882.51/1890: Telegram

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

[Paraphrase]

39. For Castle: The entire question of the loan hinges on the alleged London agreement. The Liberian Government has received information concerning it from the Liberian Minister in London. He states that Firestone, Junior, at this conference agreed that, in consideration of the rubber prices conceded by Dutch and British producers, Firestone would limit operations in Liberia to his present holdings and to make the terms of the loan impossible. This belief is confirmed by other evidence at hand.

The Liberian Government has instructed De la Rue to cable Shearman & Sterling that the Government will not agree to assign all of its revenues, but will consent not to issue the second half of the loan before the acceptance of such issue. A favorable reply from the bankers would do much to relieve the apprehensions of the Government, while failure on the part of the bankers to accept the suggestion would be considered very significant.

Clark