882.6176 F 51/30: Telegram
The Minister in Liberia (Hood) to the Secretary of State
[Received 6:42 p.m.]
13. Department’s cable 8, May 1, 6 p.m. The Government of Liberia desires me to transmit the following:
“The Government of Liberia fully sensing and appreciating the sympathetic interest shown by the United States Government in all that affects the welfare of the Liberian Republic, feel it is due to both Governments that the point of view of Liberia be always frankly explained to the Department of State. The Liberian Government’s point of view on certain provisions of the Firestone agreements which are open to objection on grounds of [apparent omission], was covered fully in their opinion in despatch No. 432/D of April 28, 1925,34 replying to your telegram to the American Minister at Monrovia. These cause the most serious objections to proposed loan.
The basic position taken by the Liberian Government on this question is that it is not politically advisable in their opinion to place the Republic of Liberia under financial obligations to private interests operating in Liberia under grants from the Liberian Government.
This is a policy which seems vital to the future of the Republic and which the Liberian Government could be with difficulty persuaded to change.
Secondly, the Government feels and always has felt that no loan should be arranged with private interests under the terms and conditions negotiated by the Liberian mission to the United States in 1921. Any rights which the Liberian Government for political reasons would willingly accord to the American Government or any obligations which they would be willing to assume vis-à-vis that Government, [Page 431] they would not be willing to grant or undertake toward private interests, even though well recommended.
It is hoped that the American Department of State approves the reasons which my Government urge, that the loan question be taken up in a separate agreement, of which the conditions and terms might be arranged and that the projected loan be omitted from the present agreement in which it seems to have no logical place.
If, however, the American Government, after having accorded sympathetic consideration to the above-stated views considers it advisable that the loan be obtained through the agency of Mr. Firestone, the Liberian Government at the proper time would be willing to supply him with the powers necessary to authorize him to commence preliminary negotiations for the loan and would assemble the Legislature with the object of considering the contracts. Edwin Barclay.”