ARTICLE VII, PARAGRAPH 2, PAGE 8:

Import and export duties of every kind and character whatsoever, headmonies and all other taxes, imposts and revenues of the Republic shall be collected through the Customs, Postal and Internal Revenue Administration, to be maintained by the Government under the supervision of the Financial Adviser and certain Assistants appointed as hereinafter stipulated who shall co-operate with the Treasury, Postal and Interior Department Officials in the manner hereinafter prescribed. The Government obligates itself to appoint from time to time during the entire life of the Loan the Fiscal Officers required by the terms of this Agreement, who during the life of this Agreement. [sic] These Officers shall supervise the collection of the revenues of the Republic from whatever source they may arise, and the application thereof to the service of the loan in accordance with the terms of this agreement or as provided in rules or regulations to be made effective for the purpose of carrying out the provisions and terms hereof.

ARTICLE IX SHOULD READ:

The organization of the customs and internal revenue administration of the Republic shall be supervised by the following officers who shall be nominated by the Financial Adviser, to the President of the Republic of Liberia, (the Financial Adviser having first reported the names of the officers nominated to the Secretary of the United States), and shall be by the President of the Republic of Liberia appointed and commissioned to the respective offices with duties as defined in this Instrument. These Officers shall hold their appointment during good behavior but shall be subject to removal by the President of Liberia for cause, or upon the withdrawal by the Financial Adviser of his recommendation of such officer or officers.

The Auditor and the Assistant Auditor shall hold their appointment during good behavior but may be removed by the President of Liberia for cause or upon the withdrawal of the Fiscal Agents of their recommendation of such officer or officers.

PAGE II, ARTICLE IX LAST PARAGRAPH BUT ONE:

Such salaries paid to the Financial Adviser and the fiscal officers to be appointed as above stated include all allowances of any kind or character whatsoever, provided, however, that said officials shall in addition to such salaries be furnished medical care and attendance; shall be reimbursed for their traveling expenses from the point of departure in the United States at time of appointment or employment to their post in Liberia and return to the United States on termination thereof; and not more often than once in two years,

shall receive their actual traveling expenses by ordinary route to the United States and return. Such expenditure shall conform to the regulation now enforce [in force] or which may hereafter be promulgated by the Audit Bureau of the Treasury Department of Liberia. The Financial Adviser and his assistants shall be entitled to receive reasonable leaves of absence, cumulative over not more than two years, at full pay.

ARTICLE XII, PARAGRAPH 5 SHALL READ:

The revenues and receipts shall, during the term of said Bonds be payable only in gold, of the present standard of weight and fineness of gold coin of the United States of America, or its equivalent and the rates and the amounts thereof shall not be decreased without the approval of the Fiscal Agent, but may be increased so as to meet the expenses of the service of the loan, and the expenses of the administration of the Government. The Comptroller of the Treasury, together with the Auditor, shall prepare for the Secretary of the Treasury, the Fiscal Agent and the Financial Adviser quarterly and annual reports of the financial administration and of the collection and application of the assigned revenues and receipts. Such reports shall contain the detail of all financial transactions of the Government.

PARAGRAPH 6 SHALL READ:

The Government convenants to install and maintain the pre-audit system, whereby all accounts of the Government before payment shall be duly presented to the Auditor and shall be audited. The Auditor, upon the submission of any account for his check and after examination of the appropriation to which it is chargeable to ascertain that the same had not been over expended and that the account is correct, properly verified and payable, shall indicate his approval by appropriate signature and shall approve the transfer from the general deposit account in the official depositary to the disbursement account in the designated depositary of a sum sufficient to meet the Secretary of the Treasury's check for the particular account and payee specified. No payments shall be made except under warrant of the President in accordance with the budget or appropriation law and all payments shall be made by check on the disbursement account to be opened and maintained in the designated depositary of the general Government. Payments to troops or other payments which must be made in cash shall be by check to a bonded paymaster, who shall make the detail of disbursements in accordance with the audit rules and regulations which are to be prepared and enforced in accordance with the provisions hereinbefore stated.

ADD TO ARTICLE X THE FOLLOWING CLAUSE:

It is understood by the parties hereto that the Government may at any time it deems desirable offer for sale in such amounts as it may decide the bonds covering the remaining Two and one-half million dollars authorised under this agreement.

ARTICLE XV SHOULD READ:

Until the Government has repaid the whole amount of the loan and all expenses incident to the service thereof, no floating debt shall be created and no loan for any purpose shall be made, except with the written approval of the Financial Adviser, but that the Government may at such time as it sees fit negotiate a refunding loan for the retirement of the present loan.

REQUEST BY LIBERIA FOR THE GOOD OFFICES OF THE UNITED STATES IN THE BOUNDARY DISPUTE WITH FRANCE

751.8215/209

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

No. 285
Diplomatic

MONROVIA, July 2, 1925.
[Received August 10.]

