File No. 882.51/525.
The American Charge d’Affaires to the Secretary of State.
Monrovia, February 28, 1913.
Opposition of Liberian Government to O’Connell was consistent and for good reasons. German Government endeavored to force Lange on commission as its representative; thereupon Liberia insisted that Clark be third commissioner. German Government objected to Clark and withdrew Lange. Liberian Government has accepted Mr. Pigott, an Englishman, nominated by German Government as third commissioner. Verbal agreement on personnel of commission reached more than week ago. Copy of written statement made by O’Connell totally disavowing expressions attributed to him by German Consul has been given me by Liberian Government.
Clark objects to terms of settlement proposed by German Government because, first, they contemplate deduction from funds under direct control of Receivership and necessary for its successful operation, such as upkeep of sea-patrol service and frontier force, Liberia powerless to pledge any portion of these funds; second, any charge on balance turned over to Liberian Government by Receivership would destroy budget and nullify all measures of financial reform instituted, paper would again be issued for short paid Government debts; third, Receivership owes foreign officials in the service of Liberian Government more than $10,000 arrears salaries, this obligation ranks prior to any claims for indemnity; fourth, Receivership already embarrassed by falling revenue, deficit since November 26 over corresponding period last year more than $30,000, state of revenue precludes any added charges at present; fifth, there are other foreign claimants who will likely demand treatment not less favorable than that accorded Germans.
Clark proposes that the sum of at least $20,000 be appropriated next year and substantial sum annually thereafter for payment of claims, German claims being preferred. Further that all unexpended receipts over term of years be similarly applied.
Clark says he cannot assume responsibility for financial reorganization if German proposal is forced upon Liberia.