1942: Finland

More besieged than belligerent, Finland in June 1942 entered upon the second year of her second war since 1939. After fifteen months of peace, following her 'winter war' with Russia (ended March 12, 1940) she found herself again, at the end of June 1941, in conflict with the same country. Throughout 1942 she held fast, attacking but seldom, and intent upon measures to keep her own territory inviolate. She continually stated her unique position to be that of non-involvement in the Second World War. She sought for understanding from Britain and the United States. She strove to reduce incitements for Russia to attack her further, at the same time that she held to a minimum the assistance she received from Germany. To the other Scandinavian countries at liberty to deal with her, she became a bastion of the North. Denmark and Sweden showed her marked friendship.

Defensive Warfare.

By October of 1941, the Russians had been evicted from most of Finland though they still held Hangö and a few other bases; the Finns were on their former border on the Karelian Isthmus and on the East, and had moved into Eastern Karelia, where the majority of the population is Finnish, to prevent Russian attacks from bases there.

Through 1942 the military operations were continuous though slight. In May Finland's air forces bombed vessels in harbors on the east coast of Lake Aänisjärvi; there were engagements on the Karelian Isthmus, the Aunus Isthmus; the Louhi region. In June these areas figured again in despatches, and there were battles at Lake Ladoga, the south side of the Eastern front, the Maaselka area, at Rukajärvi and Uhtua. In August it was reported that forty Russian planes staged a raid near Helsinki. In the same month Finnish advices claimed to have shot down forty-three Russian planes off Kronstadt in one week, reported eight air battles, and quoted the official Finnish High Command's figures of 1,089 Russian aircraft destroyed.

Meanwhile, though Finnish forces were within forty miles of the Russian Murmansk railway, no attempt was made to interrupt traffic, a decision impelled by the desire to refrain from impeding American aid to Russia in the south, to withhold from Russia new excuses for attacking Finland, to prove that Finland's warfare was defensive only and, doubtless, to forestall further additions to German forces or prestige in Finland.

Finland's Anomalous Position.

Because of Finland's unique international position she is faced with peculiar difficulties. She continues to declare that her war with Russia is in no sense a part of the World War; that she is only resisting attack, has no claims to make on Russian soil (except to prevent bases there being used for attack against her), and has refrained from advancing her lines beyond points necessitated by defense. She maintains that she has not lost her independent character; that German troops are only on her soil to aid in her defense, as British troops would have been in the 'Winter War' (1939-40) if Britain had sent them.

She acknowledges membership in the Anti-Comintern Pact, but holds that this has no military or political significance; she has not joined the Three-Power Pact, allows no dictation in her war aims, fights without any ideological objective, remains a democracy, and although she accepts Germany as an ally, conducts a purely local war against one enemy.

To charges that Finnish volunteers were serving in the German army, a Finnish news bureau official pointed out that in the German army, among several battalions composed of foreign volunteers, there was one which included mainly Finnish volunteers who had joined before Finland went to war with Russia, 'since which time no Finn has been permitted to volunteer in any foreign army.'

Finland strives to avoid unfriendliness with Britain and with the United States. She has been bewildered by British and United States reaction to her stand, especially by a veiled warning of Secretary Hull; she hopes for a United States declaration against a Bolshevist-dictated peace in the Baltic, as a part of America's policy of protection for small nations. Indeed, she feels that the Allied Powers would do well to state that they wish the Scandinavian States to retain their independence in the future.

Finland sees herself, and believes that all Scandinavia sees her, as a bulwark against Bolshevism. Though her war is not ideological, but one of territorial integrity and of independence, she identifies with Bolshevism the Russia who held her captive from 1809 to 1917; who fostered a Finnish revolution in 1918, quelled by General Mannerheim; who is the only nation to have tried to conquer Finland by force of arms. According to President Risto Ryti in his address to the Finnish Parliament, Feb. 3, 1942, Russia has waged twenty-five wars against Finland, three of them in this generation. Finland maintains that the picture of 'Finland cum Germany' is more truly seen as 'Finland versus Bolshevism.'

