charge upon all the customs revenues and internal revenues of the Republic, subject only to a prior charge on such customs revenues for expenses of administration. This Bond may be redeemed at 102 per cent. of the principal hereof through the operation of the Sinking Fund provided for in the said Contract, on any semiannual interest date prior to maturity, upon at least sixty days prior notice, published in two daily newspapers of general circulation, published in the Borough of Manhattan, City and State of New York. The Republic hereby certifies and declares that all acts, conditions and things required to be done and performed and to have happened precedent to and in the issuance of this Bond have been done and performed and have happened in strict compliance with the constitution and laws of the Republic. This Bond shall be transferable by delivery unless registered in the owner's name at the said head office of the Fiscal Agent, such registration being noted hereon. After such registration, no further transfer hereof shall be valid unless made at said office by the registered owner in person or by duly authorized attorney and similarly noted hereon; but this Bond may be discharged from registration by being in like manner transferred to bearer and thereupon transferability by delivery shall be restored. This Bond shall continue to be subject to successive registrations and transfers to bearer, at the option of the holder or registered owner, but no registration shall affect the negotiability of the attached interest coupons, which shall continue to be payable to bearer and transferable by delivery merely. Bonds of this issue, of the denomination of $500, are exchangeable, at the option of the respective holders thereof, for a like aggregate principal amount of Bonds of this issue, of the denomination of $1000, in the manner and upon payment of the charges provided in the said contract. This Bond shall not be valid or obligatory for any purpose until authenticated by the execution by the Fiscal Agent of the certificate indorsed hereon. IN WITNESS WHEREOF, the Republic of Liberia has caused this Bond to be executed on its behalf by its. and impressed with a facsimile of its seal of State, attested by and the attached interest coupons to be executed with the facsimile signature of its Secretary of the Treasury, as of . . . 192... 126127-40-vol. II- -36 882.6176 F 51/63 The Liberian Secretary of State (Barclay) to the Secretary of State NEW YORK, September 25, 1925. [Received September 28.] MR. SECRETARY OF STATE: On my departure from the United States I desire to express to Your Excellency my sincere appreciation of the most sympathetic and courteous consideration paid me whilst resident in your great country, and to record both officially and personally my thanks for the helpful suggestions and assistance rendered me by your Department in the various matters with which I have been charged. Permit me to add that I return to Liberia in the firm conviction that the Government of the United States faithful to the traditional ideals of its founders is working for the untrammelled development of the various peoples of the world along democratic lines and that my country and its Government might rely upon the disinterested assistance and cooperation of the Great American Republic upon all proper occasions. Please accept [etc.] 882.51/1840 EDWIN BARCLAY The British Chargé (Chilton) to the Secretary of State No. 877 WASHINGTON, October 7, 1925. SIR: Information has reached His Britannic Majesty's Government to the effect that negotiations have been undertaken, or are in contemplation, between certain industrial or financial groups in the United States and the government of the Republic of Liberia in regard to the granting to the latter of a loan one of the conditions of which would be, it is understood, that a nominee of the United States should be placed in sole control of the Liberian customs. In this relation I am directed to draw your attention to a note addressed on the 13th September, 1919, by the late Lord Curzon, to Mr. John W. Davis, then United States Ambassador in London, defining the terms on which His Majesty's Government agreed to the withdrawal of the British Receiver of Liberian Customs. In the following passages of that note the attitude of His Majesty's Government was indicated: 54 "1. According to a system now in force in the Liberian customs administration permits to exceed in certain respects the strict letter of the customs regulations have hitherto been granted by the authori ties equally to reputable traders of all nationalities when prompt handling of merchandise would be thereby facilitated. The necessity for such a system is occasioned, it is understood, largely, if not entirely, by the absence in Liberia of "bonded warehouses", properly so-called. His Majesty's Government, then rely upon the continued observance under the new administration of strict impartiality in the issue of such permits to British traders. 2. His Majesty's Government are confident that the customs dues on all imports of British goods, as well as on exports of Liberian produce of all descriptions without exception, to any part of the British Empire, will be levied at no higher rates than, and in an exactly similar manner as, on imports of United States merchandise into Liberia, and exports of produce from Liberia to the United States of America. 