882.01 Foreign Control/399

The Acting Secretary of State to the Chairman of the Firestone Tire & Rubber Company (Harvey S. Firestone)

My Dear Mr. Firestone: I have received Mr. Belden’s letter of October 8, 1932, declining on behalf of the Finance Corporation of America to enter into direct negotiations on the basis of the “General Principles of the Plan of Assistance to Liberia”, which was endorsed by this Government and transmitted to the Finance Corporation by my letter of October 5. I also refer to your conversation with the Secretary of State at Woodley on September 24, last,80 and to his letter to you of October 4,81 in which he carefully outlined the position of the American Government with respect to the Liberian problem. You will recall that in this communication he stated very clearly that the solution of the problem was an international obligation and that, although it would be altogether opposed to American policy and objectives for the United States to undertake exclusive responsibilities in Africa, we were nevertheless willing to assume our fair share of an international responsibility, providing there was an assurance by Liberia in advance that Liberian officials would themselves cooperate.

This Government has no intention whatever of independent action toward Liberia. It is convinced that while the American people have a keen interest in that country to which they are bound by certain historic ties of association and sympathy, and have been sincerely disturbed and disappointed at the frequent reports of disorders and social injustices there, they would not countenance any assumption by the United States of direct accountability for a country on the African continent, even at the request of the inhabitants themselves.

In furtherance of our policy of international cooperation with respect to Liberia, we have participated in four meetings held under the auspices of the League of Nations. During this period we have declined to enter into formal relations with the Liberian administration and we have focused our efforts upon obtaining through the International Committee of the League the acceptance by Liberia of principles embodying a sufficient delegation of authority, under international guarantees, so that the rehabilitation of the country could really be effected when a program based upon these principles was put into effect.

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We believe that the foundations for such a program are contained in the “General Principles” adopted by the International Committee on September 27, 1932. This document is not the product of hasty decision, but of carefully considered negotiations between the responsible officials of a number of Governments. We have discussed the various points involved through the medium of our own Representative on the International Committee and, in many instances, directly with the central authorities of the participating Governments through their diplomatic representatives in Washington.

When, therefore, the American Government accepted the “General Principles”, it did so because we felt that, having been agreed to by Liberia, these principles would provide a framework within which there would be ample latitude for direct negotiations and within which your legitimate interests could be protected. In essence the “General Principles” constitute a Liberian declaration to promote an international effort to rehabilitate the country and sincerely to cooperate therein. The details were omitted in response to the direct request of this Government because we believed that it would be preferable and more practicable for them to be elaborated in consultation with your interests, inasmuch as these interests, through the investment in Liberia by the Finance Corporation, were directly concerned.

While this Government would not be an interested party in such direct negotiations and would in fact decline to be brought into any discussions which involved the modification of your own contractual rights, the American Government has been interested in bringing about a situation where we considered that direct negotiations might be entered into by your interests with a reasonable expectation of working out a solution beneficial to all. If our views are too optimistic and such a position has not been brought about, your negotiations themselves would show it.

Mr. Belden’s communication, however, constitutes a refusal to accept as a basis for negotiation the “General Principles” which were endorsed to the Finance Corporation by this Government after a year and a half of patient effort. The decision, I appreciate, rests with you. But I feel I should make it clear that such a decision, declining even to explore through direct negotiations the possibilities of the plan, entails a responsibility to public opinion both in this country and abroad which the American Government is not prepared to assume on your behalf.

Should Mr. Belden’s letter represent, contrary to our hopes, your final view of the matter, the Department will as indicated telegraphically inform the American Representative on the Committee, [Page 773] which has already been apprised of the American endorsement of the “General Principles” and of their transmission to you, of your answer, namely that the Firestone interests decline to negotiate. Although it would of course be in order, should you desire to do so, for you to transmit Mr. Belden’s letter upon your own responsibility directly to Viscount Cecil, the President of the International Committee, this Government could not be put in the position of appearing to endorse the contents of your letter by transmitting its text.

Sincerely yours,

W[illiam] R. Castle, Jr.
  1. Memorandum of conversation not printed.
  2. Not printed.