882.5048/375: Telegram The Consul at Geneva (Gilbert) to the Secretary of State GENEVA, December 26, 1930-11 a. m. [Received December 26-7:37 a. m.] Consulate's December 18, 9 a. m.55 Am informed that League has received formal note from British Government requesting that Liberian inquiry report be placed on the agenda of the next meeting of the Council. In order to be placed on the agenda, action is required by the Council at its first meeting. This action, however, is regarded as merely pro forma. GILBERT 882.5048/374: Telegram The Secretary of State to the Chargé in Liberia (Reber) [Paraphrase] WASHINGTON, December 27, 1930-2 p. m. 120. Your 181, December 24, 2 p. m. In my view, the Liberian note therein quoted changes in no way the Department's position (see my No. 119, December 20, 3 p. m., and previous). Do not make an acknowledgment. STIMSON 882.01 Foreign Control/9 Memorandum by Mr. Ellis 0. Briggs, of the Division of Western European Affairs 56 [Extracts] [WASHINGTON,] December 27, 1930. As a result of the corruption and ineptitude of the Americo-Liberian governing minority, conditions in Liberia have now grown so serious,and will shortly become so public,- that the American Government may be faced with a strong demand on the part of certain racial groups, philanthropic and religious organizations and others, in favor of positive action. It is the purpose of this memorandum to outline the principal elements in the present situation and to indicate briefly the course which the Department of State proposes to follow. 55 Not printed. 5 This memorandum is initialed by Ellis O. Briggs, J. Theodore Marriner, Chief of the Division, and William R. Castle, Jr., Assistant Secretary of State. An attached memorandum by the Secretary of State, dated January 3, 1931, reads: "I discussed this question with the President, who favors the third alternative outlined on page twelve: American participation in cooperation with other countries, on the basis of the precedent that there is American membership in the International Slavery Convention of 1926. H[ENRY] L. S[TIMSON]." 528037-45-31 4. Conclusion; Proposed Course of Action. To bring about the reforms demanded at present, or any substantial part of them, is beyond the capacity or manifested desire of Liberian officials, but in the present temper of the world regarding slavery, forced labor and elementary measures of public health, it is doubtful whether the United States and other nations associated therewith in binding engagements in support of international social betterment, can longer remain indifferent to the corruption generated by the Liberian governing class and now about to be made public for the first time. It follows that the achievement of Liberian reforms must depend upon the substitution of external for Liberian control. Should the United States assume this responsibility alone, it would inevitably lead to active and long-continued participation in Africa which, while doubtless justified by many on philanthropic or racial grounds, could not fail to arouse the hostility of others as imperialism. The establishment of a virtual American colony in Africa might render the continued espousal of the Monroe Doctrine difficult to justify, and it would unquestionably arouse the suspicion of Europe and South America. Such a course would be contrary to American traditions and contrary to the real,-as contrasted with the sentimental or emotional, best interests of the United States. No compensating gain, in profit or in prestige, would accrue to the United States if it took over Liberia. It is proposed, therefore, to consider the present Liberian situation as an international question, and if necessary to cooperate, but not to accept exclusive responsibility, in its solution. The United States is a party to the International Slavery Convention of 1926 and it was partly in this connection that the recent inquiry by the International Commission was initiated. The United States has frequently communicated with the League of Nations on humanitarian and social subjects, and copies of its note and memorandum to Liberia of November, 1930, have already been made available to the other governments parties to the Slavery Convention, through the League of Nations. Some form of international control for Liberia during the immediate future will probably be found necessary, and in this event, it is believed that the American Government should participate to the extent of representation upon such an international body. Since the United States would not desire to accept this responsibility itself, nor would American public opinion readily consent to seeing Liberia pass under the exclusive control of some foreign country or countries, the only alternative appears to be joint international action. The United States can participate therein as a party to, and in accordance with, the International Slavery Convention of 1926. Summary. The following alternatives therefore confront the United States: (1) The United States itself to take over Liberia, assuming full responsibility therefor; (2) Some other nation to take over Liberia on the above basis; (3) The United States to cooperate with other nations in some form of joint international control for Liberia; American participation to be on the basis of membership in the International Slavery Convention of 1926. 