titled provided that such claims be adjudicated either by the Liberian courts or by an international commission composed of one representative each from the American, British, French, German and Liberian Governments; and that the findings of the majority of the members of such a commission shall be final and binding alike upon the German and Liberian Governments. I trust that the proposed solution of the difficulty will be acceptable to the Imperial German Government, whose relations with Liberia have always been of a most friendly character. Please accept [etc.] C. D. B. KING. File No. 882.51/509. The American Chargé d'Affaires to the Secretary of State. [Telegram.] AMERICAN LEGATION, Monrovia, January 17, 1913. As compromise measure Liberian Government has proposed to German Government that the claims of German merchants be adjudicated by international commission composed of one representative each appointed by Governments of United States, Great Britain, France, Germany and Liberia. Proposal subject to the approval of Governments mentioned. Confidentially informed by German Consul his Government will propose commission of three, Governments of Liberia and Germany to appoint one each these two empowered to choose third member. Shall I support Liberian or German proposal? BUNDY. File No. 882.51/509. The Secretary of State to the American Chargé d'Affaires. [Telegram.] DEPARTMENT OF STATE, Washington, January 18, 1913. While recognizing equity Liberia's proposal it is thought that commissioners of five nations might tend to inject political questions. Smaller commission might avoid complications attended with larger number and Department therefore inclined to favor German suggestion particularly if third commissioner should be an American, which would probably be the case. ΚΝΟΧ. File No. 882.51/517. The American Chargé d'Affaires to the Secretary of State. [Telegram.] AMERICAN LEGATION. Monrovia, February 6, 1913. Commission of three agreed upon. Germans have rejected every American proposed as third commissioner and are insisting that an Englishman fill the place. German Government demands that Liberian Government agree to pay merchants in one year all claims that may be awarded by commission, although amount of claims unknown and members of commission not yet chosen. German Consul informs me that he is unable to induce his Government to modify this demand. Liberian Government agrees with advice of Financial Adviser and after commission has ascertained full amount of claims to arrange definite time of settlement and allow five per cent interest annually on claims until paid. Liberian Government urges me to request Department to induce German Government to accept these terms otherwise serious financial difficulties will result. BUNDY. File No. 882.51/517. The Secretary of State to the American Ambassador to Germany. [Telegram-Paraphrase.] DEPARTMENT OF STATE, Washington, February 8, 1913. The American Legation at Monrovia reports that the German Government demands that the Liberian Government agree to pay the full amount of indemnity for property destroyed by native uprisings in one year, although the claims commission has not yet been constituted and the amount of indemnity is unknown. The Ger man Consul at Monrovia has been unable to induce his Government to modify this demand. The Liberian Government is willing to agree to a definite time of settlement after the commission has ascertained the full amount of the claims, and to pay five per cent interest until claims are paid in full. Unless the German Government accepts these terms financial difficulties will result. The proposition of the Liberian Government seems to be just and has the support of this Government. Use your best endeavors with the German Government to accept these terms. The German Government has rejected every American proposed for third commissioner, insisting upon appointment of an Englishman. While this Government does not object to the appointment of a British subject the Department is of the opinion that the third member of the commission should represent a nation which has no territorial interests adjacent to Liberia. ΚΝΟΧ. File No. 882.51/518. The American Ambassador to Germany to the Secretary of State. [Telegram-Paraphrase.] AMERICAN EMBASSY, Berlin, February 10, 1913. The Minister for Foreign Affairs of Germany feels obliged to insist upon a prompt settlement of the claims of German merchants against Liberia and suggests that thirty per cent of the customs re ceipts be set aside for the payment of the claims after the commission has rendered its awards. Upon my request this amount may be reduced by one third. I am assured that there is no prejudice against the appointment of an American on the claims commission, provided he has no affiliations with the Liberian Government. LEISHMAN. File No. 882.51/518. The Secretary of State to the American Ambassador to Germany. [Telegram-Paraphrase.] DEPARTMENT OF STATE, Washington, February 12, 1913. Owing to the strained financial conditions of Liberia the Government of that country looks for most favorable terms in the settlement of the German claims. If the German Government's suggestion is accepted the claims must be paid in much less time than one year as originally proposed. The total of the claims will probably not exceed $25,000. Again bring to the attention of the German Government the Liberian proposal contained in Department's telegram of the 8th instant and add that under the circumstances it seems that the Liberian Government cannot be expected to offer a better settlement of the claims. KNOX. File No. 882.51/528. The American Chargé d'Affaires to the Secretary of State. No. 84.] [Extract.] AMERICAN LEGATION, Monrovia, February 14, 1913. SIR: I have the honor to make the following report in continuation of my No. 76 of January 13, 1913, respecting the commission which has been proposed as a means of adjusting the claims which the German merchants have filed against the Liberian Government. By reference to my cable of January 17, it will be noted that I stated that the German Government would propose a commission of three, the Governments of Liberia and Germany to appoint one each, and these two were to be empowered to choose the third member. This proposition, as emanating from the German Government, was stated to me verbally by the German Consul, who has rather an indifferent knowledge of English. Later I saw a written statement of the proposition as presented to the Liberian Government by the German Consul, and the manner of choosing the third member of the commission was materially different from that orally stated to me by him. Instead of the Liberian and German commissioners choosing the third commissioner, the