740.00112 European War 1939/3600

Memorandum of Telephone Conversation, by the Assistant Chief of the Division of Near Eastern Affairs (Villard)

Mr. Firestone telephoned from New York to say that he had further information in regard to the difficulties of the Oost-Afrikanische Company in accepting a transfer of funds from the Bank of Monrovia for the account of the German firm of Woermann and Company. It [Page 531] appeared that the British Consul at Monrovia had threatened to blacklist the Oost-Afrikanische Company if it accepted these funds, whereas the Liberian Government had advised the Dutch firm it would lose its license if it failed to accept this business. The Liberian position was based on the Government’s neutrality proclamation, which required that no discrimination be shown to the nationals of belligerent countries.

Mr. Firestone further said that a provision of Liberian law dating back to January 26, 1916 provided penalties for violation of Liberian neutrality, or for any act which would subject Liberia to reprisals for such violation. The Firestone Company was therefore disturbed at the possibility that the Government of Liberia would take action against the Bank of Monrovia if it failed to transfer the German funds to the Oost-Afrikanische Company. Moreover, according, to Mr. Firestone, the Bank of Monrovia would lose its agency in the Oost-Afrikanische Company in any event unless some action were taken to settle the controversy; if the Government acted under its neutrality proclamation the Oost-Afrikanische Company would lose its license, and if the British Consul carried out his threat the Oost-Afrikanische Company would be placed on the blacklist.

Mr. Firestone said that according to reports from his resident manager, the American Legation was disinclined to take up the matter. Mr. Firestone thought it would be helpful if a telegram could be sent in order that the British Consul might be fully informed as to our interest in the matter. I agreed that this would be helpful and said that the Department would instruct the Legation accordingly.