776.5 MSP/11–1054
The Department of State to the Liberian Embassy
Aide-Mémoire
In light of conversations with representatives of the Liberian Government on the economic proposals contained in the document prepared by the Liberian Government as a basis for discussion in conjunction with the visit of President Tubman,1 the United States Government sets forth its position.
Concerning the request that the United States assist the Government of Liberia under the provisions of Title II, Development Assistance, [Page 528] of the Mutual Security Act of 1954 with long-term loans to develop cheap power and to complete the basic all weather arterial road system, Title II funds are not available this fiscal year, such funds having been committed prior to receipt of the Liberian Government’s request. However, the financing contemplated appears to be the type for which an approach should be made to the Export-Import Bank.
The United States Government is most pleased to concur in an extension of the General Agreement for Technical Cooperation. Experience indicates, however, certain modifications to be desirable in this agreement as well as in the agreement establishing the Joint Commission for Economic Development.2 Discussion of the changes which might be made in the agreements should take place between representatives of the Liberian Government and the United States in Monrovia.
The United States Government is prepared to increase its expenditures for technical assistance during the fiscal year 1955 by approximately fifty percent of the amount originally projected. The United States prefers not to indicate at this time specific figures of increase in each program but rather prefers to await the conclusions by the Joint Commission of the necessary project agreements.
In connection with the highway development program, the United States Government concurs with the Liberian Government that increased technical assistance in highway maintenance is necessary and is prepared to increase its expenditures in this area of activity.
The proposals for increased expenditures in the health program have been carefully reviewed. Unfortunately, funds of the Foreign Operations Administration cannot be expended at this time for a large-scale trypanosomiasis control program. However, the United States is prepared to establish a training project for the control of sleeping sickness in connection with the rural health development program. In addition, increased expenditures for technical assistance in other fields of rural health development are contemplated.
Concerning education, the United States is prepared to continue the existing facilities for technical assistance and to move forward on the Prairie View University contract.3 In connection with the latter, expenditures by the United States will most probably be greater than those projected in the Liberian proposal. Further, the Liberian view that greater emphasis be placed on rural elementary education than orginally proposed is accepted.
The proposal on agriculture, forestry, and fisheries indicates that the Liberian Government believes greater emphasis should be placed on marketing and less emphasis than previously on production, a view in [Page 529] which the United States concurs. In the light of this proposed shift in emphasis, increased expenditures do not appear necessary. It is recognized, however, that the Joint Commission may wish to defer the change in emphasis until July 1, 1955.
The United States is prepared to render increased technical assistance in the field of mineral exploration but not exploitation; it is felt keenly that exploitation should be carried on by private investors. The increased technical assistance in mineral exploration would consist of two geologists and their basic equipment for a period not to exceed one year.
The United States shares the desire of the Government of Liberia to make optimum use of all resources available to Liberia for economic development and the strengthening of its economy. In this connection and in accordance with a project previously established in the Joint Commission, the United States remains prepared to render assistance in the field of public administration; an adviser in public administration might render invaluable assistance particularly in the area of fiscal and budgetary management.
In light of the determinations presented above, it is suggested:
- (a)
- That representatives of the Liberian Government proceed immediately to explore with the Export-Import Bank the possibility of additional financing of development projects;
- (b)
- That discussions commence immediately with United States representatives in Monrovia on the nature and form of the extended General Agreement for Technical Cooperation and modifications to the agreement establishing the Joint Commission for Economic Development; and,
- (c)
- That project agreements providing for expanded United States technical assistance be prepared in the Joint Commission for Economic Development.
- The meeting with the Liberian representatives to discuss the economic proposals which they had set forth on Sept. 13 (see footnote 1, p. 523), took place on Oct. 20, 1954. (776.5 MSP/10–2054)↩
- For the text of the Memorandum and Agreement, signed at Washington on Dec. 22, 1950, see TIAS No. 2194; 2 UST 476.↩
- Prairie View entered into an agreement whereby vocational staff was to be recruited for the Booker T. Washington Institute.↩