TERMS WITH SOVIET

Wairarapa Times-Age, 4 December 1939, Page 5

TERMS WITH SOVIET

MADE BY THE PUPPET GOVERNMENT EXTENSIVE EXCHANGE OF TERRITORIES. PROPOSED RUSSIAN PURCHASE OF ISLANDS. — LONDON, December 3. The Soviet-Finnish Puppet Government has signed a pact of mutual assistance ami friendship as 'a result .of negotiations between MM Molotov and Stalin, General Voroshilov and IV) Zhdanov on the one hand and M Kussinen on the other. Tlie pact is immediately effective and declares that the parties are convinced the hostilities are being carried on for the benefit of. imperialists, for which reason the pact is concluded to ensure the territorial integrity of Russia and Finland. It is provided that the Russian Government will lease Hanko, with adjoining territory, for naval and military bases. Russia cedes to Finland 23,330 square miles of Karelia. Finland moves the frontier further away from Leningrad, thus ceding 1300 square miles to Hie Soviet, for which £600,000 will be ; paid in the form of compensation to the Finnish Republic. The Soviet also buys for £1,500,000 eight islands in the Gulf of Finland and the northern Finnish peninsulas. The signatories assist each other in the event of a third Power's aggression and will not conclude any treaty with a third Power directed against either signatory. An economic convention will be concluded providing for an annual turnover of £4,000.000. The Soviet will sell Finland cheap arms. The treaty will be valid for a quarter of a century and may be renewed for a similar period if not denounced at a year’s notice. Yesterday M Molotov informed the American Ambassador, Mr Steinhardt, that Russia would not negotiate with the Helsinki Government owing to the inclusion of M Tanner, but was prepared to conclude an agreement with the Terijoki Government. The Soviet indicated that through the medium of a proclamation by tlie Finnish Communist Party she will consider an armistice on the following terms: (1) The formation of a democratic people's Government; <2l conclusion of a pact of mutual assistance based on the Soviet demands before the war; (3) changes in the structure of the Finnish State and economic life but “by no means sovietisation of Finland.”