882.01 Foreign Control/239a: Telegram

The Acting Secretary of State to the Consul at Geneva (Gilbert)

72. For Reber. The Department notes from the minutes of the meetings of the International Committee last January and February [Page 718] that considerable criticism was made of Firestone rights and activities by certain members. Should this occur again I believe that you should immediately seek the opportunity to state on behalf of and under instructions from your Government that:

(1)
The United States seeks no special advantage or position in Liberia and desires only the welfare and development of the Liberian people, and the proper protection of American nationals and their investments;
(2)
While it is not customary for the American Government to identify itself with private organizations other than to insist on full protection for their legitimate activities, a repetition before the International Committee of the irrelevant and mischievous criticism expressed last January has impelled us to state our belief that the Firestone enterprise was honestly conceived and has been prosecuted, under very great difficulties, with admirable restraint and goodwill. The troubles between the Financial Advisership and the local administration have been caused by the constant attempt of the latter to break down and vitiate the contract, whereas reasonable cooperation with the competent loan officials would in our opinion have gone a long way toward solving Liberian fiscal problems. We therefore regard efforts to place the blame for present conditions on the alleged “onerous terms” of the loan contract as maneuvers to sidetrack the main issues. We regard such efforts as particularly inappropriate in view of the offer made by the Finance Corporation to the Committee last January sympathetically to consider such proposal as the Committee might wish to make to the Corporation, involving a modification of the contract, provided “thorough administrative safeguards are assured”.

Please discuss this phase of the matter with Gilbert, informing the Department by telegraph should you have any comments.

Castle