Papers Relating to the Foreign Relations of the United States

LIBERIA

NEGOTIATIONS CONCERNING THE FIRESTONE RUBBER CONCESSION AND FINANCE CORPORATION OF AMERICA LOAN

Date and

number

Subject

Page

1924 Apr. 8

June 5

June 18 (471-L)

June 19

June 19 (476-L)

June 19

July 8

Undated [Rec'd Oct. 29]

Nov. 13

Dec. 10

From the Chief of the Division of Western European Affairs
Conversation with Mr. Hines, of the Firestone Co., who
reports that Mr. Firestone plans to draft a suggestion for a
loan and make a proposal to Liberia whereby the money
would be used to build up the country.

From Mr. W. D. Hines to the Liberian Secretary of State
Transmittal of proposals, on behalf of Mr. Firestone, for the
leasing of land and the establishment of certain public improve-
ments in Liberia.

From the Liberian Secretary of State to Mr. W. D. Hines
Transmittal of drafts of formal agreements covering the
Firestone proposals.

From Mr. W. D. Hines to the Liberian Secretary of State
Submission of minor changes which it is felt would make the
agreements more acceptable.

From the Liberian Secretary of State to Mr. W. D. Hines

Transmittal of the three draft agreements amended in accordance with the suggestions made by Mr. Hines (texts printed): (1) Concerning the lease of Mount Barclay Rubber Plantation; (2) concerning the lease of one million acres for the development of rubber growing; (3) concerning the improvement of the harbor of Monrovia.

From Mr. W. D. Hines to the Liberian Secretary of State

Information that the draft agreements appear to be in accordance with the understandings arrived at in conferences between the Liberian officials and the Firestone representatives in Liberia, and that Mr. Hines is planning to return with them to America immediately.

Memorandum by the Assistant Secretary of State

Conversation with Firestone Co. representatives who called to discuss possibilities of securing a rubber concession in Liberia; inquiry by the representatives as to U. S. attitude in connection with a proposed loan to Liberia through the company's fiscal agents.

From the General Receiver of Customs of Liberia (tel.)

Inquiry if there is any way of obtaining indication of
Firestone decision in time for the December legislature.
Memorandum by the Assistant Chief of the Division of

Western European Affairs

Mr. Hines' statement that Mr. Firestone had decided to proceed immediately with the concession for a rubber plantation and take up the loan question subsequently. Impression that Mr. Firestone will make no considerable investment, however, until he is certain that financial and political safeguards will be provided to assure the continuation of Liberia as a political entity.

From Mr. Harvey S. Firestone

Submission of draft agreements covering the proposed enterprise in Liberia, with request for Department's advice as to whether they contain anything which would prevent U. S. moral support and approval.

367

368

369

379

382

384

LIBERIA

NEGOTIATIONS CONCERNING THE FIRESTONE RUBBER CONCESSION AND FINANCE CORPORATION OF AMERICA LOAN-Continued

Date and

number

Subject

Page

1924 Dec. 12

Dec. 12

Undated [Rec'd Dec. 18]

Dec. 22

1925 Jan. 7 (1)

Jan. 13

Feb. 16 (4)

Memorandum by the Assistant Secretary of State

Record of a conversation between the Secretary and Firestone Co. representatives respecting the proposed rubber concession.

Memorandum by the Economic Adviser

Discussion between the Assistant Secretary and Firestone Co. representatives regarding the terms of the proposed agreements. Department's feeling that a briefer term than the 99year period specified in Agreement No. 2 and a more flexible arrangement as to fiscal relations between the company and Liberia might be desirable.

385

387

Draft Agreement Number 1 Between the Government of Liberia
and Harvey S. Firestone

389

Concerning the lease of Mount Barclay Rubber Plantation. Draft Agreement Number 2 Between the Government of Liberia and Harvey S. Firestone

394

Concerning the lease of one million acres for the development
of rubber growing.

Draft Agreement Number S Between the Government of Liberia
and Harvey S. Firestone

Concerning the improvement of the harbor of Monrovia.

To Mr. Harvey S. Firestone

Information that there appears to be nothing in the contracts submitted which is opposed to the interests or policies of the U. S. Government or which would preclude the Department's giving appropriate moral support.

To the Clerk in Charge of the Legation at Monrovia (tel.)

Information that Mr. Firestone is telegraphing his agents in Liberia and also President King that the contracts are on the way and he hopes legislative action may be taken as soon as they arrive.

