882.51/1100: Telegram

The Minister in Liberia (Johnson) to the Secretary of State

31. Referring to the Department’s number 17, April 10, 6 p.m.9 to General Receiver, who replies as follows:

“Soon after outbreak of war it became necessary for the purpose of safeguarding security on which 1912 loan is based to modify the order in which disbursements under the loan agreement were to be made. This modification was effected by receivership through the Department of State with approval of fiscal agents and provided that maintenance of Liberian frontier force only for a short time [be] paid as a charge prior to service of loan. From the assigned revenues no disbursements have been made which are not chargeable to expense of collection and administration, service of loan, or maintenance of frontier force, except salaries and expenses of American officials and an occasional emergency disbursement on account of Liberian Government proper. Please see cable correspondence with Legation January 2 to 26, 1915,10 making frontier force charge prior to interest. General Receiver understood that the Department was aware of conditions under which American officials were employed and assented to their maintenance out of assigned revenues until loan credit became available. Liberian Government requested and commissioned American officials believing that loan credit would shortly be available but the delay has so prolonged interval during which their salaries have had to be paid from assigned revenues that the British have used opportunity to raise embarrassing questions. Salaries and expenses of the American officials had to be paid out of assigned revenues or not paid at all as the Republic had no funds available for this purpose.”