Sir,
You will recall the visit to Ottawa last March of Dr. J.O. Söderhjelm, Counsel in Finland for the International Nickel Company of Canada, at which time he dis­cussed with officials of the Department certain still unsettled questions between the Company and the Government of Finland. As a result of these discussions I was instructed not to take these matters up in detail with the Finnish authorities but simply to express the hope of the Canadian Government that satisfactory solutions would be found in the not distant future.

During my first visit to Finland in September I was fortunate enough to have informal conversations with both the Prime Minister and the Foreign Minister in the course of which in each case an opening occurred which made it possible for me to mention this matter without in any way indicating that my Government wished to press the Finnish Government in it. This seems to have done some good. During my recent visit (last week) Dr. Söderhjelm informed me that there had been somewhat more activity and rather more evidence of a disposition on the part of the Finnish authorities to reach a settlement. A meeting was to have taken place on Friday last, which however had to be postponed until this week, and Dr. Söderhjelm therefore asked me if I would have another word with the Foreign Office. This I did with the Secretary General and Mr. Voionmaa assured me that he would look into the matter. I think it may reasonably be assumed that faster pro­gress toward a solution will now be made.

Dr. Söderhjelm informed me that the International Nickel Company was not pressing hard for a settlement. In fact the thorniest problem, that of transfers, is yet to be faced. Settlement, when it is made, will be, of course, in Finnmarks and on the authority of the Ministry of Finance. Whether or not these marks will be wholly or partly convertible is a question which only the Bank of Finland can answer and one which Dr. Söderhjelm does not propose to discuss with the Bank until after a settlement has been agreed upon.

THOMAS A. STONE