PEACE TREATY RATIFIED; NEW VISIT TO MOSCOW

Dominion, Volume 33, Issue 148, 18 March 1940, Page 9

PEACE TREATY RATIFIED; NEW VISIT TO MOSCOW

LONDON, March 17. The Finnish President. M. Kallio, has signed his Parliament’s ratification of the peace treaty with Russia. Dr. Paasikivi, who was a member of the delegation which went to Moscow to discuss the peace terms, is to return to exchange the ratification documents and also settle outstanding questions, such as the exact limits of the new frontiers, the opening of trade negotiations and the possibility of the resumption of diplomatic relations, including a Russian legation in Helsinki. The reports that two Ministers resigned after the peace terms had been announced are officially denied in Helsinki. GREAT POPULATION MOVEMENTS (By Telegraph—Press Association—Copyright.) LONDON March 15. Since early this morning the Finnish army has been withdrawing over a zig-zag front of 200 miles in south-east Finland in accordance with the terms of the Russian peace. As soon as the Finns had withdrawn about four miles and a half the Russians began to advance into the evacuated territory. One of the first places entered by the Russians was Viborg. West of Viborg the Finns have not far to go to reach the new frontier, but at the other end of the Mannerheim Line the Finns must cover more than 60 miles to the new lines. Civilians from Viborg, under the'leadership of the town councillors, for the past three days have been removing furniture from homes and supplies from shops, leaving only a shell-scarred and empty city. Columns of lorries miles long are transporting 8000 people and their possessions from Hanko into the interior of Finland. The evacuation proceeded all last night. The area surrendered to the Soviet totals about 19,000 square miles, and had a population of just under 500,000. Of these, 400,000 were removed to places of safety, leaving 100,000 who are now following. It is stated that the Finnish Government is trying to keep friends and neighbours together in their new homes, but it is pointed out that there are very grave social problems ahead. The war is estimated in Helsinki to have cost Finland £ 118,000,000, half of which was brought about by air-raid damage, while military costs absorbed one quarter of the total and losses of exports and loss of resources in the ceded areas one quarter. 'Hie Government expects that the State will have to build at least 70,000 new homes and also construct a new transport system because the cession of Viborg cuts off a most important timber outlet—the Siama Canal. The lost resources include valuable forests, sawmills, pulp factories, iron works, sulphide and sulphate plants, flour mills, and fishing grounds. The treaty also compels the Finns to pay half the cost of the railway to Kemittrask. This is a noose round their own necks, as it will enable the Russians to pour across Lapland, cutting off Finland from Sweden.