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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa

Liberia,   pp. 785-857 PDF (27.0 MB)

Page 844

882.685 Neep/6 Telegram
    TheSecretary of State to the Minister in Liberia (Walton)
                          WASHINGTON, October 13, 1937-6 P. m.
  24. Personal for the Minister from McBride. Your despatch 126,
September 7 regarding Neep concession. The following questions
occur to me personally in connection with the indicated sections of the
  Article 3, Section D. In order to spread development through
various sections of the country rather than concentrate improvements
in Monrovia, it might seem in the best interest of Liberia to select
Cape Mount as the location for the proposed harbor basin.
  Article 4, Section C. It might appear to be more advantageous for
Liberia to provide for royalties on percentage basis of sales value or
of profits, in accordance with the provisions of Section 3, Article 1 of
the Liberian Executive Order No. 6 of July 20, 1936, rather than to
stipulate for a fixed royalty. In as much as Liberian iron ore is
understood to be of high quality, it would seem that royalties on a
percentage basis, along the lines provided for in the above-mentioned
executive order, might give the Liberian Government a higher return
than that proposed by the agreement.
  Article 4, Section E. In view of the relatively small acreage which
Neep proposes to lease, 300 white employees appears to be unduly
large and out of proportion to the character and extent of the work
to be undertaken. The potential disadvantages inherent in admitting
an unnecessarily large number of employees of other nationalities will
doubtless not have escaped the Liberian authorities.
  Article 4, Section I! Although the purposes which the Liberian
Government had in mind in inserting this article are clear, the ques-
tion arises as to whether those purposes will be accomplished by the
present wording. For example, what is to prevent the sale or transfer
of Neep shares with the result that control of the company would
pass to interests which might be unfriendly to Liberia?
  In the event that your opinion is requested regarding the terms of
the contract, you may feel it proper to offer your personal views along
the lines of the foregoing. If changes are to be made in the contract
I assume that it would be better to make the alterations before the
agreement is submitted to the Legislature. [McBride.]
882.685 Neep/7: Telegram
    The Minister in Liberia (Walton) to the Secretary of State
                              MoNRovIA, October 18,1937-10 a. m.
                                             [Received 7: 45 p. m.j
  47. Your telegram No. 24, October 13, 6 p. m. For McBride. Sug-
gestions regarded as most helpful and timely by President Barclay.

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