An Act Passed by the Liberian Legislature

Approving the agreements entered into by the Liberian
Government and Harvey S. Firestone.

(Footnote: Namely, the draft agreements arrived at in June
1924 in negotiations between Mr. Hines and the Liberian
Government, and not identical with those submitted to the
Department in December 1924 and taken to Liberia in Feb-
ruary 1925.)

From the Clerk in Charge of the Legation at Monrovia (tel.)

For Harrison and Castle, of the State Department, from De la Rue, General Receiver of Customs of Liberia: Árrival of Firestone representative on February 15 with signed agreements.

(Footnote: Namely, the draft agreements submitted to the Department in December 1924.)

401

403

.404

405

LIBERIA

NEGOTIATIONS CONCERNING THE FIRESTONE RUBBER CONCESSION AND FINANCE CORPORATION OF AMERICA LOAN-Continued

Date and

number

Subject

Page

1925 Feb. 23 (5)

Feb. 25 (6)

Mar. 4

Mar. 5 (3)

From the Clerk in Charge of the Legation at Monrovia (tel.)
For Harrison and Castle, from De la Rue: Information that
the Cabinet objects to loan negotiation clause being included
in agreements submitted by Firestone. Belief of Liberian
Secretary of State that authorization for loan agreement with
modifications might be entered into as a separate document and
approved by the legislature at the same time.

From the Clerk in Charge of the Legation at Monrovia (tel.)

For Harrison and Castle, from De la Rue: Request for sta-
tistical information on rubber companies' payments to
governments for plantation privileges or as export charges in
order to determine fairness of Firestone modifying terms.
From the General Receiver of Customs of Liberia

Opinion of the majority of the Cabinet that it would be a
more proper procedure if the loan agreement provisions were
made a part of a separate agreement. Transmittal of copy
of De la Rue's opinion as Financial Adviser, dated March 2
(text printed), showing his attitude in the whole matter.
To the Clerk in Charge of the Legation at Monrovia (tel.)
Department's disinclination to pass on projected loan before
the matter is submitted through the usual channels by U. S.
bankers interested.

406

416

Mar. 12

From Mr. Harvey S. Firestone

417

Desire that no change be made in the loan agreement and hope that the Secretary will urge U. S. representatives in Liberia to do everything possible to have the agreement accepted as it is.

Mar. 17 (4)

Mar. 28

To the Clerk in Charge of the Legation at Monrovia (tel.)
Instructions to inform De la Rue that Mr. Firestone is not
willing that any change be made in the loan agreement.
To the General Receiver of Customs of Liberia

418

419

Transmittal of statistical information as requested in the
Legation's telegram No. 6, February 25.

Apr. 10 (7)

Apr. 24 (11)

Apr. 27

To the Clerk in Charge of the Legation at Monrovia (tel.)
Request to be informed promptly when contracts are ratified,
as Mr. Firestone is anxious to begin immediately large-scale
operations which will be of advantage to Liberia.

From the Minister in Liberia (tel.)

Summary of Department's attitude as presented to the Liberian Government; inquiry if any expression can be sent by the Department which would demonstrate its interest and moral support, involving practical assistance in working the rehabilitation of Liberia by the bankers' loan through Firestone.

From the Liberian Secretary of State to Mr. W. D. Hines

Liberian Government's opinion that the agreements, with the exception of certain specified details, furnish acceptable bases for its endorsement of the Firestone operations in Liberia.

420

421

LIBERIA

NEGOTIATIONS CONCERNING THE FIRESTONE RUBBER CONCESSION AND FINANCE CORPORATION OF AMERICA LOAN-Continued

Date and

number

Subject

Page

1925 Apr. 28 (432/D)

Apr. 30

May 1 (8)

May 2
(Con-
sular No.
146)

May 11

May 13 (13)

May 22 (14)

May 22 (10)

May 26

From the Liberian Secretary of State to the American Minister
Presentation of views of the Liberian Government, as set
forth in letter of April 27 to Mr. Hines, for transmittal to the
Department, in view of the interest taken by the Department
in the Firestone proposals to Liberia.

From the Secretary to the President

Telegram from Mr. Firestone to President Coolidge (text printed) telling of difficulty in securing Liberia's signature to the agreements and of his request for the assistance of Mr. Castle, of the State Department.

