882.51/1193: Telegram

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

73. Legation’s 66, September 15, 5 p.m. and 68, September 24, 3 p.m.27

McMechen, manager British bank, yesterday informed Financial Adviser that he had advised Liberian Government that bank’s London headquarters have authorized requested loan of 1,500 pounds sterling to Liberian Government for expenses of commission to Washington and that loan would be made upon formal application duly signed by the President of Liberia and the Secretary of the Treasury. Position thus taken by bank wholly disregards fact that Financial Adviser is still withholding his approval of this loan. Financial Adviser states: first, that he will continue to withhold his [Page 99] sanction of loan unless he learns from the Department America desires commission to come to Washington; second, that in view of what Liberian Government has already done it may be expected that loan will be made in spite of his opposition and that commission will be appointed and sent unless Liberian Government is strongly advised to the contrary by the Department; third, that present situation is exceedingly embarrassing as he is without any information whatever as to how Department desires him to handle this matter and if President King succeeds in sending commission to Washington without Department making any expression against such procedure all here who supported the adoption of Department’s [financial] plan will undoubtedly [be] subjected to grave [embarrassments].

Legation and Financial Adviser earnestly urge Department to take immediately some effective steps to end existing situation which he declares to be intolerable.

Bundy
  1. Latter not printed.