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

No. 147

Sir: The Department has received your despatch No. 32, Diplomatic, dated March 9, 1922, transmitting a letter addressed to you by the General Receiver of Customs relating to large orders for material and implements reported to have been or to be about to be placed in England and the United States on account of the Liberian Frontier [Page 617] Force, extensive road construction, and general development in Liberia.

With reference to this matter, you are instructed to request the General Receiver to make a thorough investigation of these reports. If the facts disclosed by such investigation substantiate the information brought to your attention in the letter of the General Receiver you will say to the Liberian Government that serious dissatisfaction on the part of the bondholders of the 1912 loan may be expected if arrears of interest remain unpaid while extraordinary sums are being disbursed by the Receivership on account of the Liberian Frontier Force and other charges which do not have priority of interest in the order of disbursements provided by the 1912 loan agreement for the administration of the Assigned Revenues.

You may also add that it is felt that the expense of the Liberian Frontier Force should be limited to absolute necessities and that the General Receiver would be justified in refusing to pay for large orders of materials and implements for road construction and general development purposes, out of the Assigned Revenues as long as interest is in arrears and no residue of revenue payable to the Liberian Government has accrued.

You will promptly report any developments in this matter.

I am [etc.]

For the Secretary of State:
Leland Harrison