Foreign Relations of the United States Diplomatic Papers, 1935, General, The Near East and Africa, Volume I

882.6176F51/4118/11

Agreement Between the Government of Liberia and the Finance Corporation of America, Signed March 16, 1935

March 16, 1935

Agreement, dated, for convenience, as of the first day of January, 1935, by and between the Government of the Republic of Liberia, of the first part, (hereinafter referred to as the Government), Finance Corporation of America, a corporation organized and existing under and by virtue of the laws of the State of Delaware, United States of America, of the second part, (hereinafter referred to as the Corporation), and The National City Bank of New York, a national banking association organized and existing under the laws of the United States of America, of the third part (hereinafter referred to as the Fiscal Agent);

Whereas, the Government and the Corporation entered into a Loan Agreement as of the first day of September, 1926, in which the Fiscal Agent was party of the third part, which Agreement thereafter became effective upon ratification by the Government, and is in effect; and

Whereas, the Government represents to the Corporation that it finds itself unable to fulfill certain of the obligations undertaken by it by virtue of the terms and conditions of said Loan Agreement; and

Whereas, the Government is desirous of modifying certain of the obligations undertaken by it under and by virtue of the terms of said Loan Agreement; and

Whereas, the Government represents to the Corporation that it has decided to undertake a Three-Year Plan for the accomplishment of certain important improvements in sanitation, public instruction, hinterland administration, judicial system, interior road extension and other matters of social and economic welfare; and to that end will retain, in addition to the officers appointed under the Loan Agreement, the services of six competent foreign specialists, of whom the majority, including the Chief Administrative Specialist, are to be American citizens; and

Whereas, the Corporation fully sympathizes with these purposes and is desirous of cooperating with the Government for their attainment:

Now, Therefore, this Agreement is executed for the purpose of modifying and supplementing said Loan Agreement in the following respects only To Wit:

Section I

Article I of the said Loan Agreement is hereby amended so as to provide for a reduction of the basic interest rate from seven per cent (7%) per annum, to five per cent (5%) per annum. Effective January 1, 1935, and continuing until December 31, 1942, the “External Forty-Year Sinking Fund Seven Per Cent. Gold Bonds” shall bear interest at the rate of five per cent (5%) per annum, payable semi-annually on January 1st and July 1st in each year.

Section II

(a) It is understood and agreed that while the Government is obligated for the payment of interest at said five per cent (5%) per annum on all outstanding Bonds issued under said Loan Agreement, the Government shall be relieved from the payment of said interest for any calendar year when the total revenues and receipts of the Government shall be less than $450,000.00, (which amount is required for the operating expenses of the Government, certain public works and salaries and allowances of the three fiscal officials, the military adviser, and the six foreign specialists), and in this event, the said interest shall be waived and condoned.

(b) For any calendar year when the total revenues and receipts for the Government shall exceed $450,000.00, all of such excess to and including such an amount as will equal five per cent (5%) interest for one year on all outstanding Bonds issued under the said Loan Agreement of 1926, shall be set apart by the Government and paid over to the Corporation for application against and/or liquidation of the said five per cent (5%) interest for such calendar year. In the event such excess over and above $450,000.00 shall not be sufficient to liquidate fully such five per cent (5%) interest for such calendar year, then the amount constituting the difference between such excess and the five per cent (5%) interest for such calendar year shall be waived and condoned.

(c) In the event the total revenues and receipts of the Government for any calendar year shall exceed $450,000.00, plus the amount necessary to liquidate fully such five per cent (5%) interest for such calendar year, and until such time as the amortization requirements of the said Loan Agreement of 1926 are no longer in arrears and are being currently complied with, at least thirty-three and one-third per cent (33⅓%) of such excess shall be applied to amortization of the Bonds issued and outstanding under the terms of the Loan Agreement of 1926, and/or under the terms of this Supplementary Agreement, and at least thirty-three and one-third per cent (33⅓%) of such excess shall be applied towards the liquidation of the principal only of the Government’s floating debt existing on December 31, 1934, which floating debt on that date was in an amount of approximately $650,000.00, and in no event to be applied against any floating indebtedness created after December 31, 1934.

