Lest We Forget:
   World War II
THE RUSSO-FINNISH WAR 

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The Causes, Events, and Repurcussions of the Russo-Finnish War
Page 2

When the smoke finally cleared in 1944, Finland had lost over one-tenth of her territory to Russia. In this ten percent was a great mass of population, three major cities, and regions of great importance to the Finnish economy. Even after losing these economic powerhouse regions, the Finns were still expected to pay reparations to Russia totaling in excess of three hundred million U.S. dollars.

Firthermore, because of Finland’s stand against Russia, where they utilized German aid, Finland was treated as one of the Axis countries in post-war negotiations. Even though the Finns had fought against the Germans as well as the Russians, they were literally raped by the demands for reparations. Had the Allies not been so worried about appeasing the Soviets, and instead thought about the fate of Finland, they might have acted more judiciously. Luckily, Finland somehow pulled through against the odds, and checked the Russian behemoth.

The reparations were to be paid in a variety of ways, including cash, commerce, and military goods, at the rate of fifty million dollars per year, over a period of six years. The reparations were to be divided up in the following manner:

machines and equipment, including installation of completely equipped factories, $100.9 million; new vessels, $60.2 million; paper industry products $59.0 million; wood industry products, $41.0 million; cable products, $25.0 million; and ships surrendered from the existing merchant marine, $13.9 million. 13

Unfortunately for Finland, they were forced to pay these outlandish reparations with goods produced by a seriously weakened and debilitated economy. Aside from the fact that their economy was in no shape to meet the demands of the Russians, the Finns had more than that stacked against them. The divisions in the methods of reparations were in no way proportional to the economy of Finland. In fact, the divisions were often in direct conflict with the production percentages of the economy.

For example, the wood industry accounted for nearly ninety percent of Finland’s economy, but wooden goods accounted for only thirteen percent of the reparation payments. This gross misrepresentation can only be attributed to the Russian desire for Finland to fail to meet the payments, which would allow the Soviets to occupy Finland. The Finns, however, in another show of ingenuity and bravado, refused to be beaten by the Russian reparations.

In an almost maniacal frenzy, they built their economy up from ruin, without any outside aid. While they were technically a free nation, Finland’s foreign policy was in fact greatly restricted because of the Russian threat. Therefore, they were forced to refuse any Marshall Plan aid. After being forced to jump start their economy, Finland bolstered their economy and strengthened their overall position. Once they paid off Russia, Finland’s economy was ready to take an active part in both the European and world markets. They did this in various ways.

Along with Norway and Sweden, Finland joined the EFTA (European Free Trade Agreement), which bonded Scandinavia together economically. While this treaty was beneficial to all three nations, the iron curtain still curtailed trade in the Baltic region, which greatly hurt EFTA. Not until the fall of the Soviet Union would the economies of the region really begin to move forward.

Overall, while the reparations placed stringent demands on Finland, they were in the long run somewhat beneficiary. On the receiving end, the Russians clearly benefited from the Finnish payments. The industrial aid Russia received was greatly needed, because of the lack of widespread modernization in the Soviet Union. The introduction of modern industry to Russia spurred many changes, all for the better, within the Russian economy. In addition, a new Soviet Socialist Republic was formed out of the lands annexed from Finland. The Karelian S.S.R. was headed by Otto Kuusinen, the former head of the Democratic Republic of Finland puppet government.

There are many lessons to be learned from the events leading up to, of, and in the wake of the Russo-Finnish war. If the Russians had thought more clearly about the “security concerns” of Leningrad, they might have seen that the city was as safe as it would ever be with the borders where they were. Had the Finns tried to see things from the viewpoint of the Russians, they may have been more understanding. Instead, mistrust, deception, and misunderstandings dominated both sides in the negotiations.

Had clearheadedness prevailed, war could have been prevented, and thousands of lives may have been spared. After the war, the Allies certianly should have been less harsh in their dealings with Finland, and not so paranoid in their dealings with Russia. While Finland did benefit somewhat from their jump-started economy, the reparations were unnecessarily tough and hurt the Finnish economy.

By punishing Finland, the Allies implicitly threatened any nation that in the future should attempt to survive by any means necessary. The Finns, however, had the last laugh. The tiny country succeeded in stalemating one of the greatest military powers on the planet, and retained and actually improved its position in the post-war world. This was such an incredible accomplishment that in 1948, Josef Stalin himself stated, "Nobody respects a country with a poor army, but everybody respects a country with a good army. I raise my toast to the Finnish Army."


Endnotes

1 Tanner, Vaino The Winter War: Finland Against Russia 1939-1940 Stanford, California: Stanford University Press, 1957, 4
2 Ibid., p. 10
3 Ibid., p. 4
4 Ibid., p. 46
5 Schwartz, Andrew J. America and the Russo-Finnish War Washington, D.C., Public Affairs Press, 1960, 15
6 Dallin, David J. Soviet Russia’s Foreign Policy 1939-1942 Trans. by Leon Dennen. New Haven, Connecticut: Yale University Presses, 1942, 142
7 Ibid., p. 149
8 Ibid., p. 182
9 Ibid., p. 185
10 Ibid., p. 192
11 Ibid., p. 190
12 Ibid., p. 198
13 Jensen, Bartell C. The Impact of Reparations on the Post-War Finnish Economy Homewood, Illinois: Richard D. Irwin, Inc., 1966, 5


Bibliography

Dallin, David J. Soviet Russia’s Foreign Policy 1939-1942 Trans. by Leon Dennen. New Haven, Connecticut: Yale University Presses, 1942

Jakobsen, Max The Diplomacy of the Winter War Cambridge, Massachusetts: Harvard University Press, 1961

Jensen, Bartell C. The Impact of Reparations on the Post-War Finnish Economy Homewood, Illinois: Richard D. Irwin, Inc., 1966

Schwartz, Andrew J. America and the Russo-Finnish War Washington, D.C., Public Affairs Press, 1960

Tanner, Vaino The Winter War: Finland Against Russia 1939-1940 Stanford, California: Stanford University Press, 1957

Trotter, William R. A Frozen Hell Chapel Hill, North Carolina: Algonquin Books, 1991

Upton, Anthony F. Finland 1939-1940 Cranbury, New Jersey: Associated University Presses, 1979

 
Copyright © 1994-2005 Stephen Payne