tation, along the lines of the telegram Hines 26 recently sent Firestone, is, so the Department understands, being discussed by Hines with President King. If the latter should desire to issue a statement for distribution to the American press on the subject, you should inform the President of Liberia that the Associated Press is ready to handle his statement which should be sent by him as a direct message to the Associated Press, with a request for appropriate publicity for the statement. CASTLE 882.5048/5 Telegram The Acting Secretary of State to the Minister in Liberia (Francis) WASHINGTON, August 29, 1928—11 a. m. 27. Your 33, August 28, 10 a. m.27 I regret to hear of President King's illness which I trust is not serious but believe that he will wish to see you regarding the charges which Buell is making regarding the Firestone concession and American loan to Liberia at Williamstown today. Buell's speech will be published in today's afternoon papers and the Department understands that Firestone is telegraphing the pertinent passages to Hines for transmission to President King. The Department believes that a statement from President King sent direct to the Associated Press, New York City, along the lines recently suggested by him to Hines, would receive wide and favorable publicity in the American press, particularly if he can send it in time for publication in Thursday morning's papers while Buell's charges are still fresh and before there has been opportunity for editorial comment. You may discuss this telegram as well as the Department's 26, August 18, with President King and Hines and should telegraph the Department regarding President King's decision in the matter. CASTLE 882.5048/6: Telegram The Minister in Liberia (Francis) to the Secretary of State MONROVIA, August 30, 1928-6 p. m. [Received 11 p. m.] 34. Department's 27, August 29, 11 a. m. President King today issued a statement to the Associated Press and copy to the Depart ment 28 refuting allegations in Buell's speech. Refer to enclosure 4, despatch 348, Diplomatic, March 13, 1926.29 882.5048/7: Telegram FRANCIS President King of Liberia to the Secretary of State MONROVIA, August 30, 1928. [Received August 31-3:35 a. m.] I have noted with surprise the alleged statements made in an address delivered yesterday at Williamstown Political Institute by Professor Raymond L. Buell, particularly the suggestion therein made that the Liberian Government was coerced by the United States Department of State in the matter of the Firestone rubber concession and the 7 percent loan of 1927. This suggestion is without any foundation in fact. The approach to the agreement was made by the private enterprise of Mr. Firestone and neither directly nor indirectly was any influence brought to bear upon the Government of Liberia by the Department of State or any other department or official of the United States compelling the granting of the Firestone concession. The fact that the negotiations between Firestone and the Liberian Government were protracted over a period of two and a half years should conclusively show that there was no coercion but rather that full consideration was given to the views of each party by the other. In respect to the loan of 1927, internal economic conditions growing out of the World War dictated to the Government of Liberia the propriety and necessity of funding its indebtedness and reorganizing its finances. It was this which led to the offer of the United States Government in 1921 30 to make available funds which in the Wilson administration had been allocated to Liberia during the war. This proposal did not meet with the approval of Congress and the tentative agreement which had been reached by the two Governments lapsed. Nevertheless the need for reorganizing Liberian finances still existed and Liberia, like other states in similar circumstances, took advantage of the opportunity offered by the American money market. In the negotiations between the Government of Liberia and the Finance Corporation of America there was no participation by the Department of State and the only reference in the agreement to the Government of the United States is the provision for the designation by the President of the United States of a Financial Advisor. 28 Infra. "Enclosure not printed; despatch No. 348 printed in Foreign Relations, 1926, vol. II, p. 541. 30 Ibid., 1921, vol. II, pp. 363 ff. Up to the present the effect of this loan in addition to stabilizing our finances has been to give greater internal strength to the Government of Liberia and to avert alien intervention in our domestic affairs upon grounds which imperialists usually advance for this purpose. The country generally is satisfied with the policy which has been pursued by the administration. Besides this there would seem to be historical fitness in a financial project which lines up Liberia with the United States. 