CURRENT SITUATION IN FINLAND

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-01035R000100010017-3
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 14, 2016
• Document Release Date: November 16, 2000
• Sequence Number: 17
• Publication Date: August 8, 1947
• Content Type: IR

Approved For Release 2001/09/05 : CIA-RDP81-01035R0001000
CONFIDE NTIA
CENTRAL INTELLIGENCE GROUP"
INTELLIGENCE REPORT
COUNTRY Finland
SUBJECT
ORIGIN
Grad
Current Situation in Finland
. 0
25X1A1t ~ '~
DATE:
INFO.
DIST. 8 August 11947
PAGES 3
SUPPLEMENT
In comparison with other countries in the Soviet sphere of influence, .eland
is a free country. This is a "model" Stali.nprotectorate, The counntr is not
occupied. There are neither secret nor open Soviet controllers in the adminis-
tration? The Parliament was freely chown: the Contcnuniate have only one--fourth
of the seats. There are no disappearances of the citizens, Only the. politi-
cians who were responsible for the war have been arrested, and the. off`-.cers who
were mixed up in the hidden-weapons affair. The condemned politician are in
prison, but .;.that does not mean that they cannot continue their aptivi _ ^: es and
partake in Finnish political life. Tanner the ems--leader of the Socis' ':ets is
still the president of the cooperative Elanto on leave, and has been, -p until
lately, receiving his salary. He is allowed to see his lawyer, and h-0 family.
There is a, rumor that he is pulling some big political deals out of prison, and
he is supposed to be one of the initiators of the last governmental ca nisi.
The case against the officers is being conducted publicly, with all lal para-
phernalia,
2, No socialization has been established. The nationalization of industry neces-
sitates a change in the constitution, The Communists and Socialists have the
majority in the goverment but they have not got a majority sufficient for a
change of the conwstitution, which is two-thirds of the votes. This ii the reason
TdW all social izatio plate will long lie in the Parliamentary- Commis, ons. A
lot was written that Russia was against socialization because she was afraid
that the Finnish industry would then be unable to live up to its reparation com-
mitments. It is a fact that there was no intervention from Moscow, and there
was no pressure either for socializationn. In general Russia does not meddle in
internal Finnish ?~ zble s . ,
3. During the last year the Finnish economic situation improved. Agricultural
production wi11 become better, and should attain this year (1947) 80% if the
prewar standards; (in 1946 it was 60%) Industrial production is alre A;.3:: nearly
on a pre-war status. Its main work goes toward reparations for Russi~.r . By
1952 Finla d will have to deliver goods worth 300 million gold dollars. Prices
for this have been calculated at 1938 levels, Only ones-third of this is key-
Finnish production, which is timber, the rest ` to be products of th,,, ne~tal!
industries. This will necessitate enlarging o that industry to a ve `y great
extent. For delays in deliveries Finland pays t 5% penalty. Up until now
Finland has paid 110 mil] Jon dollars. It is foreseen that in Septe mbr " of
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 25X1A
Approved For Release 2OO1I&MRLDP81-O1O35ROOO1OOO1e
thin year tie could xy mill be in arrears 3 million dollars, This small sum.
is most important because it allows Russia' to meddle in internal Finnish prob-
lems,, and opens the door to new economic demands. The thriftiness of the
Finns, outside help, especially Swedish, have helped Finland to accomplish
this.
At the same time, e Torts; to the i Test are growing. 1 conomists say that this
year this export mill grow to 300 million dollars, compared with 2140 minion
achieved in 19146. This gill enable them to import up to 230 million dollars
worth of goods, compared with 180 million in 1946, of which only 12 million
need go to Russia.
''. The food situation has &1so improved greatly. There is no rationing of meat,
fish or vegetables, none for eggs. In revbaurants, food is about like it was
before the 'war.
6. One problem for anxiety is the low wages. The prices of food have risen 35
times prer levels, wages, on the other hand, only 6 times.
The Government and the Parliament.
e presen overnmen 5nas born of a coalition of three parties: Communist,
Sooial ist, and Agrarian. The eremi er iq Pekkala, leader of a small Socialist
group "Blocked" with the Communists (Social Unionists). He is known for his
intemperance in the country, for his laziness and lack of ability. The Com?
munieta have the Interior Ririistry and police. Seats in government were divided
into one-third each; this has given the Communists more influence than thgtr
would have if the P:srliamentary setup were deoisive (they have only one-fourth
of the votes). The Agrarians are a class-peasant party, and are mostly concerned
with prices for their products. They are slightly colored by reaction. The
Socialists, until lately,, formed two groups: the Left,* pro-Communist., and the
Fight, which is more actively anti-Comirniniat than the Agrarians. They are un+-
der the influence of Tanner. A stabilization within that party has been achieved
and the young hitgh(ist elements have gained influence. Al those in the Govern-
ment bel.on, to both factions, the party is trying; to get rid of the Leftist
ministers. Outside; of the t}ov