882.01 Foreign Control/440: Telegram

The Secretary of State to the Minister in Liberia (Mitchell)

79. Your telegram 110, December 21, 4 p.m. You are authorized in your discretion to deliver the following letter to Barclay:

“My dear Mr. Barclay: Referring to my call on December 21 last I should like to assure you that the American Government would view with very deep concern any action by Liberia leading to repudiation or unilateral modification of Liberia’s contractual engagements with an American company.

My Government is informed that action on the part of the Liberian legislature to that end was promoted on almost the same day on which, in response to a request by Liberia for financial assistance, a representative of the Finance Corporation reached Monrovia with a view to discussing this assistance, as well as its relationship to the program of the International Committee of the League of Nations. If this should become effective it would be construed by the American Government not only as an effort by Liberia to repudiate a legitimate contract, legitimately acquired, but also to nullify the engagements made by Liberia in Geneva.

In these circumstances the American Government would feel that Liberia was blocking further American participation in international [Page 789] efforts to assist your country. Moreover, the American Government would be prepared to make representations against the extension of financial aid to Liberia from whatever source, unless and until the prior rights of American citizens had either been met in full, or the existing contract had been modified on a basis of mutual consent.

Sincerely yours,

(Signed) Charles E. Mitchell
(No Title) [”]

Report by telegraph action taken and its result.

Stimson