882.51/1144a: Telegram
The Acting Secretary of State to the Chargé in Liberia (Bundy)
31. There is quoted below text of proposed Agreement Regarding Functions and Authority of Officials of the Receivership Administration [Page 72] in Liberia which you will submit to Liberian Government for its consideration in connection with the Financial Plan unless you or Worley perceive some objection to any part of document, in which case you are to cable Department.
“The following agreement between the Governments of the Republic of Liberia and the United States is to be considered as supplementary to the ‘Financial Plan Proposed by the Republic of Liberia’, hereinafter referred to as the ‘Financial Plan.’
Article I. General Provisions. Section 1. Provision has been made in the Financial Plan for the designation and appointment of a General Receiver and Financial Adviser and of certain Administrative Assistants in Liberia. Subject to the necessary authority being conferred upon the General Receiver and Financial Adviser and the Administrative Assistants for the effective execution of obligations, agreements, or contracts entered into by or on behalf of Liberia and for the performance of their duties and functions under the Program of Reform, Rehabilitation and Development of Liberia, these officials will be understood to be clothed with this adequate authority.
Section 2. The Government of Liberia will give all needful aid and support and full protection to the General Receiver and Financial Adviser and the Administrative Assistants of Liberia. No official or private individual shall be permitted to intervene or in any way interfere with the General Receiver and Financial Adviser and the Administrative Assistants of Liberia in carrying out the obligations, agreements or contracts assumed by or on behalf of Liberia, or in the enforcement of Liberian law or agreements and the maintenance of order and a stable government.
Section 3. While traveling on official business within the Republic, the General Receiver and Financial Adviser and the Administrative Assistants will be allowed their actual and necessary traveling expenses and subsistence or a per diem allowance in lieu of subsistence, as estimated by the Financial Adviser.
Section 4. The General Receiver and Financial Adviser shall be granted leave of absence with pay at the rate of ninety days per annum and the Administrative Assistants shall be granted leave of absence with pay at the rate of sixty days per annum, which shall be accumulative. Their actual and reasonable traveling expenses to Liberia by the most direct route will be refunded, out of the assigned revenues and receipts, by the General Receiver for the original trip to accept employment; and at the end of their period of service in Liberia, on due proof that they are about to leave Liberia to return to their places of residence in the United States, their return passage to the places of residence they left in the United States or elsewhere will be paid by the General Receiver, together with pay for accrued leave of absence due them on the date of settlement. Such leave of absence will be granted at least every two years, but for cause may be granted prior to the expiration of that period of service in Liberia. Except for special reason, Administrative Assistants going to Liberia for service with that Republic will not be granted leave until the expiration of the first two years of service in Liberia. The salaries of the General Receiver and Financial Adviser [Page 73] and of the Administrative Assistants shall be payable in the United States or Liberia in whole or part at the option of those officials on their written request to the Secretary of the Treasury of the Republic and the Secretary of State of the United States.
Article II. General Receiver and Financial Adviser. Section 1. The General Receiver and Financial Adviser will succeed to all the functions, authority and rights exercised by or conceded to the General Receiver of Customs and Financial Adviser or Board of Receivers under the Refunding Loan Agreement of 1912, and subsequent understandings with the Liberian Government. He shall pass upon all matters of the efficiency of the personnel and effectiveness of the policy and shall decide all questions that may arise regarding conflicts of functions and authority of the Administrative Assistants of Liberia. He will codify and reissue the Customs Administrative Circulars issued prior to November 7, 1916. He may issue regulations, rulings or interpretations for the proper conduct of the services under his direction. Copies of all such regulations, rulings, and interpretations will be transmitted, as soon as practicable after their issuance, to the Secretary of the Treasury of Liberia and the Secretary of State of the United States. Should any disagreement arise between the Republic and the General Receiver and Financial Adviser, concerning his authority or duties or those of the Administrative Assistants, or concerning any act of his or theirs hereunder, or as to the interpretation of this agreement, or any clause or part hereof, such disagreement shall be submitted to the Secretary of State of the United States for his opinion, which will be rendered upon a statement in writing of the facts as agreed upon by the General Receiver and Financial Adviser and the Republic, acting through its proper officer. Such statement shall be made and submitted to the Secretary of State of the United States promptly. Pending his opinion the decision of the General Receiver and Financial Adviser shall be effective. The General Receiver and Financial Adviser may delegate to the Administrative Assistants such powers and duties as he may deem necessary.
Section 2. The Administrative Assistants will make reports of their work with recommendations to the General Receiver and Financial Adviser, who may if he sees fit communicate them or pertinent parts thereof to the corresponding Department of Liberia with such comments as he may deem proper. The Financial Adviser will also consolidate these reports into a general report on specific subjects from time to time or annually, and transmit them, together with his observations or recommendations, to the President of Liberia and to the Department of State of the United States through the usual channels. The Financial Adviser will make recommendations for the amendment or repeal of any measures made necessary by the war conditions, including tariff legislation. He will point out laws or portions of laws in conflict with the present financial arrangement with recommendations for their repeal or amendment. He will issue regulations to render effective the provisions of the Act of the Legislature of Liberia approved August 8, 1917, relative to ‘potable spirits’ until such time as total prohibition of all alcoholic beverages in Liberia shall have been decided upon.
