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  4. Document 110

882.72/4: Telegram

The Secretary of State to the Chargé in Liberia (Bundy)

Washington, September 30, 1920—6 p.m.

48. Your 65, September 14, 8 a.m.

  • First: Worley’s impression of the statement of President King to Mr. Phillips when calling at the Department last September has been telegraphed to Mr. Phillips who replies that his recollection of the interview is precisely that of Financial Adviser’s.
  • Second: You will state to President King that Department has been informed of his refusal to receive the cooperation and advice of the Financial Adviser when the Liberian Government is considering applications for concessions and you will reiterate the understanding of this Government that all applications for concessions or amendments thereof should be promptly referred to the Financial Adviser of Liberia and that no action should be taken thereon until favorable report of the Financial Adviser has been received. You will inform him that the Department has taken the pains to verify, through Mr. Phillips, the American Minister to the Netherlands, then Assistant Secretary of State, its record of President King’s agreement (a) to the Department’s interpretation of the Act of August 7, 1917 and (b) to the carrying out by President King’s administration of the policy contained therein. You will also inform him that the Government of the United States acted in reliance of [on] President King’s good faith in carrying out such agreement, and not only considers it binding but also of vital importance in the protection of American owned obligations for monies lent to the Government of Liberia, and furthermore that any action approved by President King in derogation of the obligations thereby assumed cannot but be considered in the circumstances as an unjustifiable if not unfriendly act on his part. You will further state that the Department desires him to give careful consideration to its position and the possible consequences depending thereon and would appreciate a written statement explicitly defining his position and intentions in this matter.
Colby