Papers Relating to the Foreign Relations of the United States, 1925, Volume II

882.6176 F 51/207

The Liberian Secretary of State (Barclay) to Mr. W. D. Hines

[Monrovia,] June 19, 1924.

476–L

Sir: I have the honour of forwarding to you herewith the draft Agreements amended in accordance with the suggestions made in your communication of today’s date. I wish to apologise for my inadvertence in omitting the points to which you call attention.

In view of your contemplated early departure may I ask that you advise me as soon as possible today whether or not the documents now sent accord with understandings which have been reached by us?

It is understood, of course, that these Agreements are subject to the approval of the Legislature of the Republic of Liberia, and that the provisions of Article III paragraph (d) and Article IV paragraph (j) of Agreement number Two are applicable also to Agreement number One Article III paragraphs (b) and (c) in respect of lines of communication established outside the confines of the lands held by Lessee and vice versa.

I have [etc.]

Edwin Barclay

[Enclosure 1]

Draft Agreement Number 1 Between the Government of Liberia and Harvey S. Firestone Concerning the Lease of Mount Barclay Rubber Plantation

Memorandum of Agreement (Styled Agreement Number One) made and entered into this . . . . day of June in the Year of Our Lord Nineteen Hundred and Twenty-four by and between the Government of the Republic of Liberia represented by Edwin Barclay Secretary of State of the said Republic hereinafter styled the Government of the first part and Harvey S. Firestone a citizen of the United States of America residence at . . . . . . . . . . in the state of . . . . . . . . . . United States of America represented by William D. Hines hereinafter styled the Lessee of the other part Witnesseth:—

Article I

That whereas the said Lessee for the purpose of experimentation in the productivity of the soil and the costs of producing rubber on an extended scale in the Republic of Liberia has applied for a lease of the Rubber Plantation known as the Mount Barclay Rubber Plantation situated in the Township of Johnsonsville County of Montserrado and Republic of Liberia.

The Government for and in consideration of the sum of One Dollar ($1.00) gold per acre per annum and other covenants hereinafter stipulated to be kept observed and performed by the Lessee hath agreed to let and by these presents doth grant demise and to farm-let unto the Lessee all that parcel of land situated as aforesaid and containing . . . . . . . . . . acres of land bounded and described as follows:—

(Here set out boundaries)

To Have and to Hold the above mentioned and described premises with the buildings which are now or which may hereafter be placed thereon and the appurtenances thereunto appertaining unto the Lessee from the day of June Nineteen Hundred and Twenty-four for the full end and term of one year thence next ensuing and fully to be completed and ended the said Lessee yielding and paying therefor unto the Government upon the ensealing of these presents the rent of One Dollar gold per acre per annum money current in the Republic of Liberia.

Article II

And the Lessee doth covenant hereby to and with the Government that

(a) For the purposes hereinbefore specified he will take the premises hereby demised and that he will pay or cause to be paid the yearly rent above reserved on the day in the manner prescribed and that on the last day of said term or any sooner determination of the estate hereby granted the Lessee shall and will quietly leave and surrender up unto the Government all and singular the said demised premises.

(b) And the Lessee doth further covenant and agree to furnish the Government from time to time with full reports of the scientific and technical results of the experiments carried by the Lessee at said Plantation.

(c) That he will not import unskilled labour for the carrying out of any operations of developments undertaken upon the Plantation hereby demised to him except in the event the local labour supply prove inadequate to the Lessee’s needs.

(d) That in the event the local supply prove inadequate as aforesaid Lessee undertakes and agrees to import only such foreign labour to supply the local deficiency as may be acceptable to the Government.

(e) That he in addition to the rents above reserved will pay to the Government a revenue tax of two and one-half (2½) per centum on the value of all products of the Plantation calculated at the New York market prices prevailing at the date of sale provided however that should the Lessee construct any roadways or other lines of communication in accordance with Government specification as to routes and type of road the revenue tax shall in consideration of the public utility thus established by Lessee be reduced to one and one-half (1½) per centum on the value of products as aforesaid for a period of Twenty (20) years next ensuing after the initiation of such works.

(f) That the Lessee will come to an arrangement with the Treasury Department of Liberia with respect to the collection and payment of the poll tax payable by persons carried on his pay-rolls.

(g) That in the case of emergency declared to be such by the Government the said Government shall be entitled to the use of his lines of communication such as telegraph telephones and wireless established outside or within the limits of the plantation.

(h) That at the expiration of the one year lease granted by these presents he will renew said lease for the period of Ninety-nine years in consideration of annual rent of Six Thousand Dollars gold payable in advance annually and the two and one-half (2½) per cent revenue tax hereinbefore reserved.