3. It is assumed that the United States Government in the special position which they are in future to occupy in Liberia, will support any representations which His Majesty's Government might at any time be called upon to make to the Liberian Government, should the latter take any action to cancel, limit, or infringe the rights possessed by British subjects by virtue of the existing concessions in the country." His Majesty's Government now desire me to say that so long as they refrain from exercising their right of appointing a British Receiver of Liberian customs, they naturally expect that the stipulations above quoted will remain in force and they are confident that equality of treatment for all nationalities will be maintained in Liberia. I have [etc.] 882.51/1840 H. G. CHILTON Memorandum by the Secretary of State of an Interview With the British Ambassador (Howard), October 19, 1925 I explained to the British Ambassador very briefly the attitude of the United States in Liberia as to the open door policy and told him I would answer his note of a recent date as soon as possible. 882.51/1843: Telegram The Secretary of State to the Ambassador in France (Herrick) [Paraphrase] WASHINGTON, October 28, 1925-8 p. m. 398. The Department of State is informed that Mr. Barclay, Secretary of State of Liberia, at present in Paris,55 is expecting direct word from this Department containing approval of the tentative In connection with the Franco-Liberian boundary dispute, see pp. 495 ff. loan terms negotiated recently by him with American banking interests. This is caused, the Department is informed, by a misunderstanding of the practice of the Department in such matters on the part of the General Receiver of Customs of Liberia, De la Rue. Please let Barclay know that it is necessary to follow the usual procedure with regard to the flotation of foreign loans, according to the outline in the Department's statement of March 3, 1922,5 of which a copy was included with circular instruction in May 1922, and that the representative of the bankers has been informed accordingly. The tentative terms of the loan have already been submitted informally to the Department by the bankers. It is the intention of the Department to advise the bankers informally of its views at an early date. It assumes that any modifications in the agreements, which the bankers may then think wise will be made a matter of direct negotiations between the bankers and the Government of Liberia. When the final terms of the loan are submitted to the Department, it will then indicate to the bankers whether or not it finds any basis for objection, in accordance with the principles of the statement of March 3, 1922. If and when any of the terms of the final loan agreement calling for the nomination of a financial adviser or any other action by the American Government, are to be brought into operation, the Liberian Government will then, it is understood, request officially the good offices of the American Government in the matter. When outlining this course to Mr. Barclay, you should make it plain that the procedure accords with the well-defined policy of the Department with regard to the flotation of foreign loans in this country and that it represents no change whatever in the attitude of the American Government toward Liberia, the Firestone project, or the loan proposals. If Barclay desires for his guidance a memorandum containing the substance of this telegram, you may supply it to him. KELLOGG 882.6176 F 51/145a The Secretary of State to Mr. Harvey S. Firestone WASHINGTON, October 31, 1925. SIR: I beg to acknowledge the receipt of copies of the three agreements relating to your enterprise in Liberia which you were good enough to forward to Mr. Carter of this Department. In this con 56 Foreign Relations, 1922, vol. 1, p. 557. nection, I desire to refer to conversations which you and your representatives had with officials of this Department last December with reference to the term of the concession." At that time it was pointed out to you and your associates that it appeared advisable either that the term of the concession be shortened from ninety-nine years or that some provision be made for revision of the fiscal relations between the Company and the Government in case the longer term were retained. With respect to the question of adjusting fiscal arrangements, mention was made of the possibility of some form of arbitration. The Department has noted that the text of the agreement recently forwarded to the Department provides for a term of ninety-nine years without provision for review of its terms prior to the end of the period. With reference to this matter, I desire to refer to your telegram of April 28, 1925, to Mr. Castle 58 and to a letter of May 26, 1925, from Mr. Harvey S. Firestone, Jr.,58 transmitting (with other documents) copy of a message which you addressed on that date to Mr. W. W. Hoffman of the National City Bank, relating to the terms of the arrangement. It appears from these documents that you took up with the Liberian Government the matter of the term of the lease, but that the Government raised objection to an arrangement along the lines indicated in the preceding paragraph. This Department will be glad to receive such further information as you can give on this point. 59 I beg to refer also to provision in paragraph (j) of Article IV of "Agreement No. 2" to the effect that the lessee shall endeavor to procure a loan "either from the Government of the United States or with the approval of the Secretary of State of the United States from some other person or persons". In this connection I desire to call attention to the next to the last paragraph of Mr. Hughes' letter to you dated December 22, 1924, and also to the enclosed copy of the Department's statement of March 3, 1922, regarding the flotation of foreign loans. It is not the practice of the Department of State to pass upon such loans in the sense of approving or disapproving them. 60 I am [etc.] For the Secretary of State: See memoranda of Dec. 12, 1924, pp. 385 and 387. 58 Not printed. 50 Ante, p. 433. "For Department's statement of Mar. 3, 1922, see Foreign Relations, 1922, vol. I, p. 557. |