Charges by one belligerent against its enemy are to be expected. Finland declares that on July 24, 1942, the International Red Cross at Geneva reported that, despite valiant efforts, they could not get Russia to give any information regarding war prisoners; that in more than a year of Russian-Finnish fighting, no kind of official information regarding Finnish war prisoners in Russia had been obtained; that efforts even by Swedish authorities in charge of Finnish interests in Russia had failed.

Finland calls attention to the fact that while Russia was calling for assistance to her troops fighting Germany in the south, she was still maintaining forces along the seven-hundred-mile Finnish front and continuing to attack. Whatever reports have circulated that Finland might negotiate a separate peace with Russia, Finland declares to be untrue.

Finland maintains it to be her policy not to interfere with the political and social patterns followed beyond her borders, but insists that her way of life be similarly respected. In this war she accepts and hopes for aid from any, including Germany and Sweden, but she urges that Sweden preserve her own military and economic strength.

Here, then, is beleaguered Finland, suspected by former friends among the Great Powers; allied, for her own defense, with their arch enemy, Germany, and fighting against one of their chief allies in a war which for her is fateful, though it is but a side issue in the global conflict.

Domestic Affairs.

Domestically, Finland's affairs were such as to give her encouragement, for despite difficulties her government, Parliament and people moved through the months of war with rare self-control and growing unity. Her year began with the national debt at 27 billion marks (approximately $540,000,000), having grown from an August 1941 figure of 22 billion marks (approximately $440,000,000). On March 1, 1942, she launched the Faterland Loan bonds for two billion marks (approximately $40,000,000). By early July this was oversubscribed and was kept open; by August 1, it had broken all records with an oversubscription of 849,000,000 marks; and by early September it was subscribed at 3,108,000,000 marks, equivalent to about $62,160,000; or an average of $16.25 for every man, woman and child in Finland.

In June, seven new tax bills were laid before Parliament; one month later they were passed, providing for extra taxes on income, property, forest estates, an increase in death duties, duties to be paid on the sale of real estate, and temporary taxation of savings banks. In August, it was estimated that the sales tax had netted one and a half billion marks during the first half of 1942.

In the early fall, the government proposed a record budget, with an estimated expenditure of over eight billion marks (seven billion marks above expenditures in the current budget, an increase of 834 per cent) as against a revenue whose excess was estimated to be 89,889,500 marks. With this went a proposal to increase official wages by 42 per cent; a statement that no new taxes were planned, and an announcement that a new state loan of nearly one and a half billion marks would be needed. This was followed in late September by a statement from the Finance Minister to the effect that the economic life of the nation was gradually recovering; that crops were good, industry was reviving; that currency circulation was rising, but that curbs on inflation were operating. He announced foreign trade showed an 'unfavorable balance' but was up; that as taxation measures had practically reached their limit the government must depend on loans; that the state debt was at a record figure of thirty-five billion marks.

Parliament showed vigor in July when it extended the 'Power Law' (in force since early 1941) giving the President unprecedented powers and enabling the government to regulate the economic life of the nation during the war, but cut the government's request for extension of its powers, by one year, and curtailed further requests of the government to increase its power.

In October the government issued a wage-control decree, and on Oct. 14, state price-control was extended over all goods on the markets.

Social Gains.

The people of Finland offer the world an astonishing picture of social responsibility, despite the fact that the cruel blows of war have displaced, killed, and wounded great numbers of their citizens.

By May 1942, thousands of Finns were back in the Hangö peninsula (recaptured from Russia). In August it was announced that about two hundred thousand refugees had returned to the recaptured Western Karelian territory, and that a winter program had been drawn up to erect five thousand 'saunas' or bath-houses adjacent to private dwellings, a nationwide, historic health feature of Finnish residences. A redistribution of farmlands on the Karelian Isthmus was launched in October, to put agriculture on a more efficient, equitable, profitable basis.

