MAINTAINING TECHNICAL NEUTRALITY

Gisborne Herald, Volume LXVI, Issue 20095, 15 November 1939, Page 7

MAINTAINING TECHNICAL NEUTRALITY

OCCUPATION OF ISLANDS INDICATED

(Elec. Tel. Copyright—United Press Assn.)

(Reed. Nov. 15, 9 a.m.) LONDON, Nov. 14. The Washington correspondent of the New York Times says, that information reaching Washington indicates that the Soviet intends to maintain the pressure and to keep heavy troop concentrations on the Finnish border, but is reluctant to lose her technical neutrality by an open attack.

“Financial pressure on Finland is heavy and it is understood the Russians hope that this eventually will force the Finns to make concessions; otherwise they will use force later if developments elsewhere distract attention,” states the correspondent.

The correspondent adds that the Reconstruction finance Corporation is considering Finland’s application for trade loans through the Export and Import Bank, but it is officially denied that the loans arc imminent enough to influence Finland’s attitude to Russia.

Diplomatic circles believe that the expectation of United States trade financing, coupled with .the moral backing of America, may have influenced Finland to break off the negotiations with the Soviet. Possible Repercussions Continuing, the correspondent says it is feared that should Germany attack Holland, Russia may .take advantage of the situation to act agaiust Finland. This is one of the reasons for the consultation of the American Minister at The Hague' with Queen Wilhelmina.

The Assistant Secretary of State, Mr. Sumner Welles, also conferred with the Netherlands Minister in London. The view that the Soviet will not attack Finland, but will maintain pressure, is supported by the Moscow correspondent of the New York Times, Mr. G. E. R. Gedye, who says it is possible, though unlikely, that the Soviet will occupy islands off the Finnish coast in the Gulf of Finland, throwing .the responsibility for opposition on the Finns. “The pressure is most likely to take the form of a press and radio campaign, allowing the provocation of a series of frontier incidents and keeping the Finns in suspense and mobilised,” he says. “Finland’s only defence will be a partial mobilisation, enabling the safeguarding of the frontiers and the releasing of men for agriculture and industry.”