882.635 Neep/106
Memorandum of Conversation, by Mr. Henry S. Villard of the Division of Near Eastern Affairs
Mr. G. L. Adair, a geologist of the Bethlehem Steel Company, called by appointment to discuss the iron ore deposits in Liberia. He said that his company had been interested in the boring analysis which the Department had forwarded, and that while the analysis appeared to be incomplete it nevertheless showed that a good grade of ore existed in the locality in which the boring had been made. I told Mr. Adair that since writing to his company, the Department had received a sample of iron ore from Liberia, which had been pronounced a very good grade of magnetite by the Bureau of Mines, but [Page 808] that we had no information as to the area from which the sample had been taken. Mr. Adair thought this information was also of interest.
I outlined to Mr. Adair in considerable detail, and in strict confidence, the background and present status of the Neep concession. Mr. Adair followed the story attentively and observed that, in his opinion, the persistent failure of the Neep interests to furnish geological reports or samples might be based on one of two possibilities: (1) that the ore deposits were much more valuable than at first appeared; or (2) that the backers of Neep had no serious intention of developing the deposits and were concerned primarily with selling the concession, after it had been obtained, to the highest bidder. In the latter case, they would probably not wish exact geological data to be in the hands of the Liberian Government. Mr. Adair added that the firm of Muller and Company, which has expressed a revived interest in the concession, was very well known and that it undoubtedly could obtain a subsidy from the German Government to develop, in any part of the world, the iron ore supplies which Germany lacks so badly in its current program.
I then said that, as Mr. Adair knew, the Department was making the information regarding the Liberian iron ore deposits available to other American steel interests, and that it was reasonable to suppose that one or more companies in addition to his own might be interested in the possibilities. We had telephoned him, I said, because developments were taking place rather swiftly in this matter, and we are anxious that all companies which might be in a position to investigate the subject should have an equal opportunity to obtain the pertinent information. Mr. Adair said he fully appreciated the Department’s attitude in this connection.
I then brought up the question of possible competition between two or more American steel firms, either for exploratory rights or for an outright concession in Liberia. I described to Mr. Adair our experiences in the case of petroleum concessions in the Near East, discussing the subject along the lines mentioned in this Division’s memorandum of July 13 regarding the visit of Mr. John M. Sias to the Department. I asked Mr. Adair if he knew what the attitude of his company might be toward a possible joint undertaking in Liberia.
Mr. Adair replied that he personally saw no insurmountable obstacle to forming an alliance with another American steel firm for such purpose. He pointed out that very few of the iron ore deposits in this country were owned or exploited exclusively by one concern, that most of them represented a joint interest, and that it was quite customary in the trade to effect an exploitation agreement with another concern. He added, however, that owing to its experience in other foreign countries, particularly Venezuela, Chile and Cuba, as well [Page 809] as the fact that it possessed tidewater plants on the Atlantic seaboard, Bethlehem was in a better position than any other American concern to enter the Liberian field.
At the conclusion of our discussion, Mr. Adair stated that he would transmit the information we had given him to Mr. Buck, Vice President in charge of raw materials, with whom the decision would rest as to whether the company should pursue the matter further. He said that if it were decided that the deposits were sufficiently interesting, the company would probably wish to send an engineer to Liberia to make a survey, and that the company would first approach the Department for advice as to the proper procedure. Mr. Adair said he would, in any case, let us know one way or another as soon as decision was reached.