Le Nord : revue internationale des Pays de Nord - 01.06.1944, Qupperneq 201

FINLAND’S WAY TO PEACE ECONOMY
i79
amount of raw material immediately available. To make use of
the full capacity of production, timber should promptly be taken
out of the woods, but results cannot be expected until after a
few years. Foreign exchange for exports therefore will not be
available to such an extent as the immediate need of imports
requires, even if the imports are cut down as regards all un-
necessary items.
It remains to be seen whether Finland and Sweden will be
able to recapture their former markets. Even on this point Fin-
land lags behind Sweden, who has been able to send out dele-
gations to prepare the markets in the countries in the west. We
may, however, assume that there will be a great demand for
sawn timber in England and on the Continent. Rebuilding is
extensive and exacting everywhere. The demand for paper pro-
ducts is more elastic. The transatlantic paper production is not
known to us and the American demand is unknown as regards
European goods. There is no information of the purchasing power
in England. Finland can rely upon the knowledge of the great
unions and concerns as to the markets, and on their capacity of
making the best of the situation. Measures undertaken by the
state are of little avail except as regards the settling of political
goodwill in the country. But there is every possibility of establish-
ing a profitable co-operation between the exporters of Sweden
and Finland.
The third question is about the lucrativeness of the export
trade. Fiow have prices in the world developed or how will they
develop in relation to the costs of production in Finland, based
on the Finnish rate of exchange?
The producers will probably be unable to influence the prices
of sawn timber on the international markets. The decisive fac-
tors will probably be the need and the commercial policy of the
customers. The above mentioned co-operation between the manu-
facturers in Finland and Sweden may partly influence the prices.
The Russian competition is an unknown factor to a higher degree
than ever.
The costs of production in Finland are more easily influenced
by economic policy. An arrested rise in the prices of paper-wood
and even a slight reduction may at present be noticed. An in-
creased supply of labour and cheaper transports after demobiliza-
tion should reduce the cost of raw material. On the other hand,
forestry is extremely sensitive to inflationist tendencies if these