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to carry through another major offensive during the next few days the Finnish position will be critical; but if the available supplies of men and material have been exhausted a comparatively long pause may be anticipated. In this case timely assistance may place the Finns in a position to withstand further onslaughts when they develop.

North of Lake Ladoga the situation remains satisfactory for the Finns. Three Russian Divisions, the 18th and 168th in the Syskajarvi-Kitela area and the 54th in the Kohmoniemi area, have been isolated and surrounded, and the rest of the large Russian forces on these fronts have remained practically inactive. The 18th and 168th Divisions have been surrounded for six or seven weeks and the Finns have captured much war material. It is interesting to note that by the 21st January these divisions had already lost about 40 per cent. of their effectives. The bulk of these losses must have been due to exposure and disease, as the divisions had not been engaged in heavy fighting.

44. Air activity during the week has been intense, Finnish coastal forts have been bombed near Tainas; 500 bombs were dropped near Fort Jariseva without securing a direct hit; and there has been considerable air activity north of Lake Ladoga. The Finnish Air Force has bombed enemy concentrations behind the lines, and it is reported that seventeen Russian aircraft were shot down by Finnish fighters and A.A. guns. The Finns report the loss of one aircraft and a Danish pilot.

The constant Soviet air raids over practically the whole of Finland have caused some dislocation of industry; but, despite this, the morale of the people is high. There is no shortage of food, which is still unrationed and cheap.

45. The general situation for the Finns is dangerous though not yet critical; their powers of defence have been severely strained, troops are tired, officer casualties have been heavy, and shortage of ammunition is causing great anxiety. The Finns require substantial help both in men and munitions if they are to maintain their resistance; the Swedish volunteer force, which may reach a strength of 16,000 by the summer, is alone not adequate for the purpose.

Disposition of U.S.S.R. Air Forces.

46. It is believed that the Russian Air Forces now operating against Finland are distributed as follows:-

Karelian Isthmus.

(i) Operating with the VIIth Army.

Two bomber brigades (160-200 aircraft).

One fighter brigade (120-140 aircraft).

(ii) Operating with the XIIIth Army.

One bomber brigade (80 aircraft).

These formations are most probably part of the normal air forces stationed in the Leningrad military district, and it is thought that they are operating from their normal stations.

North of Lake Ladoga.

Operating from the VIIIth and IXth Armies there are reported to be some 400 aircraft, consisting of two regiments of fighters (120 aircraft) and eight regiments of bombers (about 300 aircraft). These aircraft are probably operating from aerodromes between Petrozavodsk in the south and Kandalaksha

in the north.

The Murmansk Area.

In the Murmansk-Petsamo area there are thought to be some 40 bombers, 80 fighters and 30 naval aircraft.

Estonia.

Based on aerodromes and seaplane stations ceded to the Soviet by the Estonian Government, the Russians have probably 50-60 seaplanes, 120 bomber and 120 fighter aircraft operating against Finland.

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