Foreign Relations of the United States, The Soviet Union, 1933–1939

760i.61/147: Telegram

The Minister in Estonia (Wiley) to the Secretary of State

Tallinn, December 5, 1939—5 p.m.
[Received December 5—2 p.m.]

141. There has been an epidemic of rumors alleging new Soviet demands on Estonia including disbanding of civil guard. I am authoritatively told at the Foreign Office that these reports are false and that no new demands of any kind have been presented. It was made clear though that Foreign Office regards the situation with anxiety and fears that Soviet pressure may be applied in a dangerous manner particularly during present visit of General Laidoner, Commander in Chief, to Moscow. (I think recognition of Terijoki government⁶⁷ is regarded as chief danger point).

Economic relations with the Soviet Union seem to be following happy course. Former is paying in dollars both for garrison expenses and Estonian exports to Soviet Union. Estonia has been permitted to make payments for Soviet exports from blocked rouble accounts. According to Foreign Office negotiations for export of Estonian dairy products to Soviet Union concluded at satisfactory price level.

Wiley

67. The puppet, Communist Soviet government of the “Democratic Republic of Finland”, set up on December 1, 1939, in the town of Terijoki under the nominal leadership of Otto Kuusinen.