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thanks for the action taken by this embassy and by the Department in facilitating the settlement of the question. I have, etc.,
FRANCO-LIBERIAN BOUNDARY. [See below, under "Financial reform,” note of the French minister for foreign affairs, dated Feb. 2, 1911, last paragraph.]
WASHINGTON, June 18, 1910. In continuation department's cable 11th. Financial arrangements have reached stage that makes it necessary for Liberia to appoint financial representative to negotiate ad referendum with bankers. Department suggests appointment of Dr. Falkner, chairman of the American commission to Liberia, who has been intimately associated with the negotiations. Kuhn, Loeb & Co., William and Pine Streets, New York, the American bankers interested, are willing to advance Falkner's expenses up to $4,000, and charge same as part of expense of loan. If this plan agreeable to Liberia, Department suggests that Liberia first cable Falkner, care Department, notification of his appointment; secondly, cable bankers to place funds at Falkner's disposal on above understanding; thirdly, mail credentials in due form to Falkner, care American consul general, Hamburg. Credentials might read: “Know all men by these presents, that Roland P. Falkner, of the United States of America, is hereby appointed special financial representative of the Republic of Liberia with full power and authority for and in the name of the Republic of Liberia to negotiate, conclude, and sign an agreement with a banking firm or firms for the purpose of raising a loan to pay off or refund the foreign and domestic debts of the Republic, the said agreement to be subject to the ratification of the President of Liberia by and with the advice and consent of the legislature thereof. In testimony whereof,” etc. Foreign nations pressing for reorganization of Liberian finances and Department should have reply as soon as possible.
File No. 882.51/52.
Monrovia, June 21, 1910. Cables under date of 11th and 18th received. Government of Liberia officially informed the appointment of Falkner. Instructions to American bankers cabled to-day. Commission by mail as advised in cable. Full information by cable after a meeting of the Cabinet.
1 See Foreign Relations 1910, p. 709,
The Acting Secretary of State to the American Minister.
WASHINGTON, June 22, 1910. Falkner's appointment received and delivered. To avoid possible misunderstanding, his designation and powers should be described in commission as quoted in Department's cable of June 18. Inform Liberian Government.
The Secretary of State to the American Minister.
WASHINGTON, June 23, 1910. After consultation with bankers, Department thinks negotiations for refunding Liberia's debts would be facilitated if Falkner had authority while in Europe on his way to Monrovia to secure options on outstanding indebtedness. To do this additional credentials should be sent him reading :
With full power and authority for and in the name of the Republic of Liberia to arrange for the repayment or refunding of the foreign loans of Liberia and for the payment, funding, or refunding of the domestic debts of Liberia and for the adjustment of any other outstanding indebtedness of Liberia or claims against Liberia of any description whatsoever, the said arrangements to be subject to the ratification, etc.
Bring this to the attention of the Liberian Government and state that Dr. Falkner expects to sail for Hamburg July 9, and his commissions should meet him there.
Monrovia, June 24, 1910. Cables June 22 and 23 received. Government of Liberia have complied with their suggestions. Falkner's commissions will meet him in Hamburg. Program as outlined by our Government is approved. They want our Government to define the duties of the financial adviser for legislative action, as this was the cause of trouble before. A memorandum to Falkner suggests the following:
First, loan to be not more than two millions, to run fifty years at not more than 5 per cent; second, amortization for the first twentyfive years not more than 1 per cent or less; third, provisions be made for a working bank credit of one hundred thousand annually.
LYON, File No. 882.51/60. Informal statement for the guidance of Mr. Falkner and the
American banking group (not dated).
After the most exhaustive and deliberate study, the Department of State reached the conclusion that it could support the bankers' agreement with Liberia as now drafted. In deference to the interests of Great Britain and France and to the commercial interests of Germany, the Department was glad to have the American group admit associates of those three nationalities, as well as of the Netherlands. The Department of State informed the German ambassador that it would probably be possible to have a German subject employed in some capacity under the receivership. It was afterwards thought appropriate that one person of each of the nationalities supplying most of the remainder of the loan should also be so employed. The inclusion of non-American capital and of a French, a German, and a British assistant is known to be the maximum nonAmerican participation which would be acceptable to Liberia. Any plan more complicated or more costly than that embodied in the draft agreement would be quite out of proportion to the transaction and unnecessarily burdensome on Liberia and would seem unlikely to work well.
