882.1561/26: Telegram

The Secretary of State to the Minister in Liberia ( Walton )

143. The last sentence, paragraph 1 of Article 5, reference your telegram no. 217 of December 21, makes provision for “adequate and equitable representation” for Liberia on the board of directors. While “adequate and equitable” remains to be defined in the operating contract, it is the desire of this Government that Liberia should be afforded a voice in the operation of the port sufficient to represent the Government’s point of view and to afford Liberians an opportunity to become fully familiar with modern port operations, looking forward to the time when operating control and ownership of the port will pass to Liberia. In order that the Liberian Government might know what we have in mind it is contemplated that the board [Page 690] of directors would be composed of five members, two of whom would be Liberians. It is our view that one of these should be the Liberian Secretary of the Treasury and the other appointed by the President of Liberia.

Considering the probable cost of the port and the fact that the project is not to be paid for from revenues of the Liberian Government but from the port itself, this Government feels that operating control must, in the final analysis, rest with the American company. It is not certain that this could be accomplished under joint control. It should be emphasized that the third paragraph of Article 5 gives the Liberian Government recourse in the event it should become dissatisfied with the performance of the operating company.

No objection is perceived to the proposed legal position of the company or corporation, but this can be taken care of in operating contract.

Please communicate the above views to the Liberian Government and state that this Government will not fail to consider always the interests of Liberia.

Hull