1941: Estonia

Barely a year after its occupation by Soviet troops, Estonia was freed from Russian domination — but only to be merged with its neighbors in a vassal province of the German Reich. For a few days in June 1941, Estonian patriots entertained hopes that Germany's invasion of the Soviet Union would enable them to reestablish the independence of their country, but the Nazis proceeded to assume complete control of the Tallinn Government.

Russian Rule.

The Russians, during the first half of the year, carried on their Sovietization of the Baltic states and tried to eliminate all German influence. On Jan. 10, Germany and the Soviet Union signed an agreement providing that Germany was to have no direct commercial relations with Estonia, Latvia or Lithuania after Feb. 11. Formerly Germany had maintained heavy trade and investments in these countries, where many German citizens were employed. The agreement called for the resettlement of Baltic Germans in the Reich, although most of those in Estonia had left soon after Hitler announced his new ethnographic order for Europe in the fall of 1939. The first Communist Party Congresses in Estonia and Lithuania were held on Feb. 9, to choose delegates to the All-Union Conference at the Kremlin scheduled for Feb. 15. Another step to facilitate Sovietization was to redistribute the population by an internal passport system inaugurated in April. This system, as described in the newspaper Soviet Estonia, was designed to 'purge persons not engaged in production or socially useful labor' by removing them from cities, where industrial expansion had made living space scarce, and resettling them elsewhere. The number of people exiled to remote parts of the U.S.S.R. during the Russian occupation of Estonia was estimated at 100,000, most of whom were removed during June in anticipation of war with Germany.

The Russo-German War.

At first the Estonians were pleased with prospects of the Nazi invasion, and saw this new phase of the general European conflict as their opportunity for revolt. On June 22 the Stockholm representative of Tass, the official Russian news agency, reported an uprising against the Red Army in Estonia. When it became apparent that the Germans intended to take over the country, however, Johannes Kaiv, acting Consul General in charge of the Estonian Legation at Washington, stated on June 25 that he would refuse to recognize any German-dominated rule set up in Estonia. He explained that Estonians 'neither called on the Russian army for 'protection' nor asked the German armies to come to their rescue.'

Estonia was the last Baltic country to be conquered by the Germans. Heavy fighting continued during July and August, until Berlin officially announced the fall of Tallinn on Aug. 29. Nazi troops cut the Pleskov railroad at Walk on the Latvian-Estonian frontier the first week in July, and shortly afterward the Red Army began evacuating its Estonian forces through Narva, Tallinn, and Paldiski (Baltic Port). Official German communiqués for Aug. 4 claimed that the Nazis had captured 10,000 Russians in Estonia.

Before Germany's conquest of the Baltic states was complete, on July 17 Reichsführer Hitler appointed Heinrich Lohse, Gauleiter of Schleswig-Holstein Province since 1935, as Reichskommissar for 'Ostland Province' — a new German administrative division consisting of Estonia, Latvia, and Lithuania. On Dec. 6, Berlin announced the appointment of Karl Sigmund Litzmann as German Civil Administrater of Estonia. Herr Litzmann had been a Storm Troop leader, a Reichstag member, chief of the German Horse-Breeding Association and a farmer in East Prussia. Alfred Rosenberg, leading Nazi ideologist and Jew-baiter, was put in charge of general supervision over all territory taken from the U.S.S.R. The Germans issued a new unit of currency called the 'Ostmark' to replace the kroon, lat, lit and ruble as legal tender in Ostland Province; it was given no value, however, in Germany proper or other German-controlled territory.

Practically all foodstuffs in Ostland Province were strictly rationed, but prices were fixed at 40 per cent below those of East Prussia, the lowest in the Reich; to cancel benefits of the low prices, wages were fixed at 50 per cent below those of East Prussia. In October diplomatic officials in Washington reported that butter, cheese, horses and rubber tires had been removed to Germany, that persons from 16 to 60 were ordered to register for labor conscription, and that Jews in the Baltic countries were treated as badly as those in Poland. Large collective farms and industrial organizations set up by the U.S.S.R. were taken over by the Nazis. Nazi theorist Rosenberg considered the Estonians — despite their Nordic ancestry — to be racially inferior to the Germans, and consequently closed the University of Tartu (Dorpat), substituting increased numbers of trade schools as the highest education for which Estonians were eligible. See also GERMANY; U.S.S.R.

