File No. 882.00/562a
The Secretary of State to Minister Curtis
Washington, April 4, 1917.
Sir: The Government has given careful consideration to reports on Liberian affairs received from officials of the Republic, the Legation, the General Receiver of Customs, the Military Attaché and other competent sources, with the result that the conclusion has been reached that the Government of Liberia faces the necessity of giving practical effect to the suggestions contained in these instructions if the fraternal assistance of the United States in Liberian affairs is to be continued.
The General Receiver of Customs and the Secretary of the Legation, before leaving for their posts, were given oral instructions as to certain desirable reforms, and these, together with additional views of the Department, are embodied herein for your information in order that you may communicate them formally and officially to the Government of Liberia.
The Department has in the past made known to the Government of Liberia through your office its disappointment in the administration of Liberian affairs, and the time has now arrived when this Government, as next friend of Liberia, must insist upon a radical change of policy. The Government of the United States can no longer be subjected to criticism from other foreign Powers as regards the operation of the loan agreement, and can no longer tolerate failure on the part of the Liberian Government to institute and carry out necessary administrative reforms.
Unless the Liberian Government proceed without delay to act upon the advice and suggestions herewith expressed, this Government will be forced, regretfully, to withdraw the friendly support that historic and other considerations have hitherto prompted it to extend.
You may assure the Government of Liberia that it has no reason to fear any lack of interest in Liberia’s welfare from the Department’s attitude herein expressed, but that on the contrary, prompt and honest cooperation on the part of Liberia in carrying out the reforms herein enumerated will result in closer and more friendly relations between the two Governments and the increased success and prosperity of the Republic of Liberia.
The various items of reforms will be briefly discussed, the changes which you will insist upon being noted separately:
[Page 878]arms and ammunition
War Department Notice of October 1915 and Executive Order No. 4 of October 7, 1915, should be strictly enforced.
In order that the General Receiver of Customs may assist the Government of Liberia in controlling the traffic in arms and ammunition, he should be given notice promptly of all permits to import or sell that may be issued by the Secretary of War.
The General Receiver should be consulted in reference to the issuance of all commercial permits and all permits involving large transactions.
The General Receiver should countersign all commercial permits and all permits involving large transactions.
All legislation relating to the importation and sale of arms and ammunition should be reviewed by the General Receiver, and there should be enacted a general act covering such importation and sale. In this connection reference is made to Articles VIII to XIV of the General Act of Brussels of 1890.1
interior administration
Executive Order No. 5 of October 12, 1915, and Executive Order No. 6 of October 13, 1915, should be strictly enforced.
It is suggested that Mr. Massaquoi should not be longer employed in connection with native affairs. His ability is not questioned, but it is thought that he is unfitted for employment in connection with the interior administration.
The number of commissioners and other civil officials in native districts should be limited by agreement between the Government, the Financial Adviser, and the Commissioner General for the Anglo-Franco-Liberian boundaries.
No commissioner or other civil official should be stationed in the interior until his qualifications have been scrutinized and his appointment agreed upon by the Government of Liberia and the officers mentioned.
Summary and adequate punishment should be inflicted upon any civil or military official of the interior administration who is found guilty of misconduct.
Temporary arrangements for the efficient collection and administration of existing taxes should be made only after consultation with the Financial Adviser.
A simple, modern, effective plan of administration of the interior should be drawn up and adopted at the earliest practicable date. In this connection reference should be made to Major Young’s draft. Native customary law should not be lost sight of; taxes should be collected, so far as possible, through chiefs; an equitable portion of taxes collected should be applied to public work of direct benefit to natives; and the practice of exchanging “dashes” should be suppressed.
No new taxes should be imposed upon natives until a plan of administration of the interior shall have been adopted.
The Interior Department and the War Department should be combined under one head.
[Page 879]financial reform
The depositary agreement with the Bank of British West Africa2 should be strictly enforced.
All public moneys (not assigned revenues) should be brought under the control of the Secretary of the Treasury.
No disbursement not authorized by the current budget, or in excess of the amount authorized, should be made without the sanction of the Financial Adviser.
The character of disbursements chargeable to a lump appropriation should be carefully scrutinized.
While revenues are insufficient to meet authorized disbursements, the Secretary of the Treasury and the Financial Adviser should jointly decide what disbursements (within the budget) shall be made currently; acting with the Financial Adviser, the Secretary of the Treasury should prepare a definite plan of payment therefor and this plan should be made public.
Agreeably to the provisions of Section 2 of the Emergency Mode of Procedure Act of March 12, 1915, the staffs of the several departments of Goverment should be reduced to such a minimum number as may be actually necessary for the proper conduct of the business of their departments.
