Mr. H.S. Wingate, Secretary of the International Nickel Company, and Dr. LO. S6derhjelm, the Company's Counsel in Finland, saw me on March 3rd in connec­tion with the recovery by the International Nickel Company of its remaining assets in Finland.

2. There were two claims which the International Nickel Company wished to submit to the Finnish Government for settlement by direct negotiation.

          (a) The International Nickel Company's claim to compensation, out of the remaining assets (123 million Finn marks) of its subsidiary, Petsamon Nikkeli, in Finland, for the debt owed it (319 million Finks.) by the latter Company. (Interna­tional Nickel maintain that its claim should have precedence over the claim of the Finnish Government to compensation from Petsamon Nikkeli assets for the latter Company's debt to I.G. Farben incurred during the war (138 million Finks.‑about $1 million) which the .Finnish Government had paid to the Soviet Government as the inheritor of all German assets in Finland by the Peace Treaty.)

          (b) International Nickel's claim to refund of excess profits taxes (48 million Fmks.) paid by Petsamon Nikkeli for the year 1944; and possible repayment of all taxes (excess profits and income tax) (79 million Finks.).

3. Mr. Wingate asked if the Canadian Government would agree to instruct its Minister‑designate to Finland to express to the Finnish Government his govern­ment's interest in a satisfactory settlement. Mr. Wingate stated that Dr, Snderhjelm would first raise the whole matter, and that the Canadian Minister (if lie could be present at the first meeting) might then indicate the Canadian Government's inter­est, without, of course, giving any cause for the Finnish Government to assume that diplomatic pressure was being brought to bear, or that the Canadian Government was recommending any particular settlement.

4. If you agree² that this request may be met, I think that Mr. Stone, if he will be accredited to Finland,³ might find a suitable opportunity to tell the Finnish Govern­ment that, so far as he is aware, this is the only interest affecting Canadian nationals and that the Canadian Government hopes that it will be possible for the Finnish Government and the International Nickel Company to clear the matter up. The Minister, of course, would not take part in the negotiations themselves. I do not think it is advisable for him to be present at any meeting of representatives of the Finnish Government and Dr. Soderhjelm.

5. I attach the minutes of the meeting of March 3rd. &dagger

E[SCOTT] R[EID]

²Note rnarginale:/Marginal note:
I agree Lit P[earson]

³Stone, le ministre en Suède, fut nommé ministre en Finlande le 16 mars 1949.
Stone, the Minister in Sweden, was appointed Minister to Finland on March 16, 1949.