Ambassador Reid to
the Secretary of State.
American Embassy,
London, March 16,
1910.
No. 1213.]Sir: With reference to my dispatch No. 1205 of
the 9th instant, transmitting a copy of my note to the foreign office
for the maintenance of the status quo in Liberia, I have the honor to
inclose herewith a copy of the foreign office reply, dated the 14th
instant, in which it is stated that the British Government had already
decided not to press their boundary negotiations with Liberia until the
Government of the United States had announced the fine of action they
proposed to adopt as a result of the recent visit of the American
commissioners to Liberia.
In inviting the attention of the United States Government to the serious
condition of affairs within the Republic of Liberia Sir Edward Grey
expressed the opinion that it is extremely desirable that arrangements
be made at an early date for a general settlement of the financial
[Page 704]
difficulties in which the
country is involved, and states that His Majesty’s Government is
prepared to give their cordial support to any scheme which the United
States Government might put forward for granting a loan to the Liberian
Government, provided that the preferential rights and privileges of the
British bondholders of the present customs loan were maintained and that
provision be made in the scheme for the payment of outstanding British
claims.
Furthermore he is of opinion that the conditions of any future loan
should be such as to place complete control of revenue and expenditure
in the hands of European or American commissioners.
In conclusion Sir Edward Grey expressed his desire to know the views of
the United States Government with regard to the foregoing suggestions
and accordingly I cabled you yesterday the substance of the note.
I have, etc.,
[Inclosure.]
The Minister for Foreign
Affairs to Ambassador Reid.
Foreign Office,
London, March 14,
1910.
Your Excellency: I have the honor to
acknowledge the receipt of your excellency’s note of the 7th
instant, relative to the situation in Liberia, and to inform your
excellency in reply that His Majesty’s Government had already
decided not to press their boundary negotiations with Liberia, until
the Government of the United States had announced the line of action
they proposed to adopt as a result of the recent visit of the
American commission to Liberia.
I would, however, invite the attention of your excellency’s
Government to the fact that, according to the information which had
reached His Majesty’s Government, the Republic of Liberia in on the
verge of bankruptcy and remedial measures are urgently required.
His Majesty’s Government feel that it is extremely desirable that
arrangements should be made at an early date for a general
settlement of the financial difficulties in which the country is
involved, and that the Liberian Government should be prevented from
increasing their debt. His Majesty’s Government would be prepared to
give their cordial support to any scheme which the United States
Government might put forward for granting a loan to the Liberian
Government for the purpose of putting the finances of Liberia upon a
sound basis, provided that the preferential rights and privileges of
the British bondholders of the present customs loan were maintained,
and that provision were made in the scheme for the payment of
outstanding British claims. His Majesty’s Government are further of
opinion that the conditions of any future loan should be such as to
place complete control of revenue and expenditure in the hands of
European or American Commissioners.
His Majesty’s Government would be glad to know the views of the
United States Government with regard to the foregoing
suggestions.
I have, etc.,
W. Langley
.
(For
Sir Edward Grey
.)