(d) In the event such floating debt shall have been liquidated in full prior to the time that the amortization requirements of the Loan Agreement of 1926 are no longer in arrears and are being currently complied with, then at least fifty per cent (50%) of the excess of the total revenues and receipts of the Government for each calendar year over and above $450,000.00, plus the amount necessary to liquidate fully such five per cent (5%) interest for such calendar year shall be applied to amortization of the Bonds issued and outstanding under the terms of the Loan Agreement of 1926 and/or under the terms of this Supplementary Agreement.

(e) The Government shall forthwith, after the date at which this Agreement becomes effective, execute and deliver to the Corporation additional bonds provided for under the said Loan Agreement of 1926 in the principal amount of three hundred and thirty-five thousand U. S. dollars ($335,000.00) in liquidation of past due interest coupons as of January 1st, 1935, inclusive, which coupons shall upon delivery of said bonds be surrendered to the Fiscal Agent for cancellation. Bonds issued in payment of overdue interest as herein provided shall be redeemable at par at any interest date upon notice given in the manner provided in Article V of the Loan Agreement, and the said bonds shall be stamped with a notice to that effect, and shall bear interest coupons beginning with coupons to mature as of July 1st, 1935.

Section III

Under the provisions of Article IX of the Loan Agreement for the readjustment of the salaries of the fiscal officers, in the event of a substantial change in money values, and, in recognition of the existing financial emergency, to reduce the cost to the Government of the operation of the fiscal service required by the Loan Agreement, the fourth paragraph of Article IX of the Loan Agreement is hereby amended to read as follows:

“1. A Financial Adviser, who shall be designated and appointed as hereinbefore stated, at a salary of $9,000.00 per annum U. S. Currency.

“2. An official who shall be designated Supervisor of Revenues, and shall perform the duties devolving under the Loan Agreement upon the incumbents of the offices of Supervisor of Customs and Supervisor of Internal Revenue, (which are abolished), at a salary of $5,000.00 per annum, U. S. Currency.

“3. A bonded Auditor appointed by Agreement between the President of the Republic of Liberia and the Fiscal Agent, at a salary of $5,000.00 per annum U. S. Currency.

“4. A bonded Assistant Auditor, who shall be appointed by the President of the Republic of Liberia.

“The salaries of the officers named in sub-paragraphs 1, 2, and 3 hereof shall be paid monthly in pounds sterling at the selling rate of exchange for United States dollars prevailing at the respective monthly due dates of payment.”

Section IV

The first sentence of Article VIII is hereby amended to read as follows:

“As an additional guarantee of the prompt payment of the Loan and to insure the efficient organization and functioning of the Liberian Fiscal Service and the administration thereof, the Government covenants and agrees to appoint to its service said Financial Adviser, who shall be designated by the President of the United States of America to the President of the Republic of Liberia and, subject to his approval, appointed to said office.”

Section V

Article IX is hereby amended by the addition of the following paragraph:

“The number of the employees of the Financial Adviser, the Fiscal Officers and the Fiscal Service shall be sufficient for the efficient collection, audit, disbursement and administration of the revenues of the Government. The personnel shall be appointed by the President of Liberia upon the nomination by the Financial Adviser of persons qualified to fill vacancies. The Financial Adviser shall select his nominees from the Civil Service lists of qualified persons, if such be available; otherwise his nominations may be made at large, upon such tests of fitness as he may deem advisable. Such personnel shall serve under the jurisdiction of the Financial Adviser, who shall bear in mind the desire of the Government for the proper training of Liberian citizens for positions of trust and responsibility. The duties of such personnel, insofar as they may not have been prescribed by law, shall be prescribed by such regulations in pursuance thereof as may be issued from time to time by the Financial Adviser. The property and supplies for the use of such officers and employees shall be under the jurisdiction of the Financial Adviser. The number of employees of the Financial Adviser, the Fiscal Officers, and the Fiscal Service shall not exceed the average number of employees during the year 1930 or the average number of employees for the three-year period next preceding, whichever be greater, except by agreement between the President of Liberia and the Financial Adviser.”

