OBSERVATIONS ON DRAFT PEACE TREATIES



  In regard to the material to be handed over to the United Kingdom
it is natural that this material is to be considered as part payment of
the Finnish debt caused by the earlier purchase of the same war ma-
terial from England.
  Paragraph 6. Finnish economic life and the civilian population
are in dire need of commodities. In order to relieve this need, it is to
be hoped that a suitable or convertible part of the war material could
be used in this manner.
  Paragraph 7. The proposed addition is necessary in order to avoid
incompatibility between paragraphs 3 and 7.
            PART IV: REPARATION AND RESTITUTION
Article 22.
  Finland's economic position, the influence brought on it by the repa-
rations provided in the Armistice Agreement, and the conditions
which must be considered in judging the real consequence of Finland's
present war reparation have been described in the appended memo-
randum. From the Finnish point of view it would be important if
the reparation sum of 300 million dollars fixed in the Armistice Agree-
ment could be reduced to 200 million dollars.
Article 23.
  On September 6, 1945, an agreement relative to Article 14 of the
Armistice Agreement was signed between the Finnish Government
and the Allied Control Commission in Finland concerning property
unrestituted before August 1, 1945, or compensation for it, amounting
to a total of 22 million dollars. On April 29, 1946 a notification in
writing was received from the U.S.S.R. authority concerned to the
effect that the Soviet Government in accordance with its decision made
in April 1946 considered that the obligations under the said article of
the Armistice Agreement were deemed to have been fulfilled. Conse-
quently, the deliveries which had taken place according to the afore-
mentioned special agreement were discontinued as from May 1, 1946.
                   FINLANDIS WAR REPARATIONS
  By virtue of the Armistice Agreement concluded on September
19th, 1944 between Finland and the Soviet Union, Finland was en-
joined to pay a war reparation in fulfilment of which she was to de-
liver commodities to the value of 300 million gold dollars over a period
of six years. After the close of the first reparation year the term of
delivery was prolonged by two years, and consequently reparations,
amounting to 50 million dollars during the first reparation year, will
be about 35.5 million dollars during each of the following seven years.
With regard to their value in dollars and the term of payment, repara-
tions imposed on Finland are thus equal to those to be paid by Rou-
mania and Hungary, but, when calculated after the size of the popula-



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