882.01 Foreign Control/433
The Secretary of
State to the American Representative on the
International Committee on Liberia, at Geneva (Reber)
Washington, November 23, 1932.
Sir: With reference to the Department’s
recent telegram concerning the decision of the Finance Corporation
of America to send Mr. L. T.
Lyle to Liberia, I am enclosing for your information
a copy of
[Page 783]
the
communication from Liberia to the Finance Corporation and the Fiscal
Agent, delivered by the Acting Financial Adviser on October 18,
last. Although this communication is undated, it is understood from
Mr. McCaskey that it was
written in Monrovia just prior to his departure on September 24,
1932.
I do not believe that it would be desirable to furnish a copy of this
letter to League officials in Geneva, since it should be obtainable
by them from the Liberian representative.
Very truly yours,
For the Secretary of State:
W. R. Castle,
Jr.
[Enclosure]
The Liberian Acting Secretary of the
Treasury (Dunbar) to the Finance
Corporation of America
Gentlemen: Reports of this Government
to the Fiscal Agent during the past two years indicate a large
continuing falling-off in the revenues of the Republic. This has
necessitated a heavy decrease in operating expenses and
particularly so in the Budget proposed for the Fiscal Year 1933.
In this proposed Budget only absolutely necessary operating
expenses are included, and drastic reductions have been made in
salaries and number of employees, nevertheless, without
assistance, it is impossible to enact a balanced budget and for
this reason the Government appeals to the Finance Corporation of
America and the Fiscal Agent for necessary assistance in
financing and stabilizing the Government of the Republic.
The consent of the Finance Corporation of America and the
National City Bank of New York, who together with the Government
of the Republic of Liberia, comprise the parties to the Loan
Agreement of 1926, is earnestly solicited for the following
modifications of certain of the terms of the Loan Agreement:
- 1.
- The rate of interest to be reduced from 7% to
4%.
- 2.
- A moratorium on sinking fund, or amortization, be
granted for a period of five years.
- 3.
- The elimination of two American officers for the
Liberian Frontier Force.
- 4.
- The elimination of the American Assistant
Auditor.
- 5.
- Equalizing the salary of the Supervisor of Customs
with that of the Auditor and the Supervisor of Internal
Revenue.
- 6.
- A reduction of 25% on the salaries of the Fiscal
Officers.
- 7.
- A reduction of 25% on the salary of the Financial
Adviser.
- 8.
- The elimination from the Budget of provision for
payment of outstanding bills and commitments, and
agreement to the plan of the Government for the issue of
approximately $500,000.00 Internal 3%
[Page 784]
Bonds payable within
twenty (20) years from date of issue of them, this in
order to fund the current floating indebtedness of the
Government.
Should the modifications of certain of the terms of the Loan
Agreement, mentioned above, be accepted by the other parties to
the Loan Agreement, the Government will be able by rigid economy
to balance the proposed Budget for 1933, meet its current
obligations, and relieve the extreme distress caused by
declining receipts. A copy of the pro-forma Budget which will be presented to the
National Legislature at the ensuing session for enactment is
attached hereto,96 and an examination thereof will
show clearly the strict economy in expenditure to which the
Government of Liberia proposes to adhere.
Both the Finance Corporation of America and the National City
Bank of New York are familiar with the heavy financial burden
with which the Liberian Government is faced, and it is earnestly
hoped that, as parties to the Loan Agreement of 1926, they will
render this assistance which the Government of Liberia so
sincerely seeks.
I have [etc.]
