882.6176 F 51/207

The Liberian Secretary of State (Barclay) to Mr. W. D. Hines

471-L

4

[MONROVIA,] June 18, 1924.

SIR: I have the honour to forward you herewith drafts of the formal Agreements covering the proposals of your Principals which we have discussed.

It is to be hoped that you will find them in accord with the understandings reached at our last conference. Should they appear to you in any particular to depart from those understandings, I would be grateful if you would so advise me.

In case the Agreements meet your approval, be so good as to initial and return them.

I have [etc.]

882.6176 F 51/207

EDWIN BARCLAY

Mr. W. D. Hines to the Liberian Secretary of State (Barclay)

MONROVIA, June 19, 1924.

EXCELLENCY: I have the honour to address you and acknowledge receipt of your communication of June 18th. I desire to express our appreciation of your courtesy in this matter and in compliance therewith I respectfully submit some minor changes which I feel would make the Agreements more acceptable to my Principals in accordance with my general instructions.

Realising the time conditions under which the final document was prepared, I desire to call attention to one subject which I understood was agreed upon in our conference of June 16th but to which no reference is made in the document at hand namely:

Provision for the Lessee to engage in such other agricultural pursuits, i. e., foodstuffs and the like which will enable him to effectively and efficiently operate his property.

Also the provision that the Lessee will be entitled to the opportunity to engage in any other operations upon his holdings under the same terms and conditions granted any other individual or corporation and under the laws and statutes of the Republic of Liberia. As we pointed out we desired this as protection from any possible future outside interference.

It would also be much appreciated if you would consider the matter of qualifying the road building clauses as regards routes and specifications so that they would not be taken to provide for any routes

'Not printed in the publication (see footnote 2 supra) in which this letter appears. For a later draft of these agreements, see the enclosures to Secretary Barclay's letter No. 476-L of June 19, 1924, p. 369.

that would be ineffective for our use and place a limit upon the amount necessary to expend per mile.

We also request consideration of the insertion of clauses exempting our properties from any taxes other than those specified and for exemption of our lines of communications from taxation while they are being used by us and in view of the fact we have made provision for their public use at all times.

I also beg leave to submit for your consideration a provision in the Harbour Agreement to the effect that the cost of maintenance and repairs shall not be deducted from the Port and Harbour dues thus assigned when such dues fall below a certain minimum figure. This figure could be determined later. We respectfully submit that such a provision would be required by our Principals in order to determine the amortization of their investment.

In view of the shortness of time, I beg leave to inform you that if such additional provisions as I have suggested are agreeable to the Government they might be placed in the form of an addenda [sic] to the document already submitted and could be incorporated later in the final Agreement. If satisfactory to the Government and Your Excellency this would be satisfactory to us.

With expressions of esteem and appreciation, I would appreciate the privilege of discussing these suggestions in case you desire further explanation of them.

I have [etc.]

W. D. HINES

882.6176 F 51/207

The Liberian Secretary of State (Barclay) to Mr. W. D. Hines

476-L

[MONROVIA,] June 19, 1924. SIR: I have the honour of forwarding to you herewith the draft Agreements amended in accordance with the suggestions made in your communication of today's date. I wish to apologise for my inadvertence in omitting the points to which you call attention.

In view of your contemplated early departure may I ask that you advise me as soon as possible today whether or not the documents now sent accord with understandings which have been reached by us?

It is understood, of course, that these Agreements are subject to the approval of the Legislature of the Republic of Liberia, and that the provisions of Article III paragraph (d) and Article IV paragraph (j) of Agreement number Two are applicable also to Agreement number One Article III paragraphs (b) and (c) in respect of lines of communication established outside the confines of the lands held by Lessee and vice versa.

I have [etc.]

EDWIN BARCLAY

[Enclosure 1]

Draft Agreement Number 1 Between the Government of Liberia and Harvey S. Firestone Concerning the Lease of Mount Barclay Rubber Plantation

MEMORANDUM OF AGREEMENT (Styled Agreement Number One) made and entered into this . . . . day of June in the Year of Our Lord Nineteen Hundred and Twenty-four by and between the Government of the Republic of Liberia represented by Edwin Barclay Secretary of State of the said Republic hereinafter styled the Government of the first part and Harvey S. Firestone a citizen of the United States of America residence at ... . . in the state of . United States of America represented by William D. Hines hereinafter styled the Lessee of the other part WITNESSETH :—

ARTICLE I

That whereas the said Lessee for the purpose of experimentation in the productivity of the soil and the costs of producing rubber on an extended scale in the Republic of Liberia has applied for a lease of the Rubber Plantation known as the Mount Barclay Rubber Plantation situated in the Township of Johnsonsville County of Montserrado and Republic of Liberia.

