USSR and the Compelled Refusal of Finland on the Marshall Plan

Abstract

This article analyzes the reasons that prompted the Soviet Union to pressure the Finnish government refuse from participation in the Marshall plan. Special attention is paid to the distinct positions of Finnish President J. K. Paasikivi and the government of Finland headed by M. Pekkala. Business circles perceived the Marshall plan positively, because it was seen as providing an additional impetus to European integration and to growth of the European economy. President Paasikivi considered it primarily to be a basis for overcoming the strong influence of the Soviet Union. However, the government ignored the opinion of the majority faction of Parliament, being afraid of Moscow’s negative reaction of Moscow; therefore, ratification of the peace treaty by the Soviet side could be delayed, and calculations to facilitate reparation payments were unrealizable. Finland’s forced refusal to participate in the Marshall Plan was the first serious obstacle to participating in the process of European integration that was gradually gaining momentum. Having gained this from the Finnish government, the Soviet side actually assumed certain obligations that partially compensated Finland for economic losses, but fulfilling the volume of these for for political goals became a significant burden over time.