235. Telegram From the Embassy in Finland to the Department of State0

157. Reference: Deptel 68.1 I called on President Kekkonen at 4 this afternoon and informed him as instructed that we are prepared arrange for Finland purchase US military equipment on favorable terms. I stressed that this was not gift or loan but offer arrange purchase terms and prices which would suit Finland’s special circumstances, taking into account need not embarrass or disturb Finland’s neutrality. I said I had no specific or detailed proposal present at this stage but was seeking President’s comments and advice. I added, that (A) no military aid program for Finland was envisaged, (B) that no offer of military aid would be made and (C) that no political commitments were involved.

President expressed his appreciation for offer. He said that there are large gaps between plans for procurement military equipment and ability Finnish Government realize them and he therefore is grateful for our proposal. Finland is prepared buy weapons from different parts of world in line with its policy of neutrality. He made special point of stressing that in principle Finland has nothing against purchasing military equipment from US.

He said that purchases from Soviet Union were made only because of availability of ruble funds. He took pains explain that ruble loan made to Finland in 1958 was originally intended for industrial and railway equipment. When, however, it was not possible find in Soviet Union equipment that would meet Finnish needs, large surplus remained which Finnish defense forces proposed be used for arms purchases. That is the history, he concluded, and “under no circumstances would I have sought loan from Soviet Union for purchase of arms.”

In regard to manner of proceeding he said that he would take matter up with Finnish Cabinet at earliest possible time. He explained that as first step and before military take over matter, it would be wisest for him to get “political agreement” by consultations within Finnish Government. After that, he himself or some member of the Cabinet will get in touch with me.

He told me that General Simelius would be informed of content of our talk and that matter could be taken up with Simelius in Washington. He suggested that Simelius might be shown equipment which we are [Page 483] willing sell and perhaps also equipment that Simelius himself asks about.

I asked President whether we might expect some answer from him before Simelius goes to US. He replied that time is so short that it may be difficult and that perhaps it might be better continue our discussion after Simelius returns from his visit to US.

Just before our departure, President said that Finnish Foreign Minister Merikoski, who is now in US at UN, has an appointment see Secretary Rusk on October 7. Subjects which Merikoski will take up, he said, were “routine and current.” He also said that Merikoski had gone to Paris to see his French counterpart to explain the Finnish situation prior to President Kekkonen’s visit there in October.

President did not say whether he would inform Merikoski of our offer. We assume that he may, although his use of words “routine and current” may have been intended to imply the contrary.

Frank Friberg who acted as interpreter and I have impression that President Kekkonen was gratified with our offer. We have additional impressions that:

1.
Simelius may do some “shopping and exploring” in US and this may involve treaty modification and guided missile questions.
2.
Extent to which Finns decide take advantage proposal likely depend on what is offered representatives beginning with Simelius and up-to-dateness of material offered in comparison that available elsewhere.
3.
It would be unwise pending further information from Kekkonen make any further approach any Finns in Helsinki. Unless instructed to contrary Army attache will not approach Simelius here but leave matter to be taken up with him in Washington.

View President’s expected absence on visits to Soviet Union and France and other factors affecting timing as well as possibility that Finns may await report from Simelius after his visit to US believe we cannot expect definitive reply until his return.

Gufler
  1. Source: Department of State, Central Files, 760E.5612/9–2962. Secret; Priority. Repeated to London.
  2. Document 234.