64

SIR: This Legation has the honor to herewith submit a protest against certain alleged aggressive acts of the French Republic upon the peace and territory of Liberia and requesting that the good offices of the United States be exercised in procuring a peaceful adjustment of the situation. This situation as set forth in this protest is sustained by documentary evidence and well known facts which can be authenticated by the testimony of many living witnesses, especially the American officers who have in recent years and are now serving as commanders of the Liberian Frontier Forces.

The whole question is daily becoming more acute and threatening to assume proportions which will make future settlement more difficult.

After careful study of this whole situation during the past four years there seems very little room for doubt as to what the ultimate intention of the French Republic is. The history of this matter will show that almost each time any question has come up for settlement, the stronger power forced its will upon the weaker.

In 1885, the French Government made a claim to large parts of Liberian territory. In 1892 Liberia by a forced treaty was compelled to relinquish.

For previous correspondence concerning the boundary dispute, see Foreign Relations, 1922, vol. II, pp. 634 ff.

"Not printed.

Difficulties again arose in 1895 resulting in a treaty in 1908 which again took a large portion of Liberian territory because Liberia was unable to sustain what she considered her just claim.

As stated in the enclosed protest, the French Government although having had all the advantage of the former decisions, claimed the agreement of 1908 defective. The Liberian Government objected to the reopening of the question but was compelled under French threat of forcible annexation to acquiesce.

The formula for rectification was set forth in an act of 1911 and carried out in 1915 when certain questions arose with regard to a town called Zinta which the French demanded should [not?] be included in Liberian territory upon the claim that the 11° 50′ meridian West of Paris was inaccurate though the result of the findings of their own Commission.

Since 1915 strenuous efforts have been made to have a final settlement which have been only delayed by the French Government.

In view of the long standing and continued irritation between the two countries involved, and that it has each year become more acute until now it reaches a threatening situation, it would therefore seem if there could be an intervention by a friendly power to settle the difficulty it would be eminently desirable. In this case the Liberian Government has naturally turned to the United States.

Relying upon the traditional relationship and oft avowed friendly interest of the American Government, especially now in the light of present development, Liberia has presented this protest with the hope that the United States may find some way to adjust this matter.

It is believed that an indication from the United States to France that the American Government would look with disfavor upon any further aggression by the French Republic and discountenance anything that provoked trouble on the Franco-Liberian boundary would once for all put an end to a long standing difficulty and settle a question of territorial sovereignty.

In this connection it is also believed if the United States, if consistent with our policy, could be accepted by both parties as an arbiter and use its good offices the matter could be decided without further delay.

I have [etc.]

751.8215/209

SOLOMON PORTER HOOD

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

No. 257

WASHINGTON, October 13, 1925. SIR: The Department has received your despatch No. 285, of July 2, 1925, transmitting a note addressed to you by the Liberian Secre

tary of State, dated June 29, 1925,65 protesting against certain alleged aggressive acts of the French Republic upon the peace and territory of Liberia and requesting that the good offices of the United States be exercised in procuring a peaceful adjustment of the situation.

The Department has read the note of the Liberian Secretary of State and your covering despatch with great interest and believes that the present instance is one in which the good offices of this Government could be appropriately employed to effect a peaceful and equitable settlement of the boundary question.

You are therefore instructed to hand to the Liberian Secretary of State the following note:

"I have the honor to inform you that my Government has received my despatch of July 2, 1925, transmitting your note of June 29, 1925, concerning the reported aggressions of the French West African authorities upon Liberian territory, particularly in the region of Zinta (Zigida), and requesting that the good offices of the Government of the United States be employed in securing a peaceful settlement of the situation.

"I am instructed by my Government to state that your note has received its careful and sympathetic consideration, that my Government feels that the matter is one which is capable of a peaceful and amicable solution, and that it would be inclined to exercise its good offices in the effecting of such a settlement.

"Without wishing to discuss the questions involved in any detail, my Government would observe that it would appear that the principal cause of the troubles connected with the Franco-Liberian border is the failure of the Liberian and French Governments to continue and complete the work of delimiting the boundaries defined by the Franco-Liberian Treaty of September 18, 1907 and the Franco-Liberian Agreement of January 13, 1911. My Government is cognizant of the difficulties which have been encountered in this connection and of the delays which have arisen, but it is of the opinion that a fresh effort should be made at this time to resume the work of joint delimitation.

65

"You will recall that in a note dated January 27, 1921 the Secretary of State of Liberia informed my predecessor, Mr. Johnson, that the French Government had declined to proceed with the program of delimitation suggested in 1919 and 1920 on the ground that it was unnecessary and useless to determine any of the outstanding questions between the two governments until the purport of American plans in Liberia had been made manifest. The Secretary of State added that the Liberian Government was addressing a protest against this position of the French Government direct to Paris and that he would be grateful for American support in securing a settlement of the delimitation question.

05 Note not printed.