CURRENT SITUATION IN FINLAND

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000500830061-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 15, 2016
• Document Release Date: August 28, 2003
• Sequence Number: 61
• Publication Date: August 8, 1947
• Content Type: REPORT

CENTRAL INTELLIGENCE GROUP
INTELLIGENCE REPORT
COUNTRY Finland
SUBJECT Current Situation in Finland
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25X1
STATE
I
DATE-
INFO.
DIST.
PAGES
June 1947
8 August 3 947
3
25X1
1. In comparison with r.*.her countries in the Soviet sphere of influence; Finland
is a free country. This is a "model" Stalinprotectorate. The country; is not
occupied. There are neither secret nor open Soviet controllers in thc: adminis-
tration. The Parliament was freely chosen: the Communists have only one-fourth
of the seats. There are no ccisappeararu es of the citizens. Only the politi-
cians who were responsible for the war have been arrested, and the of'.1N.cera 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 aotivil"i.'s and
partake in Finnish political life. Tanner the ex-leader of the Socivl.`Jats 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 his 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
The case against the officers is being conducted publicly,'with all legal para-
phernalia.
2. No socialization has been established. The nationalization of industry neces-
sitates a change in the constitution. The Communists and Socialists l ve the
majority in the government bat-they have not got a majority sufficie_..c for a
change of the constitution, which is two-thirds of the votes. This io the reason
why all socialization plans tai11 long lie in the Parliamentary Commis:,ions. A
lot was written tha6 ltuscia was against socialization because she was afraid
that the Finnish industry would then be unable to live up to its repa:!ation com-
mitments. It is a fact that there was no intervention from Moscow, and there
was no pressure either for socialization. In general Russia does not meddle in
internal. Finnish ,._ableIms.
During the last year the Finnish economic situation improved. Agricu:Uural
production will become better, and should attain this year (1947) 80% of the
prewar standards; (in l9:,6 it was 60%) Industrial production is a.1rc.::~'y nearly
on a pre-war status. Its main work goes toward reparations for Russi:,.. By
1952 Finland will have to deliver goods worth million gold dollar.. Prices
for this have been calculated at 1938 levels. Only one-third of this is koy-
Finnish production, which is timber, the rest to be products of th.,:: rietal
industries. This will necessitate enlarging o that industry' to a vc:y great
eoctent. For delays in deliveries I'i nland pays 5% penalty. Up unti:L now
Finland has paid 110 million dollars. It is foreseen that in Septemb~:r, of
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th'lc year trio country ' i11 be in arrears 3 million dollars, - This small sum.
is most important because it allows itussi& to meddle in internal Finnish prob-
lems., and opens the door ?bo mewl economic demands. The thriftiness of the
Finns, outside help, espsciafy Swedish, have helped Finland.to aceompil4h
this.
'At the same time.. ecports to the West are growing. Economists say that this
year this export will grow to 300 million dollars, compared with 2110 million
achieved in 1946. This will enable them to import up to 230 million dollars
worth of goods, compared with 280 million in 1946, of which only 12 million
need go to Russia.
5. The food situation has &lso improved greatly.. There is no rationing of meat,
fish or vegetables, none for eggs. In restaurants, food is about like it was
before the war.
6. One problem for anxiety is the low gages. The prices of food ha+re risen 25
tunes pre-4yar levels, wages, on the other hand, only 6 times.
7. The Government and the Parliament.
M; presen overme-n 'sass born f a coalition of' three parties: Communist,
Socialist, and Agrarian. The 11remier isPekkala, leader of a small Socialist
group "Blocked" with the Communists (Social Unionists). He is known for his
intemperance in the ouuntry,- or his laziness and' Xaok of ability. The Corm..
monists have the Interior Ministry and policO, Seats in government were divided
into one-third each; this has given the Communists more influence than they
would haws if the P,erliementary setup were decisive (they have only one-fourth
of the votes), The Agrarians are a elaas'poanant 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 tie.
Right, Mich is more actively anti-Communist than the Agrarians. They ore: un
der the influence of Tanner. A stabilization within that party has beeaehieved
and the young hi