File No. 882.51/853
The Assistant Secretary of the Treasury ( Rathbone) to the Secretary of State
Sir: I beg to refer to the credit of $5,000,000 which has been established by the Treasury Department for the Republic of Liberia.
It is the opinion of the Treasury Department that prior to the making of any advances to the Republic of Liberia from the above-mentioned credit, it should be provided among other things that a general receivership to collect and administer the total revenues of the Republic be established.
Because of the obvious disadvantage of the separate administration of this proposed general receivership, and of the present international [Page 545] customs receivership instituted under the agreement for refunding loan entered into between the Republic of Liberia and certain banking institutions in New York, London, Paris, and Hamburg, it is essentially desirable that the general receivership should entirely absorb the existing customs receivership.
Inasmuch as the present loan is to be made by the United States only, there is of course no reason for the general receivership to assume an international character in its service of the present loan. On the other hand, after the establishment of the general receivership, a continued performance therein by the French and British receivers of their present duties, with no participation in the added functions of the general receivership, would present an awkward, if not insurmountable obstacle to successful administration.
For the reasons above stated, and equally to make possible for the proposed general receivership a maximum of efficiency, which is most difficult to attain when division of power and responsibility exists, it is the opinion of this Department that any general receivership of the revenues of the Republic of Liberia which may be established, as a condition to the proposed advances, should be a one-power receivership under the control of the United States.
In view of the fundamental character of this question, prior to a decision thereon, no permanent plan with reference to the general question of advances to Liberia can be prepared.
I shall be obliged if the Department of State will advise this Department of its opinion on this question and of any action which it may propose to take thereon, to the end that the Treasury may formulate a detailed plan of procedure.
Very truly yours,