882.6176 F 51/34
The Minister Resident and Consul General at Monrovia (Hood) to the Secretary of State
[Received May 27.]
Consular
Sir: This Consulate General has the honor in confirmation of its cablegram number 11, dated April 24, 1925, setting forth the attitude of the Liberian Government on the Firestone Agreements, to report as follows:
This Consulate General presented to the Liberian Government in the strongest conservative manner possible, the Department’s hope that an early agreement between them and the Firestone Co., might be reached on a satisfactory basis, also Department’s interest in Liberia becoming a rubber producing center. That this interest was [Page 428] not in any particular Company, but in the general trade development of the United States.
It was further stated that even the-general trade development was not the sole motive, but that the Department by this means desired to show its benevolent interest in Liberia.
Since Liberia had already asked the assistance of the United States in a way which not only involved financial aid, but moral support, the Department having carefully gone over the Firestone contract felt that all that had been previously contemplated in loan of 1921 might be accomplished through these Firestone Agreements. That the Department so far as it legitimately or consistently could, was anxious to use its goodly [sic] offices to aid in the rehabilitation of Liberia.
Numerous conferences were held with the President & Secretary of State, who said they were very thankful to be reassured of the benevolent interest of the American Government. That they needed a loan and the United States was the only source to which they felt safe to apply, but they seemed unalterably and unequivocally opposed to arranging it with any Company doing business in this country. The effort was very strenuously made by this Consulate to give the most positive assurance of the honest motives and high moral standards of the Firestone Company. This was met by the reply that there was no disposition in any way to reflect upon this Company nor discredit its sincere intentions, but no one could anticipate what changes in its personnel might come in the future and that it was an established and set principle of the Liberian Government from past unfortunate experiences, not to place itself under obligations by contract to any firm or corporation doing business in Liberia, by negotiating loans with them.
When asked whether they had any objection to Mr. Firestone as an individual, taking the lead in any group to raise the money and make the loan, they answered positively, “We have none”.
They further say that there are terms and conditions in the loan of 1921 to which they could never again accede. That the present sentiment of the country would not permit the signing of a loan agreement upon the same terms and conditions of that of 1921. When told that the 1921 loan agreement would serve as a model to follow and there necessarily would be changes and modifications made in a loan now as compared with the 1921 terms and conditions, their reply was “Once they had signed this contract with the stipulation as set forth in Agreement Number 2, Article 4, paragraph k, they could be required to negotiate a loan agreement with the Firestone Company exactly upon all the terms and conditions of the loan of five million dollars which was contemplated in the proposed agreement between [Page 429] the Government of Liberia and the Government of the United States in 1921. Another objection was, the stipulation in agreement number 1, article 2, paragraph e,32 they wish to change this paragraph in such a way as to eliminate the necessity of ever having to arrange for arbitration. They wish to eliminate that part which provides for certain rates after fifty years etc.
There are thus four things which after much deliberations [sic] of the President and his cabinet, conversations with Mr. W. D. Hines, Firestone’s representative, and conferences between the President, the Secretary of State and this Consulate which the Liberian Government hold as fundamental reasons why they cannot sign these agreements in their present form.
- 1.
- That the agreements now before them come with entirely new propositions which were not in those Mr. Hines took to America at first for the approval of his principals.
- 2.
- That the Liberian Government is opposed, and the sentiment of the country would be decidedly averse to a loan upon the terms and conditions of the proposed loan of 1921.
- 3.
- That they do not wish to make a loan that will put the Government of Liberia under financial obligations to a firm or corporation doing business in Liberia.
- 4.
- That they do need a loan and would be glad to enter into negotiations with an American group of Bankers of which Mr. Firestone should be if necessary the leading spirit and make an agreement separate and apart as a distinct thing from the rubber contract.
I have [etc.]