882.51/1016a
The Secretary of State to the Secretary of the Treasury (Glass)
My Dear Mr. Secretary: I venture to bring again to your personal and particular attention the question of financial assistance and rehabilitation of Liberia in which this Department takes such a deep interest. Mr. Phillips has apprised me of the results of the conference held yesterday in his office at which Mr. Strauss, of the Federal Reserve Board, and Mr. Kelley, of your Department, were present. I am given to understand, very much to my surprise and regret, that it is the view of your Department that no considerable portion of the loan credit of $5,000,000 established in behalf of Liberia should be advanced for the economic rehabilitation of the Republic. I believe that the sum of $400,000 was mentioned by Mr. Strauss and Mr. Kelley as the utmost which could be advanced for this purpose, which, taken with the amounts necessary for the financial arrangements, would not exceed $2,000,000, out of the total credit of $5,000,000. If this is the case, I am very deeply disappointed and concerned. I had been clearly under the impression from the beginning that the establishment of a loan credit of $5,000,000 meant that a sum of $5,000,000 was actually available. Acting on this assumption I unhesitatingly made announcement to the French, British, and Liberian Governments of the establishment of such a loan credit to Liberia, and described the program of financial and economic rehabilitation of Liberia which it was proposed would be carried out with the sum thus made available.
You will recall, however, that no immediate steps were taken to put this program into effect, as, pursuant to your Department’s request, I at once entered into diplomatic correspondence with the [Page 493] British and French Governments in an endeavor to secure their withdrawal from the International Receivership. These negotiations, extending over a period of a year, have only just terminated. During their course I repeatedly based my representations for the withdrawal of the British and French Receivers on the condition of an American program of financial and economic rehabilitation of Liberia. I at the same time made unreserved assurances to the Liberian Government respecting the carrying out of the economic program and even took preliminary steps looking to that end. As a result, this Government stands before the world completely committed, and committed for over a year past, to a program of economic as well as financial rehabilitation of Liberia. Not to carry through this program would be simply disastrous for our position in Liberia and would cast a blemish on our good name in international relations. I cannot too strongly emphasize the embarrassment which would result to this Government from such a course, an embarrassment which would not be limited to our intercourse with Liberia but would be reflected in our larger relations with France and Great Britain.
I have given this matter the most serious consideration and I very strongly feel that to avoid being gravely compromised this Government is in honor bound to live up to the agreement made in this instance and to carry through the program of economic rehabilitation. I hope very earnestly that you will accept my point of view.
With kind personal regards, I beg [etc.]