War The Lapland War was fought between Finland and Nazi Germany in Lapland, the northernmost part of Finland. The main strategic interest of Germany in the region was the nickel mines in the Petsamo area. Initially the warfare was cautious on both sides, reflecting the previous cooperation of the two countries against their common enemy, but by the end of 1944 the fighting intensified. Finland and Germany had made an informal agreement and schedule for German troops to withdraw from Lapland to Norway. The Soviet Union did not accept this "friendliness" and pressured Finland to take a more active role in pushing the Germans out of Lapland, thus intensifying hostilities. The Germans adopted a scorched-earth policy, and proceeded to lay waste to the entire northern half of the country as they retreated. Around 100,000 people lost their homes, adding to the burden of post-war reconstruction. The actual loss of life, however, was relatively light. Finland lost approximately 1,000 troops and Germany about 2,000. The Finnish army expelled the last of the foreign troops from their soil in April 1945. Post-war The war caused great damage to infrastructure and the economy. From the autumn of 1944, the Finnish army and navy performed many mine clearance operations, especially in Karelia, Lapland and the Gulf of Finland. Sea mine clearance activities lasted until 1950. The mines caused many military and civilian casualties, particularly in Lapland. As part of the Paris Peace Treaty, Finland was classified as an ally of Nazi Germany, bearing its responsibility for the war. The treaty imposed heavy war reparations on Finland and stipulated the lease of the Porkkala area near the Finnish capital Helsinki as a military base for fifty years. The reparations were initially thought to be crippling for the economy, but a determined effort was made to pay them. The reparations were reduced by 25% in 1948 by the Soviet Union and were paid off in 1952. Porkkala was returned to Finnish control in 1956. In subsequent years the position of Finland was unique in the Cold War. The country was heavily influenced by the Soviet Union, but was the only country on the Soviet pre-World War II border to retain democracy and a market economy. Finland entered into the Agreement of Friendship, Cooperation, and Mutual Assistance (YYA Treaty) with the Soviet Union in which the Soviet Union agreed to the neutral status of Finland. Arms purchases