In case of public exigency involving extra budget disbursements there should be a conference between the President, the Secretary of Treasury and the Financial Adviser; no disbursement should be made until the existence of the exigency is jointly recognized and the amount to be disbursed therefor is agreed upon.
No loans should be made by the Liberian Government unless the Financial Adviser has assented thereto in writing.
Disbursements on account of judiciary expenses should be carefully scrutinized; the expenses of the judiciary should be greatly curtailed.
Disbursements on account of pensions, etc., should also be carefully scrutinized; the pension list should be revised and brought into conformity with law.
The organizations of all departments and bureaus having to do with the collection, the custody or the disbursement of public moneys should be subjected to the scrutiny and supervision of the Secretary of the Treasury and the Financial Adviser; necessary readjustments should at once be made.
Existing systems of accounting, including property accounting and record keeping, should be critically examined with a view to the putting into effect of a system of financial administration which shall secure economy in the use and expenditure of the public funds and a proper accounting of all moneys received and disbursed by the Republic.
The floating debt should receive the immediate consideration of the Secretary of the Treasury and the Financial Adviser. Undue increase of the floating debt should be prevented; a rational plan for its ultimate retirement should be devised; “jobbing” in Government paper should be put an end to, and the negotiability of Government paper should, so far as possible, be limited.
It should be made clear by the Executive Government to the Legislature that appropriations must be kept within the estimates submitted annually by the Secretary of the Treasury.
[Page 880]The Financial Adviser should be timely consulted in regard to all matters directly or indirectly affecting the finances of the Republic, external or internal, and in regard to all matters that affect or may affect the receivership, including legislation and concessions.
Any draft of act or covering document prepared by the Financial Adviser in accordance with Article Fourth (d) Paragraph 2, of the Loan Agreement should be forwarded to the Legislature by the Secretary of the Treasury promptly and in the original form.
All drafts of acts submitted by the Financial Adviser should be given due consideration by the Legislature.
No draft of act submitted by the Financial Adviser should be altered or amended by the Legislature except after conference with the Financial Adviser.
The Financial Adviser should be advised promptly of the rejection of any draft of act submitted by him to the Legislature, definite reasons therefor being assigned.
The Financial Adviser should be advised promptly of the enactment of any legislation directly or indirectly affecting the finances of the Republic or the receivership; the texts of such acts should be promptly transmitted to him.
There should be a permanent reduction in the staff of civil employees of the Government, such only being retained as are essential to meet the actual need of Government.
The salaries of members of the Legislature should be reduced to a reasonable standard. Five hundred dollars per annum is the utmost that should be paid to a member of the Legislature.
Cabinet officers and other principal officials of the Executive Government who may be retained after the readjustment of the civil list should derive a compensation for their services from their salaries alone, and to that end their salaries should be increased to a reasonable living amount.
The Republic should by law provide for the appointment of a Government auditor who should be given full powers; the accounts of the Customs Receivership, the Liberian Frontier Force, and the general Government, including the Post Office Department, should e made to pass through his office. It is suggested that the Government auditor should be a foreigner of known competence, preferably an American.
post office department
All postal revenues should be included in the depositary agreement with Bank of British West Africa.
The Postmaster General should be required to submit itemized accounts to the Secretary of the Treasury not less often than quarterly.
No disbursement not authorized by the current budget, or in excess of the amount authorized, should be made without the sanction of the Financial Adviser.
The character of disbursements chargeable to a lump appropriation should be carefully scrutinized.
While revenues are insufficient to meet authorized disbursements, the Postmaster General, the Secretary of the Treasury and the Financial Adviser should jointly decide what disbursements (within the [Page 881] budget) shall be made currently. A definite plan of payment should be drawn up.
The Financial Adviser should be associated with the Postmaster General in a thorough inquiry into the accounting system of the Post Office Department. All records and books of account should be gone into and all abuses and irregularities corrected.
The Financial Adviser should be associated with the Postmaster General in a thorough investigation of Liberia’s indebtedness to foreign postal administrations. A method should be devised to clear off existing arrears, to reestablish the Department’s credit with foreign administrations and to prevent loss of credit in future.
The Financial Adviser should be associated with the Postmaster General in a searching investigation of the manufacture and sale of Liberian postage stamps. All abuses and irregularities in this regard should be corrected and any profit arising from the manufacture, sale or exchange of postage stamps should be passed to the credit of the Government.
legislation
A simple and effective quarantine act in general accordance with the draft already approved by the Executive Government should be enacted.