October reports also declared the reconstruction of Lapland to be going ahead at a terrific pace, as were also operations in Petsamo, where pre-fabricated homes from Sweden, and loghouses, were rising, and in the devastated parish of Salla. By mid-September the 'Winter War' refugee relief lists were down from 345,000 (as of March 1941) to 20,000, most of whom were aged or sick, or without providers.

Food Situation.

The birthrate, dropping from 78,000 in 1939 to 66,000 in 1940 (ascribed to war conditions), rose to about 90,000 in 1941. Anxiety about food decreased as the 1942 harvest and berry crops looked promising, imports continued, the fish catch increased, and thousands of children were being cared for abroad. Rationed foods included bread, meats, fats, sugar, and milk. However, with milk production up after July 1942, skimmed milk and buttermilk ceased to be rationed, and stores of butter and cheese were being saved for winter. Eggs were a black spot: none were available to adults; children had two eggs a month. Extra bread and fat rations were provided in October for families having four or more under-aged children at home. Beginning Oct. 1, tobacco was rationed, with men over 21 and women over 24 being permitted to choose between tobacco and an extra ration of sugar.

The ingenuity and mental vigor of the government and people were evidenced in various ways. 'Pine oats,' a new forest product of cellulose cattle fodder with high nutritive value, was put on the market in March; another result of Finnish scientists' labors was the manufacture of sugar from wood-waste and sawdust (adopted in 1941). Plans were announced in 1942 for the country's first motor charcoal factory. A former busy small-scale industry was revived, the lifting of iron ore (containing 30 to 40 per cent iron) from the Finnish lakes.

Economic Cooperation.

A consciousness of the familyhood of all Finns was also noticeable. This found a most dramatic manifestation in a 1942 revival of one of Finland's historic and most unique folkways. This is the 'Talkoot,' a general movement of cooperation, 'all together for the common good'; a neighbor-help scheme known and practiced by Finns for centuries, which probably began in the mobilizing of farmers to help one another.

In July, a 'Suurtalkoot,' or 'Great Working Bee,' was organized to launch a series of expeditions from Helsinki to the surrounding farm country, whereby city dwellers would do physical labor for hard-pressed farmers. For this, Sundays were utilized, and, where possible, hours after work on weekdays. Many business and industrial establishments cooperated in various ways; motor vehicles were loaned; some places closed early. The 'Talkoot' members worked free, but the farmers regularly paid wages which were put in the 'Talkoot' fund for citizens in difficulties caused by the war. Work done for war widows and war invalids was free of charge.

As fall approached, a fuel shortage threatened the country and a nation-wide 'Everyman's Motti Talkoot' was organized. The goal was 1 million cubic metres of firewood (about 35,289,000 cubic feet). The minimum quota for each citizen taking part was one motti or cubic metre (about 35.3 cubic feet). Emblems were provided for every participant, a silver emblem for the cutting of four mottis. Contests were arranged. Every community joined in, some of them on 'Talkoot' day practically closing all business. In two days, a quarter of a million recruits signed up.

Mannerheim Honored.

On June 4, the nation celebrated the seventy-fifth birthday anniversary of General Mannerheim; the President made him 'Marshal of Finland'; Parliament presented him with a home of his own in the capital; his birthday was decreed to become the Flag Day of the Finnish Army, Navy and Air Forces, and the City Council of Helsinki announced that one of the principal streets of the capital would be named for him. An interesting incident was the visit of Adolf Hitler to Finland on this day and his congratulations to the General, whose reply dealt with 'deliverance from the danger which for more than two decades has threatened the Eastern frontier' and omitted all reference to other foes of Germany.

Scandinavian Neighbors.