1940: Estonia

As the year 1940 opened, the Estonian Government received a protest from Finland against the presence in Tallinn harbor of several Soviet destroyers — grim reminders that in practice Estonia was no longer a free nation. Before the year was ended even nominal Estonian independence was to be swept away.

Russian Domination.

Although in order to give no excuse for further Soviet demands the Estonian Government rigidly fulfilled its obligations under the Soviet-Estonian mutual assistance pact of Sept. 28, 1939, there were several instances early in 1940 of minor difficulties between the U.S.S.R. and Estonia. In January a Russian submarine sank the Estonian vessel Kassari in the Gulf of Finland, and shortly afterward the Estonian population was evacuated from Paldiski (Baltic Port), in which the Soviet Union had leased territory for an air and naval base under the September 1939 agreement. On March 30, Soviet authorities demanded that the entire city of Paldiski be cleared of its civilian population by April 4.

Early in June the official newspaper Pravda ominously charged that Estonia was unfriendly toward the U.S.S.R. On June 16, Soviet Premier Molotoff handed the Estonian and Latvian Ministers in Moscow notes calling for an immediate change in their governments, and demanding free passage for Russian troops to occupy leading cities in the two countries. The notes accused Estonia and Latvia of violating their 1939 mutual assistance pacts with the Soviet Union by not cancelling their military alliance with each other, by extending this alliance to include Lithuania, and by trying to extend it to Finland. Both Governments acceded to the Soviet demands on the same day the notes were received, and within 24 hours Russian soldiers overran the two countries. Although the Soviet press claimed that Russian troops had marched into Estonia under the terms of an agreement supplementing the 1939 pact, the Estonian Riigikogu (National Assembly) had never approved any agreement of this nature.

Shortly after the Soviet invasion, demonstrations of Estonian workers and soldiers urged incorporation in the Soviet Union. The Red Army rapidly tightened its grip on the country. On July 1 the Kaitselit, a Fascist organization, was disbanded, and by July 3 the Baltic Entente (formed in 1934 by Estonia, Latvia and Lithuania) had been annulled. A puppet revolutionary government, set up on June 21, sponsored new elections to the Chamber of Deputies on July 14-15. The only candidates listed on the ballot were members of the People's Party, which advocated a 'fight for peace and happiness of the people of Estonia and the Soviet Union,' and a majority of 92.9 per cent was recorded for the official ticket. On July 21 the newly elected Chamber met and formally resolved (1) to establish a Soviet constitution and government, and (2) to petition the Supreme Soviet in Moscow for admission to the U.S.S.R. Despite these resolutions, a plebiscite would have been necessary to effect union with Russia legally, since Chapter XIV of the Estonian constitution stipulates that supreme power is vested in the people.

Absorption by the U.S.S.R.

Transformation of the country to conform with Soviet patterns was effected without delay. The Minister of the Interior decreed on July 17 that every house must acquire Soviet flags to display within 3 days. Before the end of the month the State Bank and 102 other banks, about 100 printing establishments, almost 500 industrial enterprises, and the 56 vessels in Estonia's merchant marine were nationalized. Arms and funds of the Civil Guard were handed over to the Communist Party. The final step in the country's absorption was taken on Aug. 6 when the Supreme Soviet admitted Estonia as the 16th Republic in the U.S.S.R.

