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FOREIGN AIR INTELLIGENCE.

The Russian Air Force.

42. Activity against Finnish towns and communications continued unabated up to the end of the war, and though the Finnish estimate of 2,540 Russian aircraft engaged is probably too high it is clear that a considerable concentration of aircraft had taken place; units from as far afield as the Crimea were identified. It is reported that the I.17 type of fighter, with a speed of 281 m.p.h., and an endurance of two hours, is now coming into service in replacement of the I.15 and I.16, and that one of this type has been shot down.

There are reports of a Russian purchase of German B.M.W. engines, and of the establishment of a factory in Moscow for the production of these engines under German supervision.

Italy.

43. Air operations against rebels in the Goggian district of Abyssinia continue and a large number of bombs have been dropped.

Hungary.

44.

The purchase of aircraft in Italy continues, and it is understood that 77 Hungarian officers and 123 n.c.o.'s now under training in Italy will complete their course this Spring and return to Hungary at the same time as further deliveries of Italian aircraft are made. The present strength of the Hungarian Air Force is estimated at 418 aircraft, with 758 officers and 5,320 other ranks.

RUSSO-FINNISH HOSTILITIES.

Acceptance of Peace Terms.

45. The unexpected acceptance by Finland of the very severe terms offered by the Soviet Government does not appear to have been due so much to the immediate military situation as to a growing realisation among the Finnish leaders of the hopelessness of maintaining the struggle. Reports from the Isthmus front were on the whole less alarming last week, as the Finnish retreat had slowed down and there appeared to be every prospect that the Finns would establish themselves satisfactorily on their new position north of Viipuri. Only in the extreme west, where Russian troops had succeeded in crossing the frozen Gulf of Viipuri, did the situation appear critical. Even here the Finns were holding their ground without much difficulty. The morale of the troops was still high, although most of them were physically exhausted. On the other hand, the Finnish Minister for Foreign Affairs stated on the 13th March that the Army was too exhausted and that officers were lacking; it would shortly have been compelled to withdraw, and in two weeks the Russians would have entered the capital; they could not possibly have held out for the four or five weeks before Allied help arrived. In any case, there was also the attitude of Norway and Sweden.

46. The following extracts from the account of a visit by the British Military Attaché to the position in the eastern sector of the Isthmus on the 7th March may be of interest:

"We reached Brigade Headquarters about 2 o'clock. The whole area here was very wooded. Brigade Headquarters was in a dug-out, well concealed. Captured documents showed, however, that this Headquarters had been located. As we arrived there was a burst of artillery and machine- gun fire, and the Divisional Commander, who was with us, said that it must be a local attack..

"Eventually we reached the front line and had a view of the battle- field where the main attacks of the Russians had taken place. The area was completely devastated and nothing but tree stumps remained. A pulverised pill-box could be seen in the foreground. Nothing remained of the original trenches to the right of where we were and the troops were occupying shell

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