882.20/456
Memorandum of Conversation, by Mr. Henry S. Villard of the Division of Near Eastern Affairs
I telephoned to Mr. Dunaway24 at his home in Maplewood, New Jersey, in order to obtain his opinion regarding the proposed agreement between the French and Liberian Governments under which Liberia would undertake to train a standing army of 5000 men under the direction of twelve French non-commissioned officers and to obtain from France an unspecified quantity of arms and ammunition on terms to be agreed upon. It appeared desirable to consult Mr. Dunaway on this subject not only because of his position as Financial Adviser to the Liberian Government but because his long experience in Liberia qualified him to express an opinion on the economic merits of the French proposal.
Mr. Dunaway said that he was “flabbergasted” to learn of this development and that there was no way under the Firestone Loan Agreement by which Liberia could Undertake the expenditures called for by such a program. Mr. Dunaway said that, according to the provisions of the Loan Agreement, the only expenditures outside of the regular budget to which the Liberian Government could commit itself would be those charged against an estimated surplus in the revenues. As there were no estimated surplus revenues, the Liberian Government could not undertake to incur expenses not provided for in the current budget. The only way Liberia could pay for the military [Page 584] establishment contemplated would be by incurring an indebtedness to the French Government, which could not be done without the approval of the Financial Adviser. In this connection Mr. Dunaway explained that one of the provisions of the Loan Agreement was to the effect that the Firestone Company would have the first option on any further loans or advances of money to the Liberian Government.
Mr. Dunaway also remarked that the recruiting, training and maintenance of 5000 men, as well as the acquisition of arms and ammunition, would cost the Liberian Government more than its entire national budget. He said that he did not see how, in any case, a force of 5000 native troops would be of the slightest use to Liberia. Mr. Dunaway thought it would take at least five or six years to train such an army and that, in the end, its efficacy against any attack would be open to considerable doubt. Mr. Dunaway could conceive of no advantage whatsoever to Liberia from such an arrangement, nor could he understand the motives of the French Government in proposing a plan of this kind. In his opinion the defense of Liberia could be adequately secured by a naval patrol of the Liberian coastline by the French or British naval vessels stationed in West Africa.
In conclusion Mr. Dunaway expressed the strong hope that the Department would do all it could to bring to the attention of the Liberian Government the difficulties and dangers of the French proposal. He said that he had heard by mail from Mr. Pilot, the Auditor of Liberia, that the two representatives of the French Government had arrived in Monrovia, but that he had not been informed as to their objective. Mr. Dunaway said that he was at a loss to understand how the Liberian Government could undertake to give effect, in any way whatsoever, to the French plan of assistance. He expressed his thanks for my informing him of this development and said that he would be very glad to give us the benefit of his further views should we desire him to do so.
Mr. Dunaway said that he would be in this country until July 3 and hoped that if any developments took place in the meantime we would let him know.
- John A. Dunaway, Financial Adviser to the Liberian Government.↩