On January 22, the Board of Directors of the Export–Import Bank of Washington authorized a credit of $5 million to Liberia for road construction and improvement. The credit was to bear interest at the rate of 3½ percent per annum and to be amortized over a period of 18 years. The Board of Directors also decided the proposed Liberian electric power, water, and sewerage projects required further study before consideration for financing was justified. The views of the National Advisory Council are set forth in NAC Document 1090, supra.
A draft text of a credit agreement was soon negotiated between the Bank and the Liberian Commission and forwarded to Liberia for approval. Regarding Liberian President Tubman’s concern over the action of the Export–Import Bank and some specific aspects of the draft agreement, see the immediately following pages. The formal agreement between the Export–Import Bank and Liberia for the $5 million highway improvement and construction credit was signed in Washington on February 21. Liberian Secretary of State Dennis, the head of the Liberian Commission in Washington, signed on behalf of Liberia. The Liberian legislature, convened in special session, approved the agreement on August 16.
Basic documentation on the negotiation of the agreement of February 21, including the text of the agreement itself, is included in Department of State file 876.10. Other important documentation on the credit is included in file 103 XMB.