Many diplomatic representatives of Estonia and the other Baltic countries abroad refused to recognize the legality of any action taken by their new parliaments. On Sept. 4 it was reported that Russia had united Estonia, Latvia and Lithuania into one Baltic military district under the command of General Alexander Loktionoff, formerly in charge of the Soviet military bases in these states. The Presidium of the Supreme Soviet decreed on Sept. 8 that all Estonians, Latvians and Lithuanians in foreign countries must register as Soviet citizens at diplomatic posts of the U.S.S.R. Many failed to comply, however, and in countries which had not recognized the Soviet annexations — including Great Britain and the United States — Estonian, Latvian and Lithuanian citizenship continued to be respected. Although on Nov. 24, the Soviet ruble was declared legal tender in the Baltic countries, local currencies continued in use throughout the year. See also EUROPEAN WAR; LATVIA; LITHUANIA; U.S.S.R.

1939: Estonia

The increasing tension in international affairs began to curtail Estonian plans for internal progress as early as April 1939, when Minister of Economics Sepp announced important changes in the budget. The original 1939-1940 budget included provisions for reorganization of the credit market, establishment of a building loan fund, greater mechanization of agriculture, improvement of roads, and further electrification of the country. This program was to be effected without increasing taxes, but in April the Government announced that most of these reforms would be postponed, and that all direct taxes would be increased 10 per cent in order to initiate new defense measures. At the same time, military service was increased from one year to 18 months.

Estonia's policy of more intimate cooperation with other states in the Baltic region was extended to Finland on Jan. 29, 1939, when both countries celebrated the twentieth anniversary of assistance rendered by Finnish volunteers in Estonia's war of independence. General Laidoner, Commander in Chief of Estonian armed forces, stated at Helsinki (Helsingfors, Finland), that Estonia was prepared to discharge its debt of gratitude to Finland by cooperating loyally both in peace and in war: 'If circumstances demand the defense of our countries against an enemy, Estonia will be found on Finland's side.'

Relations with Germany.

While Finland and the Scandinavian States refused to sanction a political treaty with Germany in May, on May 5 the Estonian Cabinet approved in principle the German proposal for a non-aggression pact with Estonia, and the two countries signed such a pact in Berlin on June 7. Each country agreed not to resort to force against the other and to remain neutral in case of attacks by a third country. A protocol to the treaty stipulated that either country might trade with an enemy of the other without sacrificing its neutrality. This pact was to be valid for ten years. On June 26 the chief of the German General Staff arrived in Tallinn (Reval) on an official visit. The era of German-Estonian cooperation, however, was overshadowed by Soviet successes in the country in September. On Oct. 9 Hitler ordered all Balts (the German minority in Estonia and Latvia) to leave their homes, as German ships awaited them at Tallinn. Over 12,000 Balts had returned to the fatherland by the end of the year. The exodus involved heavy economic losses for Estonia, since the Germans, who formed a large portion of the Estonian landowning class, were permitted — by a German-Estonian agreement of Oct. 15 — to transfer much of their wealth to the Reich. On Nov. 22, during negotiations for a financial settlement, Tallinn reported that the Germans demanded a lump sum equivalent to $20,000,000; this sum would be extremely difficult to raise for immediate payment, since most of the emigrants' holdings were in land.

Relations with the U.S.S.R.

On Jan. 10, 1939, Estonia announced the conclusion of a new commercial treaty with Russia, and a better era of relations between the two countries was expected with revival of their mutual trade, which had become stagnant during recent years. Following German negotiations for a pact with Estonia during May, however, the Soviet Government became concerned about the safety of Leningrad. On May 31, Soviet Foreign Commissar Molotov, speaking at Moscow, demanded guarantees for the countries along the Soviet Union's northwest border, on the grounds that they were incapable of defending themselves. Throughout the summer-long Anglo-Russian conversations, however, the British Government refused to accept Molotov's point of view. After Britain, France, and Germany became involved in war in September, the U.S.S.R. was free to press its demands, which became particularly forceful after a Polish submarine escaped from Tallinn harbor on Sept. 18. Estonia signed its mutual assistance pact with the U.S.S.R. in Moscow on Sept. 28. The duration of this pact was set at ten years, subject to renewal for an additional five years. In it Estonia agreed to lease territory on the islands of Saaremaa (Oesel) and Hiiumaa (Dago), as well as the town of Paldiski (Baltic Port), to the U.S.S.R. for naval bases and airdromes. Both countries agreed to give each other military assistance in case of attack by any great power on the coasts of either country or through Latvian territory. Along with this political pact was a commercial agreement, which went into force on Oct. 1 and is to remain valid at least until the end of 1940. This agreement states that commercial, transit, and freight payments of the two countries are to be pooled, and the one with an unfavorable balance allowed to compensate with additional exports to the other. It was estimated in Estonia that this arrangement would increase Soviet-Estonian trade about 400 per cent. Estonia was given the right to ship and receive goods through the Soviet Arctic port of Murmansk and ports of the White and Black Seas. It was also granted the use of the Leningrad-Murmansk railroad and the new canal linking the White Sea port of Soroka with the Gulf of Finland. On Oct. 10 the pact's military provisions were reenforced by an agreement under which Soviet troops began to cross the Estonian border at Narva and Irbaska on Oct. 18.

