882.01 Foreign Control/245: Telegram
The Consul at Geneva (Gilbert) to the Acting Secretary of State
[Received May 7—9:10 a.m.]
177. From Reber. At the close of a private meeting of the Liberian experts last night a draft proposal to reduce to a minimum the program of assistance was shown to me. This will be presented to the President and the rapporteur but not to the Committee until some time next week to give time for further private discussions concerning it.
It proposes three administrators and three assistants, three medical officers, one legal adviser, the three financial officers as provided in the report and a reduction of expenditures for surveys, public health, roads, et cetera, a total of $184,000. In addition there is also provision for a principal adviser attached to the central government and a secretary. The total cost of the new program would be $200,000 a saving of $198,000.
The experts consider that if the Finance Corporation would accept a moratorium renewable from year to year this moratorium would not permit the application of the $279,000 of loan contract charges to the cost of maintaining this program. In order to start such a plan it is thought possible that the remainder of the first installment of the loan might be applied to the expenditures of the first year or if necessary held in reserve. The experts’ plan is based on the supposition that the average annual revenues will be approximately $650,000. Should revenues exceed that sum the excess could be applied to paying off the loan charges.
Although not provided in the experts’ draft report, it is understood that any failure of the Liberian Government to maintain this program or failure on its part to give its full cooperation would cause an immediate suspension of the moratorium and a removal of the foreign advisers.
It would be greatly appreciated if the views of the Department as well as of the Finance Corporation in this respect could be transmitted to me as soon as possible for it is hoped to present the final report of the committee to the Council during the course of next week. While this compromise plan is not thoroughly satisfactory it would appear, in view of present financial difficulties everywhere, it might afford a possible solution. The presence of the central adviser who will report regularly to the Liberian Committee may help to serve as a psychological check upon further abuses.
[Page 723]While the number of financial officers is placed at three rather than the five provided under the present loan agreement this was done in order not to increase the program provided in the experts’ report but the experts appear willing to increase this number if it is considered essential by the Finance Corporation. I personally expressed to them the view that three would not be sufficient and they thought there would be no great difficulties involved in this connection. [Reber.]