These and other considerations make it impossible for the Department of State to favor any material departure from the agreement as now drafted.
File No. 882.51/153.
sador to France.
Paris, December 5, 1910. MR. AMBASSADOR: By a letter of November 15 last 2 your excellency was good enough to express the desire to know if the Government of the Republic accepts the proposals of the Federal Government with reference to Liberia which your excellency communicated to my department on the 27th and 28th September last.
I have the honor to advise you that the Government of the Republic is ready to give its adhesion to these proposals of the Federal Government, subject to receiving satisfactory assurances as to
1. The maintenance of absolute economic equality for all the powers in Liberia.
* Not printed.
2. The settlement of the question of the Franco-Liberian boundary as adopted by the last Franco-Liberian boundary commission.
3. The participation of France in the financial organization of the country.
The Government of the Republic desires, furthermore, the retention of the French doctor charged with the direction of public hygiene. Accept, etc.,
MINISTRY FOR FOREIGN AFFAIRS,
Paris, February 2, 1911. Mr. AMBASSADOR: By a letter of January 24 1 your excellency was good enough to inform me in the name of your Government that the Government of the United States is ready to give the assurances that the Government of the Republic desired to receive before adhering to the North American project concerning Liberia.
I have the honor to take due notice of this declaration.
The agreement on this subject being thus established, the Government of the Republic will have no objection to the putting into effect of the North American project in question under the agreed conditions.
I add that the chargé d'affaires of Liberia in Paris signed, on January 13, the act of Franco-Liberian delimitation. The frontier question is therefore now and henceforth settled. Accept, etc.,
File No. 882.51/216a.
The Secretary of State to the German Ambassador. No. 470.]
WASHINGTON, June 29, 1911. EXCELLENCY: Referring to previous correspondence concerning the proposals of this Government for the amelioration of conditions in Liberia, and especially to the informal negotiations which have been in progress between the embassy and the Department for the past few months with a view of agreeing upon a mutually acceptable wording of the draft-loan agreement, it gives me great pleasure to state that the Department is now prepared, as an evidence of its sincere desire to meet the wishes of the Imperial German Government with respect to Liberia and secure your Government's approval of this Government's proposal, formally to propose tho amendments to the original draft agreement (seventh revise, May 21, 1910) contained in the attached schedule. It is understood that the loan agreement as thus amended will be acceptable to your Government, and I will be glad to receive an official assurance of that fact.
* Not printed,
In communicating this proposal to you I wish to assure your Government that the United States does not and will not seek for its citizens any exclusive or preferential commercial rights or privileges in Liberia, and as the friendly adviser of Liberia it will counsel the maintenance of absolute economic equality for the nationals of all powers.
In conclusion I may add that if there is now or shall hereafter be established in Liberia a commission for the examination of the claims of private creditors of the Liberian Government, and the claims of German subjects are brought before the commission, the Department will be pleased to recommend to the Government of Liberia that a German subject be placed on said commission. Accept, etc.,
P. C. Knox.
File No. 882.51/217.
The German Ambassador to the Secretary of State.
IMPERIAL GERMAN EMBASSY,
Washington, June 30, 1911. Mr. SECRETARY OF STATE: In reply to your note of the 29th instant, serial No. 470, I have the honor respectfully to say that I am authorized by the Imperial Government to accept the amendments to the loan agreement with Liberia as proposed in the aforesaid note.
File No. 882.51/215. The British Minister for Foreign Affairs to the American Ambassador to Great Britain.
FOREIGN OFFICE, No. 19859/11.]
London, June 13, 1911. YOUR EXCELLENCY: On the 24th ultimo I had the honor to receive a note from your excellency dated May 23,1 transmitting a copy of the schedule of amendments to the draft agreement for an international loan to the Republic of Liberia, which your excellency had received instructions to submit to His Majesty's Government for their approval.
I have now the honor to inform your excellency that His Majesty's Government approve of the terms of these amendments. · I have, etc.,
W. LANGLEY. (For Sir Edward Grey.)
* Not printed.