882.5041/15
Memorandum of Conversation, by the Assistant Chief of the Division of Near Eastern Affairs (Villard)
Mr. Larrabee came in to discuss the recently passed workmen’s compensation and protection act in Liberia. He reviewed details of his company’s problems in this connection for about an hour.
It was made clear by Mr. Larrabee that the Firestone Company declined to recognize the applicability of the legislation to the Firestone Plantations. Mr. Larrabee said that the labor provisions which had been agreed upon between the company and the Liberian Government had been incorporated into the Planting Agreement as late as 1937 and that at no time had the company received any intimation from the Government that these provisions were unsatisfactory. Through its resident manager in Liberia the company had now served notice on President Barclay that it would not consider itself bound by the recently enacted legislation. As the Firestone Company had invested about $18,000,000 in developing its rubber operations in Liberia, it intended to take a firm stand in the matter and to fight any attempt on the part of President Barclay to enforce the law on the Plantations.
Mr. Larrabee inquired whether the Department intended to take any further action. I said that it did not seem possible to make any move at present, especially as President Barclay had indicated that the law was an experimental one and could be adjusted if difficulties should develop. I said that if the interests of the company were endangered by the application of the law and serious results ensued, the matter could probably be reconsidered here and consideration given to what action, if any, we might be in a position to take.
Mr. Larrabee remarked that the longer the matter was allowed to drift, the more difficult it would be to obtain an adjustment. He said the company was prepared to face serious labor troubles if the Liberian Government insisted on carrying out the provisions of the law.
[Page 698]Mr. Larrabee said that according to information received from the Firestone resident manager the law would have to be implemented by an executive decree, which would provide the detailed mechanism. So far President Barclay had not issued such a decree.
I asked Mr. Larrabee to keep us informed of all developments, which he promised to do.