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Ahti Karjalainen
Ahti Kalle Samuli Karjalainen (10 February 1923 – 7 September 1990) was a Finnish economist and politician. He was a member of the Agrarian League (later known as Keskusta, Centre Party) and served two terms as Prime Minister of Finland. He is, however, better known for his period as Minister of Foreign Affairs of Finland. Karjalainen is considered one of the most influential figures in post-war Finnish politics.
Like President Urho Kekkonen, whom he served as private secretary from 1950, Karjalainen attached great importance to Finland's relationship with the Soviet Union. The two men remained close political allies for more than two decades, and by the 1960s and early 1970s Karjalainen was widely seen as Kekkonen's likely successor as president. Their relationship deteriorated in the early 1970s, and Karjalainen never attained the presidency, in part as alcoholism affected his later career. Alongside politics, he also built a parallel career at the Bank of Finland, ultimately serving as its governor from 1982 to 1983.
Karjalainen was born in Hirvensalmi as the youngest of four children. His father was farmer Anselm Karjalainen (1875–1943) and his mother was Anna Lyydia Viherlehto (1880–1962).[clarification needed] He studied at the lukio in Mikkeli from 1935 until 1939, then was drafted into the army in the Winter War, serving in a radio reconnaissance unit. After the Winter War ended, Karjalainen briefly continued his education at the Lutheran folk high school in Tuusula, but once the Continuation War broke out, he returned to his old radio reconnaissance unit, serving at listening stations in Petrozavodsk (Äänislinna) and Medvezhyegorsk (Karhumäki) in the Finnish-occupied Republic of Karelia. During his second stint in the army, Karjalainen also attended the Reserve Officer School in Niinisalo and was promoted to the reserves with the rank of captain.
In 1944, after being discharged, Karjalainen entered the University of Helsinki, where he obtained his bachelor's degree in political science in 1946. He subsequently obtained his licentiate degree in 1958 and defended his doctorate in political science at the same university in 1959. His dissertation was titled "The relationships between the monetary politics of the Bank of Finland and the state economy from 1811 to 1953 mainly regarding liquidity analysis".
During the so-called Night Frost Crisis of 1958, Karjalainen's personal contacts with Soviet representatives continued to function even as official relations were frozen, and several messages from the Kremlin to Kekkonen were relayed through him. He was appointed Minister of Trade and Industry in January 1959, working chiefly to safeguard Finland's position within the Western European economic sphere. Together with Kekkonen, Karjalainen led the negotiations that allowed Finland, despite Soviet opposition, to join the European Free Trade Association (EFTA) in 1961 as an associate member, through the so-called FINEFTA agreement. In a secret letter, Karjalainen committed Finland to extending all of its EFTA benefits to the Soviet Union, which reinforced Soviet interest in keeping both Karjalainen and Kekkonen in power.
Karjalainen served as the Minister of the Treasury, Minister of Foreign Affairs and Minister of Trade and Industry for half a decade from 1957. Kekkonen's re-election in the 1962 presidential election was far from certain: the opposition had put forward Olavi Honka as a rival candidate in 1961. Kekkonen had already planned in April 1961 to dissolve parliament in order to weaken the alliance behind Honka, and in late October the Soviet Union sent a note invoking Article 2 of the 1948 YYA Treaty's provisions on the threat of war — the so-called Note Crisis. Support for Honka's candidacy weakened as a result, and he withdrew in November. The crisis was defused partly through the channels to Moscow that Karjalainen commanded, and following Kekkonen's re-election Karjalainen formed his first government on 13 April 1962. It remained in office until 18 December 1963. Ministers from the Social Democratic Union of Workers and Smallholders (TPSL), representing the SAK trade union confederation, left the government in October 1963, and the cabinet was finally brought down that December after Karjalainen's own coalition partners rejected a budget stabilisation programme he had proposed.
Karjalainen's second government, formed on 15 July 1970, came about only after considerable pressure from the Soviet Union. Negotiations to renew the Finno-Soviet Treaty of Friendship, Cooperation, and Mutual Assistance (the YYA Treaty) were underway that year, and Moscow made a majority government in Finland a precondition for renewal; despite his by-then strained relationship with Karjalainen, Kekkonen was compelled to accept a new government under his leadership. The government's central achievement was the December 1970 incomes agreement, known as the UKK Agreement after Kekkonen's initials, reached after the president personally mediated between labour and employers. Although opposed by the Finnish People's Democratic League, part of the governing coalition, the agreement passed in parliament, prompting the Communist ministers to leave the government in March 1971. During this period Karjalainen was also instrumental in establishing the Fund for Regional Development (Kehitysaluerahasto Oy), which came to play a significant role in supporting Finland's underdeveloped regions and whose creation is largely credited to him personally. Karjalainen served as prime minister until 29 October 1971, when disagreements between the Centre Party and the Social Democrats over economic policy led Kekkonen to dissolve the government and call a snap election.[citation needed] According to Sorsa's biographer, however, Kekkonen's decisive motive was to close off Karjalainen's path to the presidency, a goal Kalevi Sorsa himself actively supported.
Following a caretaker government under Teuvo Aura and a Social Democratic minority government under Rafael Paasio, which took office on 23 February 1972, a majority government under Kalevi Sorsa — comprising the SDP, the Centre Party, the Swedish People's Party and the Liberal People's Party — was formed on 4 September 1972, with Karjalainen returning as Minister of Foreign Affairs. The government fell on 13 June 1975, when Kekkonen appointed a caretaker government under Keijo Liinamaa.
