882.00/660: Telegram

The Secretary of State to the Chargé in Liberia (Bundy)

33. Your 45, July 13, 2 p.m.14

Explanatory of Department’s intentions should Loan Plan as now placed before Liberian Government be adopted by Liberian Legislature the following steps for the Republic’s rehabilitation would be immediately undertaken:

1.
Repayment of Refunding Loan of 1912.
2.
Payment of debt to all foreign bankers.
3.
Payment to all Liberian officials of arrears of salaries.
4.
Establishment of financial administration fully adequate to handle Republic’s finances.
5.
Under clause 515 light houses and harbor buoys at Monrovia, Grand Bassa, and Cape Palmas would be established; motor trucks and bridge materials would be sent at once for comprehensive road building scheme, one road northeast from Monrovia, Paynesville to Interior and another eastward from Johnsonsville toward Bassa and Palmas. Matter of pier at Monrovia, hospital and certain public buildings would be given careful study.

American Government has the same interest in seeing Liberia a self-supporting country independent of all foreign financial control as it had in Cuba, which is today a conspicuous example of national prosperity. Through the temporary financial administration provided in the Loan Plan it is hoped within a few years that Liberia may become one of the most prosperous of small nations and that thereafter no control of any kind will be required.

Above information is for your guidance and use in overcoming situation outlined in your said No. 45. Cuban analogy especially should be employed with great discretion.

In view of these intentions, which may be intimated to Liberian Government and public, suggested that air of expectancy be created so as to form favorable attitude among legislators. More definite details will be cabled shortly.

Expenditure two hundred dollars for printing approved if absolutely necessary.

For Legation’s information, Department now endeavoring evolve plan for retirement 3 per cent internal loan this to be given first consideration in case loan plan approved.

Colby
  1. Not printed.
  2. Of article L of Loan Plan.