882.01 Foreign Control/6 Memorandum by the Chief of the Division of Western European Affairs (Marriner) [WASHINGTON,] December 30, 1930. The British Ambassador called to say that he had had a telegram from his Government requesting him to ascertain the views of this Government as to how far it could go in some kind of international control in Liberia. He said that the British Government were convinced that there was no hope in leaving the matter much longer to the sole control of the Liberians. He said that as the Council was meeting very soon in Geneva, the British Government were very anxious for our views on what cooperation we could extend so that they could present before the League something acceptable to us. His Government had mentioned in the telegram the possibility of a Commission of five, two to be appointed by the League of Nations, two by Liberia, and one by the United States. I told him that before making any definite decision on this subject, the Secretary had been anxious to have a further talk with the President and possibly with Senator Borah 58 and that I would take the matter up with him at the earliest opportunity. Sir Ronald added that his Government thought that it might be wise for a suggestion for such control by a Commission to come from the Liberian Government itself, and I agreed with him that it would be the best method if possible. J. THEODORE] M[ARRINER] 58 William E. Borah, of Idaho, chairman of the Senate Committee on Foreign Relations. FINANCIAL DIFFICULTIES OF THE GOVERNMENT OF LIBERIA AND ITS ALLEGED FAILURE TO PERFORM ITS OBLIGATIONS UNDER THE LOAN AGREEMENT OF 1926 882.51/2089: Telegram The Chargé in Liberia (Carter) to the Secretary of State MONROVIA, April 10, 1930-5 p.m. [Received April 11-8:10 p.m.] 48. On Tuesday 59 McCaskey 60 addressed the President of Liberia formally regarding the grave financial condition of the Government and the necessity for rigid and far-reaching measures of economy. According to McCaskey's figures, revenues had so fallen off that a deficit of over $200,000 and perhaps as much as $300,000 may be expected at the end of the year. Furthermore, at the present time only about one-half of the sum required to meet May 1st interest on bonds is available and it is not unlikely that the Liberian Government will be obliged to postpone this payment. The prospects for the payment of the November 1st interest and the amortization charges are Salaries in many departments are definitely in arrears, so much so that it is seriously proposed to pay off but 50 percent of these arrears at this time. even worse. On Wednesday McCaskey was invited to discuss situation at a Cabinet meeting. As a result, the President intends to appoint commission to investigate various departments to determine what positions can be dispensed with and what economies can be effected by consolidations of various services and bureaus. Commission will probably consist of the American auditor and two others as yet not appointed. [Paraphrase.] Concern is felt because 85 percent of Liberian expenditures go to salaries for positions filled strictly on a party basis, so that to vacate these great difficulty may be anticipated. Neither President King nor any of his Cabinet members seems willing to accept the onus of reducing salaries, though substantial economies can be effected only under the head of salaries. McCaskey informed me, in fact, that the apparent tendency at the Cabinet meeting was to ask him for a release of part of assigned revenues in order to meet salaries in arrears, rather than to face the fact that, if a deficit is to be avoided, future salary payments probably will have to be reduced to 65 percent. Unless the Liberian Government takes rigorous measures, which I do not expect, I anticipate not only a default on interest but also a 61 serious paralysis here of responsible government, a condition which will be intensified by the probable discrediting of many high Government officials through the slavery inquiry. This may tend to throw the Republic into a state likely to invite increasing intervention, and the United States Government, perhaps in a comparatively short time, may possibly have to consider the advisability of a temporary friendly intervention on Liberia's behalf in order to forestall European intervention, which probably would signify the end of Liberian independence.62 [End paraphrase.] 882.51/2092: Telegram CARTER The Chargé in Liberia (Carter) to the Secretary of State MONROVIA, April 25, 1930-11 a. m. [Received April 26-9:15 a. m.] 52. Legation's 48, April 10. King took occasion to call on me at my residence yesterday "to explain" financial situation. The Liberian Government is sending memorandum to the Fiscal Agents.63 In speaking to him I stated as a matter of personal opinion that Fiscal Agents would be reluctant to extend further credit without some assurance that the Liberian Government was making serious effort. King said that he was appointing a committee to prune the Government offices consisting of McCaskey, ex-President Howard and Colonel Boyle (formerly of the frontier force). I said that the sooner the committee could get to work the better effect would be produced in America. King appeared to appreciate my voluntary advice and said that the committee would be in operation on Monday.64 [Paraphrase.] While King may mean what he said, I doubt if he gets effective support from his Cabinet members. The financial situation continues just as serious as-perhaps more serious than—reported in my 48. Liberia's only real safety, I fear, may lie in my suggestion of a temporary friendly intervention by the United States, but I do not feel justified to recommend it before the situation reaches a point at which the Liberian Government requests such intervention. [End paraphrase.] 61 See pp. 336 ff. 62 See also pp. 329 ff. The National City Bank of New York. * April 28, 1930. CARTER |