Book: Dollars and krona used to shore up SDP and keep postwar Finland in the West

Historian Mikko Majander analyses how goods donated by Western countries was sold, and the money funnelled into SDP coffers

print this

By Unto Hämäläinen
     
     While writing a history of the Finnish Social Democratic Party, Dr. Mikko Majander was given access to the papers of the party's former treasurer, Aarne Paananen in June last year. The papers had been stored in the archives of Sweden's Social Democrats - possibly out of fear of the Soviet Union.
     In the 1940s and 1950s Aarne Paananen was considered "quite a wizard", and the material that he left behind him proved to be so fascinating that Majander felt compelled to take a break in his writing of the party's history and write a separate book about the financing of the SDP. He made a wise decision.
     Mikko Majander's Demokratiaa dollareilla ("Democracy with Dollars") is the great political book of this autumn. It fills up some of the gaps that still exist in the historical writing of our recent history.
     The matters that he deals with are difficult and complicated. Majander's flowing style of writing makes it easier to understand them. He does not feel a need to simply demonstrate his learnedness to other historians. Instead, he seriously tries to approach ordinary readers who are interested in history.
     
Until now, people could only guess how much and in what way the United States and other Western powers helped the SDP after the war, when the Social Democrats and the Communists were battling for dominance of the Finnish labour movement.
     Majander is able to argue in a credible manner that the support that came from the United States and other parts of the West really was considerable and significant. Even the greater part of the SDP's running costs were covered by aid from the West.
     The book thoroughly examined the routes that the money took. Immediately after the war emergency aid came from Sweden and Norway, and at the initiative of the Finnish-American labour veteran Oskari Tokoi, aid started coming from the United States as well.
     
The American comrades acquired goods such as coffee, tobacco, clothing, cars, and fruit for a cheap price, or for free. The goods were brought into Finland legally, and were sold to consumers for a high price.
     The people were living in a rationed economy, and were willing to pay high prices for small luxuries, whenever they became available. In this way, the donated dollars and relief krona were easily converted into markka.
     Detours were needed, as the Bank of Finland regulated currency dealings, and it would not have been feasible to bring such large amounts of currency across borders anyway.
     Cunning tax tricks were used to maximise profits. The trade was disguised as charitable donations, which meant that full taxes and tariffs did not have to be paid. Other organisations and parties did the same, but according to Majander, the SDP was "the party that was the most skilful in practicing extensive charity trade".
     
The CIA began to support the Finnish Social Democrats in 1949. The aid from the CIA was used for field work against the Communists.
     At the same time, the Soviet Union gave financial aid to the Finnish Communist Party. The monetary aid from Moscow also was turned into markka through intermediaries.
     Majander estimates that the help from east and west might have been nearly as big. Previously it had been thought that the Communists got more help from the east than the SDP got from the west, but new information about the extent of the Western aid gives a more balanced picture of the extent of the western assistance.
     Neither side was unselfish in its aid. The Social Democrats and the Communists learned that the donors kept close tabs on how the money was spent and demanded precise reports.
     Most of the money was spent as soon as it was acquired, but some of it was put into savings. Various foundations and other associations still have millions in assets, for which the nest egg came from monetary aid from the east or west. The Kiljava Institute in Nurmijärvi run by the Central Organisation of Finnish Trade Unions (SAK) was set up with help from both sides.
     
Majander's book concludes in the mid-1950s, when the worst was already past. The SDP had established itself as clearly the larger party of the left and dominated the trade union movement.
     One might have imagined that the "brother-in-arms socialists" would have been content with the situation. But that was not to be: they started fighting amongst themselves.
     The influence of the group was so great that the dispute led to a split in the party, the trade union movement, and the workers' sports movement.
     There were brother-in-arms socialists among the leaders of both camps.
     Some had dollars in their pockets, but a few changed sides and took help from the east.
     Majander will get to, or will have to write about this struggle in the next part of the history of the SDP. The task is challenging, so to speak.
     
Helsingin Sanomat / First published in print 27.9.2007


Previously in HS International Edition:
  Hidden help from across the Atlantic (12.12.2006)

UNTO HÄMÄLÄINEN / Helsingin Sanomat
unto.hamalainen@hs.fi