Article III

And the Government doth covenant and agree by these presents that the Lessee paying and yielding the yearly rents above reserved and performing the covenants and agreements aforesaid on his part stipulated to be performed.

(a) Shall and may at all time during the term hereby granted peaceably and quietly have hold and enjoy the said demised premises without any let suit trouble or hindrance from the Government or any person or persons whomsoever.

(b) Shall have the right at his own proper charge and expense to establish lines of communication such as roads and highways outside the limits of the Plantation provided that such public highways as now exist or are in course of construction through the Plantation be not closed by Lessee but shall remain open to the free and unobstructed use of the public.

(c) Shall be exempt from the payment of any revenue tax on the products of the Plantation saving the (2½) two and one-half per cent revenue tax above reserved.

(d) Shall be exempt from the payment of any customs duty on all machinery tools and technical supplies the property of Lessee necessary to the operation and development of said property except where Customs duty is under existing laws or financial arrangements now levied upon such articles.

(e) That lines of communication such as telegraph telephones and wireless established by Lessee outside the limits of the plantation shall remain the property of Lessee subject as aforesaid to the use of the Government in case of emergency—provided they be operated under conditions prescribed by the Government.

(f) That at the expiration of the year lease hereby granted the Lessee shall have the right to renew the lease of the Mount Barclay Rubber Plantation for a period of Ninety-nine years provided however that should Lessee exercise his option for renewing the lease of said plantation the rent therefor in that event shall in addition to the other covenants hereinbefore stipulated by him to be observed and performed be Six Thousand Dollars gold per annum payable annually and every year in advance and provided further that in the event of a renewal of said lease should the rent above reserved or any part thereof be behind or unpaid on any day of payment whereon the same ought to be paid as aforesaid or if default should be made in any of the covenants hereinbefore contained on the part of the Lessee to be paid kept and performed then and from thence forth it shall and may be lawful for the Government into and upon the said demised premises and every part thereof wholly to reenter and the same to have again repossess and enjoy as in the Government’s former estate anything herein to the contrary hereof in anywise notwithstanding.

Article IV

(a) It is understood or agreed by both parties hereto that in the event the lease of the Mount Barclay Rubber Plantation be renewed for a period of Ninety-nine years should operation thereon cease for a period of three consecutive years the rights of Lessee thereto and therein shall become extinguished and void anything herein to the contrary hereof in anywise notwithstanding.

(b) It is further understood and agreed that upon the land held under this agreement the Lessee may engage in any operation other than agricultural under the pertinent provisions of the laws of Liberia or upon such special terms as may be agreed upon by both parties hereto.

(c) It is further understood and agreed by the parties hereto that at the expiry of the lease hereby granted or any sooner determination thereof all and singular the buildings improvements and appurtenances made erected constructed on the plantation or appertaining thereto shall revert to and become the property of the Government of Liberia without charge cost or condition.

In Witness Whereof the parties hereto have hereunto set their hands and seals to this Agreement in duplicate the year and day above written.

For the Government of Liberia
. . . . . . . . . .
Secretary of State
For

Harvey S. Firestone

. . . . . . . . . .

[Enclosure 2]

Draft Agreement Number 2 Between the Government of Liberia and Harvey S. Firestone Concerning the Lease of One Million Acres for the Development of Rubber Growing

Memorandum of Agreement (Styled Agreement Number Two) made and entered into at the City of Monrovia Republic of Liberia this . . . . day of June in the Year of Our Lord Nineteen Hundred and Twenty-four by and between the Government of the Republic of Liberia represented by Edwin Barclay Secretary of State of said Republic hereinafter styled the Government and Harvey S. Firestone a citizen of the United States of America resident at . . . . . . . . . . in the State of . . . . . . . . . . of the United States aforesaid represented by William D. Hines hereinafter styled the Lessee Witnesseth:—

Article I

That the Government hath agreed and by these presents doth agree to grant demise and to farm-let unto the Lessee for the period of Ninety-nine years an area of land within the boundaries of the Republic of Liberia suitable for the production of rubber and other agricultural products not to exceed one million acres to be selected by Lessee from time to time within said period of Ninety-nine years and terminable as to all lands selected at the expiry of said term upon the considerations hereinafter set forth to be kept observed and performed by Lessee provided however that should the Lessee neglect within a period of six months from the date of these presents

(a) To notify the Government of his acceptance of the conditions herein contained and stipulated

(b) Within one year thereafter to commence the selection of lands Then in such cases the obligation of the Government under this Agreement shall to all intents and purposes be discharged and ended.