The Government for and in consideration of the sum of One Dollar ($1.00) gold per acre per annum and other covenants hereinafter stipulated to be kept observed and performed by the Lessee hath agreed to let and by these presents doth grant demise and to farmlet unto the Lessee all that parcel of land situated as aforesaid and containing acres of land bounded and described as follows:

.

(Here set out boundaries)

TO HAVE AND TO HOLD the above mentioned and described premises with the buildings which are now or which may hereafter be placed thereon and the appurtenances thereunto appertaining unto the Lessee from the day of June Nineteen Hundred and Twenty-four for the full end and term of one year thence next ensuing and fully to be completed and ended the said Lessee yielding and paying therefor unto the Government upon the ensealing of these presents the rent of One Dollar gold per acre per annum money current in the Republic of Liberia.

ARTICLE II

And the Lessee doth covenant hereby to and with the Government that

(a) For the purposes hereinbefore specified he will take the premises hereby demised and that he will pay or cause to be paid the yearly rent above reserved on the day in the manner prescribed and that on the last day of said term or any sooner determination of the estate hereby granted the Lessee shall and will quietly leave and surrender up unto the Government all and singular the said demised premises.

(b) And the Lessee doth further covenant and agree to furnish the Government from time to time with full reports of the scientific and technical results of the experiments carried by the Lessee at said Plantation.

(c) That he will not import unskilled labour for the carrying out of any operations of developments undertaken upon the Plantation hereby demised to him except in the event the local labour supply prove inadequate to the Lessee's needs.

(d) That in the event the local supply prove inadequate as aforesaid Lessee undertakes and agrees to import only such foreign labour to supply the local deficiency as may be acceptable to the Government. (e) That he in addition to the rents above reserved will pay to the Government a revenue tax of two and one-half (22) per centum on the value of all products of the Plantation calculated at the New York market prices prevailing at the date of sale provided however that should the Lessee construct any roadways or other lines of communication in accordance with Government specification as to routes and type of road the revenue tax shall in consideration of the public utility thus established by Lessee be reduced to one and one-half (12) per centum on the value of products as aforesaid for a period of Twenty (20) years next ensuing after the initiation of such works. (f) That the Lessee will come to an arrangement with the Treasury Department of Liberia with respect to the collection and payment of the poll tax payable by persons carried on his pay-rolls.

(g) That in the case of emergency declared to be such by the Government the said Government shall be entitled to the use of his lines of communication such as telegraph telephones and wireless established outside or within the limits of the plantation.

(h) That at the expiration of the one year lease granted by these presents he will renew said lease for the period of Ninety-nine years in consideration of annual rent of Six Thousand Dollars gold payable in advance annually and the two and one-half (22) per cent revenue tax hereinbefore reserved.

ARTICLE III

And the Government doth covenant and agree by these presents that the Lessee paying and yielding the yearly rents above reserved

126127-40-vol. II-29

and performing the covenants and agreements aforesaid on his part stipulated to be performed.

(a) Shall and may at all time during the term hereby granted peaceably and quietly have hold and enjoy the said demised premises without any let suit trouble or hindrance from the Government or any person or persons whomsoever.

(b) Shall have the right at his own proper charge and expense to establish lines of communication such as roads and highways outside the limits of the Plantation provided that such public highways as now exist or are in course of construction through the Plantation be not closed by Lessee but shall remain open to the free and unobstructed use of the public.

(c) Shall be exempt from the payment of any revenue tax on the products of the Plantation saving the (22) two and one-half per cent revenue tax above reserved.

(d) Shall be exempt from the payment of any customs duty on all machinery tools and technical supplies the property of Lessee necessary to the operation and development of said property except where Customs duty is under existing laws or financial arrangements now levied upon such articles.

(e) That lines of communication such as telegraph telephones and wireless established by Lessee outside the limits of the plantation shall remain the property of Lessee subject as aforesaid to the use of the Government in case of emergency-provided they be operated under conditions prescribed by the Government.

(f) That at the expiration of the year lease hereby granted the Lessee shall have the right to renew the lease of the Mount Barclay Rubber Plantation for a period of Ninety-nine years provided however that should Lessee exercise his option for renewing the lease of said plantation the rent there for in that event shall in addition to the other covenants hereinbefore stipulated by him to be observed and performed be Six Thousand Dollars gold per annum payable annually and every year in advance and provided further that in the event of a renewal of said lease should the rent above reserved or any part thereof be behind or unpaid on any day of payment whereon the same ought to be paid as aforesaid or if default should be made in any of the covenants hereinbefore contained on the part of the Lessee to be paid kept and performed then and from thence forth it shall and may be lawful for the Government into and upon the said demised premises and every part thereof wholly to reenter and the same to have again repossess and enjoy as in the Government's former estate anything herein to the contrary hereof in anywise notwithstanding.