Section VI

In Article IX, after the sentence:

“The officers above mentioned shall perform such duties and employ such persons as may be defined by law or prescribed by the Government with or upon the advice of the Financial Adviser, as provided in Article XII”,

the subsequent sentence is hereby amended to read as follows:

“Such officers in the performance of their duties shall be responsible to the Financial Adviser; provided, nevertheless, that the Auditor and Assistant Auditor shall not be subject to control in making decisions upon matters within their jurisdiction.”

Section VII

Article XII, paragraph numbered 3, is hereby amended to read as follows:

“For the further security of the revenues and receipts, the Government shall maintain a Liberian Frontier Force, and shall further maintain patrol service by sea as may be necessary from time to time. The patrol service by sea shall be administered by the Customs Service. The Frontier Force shall be administered by the War Department. The strength of the Frontier Force shall be fixed by agreement between the President of Liberia and the Financial Adviser, and it shall not be increased or decreased in number without the agreement of the Financial Adviser, except temporarily in case of emergency declared to be such by the Government. A duly qualified and experienced officer of American nationality shall be employed for the Government by the President of Liberia who shall report directly to the President of Liberia and who shall be senior in rank to the commanding officer of said Frontier Force. The salary of said officer shall not exceed the sum of (U. S.) $5,000.00 per annum; provided, however, that said sum may be at any time increased or diminished by agreement between the Government and the Fiscal Agent. Such salary shall include all allowances except medical care and attendance, travel on duty and quarters suitable for his rank, or commutation therefor on the basis provided for officers in the United States Army drawing pay at the same rate, which shall be furnished by the Government. Among his duties shall be the preparation and execution of a plan of organization of the Force which shall be based on the idea of creating an efficient constabulary organization for the purposes aforesaid, and which plan shall include the qualifications and disciplining of all commissioned and non-commissioned officers and the training of the men in accordance with the best practice now obtaining in similar organizations.”

Section VIII

Article XII, paragraph numbered 6, item designated (c) is hereby amended to read:

“(c) Incorrectness or irregularity of the account to be paid.”

Section IX

Article XII, paragraph numbered 6, is hereby amended by the addition after the item designated (d) of the following:

“(e) Fraud.

“The decisions of the Auditor in relation to the approval or disapproval of accounts shall be final and conclusive, subject only to an appeal by the Government or the creditor to the Financial Adviser, which appeal shall be taken within ten days after notice of the ruling. The decisions of the Financial Adviser upon such appeals shall be final and conclusive upon the Executive but not upon the Judicial branch of the Government.”

Section X

Article XII, paragraph numbered 8, third sentence, is hereby amended to read:

“The Financial Adviser may only refuse to approve the Budget when and if the disbursements which should be included therein, as provided in this Agreement, or by obligation of law, have not been properly included, or when and if the Budget submitted by the Secretary of the Treasury exceeds the estimates of the revenues as prepared by the Supervisor of Revenues, in conjunction with the Comptroller of the Treasury, under the supervision of the Financial Adviser.”

Section XI

Article XII, paragraph numbered 8, is hereby amended by the addition thereto, immediately before the last sentence thereof, of the following sentence:

“No special appropriation shall be passed by the Legislature except in accordance with a supplement to the annual budget prepared and approved as herein provided with respect to such annual budget.”

Section XII

During the term of this Supplementary Agreement, as provided by Section XVII hereof, the first sentence of Article XIII and paragraphs one to six, inclusive, thereof are hereby amended to read as follows:

“The first $450,000 of the annual revenues and receipts of the Government shall be applied by the Government in the following order:

1. To the payment of the salaries, allowances and expenses of the Financial Adviser, the Auditor, the Supervisor of Revenues, the Military Adviser and the six foreign specialists; and the salaries of their staffs.

2. To all other operating expenses of the Government.

All revenues and receipts of the Government in excess of $450,000 annually shall be applied as provided in Section II hereof.”

Section XIII

Article XVIII, paragraph designated (b), is hereby amended to read:

“No unexpended credit to any account provided for in the budget may be transferred to any other account of the budget or to any new account except in accordance with a supplement to the annual budget prepared and approved as herein provided with respect to such annual budget. Any credit to any account remaining unexpended at the end of any fiscal year shall be released and taken into account in the preparation of the budget for the next ensuing year.”