[Page 74]Section 3. The General Receiver will have full charge of the recruiting of native labor and deck-hands and all fees, commissions, or amounts payable in connection with such recruiting shall form a part of the assigned revenues. He will issue regulations for future contracting of such labor and deck-hands. Seamen, engaged for one trip only, will be returned to the Liberian port of embarkation by the same vessel on the homeward bound voyage. Each steamship line shipping seamen will give a general bond or engagement to return such deck hands on the homeward bound voyage. Those deck hands who may die or desert on the voyage, will be accounted for by the establishing of that fact, through the Receivership upon the return of the vessel, to the satisfaction of the Liberian Government.
Section 4. Should the legislature of Liberia enact a budget not approved by the Financial Adviser or fail to make the necessary appropriation for the purposes indicated in clauses first and third of section (h) of Article IV of the Financial Plan, the General Receiver is authorized in his discretion, to make such payments.
Section 5. The General Receiver and Financial Adviser will be associated with the Postmaster General of Liberia in investigating the extent of Liberia’s indebtedness to foreign postal administrations and he is authorized to devise a method to settle existing arrears, reestablish the department’s credit with foreign administrations, and prevent loss of credit in the future. He will also advise as to contracts for the printing of postage and internal revenue stamps, or sale and accounting for same.
Section 6. The General Receiver will render financial accounts quarterly to the Secretary of the Treasury of Liberia and the Secretary of State of the United States. He will accompany these financial accounts with statistics of commerce, trade and shipping together with such narrative matter as may appear necessary to explain the figures. The General Receiver will call a meeting of the Administrative Assistants, or such of them as may be necessary, at least once a year, prior to the meeting of the Legislature, or oftener, for the purpose of discussing the work of the year, making plans for the future, and coordinating the work of all branches of the service and Receivership Administration.
The General Receiver and Financial Adviser shall exercise such supervision and control over the granting of concessions, franchises, rights or privileges by the Liberian Government and over any use of the territory, resources and potential assets of Liberia, as may be necessary to prevent any acts of commission or omission which might tend to impair or reduce the security for the United States Loan, as provided for in Article VII of the Financial Plan, and to this end the Liberian Government will lend all necessary assistance.
Section 7. The General Receiver and Financial Adviser will receive Five Thousand Dollars per annum for his services as General Receiver and Five Thousand Dollars per annum for his services as Financial Adviser.
Article III. Receivers. Section 1. A Deputy General Receiver and two Receivers will assist the General Receiver in the performance of his duties and in the conduct of the Receivership Administration, in such manner as the General Receiver shall direct. In [Page 75] the absence or inability of the General Receiver to act or during a vacancy, the Deputy General Receiver will perform the duties of the General Receiver and assume, without formal transfer, the corresponding responsibilities. In like circumstances, on written notification by the Financial Adviser to the Liberian Government, or during a vacancy, the Deputy General Receiver may perform the duties of the Financial Adviser. The salary of the Deputy General Receiver and that of the Receivers will be not less than Three Thousand Dollars per annum.
Article IV. Auditor. Section 1. The Auditor shall examine and audit the books and accounts of the Republic, the Receivership, and of the Depositary in connection with its acts as Depositary. He shall make reports to the Secretary of the Treasury of Liberia at least annually with his recommendations. The Auditor shall cooperate with the Secretary of the Treasury of Liberia and with the Financial Adviser in investigating disbursements on account of pensions and shall make recommendations as to a revision of the pension lists, bringing them into conformity with the law, together with a principle for the granting of pensions in the future. All accounts will be promptly transmitted direct to the Auditor by the accounting officer under regulations to be prescribed by the Board of Review created by Act approved August 2, 1917, (Article 3). The Auditor may require the rendition to him of accounts by counties, townships, cities or other subdivisions and have access to and audit all books and papers thereof. He may also prescribe forms for the accounting for money and property by such entities. The salary of the Auditor will be not less than Four Thousand Dollars per annum.
Article V. Commissioner General of the Interior. Section 1. The Commissioner General of the Interior will make reports from time to time to the General Receiver and Financial Adviser on various subjects and the General Receiver and Financial Adviser shall transmit them with his comments and recommendations to the Secretary of the Interior of Liberia and at least annually submit a general report on the work during the year. He will have direct supervision over the assessment of existing taxes and the institution of new forms of taxation in the Interior. A set of tax registers will be prepared in duplicate of all huts and other units of taxation of the interior by tribes and towns, grouping these huts and towns under arbitrary numbers for the purpose of checking the amounts collected from year to year. These registers will be immediately prepared in each district of the interior and one copy forwarded to the General Receiver and Financial Adviser who shall transmit this to the Secretary of the Treasury of Liberia for use of the Auditor, and the other will be retained by the District Commissioner of the District for which the report is submitted. The Commissioner General of the Interior will have direct supervision of the collection of the revenues of the Interior. He will make these collections as far as possible through the existing local chiefs.
