VZCZCXRO8032
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHHE #0182/01 1391338
ZNR UUUUU ZZH
R 191338Z MAY 09
FM AMEMBASSY HELSINKI
TO RUEHC/SECSTATE WASHDC 4969
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 HELSINKI 000182 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: PREL PGOV ECON MARR NATO OREP FI
SUBJECT: SCENESETTER FOR CODEL TANNER 
 
¶1. (SBU) SUMMARY.  Embassy Helsinki welcomes you to 
Finland.  Your visit comes as we celebrate ninety years 
of diplomatic relations with Finland.  Those relations 
are excellent.  The Finnish government places high 
importance on deepening transatlantic ties as it also 
promotes a stronger role for the EU in supporting 
global stability and security.  The Finnish government 
sees no conflict in pursuing its security interests 
simultaneously through the EU, Nordic Defense 
Cooperation and NATO's Partnership for Peace.  Finland 
maintains the option to pursue NATO membership, and as 
the national debate continues regarding membership 
Finland pursues greater interoperability with NATO 
forces.  Most Finnish peacekeepers are abroad in NATO- 
led peacekeeping operations in the Balkans and 
Afghanistan.  In Afghanistan Finland has committed to 
increases in troops, civilian trainers and development 
assistance.  Finnish officials offer a unique 
perspective and expertise on their Russian neighbor. 
Foreign Minister Stubb has urged the West to re-engage 
with Russia as it undergoes a "complex transition" due 
to the global economic downturn.   END SUMMARY. 
 
Political and Economic Overview 
------------------------------- 
 
¶2. (SBU) This year we celebrate ninety years of 
diplomatic relations, and those relations are 
excellent.  Prime Minister Matti Vanhanen and his 
Cabinet share responsibility for implementation of 
Finland's foreign policy with President Tarja Halonen. 
PM Vanhanen leads a four-party center-right coalition 
that has placed high importance on working through the 
European Union, deepening its partnership with NATO and 
strengthening transatlantic bonds.  Finland holds 
parliamentary elections in 2011 and presidential 
elections in 2013. 
 
¶3. (SBU) Finland's GDP growth slowed sharply towards 
the end of 2008, and estimates project a contraction of 
five percent in 2009.  Other estimates project an 
increase in unemployment, up to nine percent in 2009 
from 6.4 percent last year.  The 200-member Parliament 
passed a supplemental budget this year, and the 
Government of Finland (GoF) estimates the stimulative 
impact of the current and supplementary budgets as 
approximately three billion euros (or 1.7 percent of 
GDP). 
 
A broad concept of security 
--------------------------- 
 
¶4. (SBU) The GoF devotes most defense spending to 
Finland's territorial defense.  It supports 
approximately 700 troops in overseas operations, and 
seeks a spending increase from 120M to 150M euros to 
support those operations.  Finland maintains 
conscription. [NOTE: Defense Minister Hakamies has 
stated publicly that the economic downturn might delay 
implementation of proposed defense spending increases 
(2 percent above inflation after 2011).  END NOTE.] 
 
¶5. (SBU) Beyond strictly military concerns, the GoF has 
a broad concept of security that includes such threats 
as international crises and conflicts, natural 
disasters, climate change, terrorism and constraints on 
energy access.  In addressing those threats Finland 
supports increased multilateral cooperation.  FM Stubb 
has said Finland wants a "strong UN, a strong EU, a 
strong NATO ... and a strong OSCE."  He does not see an 
"either-or" choice in pursuing greater security 
cooperation with NATO, the EU and Nordic countries. 
 
Finland and NATO 
---------------- 
 
¶6. (SBU) Finland has participated in NATO's Partnership 
for Peace program (PfP) since 1994.  In that time it 
has increased interoperability with NATO forces and 
participated in peacekeeping operations in Bosnia and 
Herzegovina, Kosovo and Afghanistan.  Most Finnish 
peacekeepers serve in NATO-led operations. 
 
¶7. (SBU) Current GoF policy holds that Finland 
maintains the option to pursue NATO membership.  A 
review of successive GoF security policies reveals 
increasingly positive assessments of NATO membership. 
The GOF's 2009 defense and security white paper states 
that "strong grounds" exist for joining NATO.  It also 
notes the importance of public support and political 
consensus for any decision on membership.  FM Stubb has 
said the current government will not pursue membership, 
 
HELSINKI 00000182  002 OF 002 
 
 
pointing to the need for continued public and 
parliamentary debate.  A slight majority of the populace 
opposes membership. 
 
Nordic Defense Cooperation 
-------------------------- 
 
¶8. (SBU) Finland holds the chairmanship for Nordic 
Defense Cooperation (NDC) in 2009.  The GoF's goals 
include launching Nordic Supportive Defense Structures 
(NORDSUP) cooperation, and examining ways to support 
development of Africa's crisis management resources. 
Finland hosted Nordic Defense Ministers on May 12 and 
discussed NDC, including possibilities for cooperation 
in the High North.  Finnish officials have positively, 
if carefully, received former Norwegian FM Thorvald 
Stoltenberg's independent report containing 13 
proposals on NDC (presented to Nordic countries last 
February).  Finnish officials focus on practical areas 
of cooperation like procurement, maintenance and 
upgrading materiel, and view other proposals such as a 
Nordic Solidarity declaration as more distant 
prospects.  In May DM Hakamies publicly voiced 
reservations about Finland committing its Air Force to 
patrol Iceland's air space, citing the cost as well as 
political considerations in policing a NATO Member's 
air space. 
 
Comprehensive approach and Afghanistan 
-------------------------------------- 
 
¶9. (SBU) Finland's participation in international 
peacekeeping operations dates back to the Sinai in the 
1950s.  Today the Finns pursue a "comprehensive 
approach" to international crisis management, seeking 
to utilize all resources - military and civilian, 
public and private - to best advantage.  In describing 
Finland's international efforts, GoF officials point to 
participation in NATO nd UN-led operations as well as 
the efforts of Nbel Laureate and former President 
Martti Ahtisaari. 
 
¶10. (SBU) Afghanistan, where Finland has provided 
military, civilianand development assistance since 
2002, presents n opportunity to demonstrate the 
effectiveness of that comprehensive approach.  Finland 
contribute troops (110) to the Swedish-led Provincial 
Recostruction Team in Mazar-e-Sharif, in the northern 
province of Balkh.  In February the Parliament aproved 
a temporary doubling of troops to support upcoming 
presidential elections.  The GoF also has approved 
increases in military and police trainers and 
development assistance. 
 
Russia and Finland 
------------------ 
 
¶11. (SBU) Finland has a long border (800 miles) and 
even longer history with Russia, including two wars 
fought against the Soviet Union in the period 1939- 
¶1944.  Russia is Finland's largest trading partner, and 
its primary energy supplier.  Finnish officials have 
carefully managed relations with its eastern neighbor, 
in part by focusing on bilateral, largely economic, 
issues.  FM Stubb sees an opportunity in the "complex 
transition" underway in Russia due to the global 
economic downturn.  In April the GoF issued its first 
"Russia Action Plan," which seeks a straightforward 
assessment of Russia's challenges and deficiencies as 
it promotes stronger relations bilaterally and through 
the EU. [NOTE: President Medvedev met with President 
Halonen on April 20 and Prime Minister Putin will visit 
Finland in late May.  END NOTE.] 
 
BUTLER