882.51/1906
The Assistant Chief of the Division of Western European Affairs (Richardson) to the Secretary of State and the Assistant Secretary of State (Harrison)
Mr. Guy Cary, of Shearman and Sterling, just telephoned to say that according to a telegram from Monrovia the Liberian Government insists that the Arbitration Clause in the Loan Agreement which is now before the Liberian Legislature should read as follows:
“In case of dispute between the government and either of the parties to this contract the matter shall be referred for determination to arbitrators one of whom shall be appointed by each of the parties to the dispute; and if such arbitrators shall be unable to agree among themselves the Secretary of State of the United States of America shall be requested to appoint an additional arbitrator Who Shall Be of Different Nationality From the Other Arbitrators. The decision of a majority of the arbitrators so appointed shall be binding and conclusive upon the parties to the dispute.”
The text of the article is identical with the one to which the Department raised no objection some time ago except for the addition of the words “who shall be of different nationality from the other arbitrators” which are capitalized in the text above.
Mr. Cary states that President King of Liberia feels that the selection of an American as third arbitrator in any dispute might be the cause of resentment in Liberia and might lead to anti-foreign or anti-American sentiment.
Mr. Cary says that the Finance Corporation is inclined to accept this amendment provided the Department of State perceives no objection thereto. He states that the Liberian legislature is disbanding shortly and he hopes to be able to send a telegraphic response by tomorrow at the latest. He hopes that the Department will be able to telephone him this afternoon or if not send him a telegram to-night expressing its views.