Section 2. He will have at least four American assistants who will be called ‘District Commissioners.’ During the absence or incapacity of the Commissioner General of the Interior, the Commissioner General or Financial Adviser shall designate the District [Page 76] Commissioner who shall act as Commissioner General. The number of Liberian Commissioners and other civil officials in native districts will be limited by agreement between the Secretary of the Interior of Liberia, the Financial Adviser, and the commissioner General of the Interior. No such commissioner or other civil official will be stationed in the interior until his qualifications have been scrutinized and his appointment recommended by the officers mentioned.
Section 3. The secretary of the Interior of Liberia, the Financial Adviser and the Commissioner General of the Interior will constitute a board to discuss and formulate plans for the better government of the Interior. In matters pertaining to the collection of revenues the Secretary of the Treasury of Liberia will take the place of a member of the board instead of the Secretary of the Interior. The Secretary of the Treasury of Liberia, the Financial Adviser and the Commissioner General of the Interior will promulgate rules for the collection and transmission of revenues from the interior. The Secretary of the Treasury of Liberia may appoint an official to cooperate from time to time. When revenues which have been collected are physically transported to Monrovia a military guard will be provided.
Section 4. A simple, modern and effective plan of development and administration of the interior will be drawn up and adopted at the earliest practicable date by the Secretary of the Interior of Liberia, the Financial Adviser, and the Commissioner General of the Interior. Native customary law will not be lost sight of, but will be respected so far as it does not conflict with statutory law, good order, and good morals. No new taxes will be imposed upon the natives until a plan of administration of the interior shall have been adopted.
Section 5. The practice of exchanging ‘dashes’ with the natives of the interior will be suppressed and discouraged. All services rendered or supplies furnished by the natives or native chiefs will be paid for in cash and taxes collected will be in cash. The Headquarters of the Liberian Frontier Force will be removed to such point in the interior as may be agreed upon by the Secretary of the Interior of Liberia, the Financial Adviser, and the Commissioner General of the Interior. The establishment of branch trading factories in the interior will be encouraged at such points as may be recommended by the Secretary of the Interior of Liberia, the Financial Adviser and the Commissioner General of the Interior.
Section 6. The Commissioner General of the Interior and District Commissioners will be peace officers only, but when necessary to enforce their authority, they will call upon the Liberian Frontier Force and this military assistance will be promptly given. The Commissioner General of the Interior and the District Commissioners shall be entitled to exercise powers of a Justice of the Peace. All intratribal ‘palavers’ and offenses, except optionally with the Government, murder, arson, rape, treason, sedition or rebellion, will be tried by the local Chief or Council subject to appeal to the Paramount Chief and Council. In some cases it may be necessary for a District Commissioner or the Commissioner General to preside at these hearings. Intertribal matters will be heard by a District Commissioner or the Commissioner General in conjunction with the native [Page 77] Chiefs of the tribes interested. A Chief from each tribe will hear the case with the District Commissioner or Commissioner General presiding. No fees shall be charged or received by the Commissioners for hearing ‘palavers’ or other cases. Only the party or tribe found guilty or at fault will be penalized. The cases of those charged with the crimes above excepted may be transferred to a court of original jurisdiction at some place on the coast. The salary of the Commissioner General will be Four Thousand Dollars per annum, plus a minimum of One Thousand Dollars per annum for expenses. The salaries of the District Commissioners will be not less than Three Thousand Dollars per annum each, plus a minimum of Seven Hundred Fifty Dollars each for expenses.
Article VI. Liberian Frontier Force Officers. Section 1. Until the services of the American officers are dispensed with, the senior officer designated in accordance with the provisions of Article 4, Section (c), Paragraph 1, of the Refunding Loan Agreement of 1912, will be commissioned ‘Commanding Officer of the Liberian Frontier Force’ with the rank of Major. The two officers in command of the separate battalions shall have the rank of captain. When the status of the United States Military Attaché at Monrovia has been definitely defined, his advice will be invited on all military matters, and his services sought for the reorganization and training of the militia, Liberian Frontier Force, and Cadet Corps. By request he may also serve as military adviser to the Liberian Government. A board consisting of the Secretary of the Interior of Liberia, the General Receiver, and the Military Adviser, will discuss and decide all matters of personnel, organization, and general matters of administration. The Commanding Officer of the Liberian Frontier Force will be Secretary of this board and give such information and advice as may be called for. The salary of the Major will be Two Thousand Five Hundred Dollars per annum and Three Hundred Dollars for quarters, plus rations. The salaries of the Captains will be Two Thousand Dollars per annum each and Three Hundred Dollars each for quarters and rations.”