http://www.onwar.com/chrono/1940/mar40/f05mar40.htm
Finns ready to meet Soviet terms
Tuesday, March 5, 1940 www.onwar.com
The Winter War... Soviet forces cross the ice-bound Viipuri Bay but encounter Finnish resistance. Meanwhile, Soviet aircraft bomb Helsinki.
From Moscow... The USSR announces that it is prepared to negotiate peace on the terms offered before, which expired on March 1st.
From Helsinki... The Finns conclude that the British and French promises of military aid are valueless and, therefore, the government accepts the Soviet offer to reopen negotiations for a truce and for the cession of border areas.
From Toronto... Canada promises to send 1000 volunteers to fight with the Finns.
On the Western Front... German troops capture a British outpost in the Maginot Line (2 killed, 16 taken prisoner). The outpost is later recaptured.
In London... The British government announces a £300,000,000 3% War Loan to aid Finland.
http://worldwar2daybyday.blogspot.com/
Day 187 March 5, 1940
USSR has about 15,000 Polish officers held in 3 POW camps in western Belarus & Ukraine. Stalin & the Politburo decide to murder the officers & other Polish prisoners, fearing anti-Soviet resistance if they are released and declaring them enemies of the Soviet Union. The Polish officers at Kozelsk camp are shot & buried in a forest near the village of Katyn. The whole episode becomes known as Katyn massacre. http://en.wikipedia.org/wiki/File:Katyn_-_decision_of_massacre_p1.jpg
Finland. Red Army controls Viipuri Bay despite taking heavy losses from strafing by Finnish aircraft and shelling. They capture more islands and push inland on the Western shore. Clearly with the upper hand, USSR renews its peace offer on the same harsh terms that expired March 1. Finnish Government accepts defeat, its defenses crumbing, and decides to open peace talks.
At 9 PM, U-17 torpedoes Dutch steamer SS Grutto 20 miles from the Belgian coast. Grutto sinks in 6 minutes (all 18 hands lost). http://www.uboat.net/allies/merchants/ships/285.html