The Secretary of State to Messrs. Shearman & Sterling
Sirs: The receipt is acknowledged of your letter of July 5, 1927, stating that the National City Bank of New York acting as Fiscal Agent under the Liberian Loan Agreement of 1912 duly called for redemption on July 1, 1927 all the outstanding bonds of the 1912 loan and has paid and is paying off the same as and when presented. You ask whether the Department is now prepared to recognize the new loan agreement of September 1, 1926, as in full force and effect and to assume the responsibilities allotted to it by the new agreement.
In view of the provision made for the payment of the 1912 bonds and also in view of the payment of the Liberian debt to the United States which was effected on July 6, this Government is now pleased to assume the responsibilities allotted to it under the new agreement. It understands these responsibilities to be:
- That the President designate to the President of Liberia a Financial Adviser (Article VIII);
- That the President shall likewise recommend two duly qualified and experienced officers to the President of Liberia to be appointed by him to the Liberian Frontier Force (Article XII, Paragraph 3);
- That the Secretary of State shall receive from the Financial Adviser the names of the fiscal officers appointed under Article IX;
- That the Secretary of State may be requested to appoint an arbitrator in cases of dispute between the parties to the agreement (Article XXV).
In accordance with the statement made in its letter of March 3, 1927, the Department has now recommended to the President that he designate Mr. Sidney De la Rue as Financial Adviser under the new agreement, and upon the receipt of the President’s approval this designation will be transmitted to the President of Liberia through the diplomatic channel. Mr. De la Rue has already submitted the names of the fiscal officers appointed under Article IX, thus fulfilling the requirement of that Article.[Page 152]
Regarding the recommendation of officers for the Liberian Frontier Force, the Department understands that at present Major Moody Staten and Captain Hanson Outley, both American citizens, are serving with the Liberian Frontier Force under contract with the Liberian Government and it does not feel that it would be desirable to make any change in this respect during the life of their contracts.
I am [etc.]