Foreign Commerce.

The Estonian balance of trade was favorable to the extent of 8,250,000 kroons ($2,087,250) for the first nine months of 1939. In 1938 for this same period there was an adverse balance of 6,670,000 kroons. Exports rose from 75,870,000 kroons to 88,470,000, and imports declined from 82,540,000 to 80,220,000. The export of livestock increased 58 per cent. The next highest increase was in raw and semi-manufactured materials, which increased 38.6 per cent. Exports of manufactured articles increased 4.7 per cent, while exports of foodstuffs decreased 1 per cent. See also BALTIC ENTENTE.

Panevezys-Saldutiskis Railway Case.

See PERMANENT COURT OF INTERNATIONAL JUSTICE.

1938: Estonia

Estonia's new Constitution, which was expected to restore democratic liberties somewhat after 4 years of dictatorship, went into force on Jan. 1. The Constitution contains guarantees of personal rights and provides for the popular election of members of the lower houses of Parliament; for the appointment of members of the upper house by the President and by trade and professional associations as well as other groups; and for the election of the President by both houses. The elections for the lower house, held on Feb. 25 and 26, however, demonstrated that the far-reaching repressive powers retained by the government made effective opposition difficult. Provisional President Pacts, who had been the actual dictator daring the previous four years, consolidated his supporters so as to carry on intensive election propaganda. On the other hand, he hampered the campaign of the opposition, consisting of Centrists. Laborites, and Fascists, by generally restricting criticism of the Government and by censoring newspapers. Although the government forces won 63 of the 80 seats, the opposition was encouraged by its showing in the face of such serious handicaps. On April 21, the new parliament met for the first time in 4 years to prepare for the election of the first President. On April 24 it elected Provisional President Pacts, who was the only candidate, for the six-year term. Under the Constitution, the President enjoys wide powers that facilitate a continuing personal rule. Besides appointing and dismissing cabinet ministers individually or in a body as well as dissolving Parliament, he can suspend the chamber for two weeks and govern by decree during the interim. In the first session of the new parliament, on Oct. 15. the cabinet announced the continuance of its dictatorial measures, including the ban on political parties, and tightened the newspaper censorship so as to forbid all criticism of the Government by the press. The liberal opposition leader, Jaan Toenisson, attacked these measures in a widely-circulated mimeographed speech, declaring that the Government had broken its promise to re-establish democratic liberties.

Facing a growing danger of war in Europe. Estonia strengthened its defenses and gave support to moves for neutrality by the countries lying between Germany and the Soviet Union. Early in September, President Paets prolonged for 12 months the military 'state of emergency' enforced during the crisis. On June 13 Colonel Beck, Polish Foreign Minister, visited Tallinn in an effort to bring Estonia into the bloc of states reaching from the Baltic Sea to the Black Sea, which he was attempting to form as a barrier between the Soviet Union and Germany. The Estonian Government also took steps toward establishing a common neutrality policy with Latvia and Lithuania. Early in November representatives of the three countries met in Tallinn to draft joint measures which were to be submitted to their parliaments and made effective in case of war abroad.