File No. 882,032.

[Extract]

The report of the American commission to Liberia was submitted by President Taft to Congress March 25, 1910. A copy was received by the Government in August. Your honorable body will remember the points of the memorial which you caused to be submitted to the commissioners. They are, briefly enumerated:

A guaranty of independence and integrity.

Advice and counsel with regard to international affairs.

Advice and counsel with regard to liquidation of foreign and domestic debt, control being assumed by American experts for the purpose of systematization and organization of the customs and financial administration.

Experts to be furnished to initiate and carry through reforms deemed necessary.

Establishment of an American bank with American capital, to assist the Government and to further public improvements.

Assistance in the settlement of boundary questions at issue between Liberia and her neighbors.

Establishment of a research station.

Aid in the establishment of industrial schools.

Aid in establishing civilized centers on the frontiers.

Supervision of organization of the police and frontier force under American officers.

And that warships of the United States should visit Liberia annually or oftener.

The commission made a very fair, well-digested, and exhaustive report. Its recommendations were:

1.
That the United States aid Liberia in the prompt settlement of pending boundary disputes.
2.
That the United States enable Liberia to refund its debt by assuming, as a guaranty for the payment of obligations under such arrangements, the control and collection of the Liberian customs.
3.
That the United States lend its assistance to the Liberian Government in the reform of its internal finances.
4.
That the United States should lend its aid to Liberia in organizing and drilling an adequate constabulary or frontier force.
5.
That the United States should establish and maintain a research station in Liberia.
6.
That the United States reopen the question of reestablishing a coaling station in Liberia.

I think the report of this commission should be carefully perused and studied, and it has been ordered to be printed.

The Government of the United States in the month of June of the present year informed our administration that the President had decided to lend Liberia assistance in the financial, military, and agricultural departments; and, further, that the said Government will affirmatively at the proper time enter upon negotiations to secure respect for the ascertained boundaries of Liberia.

It was suggested that financial assistance take the form of a loan to be raised by an American banking firm which would have British, French, and German partners, for the payment of the foreign and domestic indebtedness, to be secured on the customs and head moneys. The security for this loan would be a receivership of customs, to be held by an American official, who would be also the financial adviser of the Government of Liberia, assisted by three officers of British, French, and German nationalities. The revenue from customs and head moneys would primarily be received by these officers and, after meeting the obligations agreed upon by the two States, the balance to be paid into the treasury of the Republic for administrative purposes other than those coming under the supervision of the American receiver.

At the suggestion of the Secretary of State, Washington, Mr. R. P. Falkner, former chairman of the American commission sent to Liberia, was appointed financial representative of Liberia in the United States and Europe, to make arrangements for the proposed loan, subject to the approval of the Liberian Legislature. The Government of Liberia became responsible for the sum of $4,000 for his expenses, which amount the legislature is now requested to approve and place in the budget of 1911. Mr. Falkner has not yet submitted any scheme or reported the final results of his efforts. He has met with great difficulties.

Other matters mentioned in the note of the American Government have not as yet taken shape.