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Ahti Karjalainen
Ahti Kalle Samuli Karjalainen (10 February 1923 – 7 September 1990) was a Finnish economist and politician. He was a member of the Agrarian League (later known as Keskusta, Centre Party) and served two terms as Prime Minister of Finland. He is, however, better known for his period as Minister of Foreign Affairs of Finland. Karjalainen is considered one of the most influential figures in post-war Finnish politics.
Like President Urho Kekkonen, whom he served as private secretary from 1950, Karjalainen attached great importance to Finland's relationship with the Soviet Union. The two men remained close political allies for more than two decades, and by the 1960s and early 1970s Karjalainen was widely seen as Kekkonen's likely successor as president. Their relationship deteriorated in the early 1970s, and Karjalainen never attained the presidency, in part as alcoholism affected his later career. Alongside politics, he also built a parallel career at the Bank of Finland, ultimately serving as its governor from 1982 to 1983.
Karjalainen was born in Hirvensalmi as the youngest of four children. His father was farmer Anselm Karjalainen (1875–1943) and his mother was Anna Lyydia Viherlehto (1880–1962).[clarification needed] He studied at the lukio in Mikkeli from 1935 until 1939, then was drafted into the army in the Winter War, serving in a radio reconnaissance unit. After the Winter War ended, Karjalainen briefly continued his education at the Lutheran folk high school in Tuusula, but once the Continuation War broke out, he returned to his old radio reconnaissance unit, serving at listening stations in Petrozavodsk (Äänislinna) and Medvezhyegorsk (Karhumäki) in the Finnish-occupied Republic of Karelia. During his second stint in the army, Karjalainen also attended the Reserve Officer School in Niinisalo and was promoted to the reserves with the rank of captain.
In 1944, after being discharged, Karjalainen entered the University of Helsinki, where he obtained his bachelor's degree in political science in 1946. He subsequently obtained his licentiate degree in 1958 and defended his doctorate in political science at the same university in 1959. His dissertation was titled "The relationships between the monetary politics of the Bank of Finland and the state economy from 1811 to 1953 mainly regarding liquidity analysis".
During the so-called Night Frost Crisis of 1958, Karjalainen's personal contacts with Soviet representatives continued to function even as official relations were frozen, and several messages from the Kremlin to Kekkonen were relayed through him. He was appointed Minister of Trade and Industry in January 1959, working chiefly to safeguard Finland's position within the Western European economic sphere. Together with Kekkonen, Karjalainen led the negotiations that allowed Finland, despite Soviet opposition, to join the European Free Trade Association (EFTA) in 1961 as an associate member, through the so-called FINEFTA agreement. In a secret letter, Karjalainen committed Finland to extending all of its EFTA benefits to the Soviet Union, which reinforced Soviet interest in keeping both Karjalainen and Kekkonen in power.
Karjalainen served as the Minister of the Treasury, Minister of Foreign Affairs and Minister of Trade and Industry for half a decade from 1957. Kekkonen's re-election in the 1962 presidential election was far from certain: the opposition had put forward Olavi Honka as a rival candidate in 1961. Kekkonen had already planned in April 1961 to dissolve parliament in order to weaken the alliance behind Honka, and in late October the Soviet Union sent a note invoking Article 2 of the 1948 YYA Treaty's provisions on the threat of war — the so-called Note Crisis. Support for Honka's candidacy weakened as a result, and he withdrew in November. The crisis was defused partly through the channels to Moscow that Karjalainen commanded, and following Kekkonen's re-election Karjalainen formed his first government on 13 April 1962. It remained in office until 18 December 1963. Ministers from the Social Democratic Union of Workers and Smallholders (TPSL), representing the SAK trade union confederation, left the government in October 1963, and the cabinet was finally brought down that December after Karjalainen's own coalition partners rejected a budget stabilisation programme he had proposed.
Karjalainen's second government, formed on 15 July 1970, came about only after considerable pressure from the Soviet Union. Negotiations to renew the Finno-Soviet Treaty of Friendship, Cooperation, and Mutual Assistance (the YYA Treaty) were underway that year, and Moscow made a majority government in Finland a precondition for renewal; despite his by-then strained relationship with Karjalainen, Kekkonen was compelled to accept a new government under his leadership. The government's central achievement was the December 1970 incomes agreement, known as the UKK Agreement after Kekkonen's initials, reached after the president personally mediated between labour and employers. Although opposed by the Finnish People's Democratic League, part of the governing coalition, the agreement passed in parliament, prompting the Communist ministers to leave the government in March 1971. During this period Karjalainen was also instrumental in establishing the Fund for Regional Development (Kehitysaluerahasto Oy), which came to play a significant role in supporting Finland's underdeveloped regions and whose creation is largely credited to him personally. Karjalainen served as prime minister until 29 October 1971, when disagreements between the Centre Party and the Social Democrats over economic policy led Kekkonen to dissolve the government and call a snap election.[citation needed] According to Sorsa's biographer, however, Kekkonen's decisive motive was to close off Karjalainen's path to the presidency, a goal Kalevi Sorsa himself actively supported.
Following a caretaker government under Teuvo Aura and a Social Democratic minority government under Rafael Paasio, which took office on 23 February 1972, a majority government under Kalevi Sorsa — comprising the SDP, the Centre Party, the Swedish People's Party and the Liberal People's Party — was formed on 4 September 1972, with Karjalainen returning as Minister of Foreign Affairs. The government fell on 13 June 1975, when Kekkonen appointed a caretaker government under Keijo Liinamaa.