German Consul's written proposal provided that the Governments of Liberia and Germany should agree on a neutral man to become the third commissioner. I found that the Liberian Government readily accepted the proposal as writ ten, and I let the matter pass without comment, since indeed it might easily have happened that through his deficient knowledge of English, the German Consul may have thought he had stated the proposition to me orally as he had written it to the Liberian Government. I felt at the time that a great deal more difficulty would be experienced in arriving at a choice of a third member by referring it to the two Governments to make the selection, than if the two members designated by the German and Liberian Governments had power to choose the third member; and such has proved to be the After rejecting the names I proposed, and intimating that any others I might bring forward would scarcely prove acceptable to the merchants, the German Consul proposed Mr. W. E. O'Connell, agent at Monrovia for the Paterson Zochonis Company, whose headquarters are in England. Mr. O'Connell is locally called an Englishman, but I believe that he is actually of Irish extraction. He bears a good business reputation at Monrovia, but the Liberian Government regards him as a man of mediocre ability, and not able to resist much pressure. When the negotiations reached this stage, it was very apparent that the Germans were trying to secure some unfair advantages. In the first place the German Consul let it be known that it was the purpose of the German Government to nominate Mr. Lange, the German Receiver of Customs, as its representative on the commission. The Liberian Government and Mr. Reed Paige Clark, General Receiver of Customs, immediately objected to this procedure. Enclosure No. 1 is a copy of a letter received by this office from the General Receiver, in which his objections are stated. The Liberian Government has taken the position, that Mr. Lange is a Liberian official and as such is not available for assignment by the German Government to do work on the contemplated commission or otherwise, irrespective of the Liberian Government's wishes, so long as he is under contract to it. The German Consul claims that Mr. Lange is not a Liberian official, and can be designated to serve on the commission by the German Government, whether the Liberian Government agrees to it or not. The German Consul has informed me that if the Liberian Government persists in maintaining the position it has taken, the German Government will regard such action as distinctly unfriendly to it, and quite likely to lead again to strained relations between the two Governments. The German Consul asked me whether or not I thought that Mr. Lange was a Liberian official, and I replied that it was my opinion that he was, and that the Department of State had expressed this view to the German Chargé d'Affaires at Washington when the question of Mr. Lange acting as German consular officer and receiver of customs at the same time was under discussion.' I am of the opinion that the German Government is preparing to use great pressure to carry this point. In view of the position taken by the German Government with respect to Mr. Lange, the reason for such persistent efforts on its part to have the third commissioner chosen before either of the other two members were selected became For. Rels. 1912, p. 68€ t apparent. The Germans' evident desire was to fill the third place with a neutral, non-American commissioner, and then force Mr. Lange on as the German representative. In this way they expected to dominate the commission. When the Liberian Government recognized that the German Government would not recede from its contention, a verbal statement was made to the German Consul, to the effect that if Mr. Lange were nominated as the German member of the commission, then the Liberian Government would be obliged to insist that Mr. Reed Paige Clark should be the third member. The German Consul informed me that he would get an expression from his Government with reference to this statement but rather doubted that it would be acceptable to the German merchants. While the personnel of the commission was receiving so much attention, the German Consul came forward with a very extraordinary proposition with respect to the payment of the claims. Although the members of the commission are not yet chosen, and the amount of the damages that will be awarded are necessarily unknown, still the German Consul demanded that the Liberian Government agree to pay the full amount of the commission's awards in one year (see enclosure No. 2). When this proposition was presented to me by the German Consul, and my views requested, I stated that it was my opinion that the proposition was not fair either to Liberia or to the Receivership. I added that I thought it was a very undesirable policy to force the Liberian Government to contract to pay an indefinite amount in one year without regard to the Receivership or the Financial Adviser. Moreover, the principle involved would, to my mind, not be changed if the exact sum in question had already been definitely ascertained. I have been endeavoring to discern the motive underlying the attitude the German Government has assumed with respect to the payment of these claims, and I believe it may perhaps be accounted for on the ground that there is a feeling among the Germans that if the advice of the Receivership is given Liberia with regard to the terms of settlement, it is very probable that the time will be stretched out over several years. Furthermore, it is apparently believed that the British and French receivers and the American General Receiver are hostile to these claims, and would be inclined to favor the Liberian Government when the terms of adjustment are decided upon. Another fact of significance is that there are merchants of other nations, notably English and Dutch, having claims against the Liberian Government growing out of these same disorders, and from statements inadvertently dropped by the German Consul during some of our conversations he appeared to be fearful that more favorable terms of settlement will be granted to the English and Dutch claimants than to the German. In order to forestall any such arrangement, the German Consul seems to be taking a course which is designed to secure preferential treatment of the German claims. In talking over this whole matter with President Howard he has taken occasion to say to me many times, that he does not propose to be intimidated any further by the German Government when he feels that gross advantage is being taken of Liberia and there is little or no regard for justice and fair play. If threats of force are |