Article II

And the Lessee hath agreed and by these presents doth agree

(a) To notify the Government within a period of six months of his acceptance of the conditions and stipulations of this Agreement.

(b) Within one year after the signing of this Agreement to select from year to year lands suitable for the production of rubber and other agricultural products in such areas or quantities within the maximum limit of one million acres of land as may be convenient to him and in accord with the economic progressive development of his holdings.

(c) As and when he takes possession of lands selected by him as aforesaid to pay to the Government in respect thereof rent during the first six years after the date of the Agreement rent at the rate of five (5) cents gold per acre and thereafter at the rate of ten (10) cents gold per acre yearly and every year in advance.

(d) Six years after the date of this Agreement and annually thereafter subject to the provisions of Article IV paragraph (a) hereof to pay to the Government a revenue tax equivalent to two and one-half per centum of the value of all products of his plantations calculated on the price for such products prevailing in the New York market at the time of sale.

(e) To come to an arrangement with the Treasury Department of Liberia in respect of the collection and payment of poll taxes payable by persons who may be carried on his pay-roll.

Article III

The Government agrees that the Lessee shall have and enjoy during the life this Agreement the following additional rights and exemptions:

(a) All products of Lessee’s plantations and all machinery tools technical supplies and buildings established constructed and erected for the effective and efficient operation and development of his landholdings shall be free of and exempt from any internal revenue tax saving the revenue tax provided for in Article II paragraph (d).

It is understood and agreed by both parties to these presents that this exemption shall not apply to Lessee’s employees labourers or servants.

(b) All machinery tools and technical supplies purchased and imported for the effective and efficient operation and development of the lands held by Lessee under this Agreement shall be exempt from customs dues except where customs duty is now levied upon such articles under existing laws and by virtue of financial arrangements.

(c) Lessee shall have the exclusive right and privilege upon the lands covered by this Agreement to construct highways railways and waterways for the efficient operation and development of the properties. It is understood and agreed by both parties to these presents that all roads constructed by Lessee under this grant and trails used immemorially by the population shall be subject and open to free use by the public.

(d) To construct and establish at his own proper charge and expense lines of communication such as highways and roadways outside the confines of the lands held under this Agreement subject to concurrence with the Government as to type of road and routes it being understood and agreed always that the routes established and constructed by Lessee shall be effective for the purposes of Lessee and subject further to the provisions of Article IV (b) hereof. These roads shall upon completion become public property.

(e) To construct and establish lines of communication such as telegraph telephones and wireless outside the confines of lands held under this Agreement upon the conditions and terms set forth in Agreement I Article III paragraph (e) and subject to the provisions of Article IV paragraph (j) of this Agreement.

(f) To engage in the sale of lumber the product of timber growing upon lands covered by this Agreement as a commercial product provided the Government be paid a royalty of five (5) cents gold per cubic foot sold.

(g) Upon the lands held under this Agreement to engage in any operations other than agricultural under the pertinent provisions of the laws of the Republic of Liberia or upon such special terms as may be agreed upon by the parties hereto.

Article IV

It is understood and agreed by both parties to the Agreement that—

(a) In respect of the stipulations of Article II paragraph (d) that in the event the New York price of rubber falls below fifteen (15) cents per pound avoirdupois and during the period it remains below that price the revenue tax of 2½% reserved to be paid the Government by Lessee shall automatically be suspended in respect of the rubber produced from Lessee’s plantations.

(b) In respect of the stipulation of Article III paragraph (d) should the Lessee undertake the construction of the lines of communication contemplated by that Article and does construct such roadways the revenue tax payable by him under the provision of Article II paragraph (d) shall for the twenty (20) years next following the beginning of road construction and during that period be reduced to one and-half per centum calculated aforesaid.

After the period of twenty years and for the remainder of the life of this Agreement the full rate of two and one-half per cent shall be payable by Lessee to the Government.

(c) That Lessee will not import unskilled foreign labour for the carrying out of any operations or development undertaken in virtue of the grants made in agreements Number 1, 2 and 3 except in the event the local labour supply prove inadequate to the Lessee’s needs.

(d) That in the event the local supply prove inadequate as aforesaid Lessee undertakes and agrees to import only such foreign unskilled labour as may be acceptable to the Government of Liberia.

(e) That the rights covered by Agreements Number One and Number Two shall be exercised continuously by Lessee. Should the operations of the Lessee under this Agreement cease for a period of three consecutive years then and in that case all and singular the rights of Lessee hereunder shall thereupon become extinguished and void anything herein contained to the contrary hereof notwithstanding.

