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Worried by the development in Russia, and Finland, the non-Socialist Senate proposed for the parliament to declare Finland's independence, which was agreed on in the parliament on December 6, 1917. According to the Bolshevists' declared adherence to the principle of self-determination, Finland's independence could be expected to be accepted by Russia's revolutionary government, but almost a month passed before independence was acknowledged by Russia (on January 4, 1918). Germany and the Scandinavian countries followed without delay.
In 1918, Finland experienced the brief but bitter Finnish Civil War that colored domestic politics and the foreign relations of Finland for many years. Finland's government defeated a socialist rebellion that had proclaimed the Finnish Socialist Workers' Republic. The defeat of the socialist rebellion was achieved with support from Imperial Germany; and only Germany's defeat in World War I saved Finland from becoming a German satellite state. The neighbor-country Sweden was in the midst of her own process of democratization, with socialists in government for the first time. For many decades, Finns on both sides remained bitter over Sweden's reluctance to become involved in the Civil War.
During the Civil War, the Treaty of Brest-Litovsk was signed between the Central Powers and Bolshevist Russia, stating regarding Finland:
Germany and Austria-Hungary purpose to determine the future status of these territories in agreement with their population.
Finland and the Åland Islands will immediately be cleared of Russian troops and the Russian Red Guard, and the Finnish ports of the Russian fleet and of the Russian naval forces. So long as the ice prevents the transfer of warships into Russian ports, only limited forces will remain on board the warships. Russia is to put an end to all agitation or propaganda against the Government or the public institutions of Finland.
The fortresses built on the Åland Islands are to be removed as soon as possible. As regards the permanent non-fortification of these islands as well as their further treatment in respect to military technical navigation matters, a special agreement is to be concluded between Germany, Finland, Russia, and Sweden; there exists an understanding to the effect that, upon Germany's desire, still other countries bordering upon the Baltic Sea would be consulted in this matter.
Finland in the inter-war era
Despite the Declaration of Independence calling Finland a Republic, initially Finland was to be a constitutional monarchy. Frederick Charles of Hesse, a German prince, was elected King, putatively with the name Väinö I of Finland, with Pehr Evind Svinhufvud and General Mannerheim serving as Regents. However, Germany's defeat in World War I meant that the idea was abandoned. Finland instead became a republic, with Kaarlo Juho Ståhlberg elected as its first President in 1919.
The new republic faced a dispute over the Åland Islands, which were overwhelmingly Swedish-speaking and sought retrocession to Sweden. However, as Finland was not willing to cede the islands, they were offered an autonomous status. Nevertheless, the residents did not approve the offer, and the dispute over the islands was submitted to the League of Nations. The League decided that Finland should retain sovereignty over the Åland Islands, but they should be made an autonomous province. Thus Finland was under an obligation to ensure the residents of the Åland Islands a right to maintain the Swedish language, as well as their own culture and local traditions. At the same time, an international treaty was concluded on the neutral status of Åland, under which it was prohibited to place military headquarters or forces on the islands.
Directly after the Civil War there were many incidents along the border between Finland and Soviet Russia, such as the Aunus expedition and the Pork mutiny. Relations with the Soviets were improved after the Treaty of Tartu in 1920, in which Finland gained Petsamo, but gave up claims on East Karelia.
Nationalist sentiment remaining from the Civil War developed into the proto-Fascist Lapua Movement in 1929. Initially the movement gained widespread support among anti-Communist Finns, but following a failed coup attempt in 1932 it was banned and its leaders imprisoned.
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