882.72/6: Telegram
The Chargé in Liberia (Bundy) to the Secretary of State
[Received October 25—1:20 a.m.]
72. The views of the Department as expressed in its cable number 48, dated September 30, 5 p.m., have been orally communicated to [Page 125] President of Liberia and the Secretary of State who was present has furnished the Legation with a written memorandum of the conference setting forth the President’s reply to the Legation’s representations.
On the matter of President King’s statement to Mr. Phillips when calling at the Department in September 1919, memorandum states:
“President King confessed himself to be at a loss to understand how the impression could have been made on Secretary Phillips’ mind that he agreed to the spirit of Department’s interpretation of the act of August 7th, 1917 and had promised to carry out the policy outlined therein. His recollection was clear that not only had he not agreed but had been at pain to explain to Secretary Phillips the reasons why he could not agree. It was a rather embarrassing position for him to be made to appear as having agreed to a proposition the evidence of which agreement being the more or less correct recollection by either Mr. Phillips or himself of facts which transpired at a conference at which only Mr. Phillips and he were present. He was compelled to say that he considered it a most unusual proceeding that he should have been placed under the impression that his conference with the Assistant Secretary of State was merely informal exchange of views, and unknown to him, a record should have been kept of the conversation and of his alleged agreements, which record had never been submitted to him for confirmation. Had he known that the conferences had been intended as a formal exchange of views he would have insisted upon the procedure usual in such circumstances being adopted.”
Relative to question of whether President King would take steps to nullify the French cable concession to construct and operate telegraph line connecting Liberian towns [memorandum] states:
“The President repeated that he did not see what he could do. He had also asked for suggestion from Washington and stated that he was open to the consideration of such as might be submitted. Mr. Bundy must recognize that if the Liberian Government without legal or justifiable cause abrogate this grant, the French would claim an indemnity not only for the actual loss sustained but might also penalize the Republic for its action. We could not put up as an excuse that we were advised to this action by the United States Government.”
With reference to the question of whether President King would now agree with the Department’s interpretation of the act of August 7, 1917, memorandum states that:
“The President as a matter of principle could not concede that the veto power in the matter of concessions should be placed in the hands of any official in the employ of the Liberian Government which would result from the State Department’s interpretation of the act of August 7, 1917. He would, however, agree to withhold his approval from any application for concession pending the favorable recommendation thereon from Washington through its Legation. [Page 126] He further gave the assurance that pending the conclusion of negotiations in respect of the proposed loan credit of $5,000,000 he would not give his approval to any concessions. He hoped this would meet with the acceptance of the United States Government and assure them of the desire of the present Administration to act in harmony with the advice of Washington.”
A copy of the memorandum will be promptly mailed Department.