611.57A/2–152

No. 413
Statement of Policy Proposed by the National Security Council 1

[Extracts]

top secret
NSC 121

The Position of the United States With Respect to Scandinavia and Finland

. . . . . . .

With regard to Finland, it is in our interest that she maintain her independence. Although the Finns value highly their independence and are intensely anti-Soviet, this country’s freedom of action in its foreign relations is drastically curtailed by its proximity to Soviet power and by various treaty obligations which Finland has been forced to undertake. The key to U.S. policy is to avoid any steps which would threaten the delicate balance of Finnish-Soviet relations and call forth drastic Soviet measures inimical to Finnish independence.

. . . . . . .

[Attachment]

NSC Staff Study on the Position of the United States With Respect to Scandinavia and Finland

Our relations with Finland differ from those with Scandinavia because of Finland’s special relationship to the Soviet Union. Finland [Page 756] is not a Soviet satellite. It is a constitutional democracy with unrestricted internal sovereignty wherein the democratic freedoms are guaranteed by law. Although there is a strong Communist Party in Finland, it has had no positions in the Government since 1948, and there does not now appear to be a likelihood of the Party’s taking over Finland by internal coup. Nevertheless, Finland’s freedom of action in its foreign relations is drastically curtailed by its proximity to Soviet power and by various treaty obligations which Finland was forced to undertake after the war. Our basic objective is therefore limited to the maintenance of Finland as an independent and democratic state; because it would be extremely dangerous to Finland, it is not in our interest to make any attempt to incorporate Finland into a Western bloc.

In view of their position and Soviet sensibilities, the Finns must be very circumspect in their dealings with the West, even though the overwhelming majority of Finns, as in the past, identify themselves with the West. By the same token, we must be careful not to take any action which would disturb Finland’s relations with the USSR. These delicate relations preclude Finland’s participation in the ERP, the NAT, and make impossible our extending any military assistance or the development of Finnish defense. This situation has not, however, prevented our giving moral support through informational and cultural exchange, or economic support through carefully allotted credits and the maintenance of Finland’s traditional pattern of trade predominantly with Western Europe and the Western Hemisphere, all of which we have been or are seeking to do.

We have, however, a particular problem arising from Finland’s trade with the USSR and the Soviet bloc. Though decreasing, this trade is expected to constitute 20–25% of the Finnish total during the next few years. Some of the items Finland traditionally supplies to the Soviets include scarce or strategic materials, for which Finland receives in return other strategic commodities. While it would appear that both for political and economic reasons there is no immediate possibility for Finland to eliminate or substantially reduce the export of strategic items in its trade with the Soviet bloc without serious consequences, we should continue to impress the Finns with our concern over this trade. However, although a careful case-by-case review should be made in order to minimize any contribution which U.S. exports to Finland might make to the Eastward flow of strategic items from Finland, the United States should continue to export available materials which are necessary to Finland’s economy.

Unofficial Soviet sources have expressed the thesis that the Baltic is a closed sea. However, there has been no indication that [Page 757] the Soviet Government proposes to promulgate this as an official doctrine. A closure would be unacceptable to the United States, to the riparian states (Finland, Sweden, Denmark and Germany), and to other Western states which have important interests in the area. Recent Soviet attempts to extend territorial waters in the Baltic have been protested by Sweden and Denmark and these two countries continue their study of means to resist this encroachment. Sweden’s traditional neutrality policy is not reflected in any tendency on the part of the Swedish Government or public opinion to accept Soviet encroachments in the Baltic; on the contrary, there has been a strong Swedish reaction against Soviet attempts to extend its territorial waters, and it is regarded as a very healthy exercise that Sweden continue to wrestle with this problem.

A unilateral declaration by the USSR would not in itself effect the closure of the Baltic. However, such a declaration coupled with the use of or display of force aimed at enforcing the declaration could result in closure of the Baltic. If these steps involve military action against merchant or public vessels or aircraft of the NAT powers in or over the Baltic, or armed violation of Danish sovereignty or UK occupational jurisdiction in Germany, the provision of Article V of the NAT could be invoked.

In our desire to support Finnish independence by the limited means available, we should avoid any steps which would threaten the delicate balance of Finnish-Soviet relations and call forth drastic Soviet measures inimical to Finnish independence. In this connection, so long as Finnish exports of strategic items to the Soviets remain limited, we should in so far as supply considerations permit, and after careful scrutiny on a case-by-case basis, refrain from restrictive action on any exports whose denial would weaken the Finnish economy or which might prompt Soviet action endangering Finland’s independence.

. . . . . . .

  1. Transmitted as an enclosure to operations memorandum 19 to Helsinki, Feb. 1. For another extract of NSC 121, see vol. VI, Part 2, p. 1758.