of private property, interference with Finnish mails, and attacks on a Finnish passenger plane.

Relations with Britain grew steadily worse as Finnish forces swept eastward. On July 29, the Finnish Foreign Minister presented an aide-memoire to the British Minister in Helsinki stating that normal diplomatic relations with Britain could hardly be maintained because of Finland's co-belligerency with Germany. When queried, he admitted that he was requesting the severance of diplomatic relations. The break was made official on Aug. 1. A British note of Sept. 22 warned the Finns that unless their troops discontinued their invasion of Soviet territory, Britain would regard Finland as an enemy. The Finnish response on Oct. 7 declared that Finland's war against the U.S.S.R. was defensive, 'without political obligations,' and that all 1940 losses had not yet been regained. It was disclosed on Oct. 30 that Moscow had asked London to declare war on Finland. British Foreign Secretary Eden told the House of Commons on Nov. 19 that Britain was already taking 'military and naval action' against Finnish forces. All British hopes that Finland would negotiate an early peace were shattered when Finland signed the Anti-Comintern Pact on Nov. 25. Britain handed the Finns an ultimatum on Nov. 28, demanding that they end hostilities by Dec. 5. After receiving no satisfactory reply, London announced on Dec. 6 — Finland's Independence Day — that Britain would be at war with Finland at 12:01 in the morning, Dec. 7. Finland's conciliatory but firm reply to the British ultimatum was not published until after Britain's declaration of war.

The United States stood behind Britain in opposing Finland's military operations on Soviet territory, although it had neither severed diplomatic relations nor declared war by the end of the year. Washington communicated a Soviet peace offer to Finnish Minister Procope on Aug. 22, but the Helsinki Government did not respond. On Oct. 3 Secretary of State Hull summoned Minister Procope and explained that the United States was glad to see Finland regain its lost territory but that the present issue was whether or not Finland intended to remain allied with Germany and help the Germans fulfill their plan to conquer the earth. On Oct. 14 the United States announced that Finland would receive no more credits or supplies from this country. Finnish funds in the United States had been frozen since June 14, along with funds of various other European countries; but until Oct. 14, licenses had been granted for the release of specified amounts from time to time.

Following a course similar to Britain's, Secretary of State Hull on Nov. 3 threatened that Finland would forfeit United States friendship if it continued to fight against the Soviet Union. Prime Minister Rangell secretly conferred with Swedish statesmen in Stockholm on Nov. 5, presumably to consider the attitude of the United States. On Nov. 7 Under Secretary of State Welles told Minister Procope that the Soviet Union was willing to make territorial concessions and wanted peace with Finland. Minister Procope asked: (1) what guarantees the United States and Britain could offer that Finland's 1939 experience with the U.S.S.R. would not be repeated, and (2) what assurance Finland would have that a victorious Soviet Union would respect the promises of the United States and Britain. Mr. Welles, in turn, inquired as to Finland's chances of retaining its real independence if Germany won. Finland formally notified the United States, on Nov. 11, that it could not end its war with Russia until all Finnish territory was regained and new defensible frontiers established.

Secretary of War Stimson pointed out on Nov. 25 that Finland's military activities on Russian territory endangered lease-lend supplies shipped to Soviet forces over the Murmansk-Moscow railroad. Two days later Minister Procope advanced the argument that 'if certain large nations' have the right to occupy defense bases thousands of miles from their borders, Finland should not be denounced for occupying bases only a few miles beyond its frontiers. Secretary Hull issued an official statement on Nov. 28, charging that 'every act of the Finnish Government' since its Nov. 11 note 'has confirmed our apprehensions that it is fully cooperating with the Hitler forces.' On Dec. 6, after the announcement of Britain's declaration of war against Finland, the United States Navy Department ordered the seizure of all Finnish ships in United States ports.

Finnish Minister Procope expressed his reaction to the war by saying on Dec. 7 that it was 'not only regrettable but inexplicable' that Britain had consented to Moscow's demand for a British declaration of war on Finland. On Dec. 11, he elaborated his view in a summary statement of Finnish foreign policy: 'Finland is fighting on the same side as Germany against Russia, but Finland has always maintained that she will not be dragged into the general war.' See also U.S.S.R.