File No. 882.51/517.

The Secretary of State to the American Ambassador to Germany.

[Telegram—Paraphrase.]

The American Legation at Monrovia reports that the German Government demands that the Liberian Government agree to pay the full amount of indemnity for property destroyed by native uprisings in one year, although the claims commission has not yet been constituted and the amount of indemnity is unknown. The German Consul at Monrovia has been unable to induce his Government to modify this demand. The Liberian Government is willing to agree to a definite time of settlement after the commission has ascertained the full amount of the claims, and to pay five per cent-interest until claims are paid in full. Unless the German Government accepts these terms financial difficulties will result. The proposition of the Liberian Government seems to be just and has the support of this Government. Use your best endeavors with the German Government to accept these terms.

The German Government has rejected every American proposed for third commissioner, insisting upon appointment of an Englishman. While this Government does not object to the appointment of a British subject the Department is of the opinion that the third member of the commission should represent a nation which has no territorial interests adjacent to Liberia.

Knox.