103.XMB/11–1954
Memorandum by the Assistant Secretary of State for Near Eastern, South Asian, and African Affairs (Byroade) to the Assistant Secretary of State for Economic Affairs (Waugh)
Subject:
- Request of Liberian Government for Export-Import Bank Loan
There is attached a copy of President Tubman’s letter of November 8 to President Eisenhower on the foregoing subject,1 and Secretary Dulles’ reply of November 11.2 You will note that the Secretary has promised President Tubman that every effort will be made to advance the matter of a loan to a conclusion before Mr. Tubman arrives in Liberia, which will be about November 30.
To this end members of our respective staffs met yesterday with Export-Import Bank representatives to state why it is politically important that: a) a loan be made;3 and b) the Export-Import Bank indicate, before President Tubman reaches Liberia, the extent it is willing to earmark funds for Liberia. The Liberians estimate that $15,000,000 is needed for Priorities 1 and 2 of their road construction [Page 534] program. Our staff members urged the Bank to loan that amount which its engineers consider necessary for Priorities 1 and 2.
The representatives of the Export-Import Bank said that the case has been receiving their sympathetic consideration and will be placed before the members of the Bank Board as soon as possible. They also mentioned the necessity of NAC approval and said that while the NAC is supposed to meet on Friday, November 26, there is some question that a quorum will be present on that day.
In yesterday’s meeting the representatives of the Export-Import Bank called attention to the fact that, as far as the record is concerned, the Liberians are still attempting to negotiate a loan with the First Boston Corporation and that the Export-Import Bank is enjoined by its legislation from competing with private banks. The Department representatives undertook the task of explaining this problem to the Liberians and to Mr. Larabee of Firestone, who had been instrumental in bringing together the Liberians and the First Boston Corporation.
Representatives of AF explained the problem to Mr. Larabbee yesterday afternoon and he indicated that he would advise the Liberians to make it clear to the Export-Import Bank that the Liberian Government has terminated its negotiations with the First Boston Corporation. This morning, Mr. David of the Liberian Embassy informed AF that the Liberian Government had suspended its negotiations with the First Boston Corporation two weeks ago. Mr. Davis said that Liberian Attorney General Cassell is returning to Washington Monday, November 22, and that a letter will be addressed to the Export-Import Bank setting forth the status of the negotiations with the First Boston Corporation, the proposed terms, and why the Liberian Government considers those terms unreasonable and unsatisfactory.4
NEA is prepared to assist in every way to complete action on this loan request and urges that your staff make certain that there will be an opportunity to be heard in the National Advisory Council on or before November 26.
- Ante p. 525.↩
- Dulles indicated that the matter would be taken up with President Eisenhower when he returned to Washington. He expressed his regret that a definitive reply would not be possible prior to Tubman’s departure, but he hoped to bring the matter to conclusion in advance of Tubman’s return to Liberia. (876.10/11–1054)↩
- Operations Coordinator, Walter A. Radius, in the office of Under Secretary Herbert Hoover, Jr., in a memorandum addressed to Walter K. Scott, Director of the Executive Secretariat, indicated his concern “about the practice of having to produce loans, grants, or other agreements for assistance upon official visits to the United States of high ranking foreign dignitaries”. (876.10/11–1054)↩
- David met with Cyr and Davis from AF. (876.10/11–1954)↩