Finland starts talks with the Baltic States on the restoration of diplomatic relations. Recognition of the independence of the Baltic States is not considered necessary because Finland had recognised their independence in the 1920s and had not recognised their attachment to the Soviet Union in 1940. Diplomatic relations between Finland and the Baltic States are restored on 29 August.
Finland has to give up the policy of a strong Markka and let the value of the currency fall. The value of Finnish Markka decreases by 14 per cent.