Section XIV

It is understood and agreed that in any fiscal year, after the payment each month of the cost and expenses of the collection, application, audit and administration of the revenues and receipts, as provided in Section XII hereof, any balance of unassigned revenues may be applied to the ordinary expenditures of the Government.

Section XV

In any calendar year when the total revenues and receipts of the Government shall be less than $300,000.00 for the first six months thereof, the interest on all the outstanding Bonds issued under the Loan Agreement of 1926, which is payable on July first of such year, need not be paid on that date, and in lieu thereof, the total interest on such Bonds for such year shall be due and payable on January first of the next succeeding year.

Section XVI

The word “dollar” or “dollars”, wherever used herein, unless otherwise specifically indicated, shall mean Liberian dollars on the basis that Four and Eighty One-Hundredths ($4.80) Liberian dollars is equivalent to One Pound (£1:0:0) English Sterling.

Section XVII

This Supplementary Agreement shall be and remain in force until the thirty-first day of December, 1937, upon the expiration of which period the provisions of the Loan Agreement of 1926 shall, ipso facto, again become operative as originally adopted, except as regards the amendments thereto made by Sections IV to XI, inclusive, and Section XIII, hereof, which shall continue in effect; provided, however, that Section I hereof shall continue in effect until the 31st day of December, 1942.

Section XVIII

The National City Bank of New York has executed this Supplemental Agreement as Fiscal Agent at the request of the other parties hereto, upon the express understanding and agreement that no new duties or responsibilities are incurred by it hereunder and that it shall continue entitled to all the exemptions, assurances and indemnities provided for in the Loan Agreement of 1926; and upon the further understanding that said Supplementary Agreement shall be and become effective only as and when all the Bonds outstanding under the Loan Agreement shall have been stamped by the Fiscal Agent with an appropriate legend reciting the execution and delivery of this supplemental and amendatory agreement.

Section XIX

This Supplementary Agreement shall come into force and effect when duly approved by the Legislature of the Republic of Liberia after execution on behalf of the Government by the officer or officers thereunto duly authorized; provided, that the Legislature of Liberia shall have previously repealed all Legislative Acts and Executive Orders in contravention of the Loan Agreement of 1926, including the following measures heretofore enacted by it, namely:

1. The Act passed over the veto of the President constituting Chapter Seven of the Public Acts of the Thirty Sixth Legislature at the fourth session thereof entitled “An Act to Relieve the Strain Upon the Revenue of this Republic”;

2. The Joint Resolution approved December 23, 1932, entitled “Joint Resolution Authorizing the President of Liberia to Suspend Payment of Interest and Amortization on the 7% Gold Loan of 1926, and for other purposes”;

3. The Act approved January 6, 1933, entitled “An Act Providing for the Funding of the National Floating Debt”:

4. The Act approved January 31, 1933, entitled “An Act Relating to the Officials of the Loan Agreement; and

5. The Joint Resolution approved January 12, 1934, entitled “A Joint Resolution Amendatory to a Joint Resolution Authorizing the President of Liberia to Suspend Payment of Interest and Amortization on the 7% Gold Loan of 1926, and for other purposes, being Chapter II of the Acts of the Legislature of Liberia, approved December 23, A. D. 1932.”

Attest: A. J. Sawyer	The Government of the Republic of Liberia, By Gabriel L. Dennis Secretary of the Treasury
Attest: F. C. Fisher	Finance Corporation of America, By Harvey S. Firestone, Jr. Attorney-in-Fact
Attest: K. J. Adorkor	National City Bank of New York, By John Loomis Attorney-in-Fact

This Agreement made and entered into this 16th day of March, A.D. 1935, by and between Gabriel L. Dennis, Secretary of the Treasury, acting for and on behalf of the Government of the Republic of Liberia, of the first part, and Firestone Plantations Company, a corporation organized and existing under and by virtue of the laws of the State of Delaware, United States of America, engaged in business in the Republic of Liberia, of the second part, hereinafter known and referred to as the Company,

witnesseth:

• First. The Company undertakes and agrees that it will forthwith proceed to cause the organization under the laws of a state of the United States of America of a corporation, to be called Bank of Monrovia, authorized by its charter or articles of incorporation to engage in the business of banking in the Republic of Liberia and other foreign countries.
• Second. That the Company will cause the said Bank of Monrovia to apply for authorization to engage in the business of banking under the laws of the Republic of Liberia and to establish its principal place of business in the said Republic in the City of Monrovia.
• Third. Upon the establishment in Monrovia of the said Bank of Monrovia the Government, at any time subsequent to the 30th day of June, 1935, with the consent of the National City Bank, of New York, first had, will on the request of the Company designate said Bank of Monrovia its depositary for the purposes of the applicable provisions of the Loan Agreement of 1926 between the Government and Finance Corporation of America, and to that end will enter into an Agreement with the said Bank in accordance with the terms of the pro forma Agreement hereunto attached, marked Annex A and made a part hereof.
• Fourth. As security for the performance of its obligations to the Government, the Company will cause the Bank of Monrovia, simultaneously with the execution of the Depositary Agreement, to place in escrow in a bank in New York or London, bearer bonds of the Liberian Government, issued pursuant to the Loan Agreement of 1926, of the par value of Three Hundred Thousand dollars ($300,000.00) pursuant to an escrow agreement in terms as set forth in the form hereunto appended, marked Annex B, and made a part hereof.

In Witness Whereof, the parties hereunto have caused this agreement to be written and executed in Monrovia, Liberia, the day and year first above set forth.

Witnesses: A. J. Sawyer	The Government of the Republic of Liberia By Gabriel L. Dennis Secretary of the Treasury
F. C. Fisher	Firestone Plantations Company By Harvey S. Firestone, Jr. President
	Approved and Accepted: Edwin Barclay President of Liberia

Annex A

Depositary Agreement Between the Government of the Republic of Liberia and the Bank of Monrovia

Whereas, Article XVIII of the Loan Agreement dated September A. D. 1926, by and between the Government of Liberia and the Finance Corporation of America, provides that the Government shall designate a Depositary agreeable to the Fiscal Agent created in virtue of the terms of said Agreement, and

Whereas, Bank of Monrovia, a banking institution organized under the laws of......., with registered office at......., is agreeable to the Fiscal Agent, The National City Bank of New York, as such Depositary,

Therefore, it is agreed between Gabriel L. Dennis, Secretary of the Treasury, acting for and on behalf of the Government of Liberia, hereinafter known and referred to as the Government, of the First Part, and Bank of Monrovia, hereinafter known and referred to as the Depositary, of the Second Part, That