(f) None of the rights granted under Agreements No. 1 and No. 2 may be sold transferred or otherwise assigned by the Lessee to any person firm or group or Trust without the written consent thereto of the Liberian Government previously had. Nothing in this paragraph contained shall [be] construed as inhibiting the Lessee from organising subsidiary companies under his control for exploiting the rights hereby granted.

(g) The Government reserves the right to pass its lines [of] communication through any and all plantations owned and operated by Lessee.

(h) The Government agrees upon term and condition favourable to both parties to permit Lessee to develop such natural power hydroelectric etc. as will aid the development of his rights.

(i) Tribal reserves or lands set aside for the communal use of any tribe within the Republic of Liberia are excluded from the operation of this Agreement. Should any question arise as to the limits and extent of such reserves such questions shall be finally determined and settled by the Secretary of Interior on a reference by the Lessee.

(j) Lines of communication such as telegraph telephone and wireless constructed and established outside the confines of the Lessee’s plantation shall during the life of this Agreement be exempt from all taxation provided they be used or employed only for purposes connected with the operation of Lessee upon lands held under this Agreement. In the event such lines of communication are used or employed by Lessee for commercial purposes then and in that case they shall be subject to taxation under the pertinent laws of Liberia.

(k) It is further understood and agreed by the parties hereto that at the expiry of the lease hereby granted or any sooner determination thereof all and singular the buildings improvements and appurtenances made erected and constructed on and upon the plantation of the Lessee or appertaining thereto shall revert to and become the property of the Government of Liberia without charge cost or condition.

In Witness Whereof the parties hereto have hereunto set their hands and seals the day and year first above written.

For the Government of Liberia
. . . . . . . . . .
Secretary of State
For

Harvey S. Firestone

. . . . . . . . . .

[Enclosure 3]

Draft Agreement Number 3 Between the Government of Liberia and Harvey S. Firestone Concerning the Improvement of the Harbor of Monrovia

Memorandum of Agreement (Styled Agreement Number Three) made and entered into at the City of Monrovia Republic of Liberia this . . . . day of June in the Year of Our Lord A. D. Nineteen Hundred and Twenty-four by and between the Government of the Republic of Liberia represented by Edwin Barclay Secretary of State of the said Republic hereinafter styled the Government and Harvey S. Firestone a citizen of the United States of America resident at . . . . . . . . . . in the State of . . . . . . . . . . of the United States aforesaid represented by W. D. Hines hereinafter styled the Lessee Witnesseth:—

Article I

That provided the term of Agreement Number one and Agreement Number two be accepted by both parties hereto the Lessee agrees to undertake for and in behalf of the Government of the Republic of Liberia the improvement of the Harbour of Monrovia by constructing the necessary breakwaters providing necessary wharfage and lighterage facilities and to maintain and repair said works if and when requested so to do by the Government.

Article II

In consideration of the Lessee’s undertaking as aforesaid the Government agrees

(a) To repay Lessee the expenditure made by him in this behalf but in no case to exceed in total the sum of $300,000.00 subject as hereinafter specified.

(b) To place at the disposal of Lessee lands contiguous to the Harbour improvements for obtaining the necessary raw material sufficient to the economic construction of the works.

(c) To assign to Lessee after deducting thereout the cost of maintenance the port and harbour dues now levied or that may be hereafter levied or accruing from the operation of the port until said dues shall have repaid the capital sum expended by Lessee on harbour improvements with interest thereon at six per centum per annum.

(d) In the event the Government requires Lessee to maintain and repair the harbour works the cost of maintenance shall be charged against the Port and Harbour dues which the Government hereby assign to Lessee and Lessee shall be entitled to the proceed[s] of said Port and Harbour dues until the amount expended on repair and maintenance shall have been repaid with interest at six per centum per annum.

Article III

It is agreed by both parties hereto

(a) That the Government shall at all times have the right to an accounting and an audit of the expenditures made by Lessee on account of Harbour construction maintenance or repair and the Lessee undertakes to grant the Government every facility for this purpose.

(b) That should the revenue accruing from the operation of the Port be or fall below Sixteen thousand dollars per annum the whole of said revenue without deduction shall be assigned and the Government hereby assigns said revenues to Lessee.

(c) That the Government may at any time at its option re-imburse the Lessee his expenditures or the outstanding balance thereof on account of construction maintenance or repair in which event the assignment of the Port and Harbour dues made shall become null and void.

In Witness Whereof the parties hereto have hereunto set their hands and seals the day and year first above written.

For the Government of the Republic of Liberia
. . . . . . . . . .
Secretary of State
For

Harvey S. Firestone

. . . . . . . . .