Opening Moves: Finland
In the aftermath of WWII, Communist governments were established in the states of Eastern Europe liberated by the Red Army. Additionally, independent (but Soviet-aligned) Communist governments rose in Albania and Yugoslavia. For the most part, the transition to Communism in these states didn't generate significant friction with neighbouring states. In Poland, the borders were moved further West, to compensate for Soviet annexations in the East, and the adjustments led to the forced expulsion of the majority of the German population to the Soviet occupation zone (Sovozone) in Eastern Germany. This was at first problematic, but the main areas of friction in Eastern Europe were Finland and Greece.
To understand the seizure of power by Finnish Communists and the crisis with Sweden, we have to look back at the last months of WWII. In June of 1944, the Red Army mounted a strategic offensive against Finnish forces by the Leningrad and Karelian fronts. The Soviet offensive smashed the Finnish lines at the Battle of Tali-Ihantala [3] and advanced rapidly towards the Salpa Line. The heavily fortified Salpa line proved to be a major obstacle, but after heavy bombardment and heavy casualties, Soviet forces breached the Salpa Line on July 19th. After the penetration of the Salpa Line, Finnish forces all along the frontline retreated hurriedly back towards Helsinki. Many of these units were cut off and captured by Soviet forces. Helsinki was captured on the 28th, after heavy fighting, although not as severe as in the Battles of Budapest or Berlin. The Finnish government surrendered unconditionally to Soviet forces. Although some pockets of Finnish resistance remained, they posed no real threat to the Soviet forces. Upon the surrender, there was an uprising in Vaasa by Swedish-speaking residents, which was quickly put down by arriving Soviet occupation troops.
After the surrender of Germany, the Soviets went about setting up a Communist government. In the 1946 Finnish elections, the Finnish People's Democratic League (SKDL) won 65% of the vote. Many historians believe that this number was rigged, with the real level of support approximately 17-25%. The SKDL was a pan-leftist umbrella organisation, but was dominated by the Communist Party of Finland (SKP). The tactics used in the Communist takeover of Finland was similar to those used in other countries, but differed in one major way: there were far less purges of Communists in Finland. Whilst right-wing politicians were purged, Otto Wille Kuusinen's government was fairly liberal with the left. Kuusinen was fairly unpopular, even among the Finnish working-class, despite his liberal Communist attitudes. This was largely due to his image as a collaborator with the Soviets in the Winter War. Nevertheless, Kuusinen became General Secretary of the SKP, whilst prominent Communist Aimo Aaltonen became President of the Presidium of the National Assembly. Whilst Aaltonen was therefore Head of State, Kuusinen wielded the real power in Finland. On October 17th 1946, Aaltonen declared the Finnish People's Republic (FPR).
The new socialist government went about implementing a number of reforms. In order to stimulate the economy, the state revived large scale mining and timber operations, as well as redistributing wealth from wealthy Swedish-speakers. Many of these same Swedish speakers were imprisoned in gulags in Karelia. Despite these efforts, the Finnish government still suffered from a lack of goodwill amongst the Finnish population. Many Finns considered the government to be Soviet puppets. Kuusinen and Aaltonen realised that they needed to appease the spirit of nationalism within Finland. To this end, Kuusinen visited Moscow during the February of 1947. Kuusinen met with various Soviet leaders, including Molotov, Beria and Stalin himself, attempting to convince them to cede back the territory taken from Finland in the Winter War. Though at first received with suspicion, especially by Beria, Kuusinen managed to convince Molotov of the benefits of ceding back Karelia. By ceding Karelia, Kuusinen conjectured, Finland would be more reliably Communist and therefore pro-Soviet, and with the elimination of Nazi Germany and a potentially hostile White regime in Finland, there was less urgency for a buffer area to the North of Leningrad. Additionally, Finland provides more strategic depth for the USSR, and guards the Gulf of Finland, and therefore Leningrad. After much deliberation, Molotov managed to convince Stalin of the wisdom of Kuusinen's ideas, and Stalin allowed for the cessation of most of those territories, with conditions: the Soviets were allowed to use naval and airbases along the Finnish coast, as well as having a right to garrison troops in Finland. Furthermore, Stalin ceded only Karelia, retaining Petsamo.
The transfer to Finnish control occurred on April 1st. A joint Finnish-Soviet parade marched to Viipuri, singing songs and waving banners to fraternal socialist solidarity. The Finnish people were ecstatic about the return of Viipuri to Finland. The conquest of Viipuri by Soviet soldiers was traumatic for the Finns, as Viipuri had always been inviolate, never before subjected to the jackboots of a foreign army. But there was still one more thorn in the Kuusinen government's side: the Aland Islands. During the chaos of the Soviet offensive on 1944, Sweden had occupied the Aland Islands. Despite the archipelago being over 95% Swedish-speaking, the League of Nations had recognised Finland's claim to the Islands. Since the end of the war, the Swedes had continued their unlawful occupation, but were supported unanimously by the Alanders. On May 16th 1947, Finnish marines, hiding in a cargo ship, revealed themselves and attacked the Swedish positions on the Aland Islands. The archipelago wasn't heavily-guarded, and the Finnish soldiers quickly captured the Swedish garrison in the capital of Maarianhamina. This was followed up by securing the other islands in the archipelago. In response, the Swedes moved a cruiser group, centered around the HSwMS Gotland (an anti-aircraft cruiser) to the vicinity of the islands. As the Gotland anchored near the islands to await orders, Finnish IL-2 Sturmoviks (probably piloted by Soviet airmen) attack the ships. The Gotland was struck with several bombs, and although not sunk, the ship was heavily damaged. Escorted by the other ships of the group, the Gotland limped to Stockholm, where it awaited repairs. In the meantime, the cruiser HSwMS Göta Lejon moved towards the islands, but didn't anchor, and kept further from shore than the Gotland.
In the UNO, the Aland Islands issue was a point of debate in both the Security Council and the General Assembly. Although the British in particular condemned the Finnish seizure of the islands, Soviet representative Andrei Gromyko noted that the League of Nations had accepted Finnish sovereignty of the islands, and that the Swedish seizure was illegal and aggressive. The Americans were also influenced by instructions from their administration, that urged acceptance of a Finnish re-occupation of the Aland Islands, considering it too small an issue to ruin relations with the Soviets over. The UNSC adopted a resolution that recognised Finnish sovereignty over the islands, but stressed the need for cultural rights for the local Swedish-speakers, and dictated that the archipelago would be demilitarised. This last condition was demanded by the Swedes, who under British and American pressure would only back down if there was a guarantee that the Aland Islands wouldn't harbour potentially hostile military personnel.
Kuusinen experienced an upsurge in popularity in Finland, whilst the Swedish government was pushed more towards the West. This would manifest itself in Sweden becoming one of the founding members of NATO, and the shift in Swedish politics towards the right.