31 There have been crises in our relations with the French Government growing out of undetermined frontiers, but these have never been represented to us as a "menace" by the United States Department of State nor was the Firestone project represented to the Government of Liberia by that Department as the means by which the menace could be removed. On the contrary when in certain quarters opposed to the Firestone scheme it was suggested that the United States Department of State was behind the Firestone proposals the Secretary of State of the United States took occasion formally to notify the Government of Liberia that the administration was neither directly nor indirectly behind Firestone. The statement of Professor Buell that the scheme involves the control of Liberia by American officials is untrue and mischievous. There is under the loan agreement, as has already been pointed out, but one official, the Financial Advisor, designated by the President of the United States upon the request of the Government of Liberia, and even this designation is not final unless acceptable to the President of Liberia. Liberia like every other country has suffered from an unemployment problem. The Firestone operation was an opportunity seized with alacrity by the Liberian laboring classes. The Government has had no occasion whatever to coerce labor and reports seem to indicate that far from suffering from a dearth of laborers the Firestone plantations are suffering from an embarrassment of riches in this respect. Nothing in the Firestone agreement obligates the Government of Liberia to impress labor for the company even should an occasion to do so present itself. On this point the Government of Liberia would welcome an investigation on the spot by an impartial commission. 31 See Foreign Relations, 1926, vol. 11, pp. 600 ff. This apparent attempt to bring Liberian affairs in an unfavorable light before the American people as a factor in the present political controversy is much to be regretted. Most interesting to me is the fact that Professor Buell is able to predict Liberia's future and impugn the soundness and integrity of its statesmen after a visit of only 15 days during which he could have seen but a few of our high officials and leading citizens. C. D. B. KING $82.5048/7: Telegram The Acting Secretary of State to President King of Liberia WASHINGTON, September 1, 1928. I have the honor to acknowledge your Excellency's telegram of August 30 regarding the statements made by Professor Buell at Williamstown concerning the Firestone concession and the American loan to Liberia. The text of your telegram was communicated to the Press which has given it full publicity and it should effectively dispose of any erroneous or misguided impressions which may have been created in this country or elsewhere by Professor Buell's statements. J. REUBEN CLARK, Jr. 882.5048/6 Telegram The Acting Secretary of State to the Minister in Liberia (Francis) WASHINGTON, September 1, 1928—1 p. m. 29. Your 34, August 30, 6 p. m. King's telegrams to the Department and the Associated Press have received full publicity in the press and I have telegraphed to him direct on the subject. The extreme nature of Buell's charges would in any event have tended to offset their effectiveness while the speech delivered by Thomas Jesse Jones at Williamstown on August 29 commending the Firestone concession and the American loan and the Department's Liberian policy, the extensive comments made by the Department to the press regarding Buell's speech, and President King's statement should dispose of Buell's charges and clear the air of misunderstandings. CLARK ESTABLISHMENT OF RADIO COMMUNICATION BETWEEN THE UNITED STATES AND LIBERIA 811.7482/11: Telegram The Secretary of State to the Minister in Liberia (Francis) WASHINGTON, December 3, 1927—3 p. m. 53. Firestone has shown the Department Hines' [Ross'] cable to Akron No. 16 November 28 32 concerning the Liberian Executive Order regarding the use of radio. Firestone points out that Article 2, Paragraph E of Planting Agreement 33 is general in character and does not limit the use of radio to the confines of Liberia. He further states that the wave bands reserved by the Liberian Government are of such magnitude that it would be extremely difficult if not impossible to set up practical transatlantic service in the wave bands allowed, as this would require the construction of a high power and extremely expensive transmitter and the chances are that even then interference in the United States would prevent successful reception. He observes that it would appear that the Executive Order works such undue hardship on him as to amount in effect to nullification of the privileges granted by Article 2, Paragraph E. The Department believes that Firestone's position is consistent with a reasonable interpretation of Article 2, Paragraph E and it therefore desires that you tender your good offices with a view to effecting an amicable arrangement. In this connection Mr. Firestone suggests "A copy of this cable was left at the Department by Mr. Firestone on December 2. It reads as follows: "FIRESTONE, Akron. #16. Hines Code. Recent Government executive order covering radio regulations prohibits the use of radio equipment by individuals or corporations within the limits of aerial bands reserved by the Government, with a radius of 60,000 kilocycles to 1,000 and from 600 kilocycles to 429. Interpretation of agreement by Government is that we are entitled to use from our plantations station to this port but not for trans-Atlantic use. Secretary of State Barclay referred to conversation with Mr. H. S. Firestone, jr. after Agreements were signed as follows: 'Mr. Firestone, jr., called at the Department and had a long discussion with us with reference to the then nebulous project of your Company getting an additional and separate franchise for the establishment of a wireless station for trans-Atlantic communication. He made then no definite proposal, but suggested that if experiment which was to be taken in hand demonstrated the practicability of the scheme, a proposal would be then made to Liberian Government for such a franchise.' He further states that the executive order does not conflict with Article No. XI [II], Section (e), and should our contention be admitted, there would be no hindrance to our using frequency outside that reserved for the Government. We are proceeding with the installation at the Du Group Center. 33 Foreign Relations, 1926, vol. II, p. 562. Ross" |