The Chargé in Liberia (Litsey) to the Department of State
59. Embtel 51, July 29.1
Memo of agreement signed last night between Lib Govt and LibMinCo. Salient features are that beginning April 1, 1957 Br at time LibMinCo liquidates outstanding obligations if sooner Lib Govt will participate net profits of company to extent 25 percent for five years, 35 percent next ten years and 50 percent thereafter. In interim and until Lib Govt begins participate profits LibMinCo will pay interim royalty $1.50 ton ore in addition to royalties specified orig concession.
The amount ore optioned at special price to Rep Steel now 66 percent will be ultimately reduced to 45 percent but Rep Steel will have right buy additional 20 percent at price equal to average annual price to other purchasers.
Board of Directors to consist 13 members as fols: Three Lib Govt, three minority shareholders, seven majority shareholders, that is Rep Steel.
Deptel 43, July 302 did not arrive in time advise Rep Steel rep US policy re local govt membership board directors Amer companies in Africa.
- Not printed; it noted that representatives of the Liberian Mining Company and Republic Steel had arrived in Liberia to renegotiate the contract and see President Tubman. (876.331/7–2952)↩
- Not printed; it stated that “as matter gen econ policy Dept opposed participation local Govts in directorship governing Boards Amer Corps investing in Af”. (876.331/7–3052)↩