• Section I. The Government hereby designates and appoints the said Bank of Monrovia as its legal Depositary, and the said Bank, in consideration of the compensation to be paid to it by the Government as hereinafter expressed, has accepted such appointment on the terms and conditions of this Agreement.
• Section II. The Government agrees with Bank of Monrovia to deposit with it as Depositary all receipts and revenues collected by and on behalf of the Republic of Liberia, indicating with each deposit the specific deposit account to which the Depositary should pass corresponding credit. The Government’s receipts for postal money orders and radio tolls, which will also be deposited, shall be kept in special accounts in trust as hereinafter provided.
• Section III. Liberian silver and copper coin shall be received by the Depositary from the Government for deposit at the fixed rate of Four dollars and eighty cents ($4.80) to the pound sterling; and the Government shall at the request of the Depositary accept and receive from the Depositary in payment of its cheques drawn on the Disbursement Accounts the whole or any part of such Liberian currency that it may have deposited in the Depositary, and at the same fixed rate.
• Section IV. The Depositary agrees to accept in Liberia all deposits made by the Government as outlined in paragraph 2 of this contract and to credit them to one or more deposit accounts as the Government may desire. For this purpose, the Government agrees to furnish the Depositary with an inclusive list of the deposit accounts which are desired to be maintained.
• Section V. The Government agrees with the Depositary that moneys received by the Depositary and credited to deposit accounts as indicated under Section II of this Contract, will be disposed of only by transfer to one or more disbursement accounts to be maintained by the Depositary. Such transfers will only be made by the Depositary upon receipt of numbered transfer orders requested by the Secretary of the Treasury, approved by the Auditor, and countersigned by the Financial Adviser. The Government further agrees with the Depositary that such transfers shall be at all times in full conformity with the terms of the Loan Agreement. It is further agreed that no responsibility shall attach to the Depositary for effecting any transfer in violation of the terms of the Loan Agreement provided the corresponding numbered transfer order has been duly approved as herein outlined.
• Section VI. To facilitate the operations outlined in the preceding Section, the Government will provide the Depositary with facsimile signatures of the Secretary of the Treasury, the Auditor, and the Financial Adviser, and of those authorized to sign for them in their absence, as well as an inclusive list of disbursement accounts which are desired to be maintained by the Depositary.
• Section VII. Moneys transferred from deposit to disbursement accounts as outlined under Section V hereof, shall then be available for disbursement as provided in the Loan Agreement (Article XVIII, Section d and Article XII, Section 6). It is agreed that such disbursements shall only be made by the Depositary against cheques drawn to the order of specific payees by the Secretary of the Treasury and countersigned by the Auditor, such cheques to bear in every case the name of the disbursement account against which they are to be charged and an exact reference to the Transfer Order under the authority of which they have been issued. In the event that the Depositary is in doubt as to the identity of the Payee or of the validity of any endorsement it may refer the cheque to the Secretary of the Treasury or to any official of the Government thereto designated in writing by the Secretary, for written authority to pay the cheque to the person asserting title thereto as payee or endorsee; and no responsibility shall attach to the Depositary for incorrect payments made upon such identification.
• Section VIII. The Government agrees with the Depositary that moneys arising from postal orders and radio tolls, which are deposited in a special trust account as outlined in Section II of this contract, shall be drawn upon warrant of the President by cheques of the Postmaster-General, and the Depositary agrees to pay such cheques as presented against these funds, provided sufficient funds are on hand in the trust account to cover them.
• Section IX. The Depositary agrees to name an Agent at each of the following Ports of Entry: Robertsport, Buchanan, River Cess, Greenville and Harper, for the protection of the Government revenues and receipts and for the requirements of its Fiscal Administration. Upon mutual agreement between the Government and the Depositary, further agents may be named or any of those agreed upon may be withdrawn, as conditions may justify. No responsibility will attach to the Government for the payment of any compensation to any Agent in virtue of the provisions of this Agreement.
• Section X. The Depositary will arrange with its designated Agents that the Government may draw cheques against the Depositary as provided under Section VII of this contract, indicating on the cheques that they are payable at a designated agency. It is agreed, however, that there will be no obligation on the part of the Agent to pay such cheques prior to receipt of advice from the Depositary, which advice the Depositary agrees to forward as soon as received from the Government without, however, accepting any responsibility for delays in the mail or from other causes beyond its control.
• Section XI. The Government agrees to pay, and the Depositary agrees to accept, the following fees for services rendered the Government by it:

  a) a commission of one per centum on Government revenues and receipts deposited with the Depositary;

  b) for cable transfers to Europe and America, three quarters of one per centum;

  c) for drafts sold on Europe and America, one half of one per centum.

• The cost of cable tolls for telegraphic transfers and of revenue stamps thereon and on drafts shall be paid by the Government. The Depositary agrees that it will not Chargé any commission for deposits of money brought from the United States of America on account of the Loan Agreement hereinbefore mentioned. And no Chargé whatsoever shall be made by the Depositary for keeping Government accounts required and necessary for the proper control of Government moneys under this Depositary Agreement.
• Section XII. The Secretary of the Treasury, the Financial Adviser, and the Auditor, or the designated representative of each of them, shall each have the right at all times during banking hours to examine such books and accounts of the Depositary as relate to Government accounts and verify balances held by the Depositary to the credit of the Government. The Depositary further agrees to render quarterly statements to the Secretary of the Treasury, the Financial Adviser and the Fiscal Agent.
• Section XIII. As security for the trust created by the terms of this Agreement the Depositary covenants to warrant to the Government the faithful and honest discharge of the duties herein imposed by placing in escrow in the hands of a banking institution in New York or London bonds of the Liberian Government issued pursuant to the Loan Agreement of 1926 of the par value of Three Hundred Thousand Dollars ($300,000); provided, however, that in the event that the revenues of the Government shall exceed the sum of One Million Two Hundred Thousand Dollars ($1,200,000) in any one year during the life of this Agreement, the amount of the bonds in escrow shall be increased in an amount equal to twenty-five per centum of such excess.
• Section XIV. Should the Depositary refuse to cash any cheque duly signed by the officials of the Government designated by law and regulation and payable pursuant to the terms of this Agreement, or should it refuse to perform any of the duties herein imposed or neglect to keep and perform any of the covenants herein contained, then in such case the Government shall be authorized to cancel this Agreement in accordance with Section XVI, anything to the contrary herein expressed notwithstanding.
• Section XV. During the life of this Agreement, all currencies imported or exported or shipped between ports in Liberia by the Depositary, or without the Republic shall be open to examination upon the premises of the Depositary by the Customs Officials in accordance with existing regulations.
• Section XVI. It is agreed that this contract shall be effective for a period of five years from the date hereof, subject to cancellation upon three months’ notice by either party.