The Act of November 7, 1916, relative to customs rules and regulations should be made applicable to rules and regulations issued by the General Receiver of Customs prior to November 7, 1916.
An act should be passed prohibiting under heavy penalty the distillation of potable spirit within the territories of the Republic. In this connection reference should be had to Articles XC to XCV of the General Act of Brussels of 1890 and to Articles I and II of the Amendatory Convention of June 8, 1899.3
Acts and joint resolutions now on the statute books, conflicting with fundamental laws previously enacted, or not in harmony with measures of retrenchment made necessary by the European war, should be suspended by the Executive pending the meeting of the Legislature.
militia
The Military Attaché of the Legation at Monrovia should be asked to make recommendations looking to the reorganization of the militia.
liberian frontier force
The plan for the administration of the Liberian Frontier Force funds agreed upon June 1, 1914, should be strictly followed.
It should be clearly understood that under Article Fourth (c), Paragraph 1, of the Loan Agreement the General Receiver of Customs has authority to disburse the Frontier Force funds; this authority may be exercised if the plan agreed upon June 1, 1914, fails to eliminate irregularities.
Prior to the incurrence of liability the General Receiver should be consulted in reference to all but routine expenditures of the Frontier [Page 882] Force. No material increase in the strength of the Frontier Force should be made; no large orders for provisions or supplies should be placed; no extensive construction of roads or barracks entered into until the General Receiver’s assent has been obtained.
It must not be forgotten that the General Receiver is obliged to provide funds for the upkeep of the Frontier Force. He has frequently been embarrassed by what appears to be extravagance on the part of the Frontier Force. It is not charged that expenditures are not being kept within the budget but it has often been difficult to provide the relatively great sums that are demanded from month to month by the Secretary of War.
The General Receiver should be given promptly any and all information he may request bearing directly or indirectly upon the finances of the Frontier Force.
A simple but effective system of accounting, and an adequate system of record keeping, should be adopted and rigidly adhered to. There should be instituted a proper system of property accounting.
A definite scheme of reorganization of the Frontier Force, either that prepared by Major Young or a modification of it, should be adopted immediately. In this connection the Military Attaché of the Legation at Monrovia should be invited to make recommendations.
All laws affecting the Frontier Force in conflict with the loan agreement or the scheme of reorganization adopted should be specifically repealed.
Until the services of American officers are dispensed with the Frontier Force should remain under the command of an officer designated in accordance with the provisions of Article Fourth (c), Paragraph 1, of the Loan Agreement.
The cadet school organized by Major Young should be continued by the Military Attache of the Legation at Monrovia.
The status of the Military Attaché of the Legation at Monrovia should be accurately defined and his advice should be sought in all military matters, as the advice of the Financial Adviser is sought in all matters affecting the finances of the Republic.
customs receivership
All irregularities in connection with the recruiting of native labor should be eliminated. It is suggested that the receivership should be given control specifically of all matters relating to such recruiting. The receivership by the Loan Agreement is given control of the collection and administration of assigned revenues, including head-moneys—the tax upon native labor exported.
After consultation with those interested, the question of allowances to foreign officials of the Government, including members of the receivership, the Inspector General of Hygiene, the American officers of the Frontier Force and the Boundary Surveyor, should be definitely disposed of.
The granting of concessions should be greatly restricted; the financial standing of all applicants for concessions should be inquired into and concessions should be given only to reliable companies or individuals who intend to work them; and no monopolies or concessions in perpetuity should be granted.
[Page 883]The Department approves of quarterly accounting by the General Receiver of Customs.
In case of disagreement between the General Receiver of Customs and Financial Adviser and the Liberian Government an agreed statement of the case should be submitted promptly to the Department of State for its opinion.
The Department is convinced that the foregoing suggestions should be modeled into a definite reform program and carried out through the sympathetic and harmonious cooperation of the Liberian Government with the American agents in the Republic. It is anticipated that Mr. Bundy, who has had an opportunity to become fully informed of the Department’s views on Liberian affairs, will, by conferring with you and officials of the Government, communicate what has been expressed to him.
You will make at short intervals detailed reports upon the progress of Liberian reforms and will solicit directly from the Liberian Government data to be used in preparing such reports.
In bringing the above matters to the attention of the Liberian Government you may discreetly make known to it that while the Government of the United States will cheerfully accept promises in connection with the above enumerated reforms, it will not be satisfied with promises alone, tangible and permanent results must follow.
A copy of this instruction is enclosed for the information and discreet use of the General Receiver of Customs.
I am [etc.]