882.6176 F 51/39: Telegram
The Minister in Liberia (Hood) to the Secretary of State
[Received June 15—10:30 a.m.]
21. Your telegrams Nos. 12 and 13.48 Firestone once more has sent to the Liberian Government an open cablegram with regard to the loan agreement and the foggy [food] clause. The Liberian Government is much annoyed because of this method of communication, which informs foreign representatives about its intended action. It was intended to complete negotiations and bring them before the Legislature before adverse propaganda could be started.
Minor details in the agreements had not been thought here to materially affect Firestone, although important matters for Liberia. They are as follows: (1) The transportation and communication rights included to be only private and not to constitute a public utility monopoly; (2) the corporation is to be formed under the laws of the United States; (3) any exemption of foodstuffs from duties are not to be applied as soon as the loan is negotiated, as is now specified, but only gradually as financial circumstances of the Government permit; (4) the collection of taxes on employees may be arranged if the company wishes, whereas the agreements at present imply that taxes have been collected illegally in the past; (5) the public works included in Agreement 3 are to be built through the loan, and this agreement is unnecessary when the loan is negotiated.
The opinion of Ross as cabled to Firestone approves these modifications. Advise Firestone to empower Ross to sign agreement, whereupon De la Rue and the commission, as suggested, will come to America.
- Supra.↩