To the Finnish people and government there came in 1942 incontrovertible proofs of the friendship of Sweden and Denmark. In May, one thousand Swedish boys and farm workers (recruited in part by Swedish political youth organizations) came to Finland to aid farmers; the same month, eight Swedish officers volunteered for the Finnish army; in June, the Swedish Association of Slaughterhouses increased its original gift of 50,000 crowns to 150,000 for Finnish agricultural reconstruction; in July, Swedish school children collected 63,000 crowns for Finnish children; in August, a representative of the Swedish 'Save the Children' organization, toured the country announcing 12,000 Swedish sponsors for Finnish war orphans, and funds available up to one and a half million crowns. The list multiplies, with Health Homes donated; eleven thousand tons of grain sent in six months; twenty-three thousand Finnish children cared for in Sweden; a new trade agreement between the two countries, and so on.

A similar picture is that of Denmark's activities: 880,000 pounds of seed potatoes sent to Finland by the Danes; 35,000 Danish homes opened to Finnish children, and 3,600 Danes registered as sponsors to Finnish children; Danes reducing their own butter rations to send more to Finland; a Finnish-Danish trade negotiation announced. These are a few of the shining incidents on record.

On the military front, and in diplomacy, one harmonious people, heartened by her Scandinavian friends, Finland awaits with fortitude whatever may be in store.

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.

1939: Finland

Fortification of the Aaland Islands.

During the first week in January 1939, Finland and Sweden renewed negotiations to fortify the Aaland Islands. On Jan. 7, the two Governments agreed upon a plan which provided that:

(1) Finland could 'take any defensive military measures' within the southern part of the neutralized zone, and throughout a period of 10 years had the right to take 'certain specified military measures' within the whole zone. The maximum limits of fortification for the whole of the Islands were set forth in a special (unpublished) agreement between the two Governments.

(2) Compulsory military service could be instituted for the Aaland population, to guard the Islands effectively.

Although the Finnish Government sought to avoid offending the Swedish-speaking Aalanders by assuring them that their mother-tongue would be the language of command in the new island defense forces, the Aaland Landsting (Legislative Assembly) promptly opposed any change in the convention of 1921. Over 96 per cent of the adult citizens of the islands protested, in February, to the League of Nations Council that militarization would imperil their national characteristics and destroy Aaland neutrality.

In spite of these objections, which the League on April 18 refused to consider, plans to fortify the islands continued. Sweden and Finland immediately submitted their preliminary 'Stockholm Plan' of Jan. 7 to the eight other countries which had signed the 1921 agreements neutralizing the Aaland Islands. In asking these countries to consent to refortification, the two Governments declared that in case of war in the Baltic they intended to permit no belligerent to intervene in the islands. As the U.S.S.R. was not a signatory to the original agreement, its consent was not sought, but on Jan. 21 Sweden and Finland tactfully asked the Soviet Government to exert its influence in obtaining the consent of the signatory powers. The Finnish and Swedish Governments received favorable replies from Estonia (see ESTONIA) on Jan. 9, from Great Britain on Feb. 3, from Latvia on Feb. 9, from Denmark and Poland on Feb. 17, from France on Feb. 19, from Germany on May 2, and from Italy on May 5. On May 22, pursuant to Finland's request, the Stockholm agreement was placed before the League of Nations Council for approval. Owing to Soviet opposition, however, no conclusive action was taken, and on May 27 the Council issued an informatory report which merely recorded views of the parties concerned. The Finnish and Swedish delegates to the League declared that Council approval after all was unnecessary to their plan — since all the powers which signed the 1921 convention had consented — and that fortification would proceed in the southern zone of the Islands. This determination, however, was short-lived. Following the fiery May 31 speech of Soviet Foreign Commissar Molotov, who denounced Finland and claimed that Russian interest in the Aaland Islands was greater than that of Sweden, the Swedish Government withdrew its participation and the Aaland plan expired (see SWEDEN). After war began in the fall, Finland on Sept. 6 forbade passage of belligerent warships through its territorial waters surrounding the Aaland Islands, but only in December when it became involved in hostilities with the U.S.S.R. did the Finnish Government announce that it was again fortifying the Islands. On Dec. 5 Sweden co-operated to the extent of mining the waters on its side of the Islands, thus forming with the Finnish defenses an impassable barrier to the Gulf of Bothnia, through which Finland receives supplies from Sweden. (See also LEAGUE OF NATIONS.)

