740.00112 European War 1939/3170
The Minister in Liberia ( Walton ) to the Secretary of State
[Received August 13.]
Sir: I have the honor to refer to Department’s telegram no. 36, June 20, 2 p.m., and to enumerate instances reported to this Legation by reputable persons vis-à-vis business transactions between British and German firms in Monrovia and endeavors to promote British trade at the expense of American and Liberian trade with the acquiescence of the British Legation.
It is common knowledge that diplomatic and consular representatives of the British Government at this capital have given tacit approval to furthering the interest of British trade to the disadvantage of American and Liberian trade. For example, in 1940 the former British Chargé d’Affaires refused to grant navicerts to Liberians to export piassava which the Germans had stored in large quantities at Bassa, Cape Palmas and other sections of the country. A Syrian merchant was blacklisted for exporting a shipment of piassava to the United States bought of a German firm. But the blacklist was later lifted and he was allowed to ship piassava to England, the excuse given—it was to British interests for him to do so. While this piassava was not purchased by a British firm from the Germans, it was purchased from Germans on behalf of British trade through an intermediary.
During the first of the year the salt shortage became acute in Liberia and unobtainable in various stores including those operated by German traders. Shortly after a British vessel delivered a large consignment of salt to British firms one German store in particular replenished its stock. To verify the charge circulated that a British firm was supplying German traders with salt, an American clerk employed by the Bank of Monrovia took a picture of a truck leaving the warehouse [Page 528] of a British firm loaded with salt which was delivered to the warehouse of a German firm.
Some time in April an African clerk in the employ of a Syrian firm was sent to a store operated by a British firm to purchase ten cases of Scotch whiskey. When informed that it was not available, he visited various stores and was finally accommodated at a German store. To his great surprise he noted that the case markings bore the name of one of the British firms. When making the purchase at the German store he was informed it would be possible to get any amount of whiskey he desired.
One of the largest Syrian firms in Liberia, a subsidiary of a British firm, is known to supply Germans with goods with the consent of the British firm in question.
The manager of a German firm in talking with the General Manager of the Firestone Plantations Company last April stated that the stock in his store was valued at eight thousand pounds sterling. Three-fourths of which was British. Most of the stock has been received since the outbreak of war in Europe.
A Liberian of unquestioned veracity, and who is on friendly terms with French nationals in Liberia, informed the American Minister that during the first conversation the French Chargé d’Affaires had shortly after his arrival in April with the German Consul General he had been informed by the German Consul General that British traders had been very helpful in supplying goods to German traders.
There are three sources of gasoline and oil supply in Liberia, namely the Firestone Plantations Company, a British firm, and a French firm. The manager of the French firm is openly anti-German. The Firestone Plantations Company has been consistent in its policy not to sell gasoline to other firms or to the public. Nevertheless, one German firm carries for sale a large stock of gasoline and oil. Germans have sufficient supplies of gasoline and oil for their motor cars and trucks. The rumor persists that the gasoline and oil is supplied by British traders.
I desire to refer again to the treatment accorded Mr. William E. Dennis, No. 1 Liberian trader and potential competitor, who, although not on the British blacklist, was for six months unsuccessful in his efforts to induce the British Legation to facilitate the shipment of a large consignment from the United States to Liberia. The excuse given by the representatives of the British Legation was weak and unconvincing. It was obvious that British interests in Liberia were secretly working to embarrass Mr. Dennis as much as and as long as possible. The Dennis consignment was finally received here the middle of June. The Oost-Afrikaansche Compagnie, a Dutch trading company, has met with a similar experience, but not as extended as that to which William E. Dennis & Company was subjected.
[Page 529]When complaint is made to representatives of the British Legation or when informed of these reported charges, they either profess ignorance or, as in the case of the piassava shipment and in the case of the surf boats purchased by Paterson Zochonis & Company, from the Woermann Line, they maintain it was to British interests that transactions were consummated.
As pointed out in Legation’s despatch no. 618 of May 20,11 the Vice Consul of the British Legation and the manager of Paterson Zochonis & Company, who is local agent of the Barber–West African Line, married sisters and the latter was instrumental in securing appointment of the former as member of the British Legation. The manager of Paterson Zochonis & Company and the British Chargé d’Affaires are personal friends.
I am pleased to report that the situation has changed for the better and the British Legation is exhibiting a more sympathetic, cooperative attitude in granting navicerts to traders other than British for purposes of importation. However, the policy of the British Legation with respect to granting navicerts to Liberians to export piassava from Liberian ports to the United States has not materially changed. It is reported that approximately five hundred thousand tons of piassava are ready for shipment but cannot be exported because of the inability of Liberians to secure navicerts.
Respectfully yours,
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