File No. 882.51/522.
The Secretary of State to the American Chargé d’Affaires.
Washington, February 19, 1913.
German Foreign Office has informed our Ambassador at Berlin that it has proposed to Liberian Government Mr. O’Connell, an Irishman, as arbiter for claims commission but that Mr. O’Connell had confidentially informed German Consul that he was unable to accept position for reason that Liberian Government through its Attorney General had threatened him that it would be injurious to his business interests to act as arbiter in the commission.
German Government willing to make following concessions as to terms of settlement: Liberia to deduct from customs receipts the necessary funds for loan service, salaries of receivership and customs administration and then set aside twenty-five per cent of remainder, instead of thirty per cent originally proposed for paying off indemnity.
German Government feels that O’Connell affair is an intrigue on part of Liberian Government to delay negotiations for settlement of claims and states that it is not willing to stand any further protraction.
Ambassador Leishman informs the Department that he received the impression at the Foreign Office that when the question of the personnel of the commission is satisfactorily decided German Government might be willing to accept twenty per cent though such further concession would undoubtedly evoke protests from claimants. This arrangement might be favorable to Liberia since in months of small customs receipts the payments would be correspondingly small.
Inquire from Clark how this proposition would affect customs receivership and if it would be crippled by deducting twenty-five per cent. Inform Department the maximum per cent finances would permit.