Other Defense Measures.

When the Finnish Parliament assembled at the beginning of February 1939, for its last session before the July elections, it passed a bill providing for compulsory labor service in time of war. This new law affected all men and women, between the ages of 18 and 60, permanently domiciled in Finland. The use designed for compulsory labor service was indicated in the spring when volunteer workers were sent to strengthen defenses along the eastern frontier. This voluntary fortification work extended throughout the summer, and in it the Finnish people expressed their determination to defend themselves if attacked. The same determination was revealed even more clearly in August in the big autumn maneuvers on the Karelian Isthmus, where 20,000 men participated in war games.

Domestic Politics.

During the spring and summer of 1939, the Government strengthened its position at home, in order to present a united front in foreign affairs. As the year opened, much interest was directed toward litigation arising from the Government's attempt (Nov. 22, 1938) to suppress the Patriotic National Movement. When the Court of First Instance in Helsinki (Helsingfors) — which reviewed the case — refused to confirm the order for suppression, newspapers and organs of the Party resumed their activities. The effect of the Government's efforts on the people, however, was seen in the Finnish elections of July 1 and 3, when the Patriotic National Party lost 6 of its 14 seats in Parliament. It appeared that many voters had returned to the National Conservative Party (increasing its seats from 20 to 25), from which the Patriotic National movement had split six years earlier. At the same time, the Social Democrats and Agrarians, whose official party programs are different and hence must be compromised to maintain their coalition government, increased their seats, contrary to pre-election expectations. Along with the National Progressive Party, they consolidated their control as the number of Government seats increased from 143 to 147 of the total 200. See also SOCIALISM.

International Conferences in Finland; Olympic Game Preparations.

The foreign ministers of Finland, Sweden, Norway, and Denmark met in Helsinki on Feb. 20-22, 1939, to exchange views on the international situation and discuss neutrality problems of the Northern Countries. Details of the Finnish-Swedish plan for fortifying the Aaland Islands were revealed to the ministers of Denmark and Norway, although subsequently Finland refused to give similar information to the U.S.S.R., on the ground that divulging it would be inconsistent with Finnish national security. At Helsinki the four governments also discussed the refugee problem, and agreed to adopt a common policy toward the Spanish Government of General Franco, which they all recognized de jure on March 31. About 100 newspapermen from Denmark, Norway, Sweden, and Finland attended the Seventh Northern Journalist Meeting in Helsinki July 11-14, and affirmed the obligation of the press in neutral countries to give honest views to its readers, even when this policy involves criticism of foreign governments. To facilitate adequate reporting of the 1940 Olympic Games, scheduled to be held in Helsinki, telephone and telegraph communications between Finland and other European countries were greatly improved in 1939. Tremendous building activity, in preparation for the Olympics, characterized Finnish economic life throughout the year. Arrangements for the Games continued right up to the Soviet invasion of Finland on Nov. 30.

Foreign Relations.

Along with Sweden and Norway, Finland on May 17 replied to a German proposal by announcing that it did not consider a bi-lateral non-aggression pact with the Reich necessary. The Finnish Government, which has adhered to Scandinavian principles of impartial neutrality since 1934, also rejected Soviet overtures for a unilateral guarantee of Finland during the summer. On June 6, Finnish Foreign Minister Erkko declared that Finland would regard as an aggressor any state offering 'support' on the basis of unwanted guarantees. Soviet pressure on Finland intensified after the U.S.S.R. concluded its agreement with Nazi Germany, and Britain and France became involved in war.

