811.79682/67a: Airgram

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

A–35. In an airgram dated July 26, 1943, No. A–22, the Department requested your comments on the question of whether an approach to the Liberian Government should be made in an effort to obtain for Pan American Airways and its personnel the exemptions from taxation provided for in Article 4 of the Defense Areas Agreement entered into between the Government of the United States and the Government of Liberia on March 31, 1942 (Executive Agreement Series 275). This agreement contains more liberal provisions for exemption from taxation than the provisions relative to taxation contained in Article 6 of the contract concluded between the Government of Liberia and Pan American Airways on July 14, 1941.

In the Legation’s despatch No. 190, dated November 3, 1943, it is pointed out that there is little or no likelihood of obtaining the more liberal exemptions for Pan American Airways and its personnel on an unlimited basis. However, the second paragraph of the dispatch [Page 702]suggests that probably a temporary arrangement might be made to obtain the desired exemptions for Pan American Airways and individual members of the Pan American Airways staff for the duration of the war. This suggestion is in line with the Department’s intention in requesting your comments in airgram A–22 of July 26.

In as much as you have expressed the opinion that such exemptions might be obtained for the duration of the war, you may, unless you see some objections thereto, approach the Liberian Government with a request that Pan American Airways and its personnel be granted the exemptions mentioned in Article 4 of the Defense Areas Agreement for the period during which the Agreement will remain in force which will be for the duration of the war and not to exceed six months thereafter in connection with services which Pan American Airways operates under contract with the United States Army and Navy.

Hull