SOVIET DEMANDS

Waikato Times, Volume 125, Issue 20954, 6 November 1939, Page 8

SOVIET DEMANDS

REJECTED BY FINLAND PREPARED TO DEFEND CONTINUATION OF TALKS (United Press Assn.—Elec. Tel. Copyright) LONDON, Nov. 5 The Prime Minister of Finland, Dr. Aimo Cajander, in a broadcast, asserted that Finland was prepared to defend herself in all circumstances, and was intensifying the necessary preparations. The Foreign Minister, M. Erkko, stated that the Finnish answer had been given to the Soviet leaders, upon whom rested the decision whether further negotiations would be worth while. He added: “Our delegation is remaining in Moscow to await instructions. Our attitude is unchanged. The Russians’ proposals would have been offensive to us in peace time. We accepted about two-thirds of them, but there is a limit to everything. They asked for the cession of land north of Leningrad, and of islands in the Gulf of Finland, and the lease of land on the southern coast of Finland for a military base.” M. Erkko denied that other nations had influenced Finland, and said Russia must overcome her suspicions. Finland took her stand independently. A later broadcast report stated that the talks in Moscow between Finland and the Soviet were being continued in a more promising atmosphere. The Finnish Foreign Office reported last night that the conversations were proceeding amicably, and fresh instructions had been sent to the Finnish delegates. In Helsinki it is regarded as a good sign that M. Stalin attended the talks last night. These lasted one hpur. Grave Situation The Moscow correspondent of the New York Times, Mr G. E. R. Gedye, reports that it cannot be denied that the Soviet press makes the Russo-Finnish situation most grave. The present display of hostility to Finland is due to the Soviet’s annoyance at indications of foreign sympathy and support, and it is doubtless desired to reduce the Finns to a proper state of humbleness. The first warning in M. Molotoff’s speech failed to shake their determination. The second was given in the Pravda’s article, which may imply a threat of military action, but is more likely intended to frighten the Swedes from supporting the Finns, thus destroying Scandinavian unity. It may presage a war of nerves designed to see how long Finland can support the burden consequent on the mobilisation of one-seventh of her population. Immediate developments depend on the Swedish reaction to Russia’s open hostility. GERMAN WAR LOAN SOUNDNESS OF MARKET MERELY DROP IN BUCKET (United Press Assn.—Elec. Tel. Copyright) NEW YORK, Nov. 4 Commenting on the official hailing of the over-subscription of the German war loan as a demonstration of the soundness of Germany’s capital market, the Berlin correspondent of the New York Times, Mr Otto D. Tolischus, observes that actually the 500,000,000 marks loan, of which 200,000,000 marks was subscribed in advance, is merely a drop in the bucket of the vast German war expenditure. The loan was supposed to serve for the expansion of railways, but the last rail loan was counted as part of the consolidated loans, and was supposed to retire short-term credit, but did not do so. The present loan marks a return to more ordinary financial methods, following the failure of the plan introduced after the departure of the former Minister of Economics, Dr. Schacht. That plan was hailed as a financial miracle, but lasted only seven months. The total public debt of 70,000,000,000 marks is estimated that the total circulation of all currencies is 15,000,000,000 marks, but including Army notes it is much higher. Inflation of Prices It is obvious that the vast circulation will inflate prices. In spite of rigid control, prices are beginning to soar where control can be avoided. That the increase is no greater is due to the tremendous taxes, which yield the Reich alone 6,179,000,000 marks. The second quarter’s total tax burden may well pass 30,000,000,000 marks, which is about 40 per cent of the national income.