882.124a/91: Telegram

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

119. Department’s telegram No. 77. I have consulted with Loomis and Dr. Smith in this matter but all contact with Hines is suspended owing to floods. Until the road can be reopened it will likewise be difficult for Loomis to forward his suggestions direct to the Finance Corporation.

[Paraphrase.] Loomis has, meanwhile, suggested inclusion in the statement which accepts the $11,000 order a reference to the Liberian Government’s failure either to introduce corrective measures respecting the alleged breaches of the 1926 loan agreement or to reply to the last letter, dated July 12, from the Fiscal Agents. Loomis believes the Finance Corporation should, if they think it can be done legally, insist upon the Liberian Government authorizing—with the assent of all the parties signatory to the agreement—a direct advance of the money to Dr. Smith, who shall disburse and account for it directly.

It is hoped by Dr. Smith that it will be possible (1) for a sanitary court to be established to end all violations of the sanitary regulations; and (2) for his sanitary inspectors to be vested with police authority. Under these circumstances, he feels, his program can be carried out effectively.

In view of the Liberian Government’s hostility and of the political situation existing here, I feel that President King will find it difficult to accept these conditions unless outside influences bring pressure to bear. However, all of us deem it important for the money not to be delivered prior to the grant to Dr. Smith of similar authority and control of funds. [End paraphrase.]