751.8215/242: Telegram

The Chargé in Liberia (Clark) to the Secretary of State

38. For Castle: … New draft of the loan agreement, dated September 1st and received by the Liberian Government October 20, contains material provisions unacceptable to Liberia and critical situation has been precipitated. Has Department seen this draft? Liberian Government has heard that maximum rubber prices were fixed at London, August last, and believes that Finance Corporation consequently is not inclined to make loan except upon onerous terms. If this is true, impasse has been reached; if not true, can assurance to that effect be had? De la Rue knows nothing of intention of London agreement. No one here can negotiate in behalf of Finance Corporation.

It is believed planting agreements will be accepted by the Legislature irrespective of loan agreement outcome.