On Sept. 24 the Soviet Government barred Finnish vessels from passing through Leningrad via the Neva River. (A clause in the Finnish-Soviet trade treaty of 1923 stipulated that Russia might close this waterway in case of 'war danger.') Soviet forces along the Finnish border increased steadily, and the Finns dug trenches in anticipation of Soviet demands similar to those then being pressed on Estonia and Latvia. Having signed its pact with Latvia on Oct. 5, Moscow turned to Finland the following day. On Oct. 8, the Finnish Cabinet accepted the U.S.S.R.'s 'invitation' to negotiate on 'various political and economic questions,' and on Oct. 14, Dr. Paasikivi, head of the Finnish delegation, received the complete Soviet demands in Moscow. Among other things, they included:

(1) Cession to Russia of territory on the Karelian Isthmus, to remove Leningrad 'from the range of long-distance guns.'

(2) Revision of the Arctic frontier around Petsamo, the ice-free port which Finland had obtained from Russia by the Treaty of Dorpat. (The Soviet base at Murmansk, only sixty miles due east of Petsamo but not directly touched by warm gulf-stream waters, is sometimes icebound during several winter months.)

(3) A thirty-year lease to the Soviet Union of Finland's vital port and fortress of Hangö, with adjoining territory. (Russia later offered to buy Hangö outright.)

(4) Cession to Russia of five islands in the Gulf of Finland. (For the total of 866 square miles demanded, the U.S.S.R. offered to cede Finland 2,134 square miles of unwanted Soviet territory north of Lake Ladoga. This territory included the districts of Repola and Porajarvi, from which the Finns had withdrawn in 1920 under the terms of the Treaty of Dorpat.)

(5) Exclusion of Sweden and all other foreign powers from fortification of the Aaland Islands.

(6) Strengthening of the Soviet-Finnish non-aggression treaty of 1932, with a clause in which the contracting parties agree not to join any groups or alliance directly or indirectly hostile to each other. (The U.S.S.R. denounced the 1932 pact the day before invading Finland.)

For over a month Soviet and Finnish officials debated these terms without making them public. Their harshness, however, was indicated by the tense diplomatic silence, by Government warnings to evacuate Finnish cities, and by military measures taken on both sides of the Russo-Finnish frontier. Finland's resistance was stiffened by world-wide interest in its fate, reflected on Oct. 11 in President Roosevelt's direct appeal to President Kalinin of the U.S.S.R., and on Oct. 18-19 in the Stockholm Conference convened by King Gustav of Sweden. Soviet persistence, in turn, was shown on Oct. 23, when the Russians rejected Finnish compromise proposals and stated that their original demands were 'minimum.' (See also LEAGUE OF NATIONS; UNITED STATES: Foreign Relations.)

Undeclared War with U.S.S.R.

Negotiations between the two countries finally broke down on Nov. 13, and within twenty-four hours the first of a series of land and air incidents had been reported between Russian and Finnish troops concentrated along the frontier. Soviet press attacks on Finland — inaugurated early in November — became more vituperative and accused Britain of encouraging Finnish 'stubbornness.' On Nov. 26 the Soviet Government claimed that a Finnish frontier battery had fired on Soviet troops, and demanded that the Finns withdraw 12 or 15 miles from the border. The two Governments came to no agreements, and on Nov. 30 Soviet airplanes bombed Helsinki, Viipuri (Viborg), Kotka, Hangö, and Petsamo. At the same time, invading Russian troops seized Finland's Arctic port of Petsamo and the Karelian border town of Terijoki, where the U.S.S.R. on Dec. 1 set up a puppet 'People's Government' and promptly recognized it as the legal régime in Finland. Moscow signed a mutual assistance pact with the Terijoki Government on Dec. 2, and obtained from it — on paper — all of the concessions which Helsinki had refused to grant. Stiff Finnish resistance, however, prevented the U.S.S.R. from reaping the benefits of its bargain with the puppet régime. A new government at Helsinki, formed on Dec. 1 with Risto Ryti as Premier and V. A. Tanner as Foreign Minister, announced that it was willing to negotiate for a just peace, but would fight to the end to preserve Finnish independence.