In Witness Whereof, we have affixed our hands and seals at the City of Monrovia, in the County of Montserrado and Republic of Liberia, as of the.....day of.....A. D. 1935.

Witnesses: ________	The Government of the Republic of Liberia By________ Secretary of the Treasury
________	Bank of Monrovia By________ Approved and Accepted: ______________ President of Liberia

Annex B

Escrow Agreement

This agreement, dated as for convenience June 30, 1935, by and between

The Government of the Republic of Liberia, of the first part (hereinafter called the Government);

Bank of Monrovia, a corporation organized under the laws of the State of..........., United States of America, of the second part (hereinafter called the Depositary); and

............., a banking corporation (or a trust company) organized under the laws of............., of the third part, (hereinafter called the Bank)

witnesseth:

1. By an instrument dated as of........, 1935, (a copy of which, marked Annex A, is hereunto appended and made a part hereof) the Government, with the approval of National City Bank, an American Banking Corporation, has designated Bank of Monrovia as its depositary upon the terms and conditions therein set forth.

2. In compliance with and for the purposes of the requirements of Article . . of the said Agreement (Annex A) the Depositary has placed in the hands of the............., in escrow, bonds, with interest coupons attached, of the Government of Liberia issued pursuant to the Loan Agreement of 1926, or the par value of Three Hundred Thousand ($300,000.00) dollars, the numbers of which and other identifying particulars are specified in the schedule hereunto appended, marked Annex B, and made a part hereof.

3. If the Depositary shall fully account to the Government for all funds placed in its keeping as depositary and shall make all payments due from it as such, then three months after the termination of the said Depositary Agreement by expiration of the agreed term or previous cancellation in accordance with its provisions the Bank shall release and surrender unto the Depositary the bonds described in said Annex B; but if prior to the expiration of such term of three months the Government shall notify the Bank that it has a claim upon the said bonds by reason of any breach of the said Depositary Agreement asserted by it to have been committed by the Depositary, then the Bank shall retain in its possession the said bonds until such claim has been adjusted or abandoned as hereinafter provided.

4. Within . . days from the date of the notification of such claim, if the same is contested by the Depositary, the Government shall commence proceedings for the arbitration of its demand in the manner provided in the Loan Agreement of 1926 for the arbitration of disputes between the parties thereto, which said arbitration provisions are hereby adopted by the parties to this agreement as fully as though incorporated herein. Should the Government fail to institute arbitration proceedings within the time hereinabove specified its claim or claims against the Depositary shall be deemed to have been abandoned, extinguished and waived, and the Bank may surrender the said bonds to the Depositary as though no such claim or claims had ever been formulated. If such claim or claims are submitted to arbitration within the time limited hereby, the Bank shall retain the bonds in its possession until the final award has been made or the demand for arbitration withdrawn. If a final award is made in favor of the Government upon one or more of its demands against the Depositary the Bank shall deliver to the Government forthwith bonds of a par value equal to the amount of the award. The remaining bonds, if any, shall thereupon be surrendered by the Bank to the Depositary.

5. All interest coupons of the said bonds which mature while the same are being held in escrow by the Bank and before notification by the Government of a claim or claims hereunder, shall be detached and delivered by the Bank to the Depositary.

In Witness Whereof the parties hereto have caused this agreement to be executed as of the date first above written.

The Government of the Republic of Liberia,
By ____________
Secretary of the Treasury
Bank of Monrovia,
By ____________
By ____________
Approved and Accepted:
______________
President of the Republic of Liberia
_____________