Office of the Historian

882.51/1150: Telegram

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

Washington, August 2, 1920—6 p.m.

38. Your 48, July 23, 2 p.m. and 50, July 24, 2 p.m. Cable whether or not the effect of Department’s 33, July 15, 7 p.m. was favorable. Item 4 therein concerning proposal to establish new financial administration should be particularly pointed out to Liberian Government.

If there is general opinion that any one person has had sole initiative in steps taken or to be taken by this Government for the rehabilitation of Liberia, this idea should be dispelled by the statement that the Loan Plan was prepared by this Department and is actively supported by the American Government.

You may communicate following to the President of Liberia and thereafter in your discretion you may make public the information therein contained:

“The American Government has a deep interest in speedily bringing about a situation wherein Liberia will be a self-supporting country independent of all foreign financial control. The Loan Plan was carefully drafted so as to attain this one and sole end and its present provisions, if disinterestedly studied, will be found to be such as will best and most expeditiously accomplish this purpose. After careful consideration the Government of the United States is convinced that the provisions of the modified draft suggested by the executive officials of the Liberian Government would if accepted render impossible any realization of the results desired.

The Government of the United States would fail in its duty toward the Liberian people if it neglected at this time to point out by way of solemn warning that if American financial aid and the Loan Plan are rejected it may be necessary for this country to reconsider its objections to the establishment of a mandate over Liberia which it consistently continues to oppose.”

For the Legation’s information the Department would have no objection to considering certain not vital changes in the phraseology of the Loan Plan such as those which might be suggested by Liberians if the Legation concurs therein.

Colby