To the Minister in Liberia (tel.)

Reiteration of position that a loan by the United States is
impossible and that the Department must reserve an expres-
sion of views until specific terms of the loan contract have
been submitted to it. Authorization to inform the Liberian
Government of Department's sympathetic interest in the con-
clusion of the Firestone contracts.

From the Minister Resident and Consul General at Monrovia
Information regarding the Liberian Government's objections
to arranging a loan with any company doing business in Li-
beria; list of the fundamental reasons why Liberia cannot sign
the agreements in their present form.

From Mr. Harvey S. Firestone to Mr. W. D. Hines (tel.)
Instructions to cable outline of proposed changes leaving
agreements intact; assertion that loan is impossible unless Li-
berian finances are administered by parties making the loan.
From the Minister in Liberia (tel.)

Liberian Government's explanation of its position (text
printed), including its reasons for urging that the loan question
be taken up in a separate agreement, but asserting its willing-
ness, however, if the United States considers it advisable, to
authorize Mr. Firestone to begin preliminary negotiations
for the loan.

From the Minister in Liberia (tel.)

Transmittal of additional explanation of the Liberian Government's point of view (text printed).

To the Minister in Liberia (tel.)

Statement for transmittal to the Foreign Minister (text
printed), indicating U. S. appreciation of Liberian position
regarding the loan question, but setting forth certain assurances
whereby the Liberian interests would appear to be thoroughly
safeguarded in the Firestone contracts."

From Mr. Harvey S. Firestone to the Vice President of the
National City Bank of New York_(tel.)

Suggestion of a cable to be sent to De la Rue (text printed),
containing opinion that Mr. Firestone would agree to modify
his agreement as to terms of lease and change loan agreement
to read, "Liberian Government to accept loan of two to five
million on terms to be agreed on."

126127-40-vol. II-4

424

426

427

429

430

431

432

433

LIBERIA

NEGOTIATIONS CONCERNING THE FIRESTONE RUBBER CONCESSION AND FINANCE CORPORATION OF AMERICA LOAN-Continued

Date and

number

1925 May 28 (521/D)

Subject

From the Liberian Secretary of State to the American Minister
Acceptance of assurances given in Department's telegram
No. 10, May 22, and willingness to enter into the Firestone
agreements on the understanding that the detailed terms of
the loan agreement will be worked out in subsequent negotia-
tions and that the money will not be advanced by Mr. Fire-
stone or any corporation he might form.

Page

433

May 29

From Mr. Harvey S. Firestone (tel.)

437

Cable from Mr. Hines (text printed) stating belief that a continued firm stand will assure Liberian acceptance of satisfactory loan terms.

437

Report on status of negotiations regarding the Firestone contracts.

June 5 (Diplo

matic No. 274)

June 11 (20)

June 12

June 12 (12)

June 12 (13)

June 14 (21)

June 15 (22)

From the Minister in Liberia

From the Minister in Liberia (tel.)

For Castle: Liberian Government's suggestion to send its Secretary of State to America to arrange the loan and to summon the legislature to ratify it after his return to Liberia.

From Mr. Harvey S. Firestone to President King of Liberia

Opinion that the modifications suggested by Liberia, as set forth in a cable from Mr. Ross, Firestone representative, are only technical wording, with exception of the food clause, and would not change the carrying out of the agreements.

To the Minister in Liberia (tel.)

Mr. Firestone's decision to change the loan clause to conform to "Liberian legal requirements," thus providing for eventual ratification following negotiation of the loan agreement in the United States.

To the Minister in Liberia (tel.)

Understanding that the signature of the agreements as modified is to be expected at any moment. Department's invitation, at the wish of the interested parties, to the Liberian Government to send a commission to the United States to arrange a bankers' loan.

From the Minister in Liberia (tel.)

List of minor modifications desired by Liberia and approved by Mr. Ross. Advice that Mr. Firestone empower Ross to sign the agreement, whereupon De la Rue and the commission will leave for America.

From the Minister in Liberia (tel.)

Mr. Firestone's cable to Ross ordering agreements resubmitted but refusing to accept Liberia's alterations; Minister's advice to Ross to take no action pending reply to Legation's telegram No. 21, June 14.

442

443

444

445

June 19 (24)

From the Minister in Liberia (tel.)

445

Liberian acceptance of U. S. invitation to send officials to arrange bankers' loan.

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