File No. 882.51/876a
The Acting Secretary of State to the Chargé in Great Britain ( Laughlin)1
3323. Following is substance of memoranda handed to representatives of British and French Embassies November 19, 1918:
In connection with credit $5,000,000 which has been established by United States Treasury Department for Republic of Liberia, it is planned by Government of United States to take following financial steps in converting Liberian loan of 1912 and administering affairs of Liberia:
- 1.
- Readjust international obligations of Liberia financially through supplementary amendment to refunding loan agreement of 1912, reconstructing and converting loan and its administration into an all-American receivership. It will be unnecessary to pay off or refund international loan of 1912 and float new one, but bonds may remain where they are except as individuals may wish to dispose of their holdings. In individual cases bonds might be bought for sinking fund, but seems unlikely that any considerable number will be offered now if interest promptly met.
- 2.
- Create an American Receivership of Customs and Internal Revenues, including departmental fees and port charges every nature, to be administered through American assistance to the general receiver of customs and Financial Adviser of Liberia.
- 3.
- All arrears interest on refunding loan of 1912 to be paid to date at once, and future payments interest to be promptly met from month to month. Until revenues Liberia sufficient to meet this charge, necessary funds will be advanced by United States from loan-credit of $5,000,000 recently granted Liberia.
- 4.
- Payments to be made of unbonded arrears salary claims and bills against Liberia or receivership on joint approval Secretary of Treasury of Liberia and Financial Adviser. Practically all such arrears, claims, and bills were investigated, registered and bonded to and including July 1, 1918, by a domestic debt commission, consisting of Secretary of Treasury and Financial Adviser. Many claims and evidences of indebtedness were rejected. Domestic debt thus bonded amounts to about $200,000. This does not include claims enemy subjects.
- 5.
- Payment to be made of contemplated sinking fund and interest on domestic bonds issued by Liberia as of July 1, 1918.
- 6.
- Until revenues Liberia will permit it to assume such expenses, advances will be made from time to time on certificate of and through general receiver, of such sums as may be necessary for administrative expenses of Liberia or receivership; pay interest or sinking fund on domestic or international obligations; readjust indebtedness; provide improved transportation facilities by land and sea, as well as improved means for transmission mail and messages; provide harbor improvements, especially at Monrovia; assist organizing and maintaining modern public school system; provide scientific system intensive agriculture; provide sanitation and system potable water; establish and maintain just equitable administration of hinterland; maintain effective and efficient military police or constabulary as peace organization under American military officers, and develop potential resources and possibilities of Liberia.
In handing these memoranda to British and French representatives, they were informed that this Government contemplated proposed action merely as means of assisting Liberia; that the international arrangement by which responsibility was divided among four Governments had not proved a working plan, but very expensive and cumbersome; that this Government is deeply interested in welfare of Liberian people and desires to give them in this way an opportunity to prove whether they may not themselves improve their own condition; that the new credit is to be used for betterment of conditions generally and development of Liberia. Representatives were also told that this Government hoped that their Governments would receive the matter sympathetically.
For your information: This is a matter which is of importance and Department desires to know at earliest possible moment attitude of Government to which you are accredited.
- The same (No. 6560), on the same date, to the Ambassador in France.↩