882.01 Foreign Control/445a: Telegram
The Acting Secretary of State to the Chargé in Great Britain (Atherton)
302. For Reber.
. . . . . . . . . . . . . .
It is clearly apparent that the present Liberian maneuvers result from misinterpretation of statements reported by Grimes and Dennis to have been made to them in Geneva by various European members of the International Committee and possibly by the Secretariat; these have evidently convinced Barclay that he can repudiate Liberia’s engagements;with the Finance Corporation and subsequently obtain support in Geneva.
The British Ambassador2 called at my request this morning and I discussed the situation with him at length. I told him that while we put little credence in whatever Barclay thinks his agents were informed while in Europe, we feel sure that the British Government, particularly in present circumstances, would be the last to condone unilateral action against a valid contract, and would moreover sincerely deplore seeing Liberia take such action on the basis of a misconception of the British position. I accordingly urged that the British representative in Monrovia be instructed to inform Barclay without delay that his Government entirely disapproved of the Liberian effort to repudiate its obligations. I requested Sir Ronald to inform me regarding the decision of his Government.
Please arrange to see Cecil at the earliest possible opportunity, explaining the situation to him orally along the foregoing lines. You may give him a copy of Mitchell’s letter to Barclay,3 and also a copy of the “law” received from Firestone. The following points should in our judgment be especially emphasized:
- 1.
- Liberia’s intemperate attitude will, if persisted in, destroy any chance whatever of useful cooperation between the Finance Corporation and the International Committee. In this we should be prepared to support the company to the utmost. (See last paragraph of Mitchell’s letter to Barclay).
- 2.
- Section 4 of the Liberian “law”, taken in connection with the assurance given Cecil last October by Grimes that he had plenary powers, certainly requires explanation. Cecil will doubtless recall also that it was on the basis of his written assurance to you that Liberia had in fact accepted the plan, that the American Government consented to endorse it to Finance Corporation as a basis for negotiations.