882.01 Foreign Control/931:
Telegram
The Chargé in Liberia (Hibbard) to the Secretary of
State
Monrovia, December 14, 1934—10
a.m.
[Received 11:27 p.m.]
59. For McBride: Subsequent to sending my telegram No. 58, December
13, 3 p.m., I received yesterday the following message from
President Barclay with the request that it be transmitted to you:
[Page 832]
- “1. That the three year plan has been submitted by me
to the Legislature and has been approved by them and its
execution authorized. Copy of this Act will be forwarded
you within a few days.
- “2. That the President has recommended to the
Legislature, and they have agreed that the annual budget
of the Government shall be limited to $450,000; and
while one Legislature cannot control the action of
succeeding Legislatures in this regard, still the
Executive Government has accepted as a definite policy
the limitation of all government expenditures, including
cost of fiscal officers, specialists, and development,
to an amount not exceeding $450,000 for the next 3
years. All excess revenue over and above this sum will
be applied to interest on the external loan, and any
excess over and above these two sums will be available
for expenditure by the Government for amortization of
the external loan and for other purposes.
- “3. While Government is and always will be interested
in the success of the operations of American missionary,
educational and philanthropic institutions in Liberia,
it is still impossible for them to give any specific
undertaking to accord financial aid to these
institutions in consequence of the budget limitations
specified above. They will, however, maintain the
traditional attitude of goodwill towards these
institutions.
- “4. The Liberian Government is very much surprised to
learn that it has been charged with interference with
the business activities of the Firestone Plantations
Company. On the contrary, in Liberia, Government has
been charged with being antagonistic to the Firestone
Plantations Company precisely because they have not
interfered nor in any way concerned themselves with the
business activities of the company where they did not
directly touch Government interest. This attitude of
noninterference will be maintained so long as it is
consistent with the protection of the Liberian laborers
employed by the company and the security of the
Government interests in the result of the plantations’
operation. In addition to this, Government will continue
to observe such understandings as to customs regulations
applying to the Plantations Company as are based upon
the actual terms of the contract, but cannot undertake
to agree to accept any unilateral interpretation thereof
which do not conform to or are not reasonably implied in
those terms.
- “5. When the Firestone Plantations Company was granted
the right to establish radio stations, this right was
intended to be limited to the purposes of
inter-plantations communication and, possibly, although
not so expressed, to transmarine communication on the
company’s business. It was never understood that this
would be used by Firestone for Plantation’s commercial
purposes. But so long [as] the special radio agreement
between Government and the company is in force,
Government will observe its terms strictly. They cannot,
however, undertake not to insist upon a revision of
those terms if that special contract expires and is
sought to be renewed.
- “6. The present Government has never interfered or
prevented Firestone, directly or indirectly, from
securing the laborers required for the operation of
their plantation nor does it intend to adopt any such a
policy of prohibition directly or indirectly. Evidence
of this fact is that when Firestone agents in the early
part of this year requested special permits for the
purpose of securing laborers they were [Page 833] advised that such permits
were not necessary but that their agents were at liberty
to secure such laborers wherever they possibly could.
Government will, however, not coerce laborers to work
for Firestone by any sort of pressure. Laborers will be
at liberty to take or not to take employment with
Firestone.
- “7. I have received a copy of the supplemented loan
agreement proposed by Finance Corporation and I am
awaiting the arrival of their agent who I am advised has
already sailed for a discussion of the proposals. If an
agreement mutually satisfactory and acceptable results
from this discussion Government will then undertake to
vacate all laws and regulations issued in pursuance of
the Moratorium Act as well as the Moratorium Act
itself.
- “8. I realize the importance of definite understanding
being arrived at between Government and the Firestone
Plantations Company and I am prepared to go as far in
meeting the views of Mr. Firestone provided ne on his
part will meet in the same spirit the views of
Government. I will not enter into the discussion in the
spirit of bargaining over small things but will have to
insist that Mr. Firestone recognize certain practical
necessities of Government. It is my hope that he will
meet me in such a spirit as will produce an
understanding which is practical and just to both
parties.”
I am not commenting on these points as the Department has information
covering all of them. The tone of this message does not seem to me
as friendly and cooperative as that in your note and I see as yet no
reason for changing the views I have previously expressed.
