File No. 882.51/399.

The Financial Representative of Liberia to the Secretary of State.

Sir: The Department has communicated to me unofficially the substance of a cablegram received from Mr. Skinner in regard to the debts of the German merchants. I note the fact that the German [Page 680] merchants request the same settlement for debts created since December 31, 1910, as for those in existence at that time as nominated in the schedule.

I am sure I do not know whether this can be done, but if the proceeds of the loan are adequate to meet this amount I should personally use every effort to wipe out these debts so as to have the receivership start with a clean slate. I would respectfully urge that Mr. Skinner be authorized to intimate that if it can be done under the contract, the Financial Representative would urge the Liberian Government to settle these later debts. A first step toward so doing would be the ascertainment of their amount.

I was informed yesterday by telephone by Mr. Warburg that there was a claim of the German Post Office against the Liberian Government in the amount of about $12,000. I concur in Mr. Warburg’s view that if possible under the contract to settle this debt it would be wise to do so. I would therefore respectfully request that Mr. Skinner be authorized to inquire into the nature and amount of this claim.

I have [etc.]

Roland P. Falkner.