FINNISH PREMIER ANNOUNCES RESIGNATION OF HIS GOVERNMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91T01172R000200310050-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 15, 2016
• Document Release Date: June 15, 2004
• Sequence Number: 50
• Publication Date: June 28, 1953
• Content Type: SUMMARY

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CENTRAL INTELLIGENCE AGENCY
OFFICE OF CURRENT INTELLIGENCE
28 JUNE 1953
FINNISH PREMIER ANNOUNCES RESIGNATION OF HIS GOVERNMENT
The Finnish cabinet is'expected to submit its formal resig-
nation to President Paasikivi on 29 June. Premier Kekkonen an-
nounced on 27 June that he would submit the resignation of his
coalition government because of the inability of the Agrarian
and Social Democratic parties to reach agreement upon a solu-
tion of the country's pressing economic problems. Premier
Kekkonen, who is also leader of the Agrarian Party, suggested
in his announcement that the Social Democrats be given the
responsibility of forming a new government.
It is unlikely that the Social Democrats would desire at
this point to take over responsibility for forming and heading
a new government. The Social Democratic Party chairman remarked
after the Premier's announcement that the existing conflict
could. best be dealt with by holding new elections.
The disagreement between the Agrarians and the Social Demg
crats revolves around Finland's basic economic problems of
rising industrial production costs, which have priced Finnish
goods out of the world market, and the threat of widespread unem-
ployment this winter. The Social Democrats have advocated a
system of industrial subsidies so that Finland could lower the
price of its export goods and thus build up its declining trade.
The Agrarians,on the other hand,favor the reduction of taxes,
wages and interest rates.
The Social Democrats are in continual struggle with the Com-
munists for control of the labor movement. Therefore, they have
not been willing to make any concessions which could be used by
the Communists in this fall's communal elections as evidence of
the inability of the Social Democrats to guard the interests
of the workers.
The Agrarians, on the other hand, should they make conces-
sions fear they would lose some of their electorate to the smal-
ler conservative parties.
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Prime Minister Kekkonen's announcement that he plans to
submit his government's resignation may be- on-his
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part to force the cabinet members from his party to agree to
enough concessions so that a program could be worked out with the
Social Democrats. As premier, Kekkonen has used this method suc-
cessfully in the past.
In the present case, however, it appears more likely that
the cabinet's resignation will be accepted and that parliamentary
elections will be held before the communal elections scheduled
for 4 October. The elections would serve a useful function since
they would, in effect, be a national referendum on the solution
of Finland's economic problems.
Although it is possible that the Communists, which have
the third largest party in Finland, would gain a few additional
parliamentary seats, there would probably be no significant
shift of votes between the three major parties, Since neither
the Agrarians nor the Social Democrats will cooperate with the
C>mmunists, they will be forced to form a working coalition, ex-
cluding the Communists, which can resolve the economic crisis.
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