740.00112 European War 1939/2884
Memorandum of Conversation, by Mr. Henry S. Villard and Mr. Charles W. Lewis, Jr., of the Division of Near Eastern Affairs
| Participants: | Mr. Helm3 and Mr. Calvert of the British Embassy |
| Mr. Harvey S. Firestone and Mr. Larabee of the Firestone Company | |
| Mr. Murray4 | |
| Mr. Villard | |
| Mr. Lewis |
Mr. Firestone opened the conversation by stating that his company had become very much concerned over the recent action of the British Chargé d’Affaires at Monrovia in recommending that the Bank of Monrovia and the United States Trading Company, subsidiaries in Liberia of the Firestone Plantations Company, be placed on the British Statutory List. He said that the British Chargé d’Affaires had for some months been endeavoring to force the Bank and the trading company to cease transacting business with German firms in Liberia and with neutral firms on the Statutory List and had, during last November, prevailed upon the manager of the Bank to acquiesce in writing to the British demands. Mr. Firestone said that this action on the part of the Bank manager was done without the authority of the company and that, in any case, whatever the understanding reached between the manager and the Chargé d’Affaires it should not have been put in writing, since, if the agreement became known to the Government of Liberia, the company and its subsidiaries might be liable to serious penalties, the terms of the agreement being in violation of the Liberian Proclamation of Neutrality. He continued by stating that, as Mr. Helm knew, it was the policy of the Firestone interests throughout the world to cooperate in every practicable way with the British Government, and that naturally all steps were being taken to see that the operations of the company did not in any way benefit the Germans. However, in Liberia the Government’s Proclamation of Neutrality, and the determination of the Government to enforce it, made it extremely difficult for the Bank of Monrovia and the United States Trading Company to comply with the demands of the Chargé d’Affaires.
Mr. Helm said that he had written, in April, to the Ministry of Economic Warfare concerning this matter and had been assured, in [Page 519] reply, that adjustments would be made to meet this particular situation.
Mr. Murray remarked that while Mr. Ponsonby was Chargé d’Affaires at Monrovia the question at issue was being handled fairly satisfactorily but that the present Chargé d’Affaires, Mr. Routh, gave the impression of being anti-American, which was out of step with present Anglo-American relations. Mr. Murray continued by saying that while Mr. Routh was probably not in actual fact anti-American it was nevertheless evident that his methods were bringing on a serious situation. He thought that Mr. Routh was magnifying the problem unnecessarily, and in doing so he was placing the Firestone interests in a dangerous position and was, at the same time, antagonizing the Liberian Government. He added that Mr. Routh, by lack of tact, had during his previous tour of duty at Monrovia caused the Liberians to regard him unfavorably and that the available evidence seemed to indicate that he was doing nothing to improve his relations with the Liberians during his present tour of duty; on the contrary, his aggressiveness toward the American companies in question, upon which the Liberians were dependent for banking facilities and, in large measure, for merchandise, was having very unfavorable repercussions and was further impairing his already strained relations with the Government.
Mr. Helm commented at length on the policy of his Government with reference to the economic blockade, pointing out that while admittedly the economic and financial considerations at stake in Liberia were small, it was nevertheless the desire of the Ministry of Economic Warfare to strike at the enemy wherever results, large or small, could be achieved. He added, however, that he felt sure that an understanding could be reached in the questions at issue with respect to Liberia.
It was then decided that Mr. Helm and Mr. Firestone should discuss the matter further in a conference between themselves, and should endeavor to eliminate written agreements or conditions from the record as much as possible. This would apply in particular to the conditions enumerated by the British as being precedent to the granting of navicerts for shipments to the Firestone Plantations. The arrangements under which such navicerts were to be granted would be worked out by oral agreement in so far as possible. Moreover, Mr. Firestone would consider it a favor if the British could expunge from the record the correspondence signed by the General Manager in Liberia without authority of the Home Office, an action which Mr. Firestone was now repudiating.