Taking advantage of every natural aid, Finnish troops stayed the Soviet attempt to drive through their country. Outnumbered heavily, the fighting Finns held off the invaders on the Karelian Isthmus, and adopted guerrilla tactics to inflict severe losses on the Russians in the Arctic. In 'the waist' of Finland, where Russians were attempting to cut the Finns in two, the invaders were hurled back, and in the vicinity of Lake Kianta, with the close of the year, two Russian divisions were decimated and tanks, guns and food supply trains were taken. Often numbed to inaction or even frozen to death, Russian soldiers were no match for agile Finn ski troops, yet Finnish forces realized that their lot would be more difficult in the spring. As they withstood the Soviet attack, in Geneva the League of Nations marshaled world opinion and sponsored material assistance for Finland (see LEAGUE OF NATIONS). From individuals and governments throughout the western world supplies were sent to Finland, but the Finns continued to do their own fighting. See also COMMUNISM; U.S.S.R.; WORLD PEACE.

Finnish Architecture.

See ARCHITECTURE.

1938: Finland

Neutral Foreign Policy.

Finland, feeling increasingly menaced during 1938 by its exposed position between Germany and the Soviet Union, sought to follow a neutral foreign policy. It cooperated in the steps taken to form a neutral bloc of Scandinavian states which, in case of a European war, would act together to preserve their neutrality and independence against belligerent encroachments. While avoiding a military alliance, the four Foreign Ministers agreed, on April 5 and 6, to stand clear of European coalitions of great powers. In May, they signed an agreement accepting similar neutrality rules, to be applied in case of a general war. In July and September. Finland joined with the other six 'Oslo powers' in declaring itself under no obligation to take part in sanctions imposed by the League of Nations against an aggressor state.

Fortification of Aaland Islands.

Germany's rearmament in the Baltic and its antagonism to the Soviet Union restored the Aaland Islands to their former strategic importance. These islands, located at the northern end of the Baltic Sea, could, if fortified and controlled by a strong power, command the sea routes to the Soviet Union, Finland, and northern Sweden. After the World War, they were placed under the sovereignty of Finland and, in 1921, were by international agreement permanently demilitarized. Since 1935, however, German naval officials, counting on Finland's sympathy and possibly desiring a strong base for an attack on the Soviet Union, suggested that the islands be fortified. The Soviet government strongly opposed the move. Early in September 1938, the Finnish and Swedish governments announced that they had begun negotiations looking toward an agreement that would allow Finland to block off the Gulf of Bothnia against other navies. Despite Soviet suspicions, this move seemed calculated rather to prevent other powers from making use of Finnish territory as bases of attack than to afford such use. The Aaland islanders themselves strongly opposed fortification. The Government supplemented its plans for fortification of the islands by launching an armaments program designed to strengthen its general defenses. In May, Parliament voted a program calling for the expenditure of about $60,000,000 during the next seven years.

German Nazi Influence Opposed.

Germany's increased prestige after the Munich agreement of Sept. 30 was reflected in the resignation, on Nov. 16, of Dr. Rudolf Holsti, the Finnish Foreign Minister. Dr. Holsti had been antagonistic to National Socialism, and his retirement was interpreted as a measure aimed at maintaining good relations with Germany. On the other hand, the Government, on Nov. 22, dissolved the Fascist-inclined Patriotic National Party, which had 373 local organizations and 14 of the 200 seats in Parliament, and suppressed its 18 newspapers. The party was charged with violating the law by enrolling schoolboys and by conducting itself along the lines of the 'Lapua' movement which was dissolved as illegal three years ago. The Fascist newspapers took action in the courts to have the measures against them removed.

Other Foreign Relations.

In July. Finland sent a delegation to the United States to take part in the celebration of the 300th anniversary of the founding of the Swedish colony in America. In the same month, it decided to hold the Olympic Games of 1940 in Heisingfors.

Finland's foreign trade relations were placed on a more stable basis when, on Oct. 19, Parliament enacted the first permanent tariff law. The world decline in prices, especially for timber, however, caused a marked fall in the year's exports.