882.01 Foreign Control/242: Telegram

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

172. From Reber. Upon Grimes’ request today we had a long conversation relating to the next meeting of the Committee. At first this discussion, in the presence of Renthe-Fink, turned on the method of handling the problems as they arose in the Committee. (See my [Page 719] telegram 171, May 5).33 Grimes was most conciliatory in his attitude but made no definite commitments.

After Renthe-Fink’s departure Grimes brought up the subject of financial negotiations and said the Liberian Government wished to negotiate with the Finance Corporation without involving the Committee in this matter and asked for my views as well as those of the American Government in this respect. As this appeared to me an effort, similar to Barclay’s suggestion made last summer of a trip to the United States and in line with other recent developments, to deal direct with the United States rather than through the Committee I told him it was my personal belief that since the whole question of financial, administrative and social reforms had been referred to this Committee preliminary discussion should take place here in Geneva. The Committee, I thought, would feel entitled at least to express its opinion regarding the future negotiations to be undertaken and it would be a mistake in the interests of a solution satisfactory to all parties if any attempt were made to initiate individual and private discussions without some accord on the general reform program being reached. I therefore expressed the belief that the best opportunity of a permanent and lasting settlement lay in the continuance of discussions here, the close cooperation of all parties with the work of the Committee and the acceptance of the Committee’s final decision.

As far as the views of my Government were concerned I told him that I would endeavor to ascertain them in this respect and inform him later.

Grimes also explained that Dennis, Secretary of the Treasury, had been instructed to discuss modification of the loan contract with the Financial Corporation while on his trip to the United States. I should greatly appreciate any information regarding the progress of these negotiations as I feel it essential to the success of the Committee that we do not work at cross purposes particularly during this next session.

The understanding of the Committee is that any modification of the Firestone contract or the loan agreement is at present dependent upon Liberia’s acceptance of the experts’ report as a basis for discussion. Should a separate agreement be reached between the two parties before this report can be accepted it might therefore tend to an abandonment of the task already under way here and tend to throw the responsibility for a solution of the Liberian question upon the United States and American interests. [Reber.]

Gilbert
  1. Not printed.