Office of the Historian

882.51/1221

The British Embassy to the Department of State26

undated

Aide-Memoire

It is reported that the Liberian Legislature have refused to accept the Loan Agreement proposed by the United States Government, and an examination of the conditions shows that the agreement in question involves the establishment of an United States Protectorate over Liberia in all but the name, although the United States Government have stated on more than one occasion that a protectorate was not what they intended or desired.

The exact nature of the control to be exercised by the United States over Liberia is not a matter of special interest to His Majesty’s Government, but seeing that His Majesty’s Government were asked before the conditions of the Loan were presented to Liberia to surrender the security for British investors, which they possessed under the Loan Agreement of 1913 [1912?], they felt bound to stipulate that the status quo should not be altered to the detriment of British economic interests.

The United States Government have never formally accepted the conditions made by His Majesty’s Government. Nevertheless they have acted as though Liberia were relieved from its obligations under [Page 98] the 1913 agreement and have even caused the sinking fund to be suspended, contrary to the terms of that agreement, for no other reason than that the exchange was against Liberia.

Notwithstanding the inconvenience caused in this and other directions His Majesty’s Government relying on the good faith of the United States Government have loyally refrained from demanding a resumption of their participation in the control of the revenues of Liberia, and have confined themselves to urging the United States Government to expedite the conclusion of their agreement. Nor have they encouraged the Liberian Government to seek loans on easier terms from British sources.

The United States Government have given repeated assurances that the agreement was on the point of conclusion, but the Liberian Legislature has now adjourned without modifying its previous answer and it is clear that completion is no nearer than it was two years ago. Meanwhile, British interests continue to suffer and the development of Liberia is arrested.

As stated above, the exact nature of the control to be exercised by the United States over a country which they regard as being to some extent under their special protection, is not a matter about which His Majesty’s Government propose to offer any criticisms, but they observe with regret that the attitude of the United States in the present instance is scarcely in harmony with the principles in the maintenance of which they are so happily co-operating with His Majesty’s Government in the Far East.

  1. Handed to the Secretary of State by the British Ambassador, Oct. 4, 1920.↩