882.00/855
President King of Liberia to the National City Bank of New York74
Sirs: In reply to Finance Corporation’s communication dated June 14, 1930,75 addressed to the Fiscal Agents of the Loan Agreement of September 1, 1926, please be informed that this letter has been given careful consideration.
The Liberian Government consider it unnecessary to submit the alleged breaches of the Loan Agreement to arbitration. It is thought that the divergent views of the Liberian Government and Finance Corporation may be reconciled otherwise. I take occasion therefore to express frankly the views of the Liberian Government in the hope that the breaches complained of may be corrected.
1. The Liberian Government assures Finance Corporation that it will not question the disbursement of assigned revenues in the order stated in Article 13, page 20 and 21 of the Loan Agreement; neither will the Secretary of the Treasury withhold the application of assigned revenues to the liquidation of accounts legally approved by the Financial Adviser as due and payable from such funds.
2. The Liberian Government disavows intention of denying the Financial Adviser the authority given him to make rules and regulations governing the operation of fiscal matters in accordance with Article 12 of the Loan Agreement. The Government is of the opinion, however, that Executive Order No. 9, upon which charge of breach is [Page 408] based, should be rewritten to provide that prior to the issuance of Transfer Order from Government general accounts to the disbursement account, an Executive Warrant shall be approved. This is in accord with a Constitutional provision. The Financial Adviser has been directed to draft, for Executive approval, a new Order observing the constitutional provision, as well as providing for the insertion of serial check numbers on the Transfer Order.
3. The Liberian Government has not yet designated an official depositary because of difference in opinion growing out of an attempt to execute a depositary contract with the Bank of British West Africa. This subject will again be taken up when banking facilities are available in Monrovia.
4. The allegation that the Secretary of State and the Secretary of the Treasury have failed to compel certain consular officers to submit accounting of pay and salary fees into the Treasury is having the immediate consideration of the Government. The Government is anxious that public revenues from every source shall be deposited into the Treasury in accordance with the laws and lawful regulations of the Republic. Finance Corporation is assured that the Government will take steps to bring to account the revenues arising from consular receipts. Toward this end the Financial Adviser has been requested to prepare appropriate regulations.
5. The charge contained in paragraph 5 of Finance Corporation’s letter has been a matter of serious concern to the Head of the Government of Liberia.
It should be borne in mind that the President of Liberia is without authority to control findings of juries. The action of one juror may defeat the ends of justice. The cases which the Finance Corporation must have in mind were not handled to the satisfaction of the President of Liberia. Measures for effecting the forfeiture of bonds of public officials who fail to account for public revenues received by them will be worked out. Directions have been given to the Financial Adviser to study existing laws with a view to drafting such legislation as will authorize the setting up of a Bond Commission or Administrative Court which will be charged with the duty of determining, without the aid of a jury, when the bond of a defaulting official and/or bis sureties shall be escheated. The finding of this court shall be final and conclusive of the matter, saving, however, the right of the defendant to appeal to the Supreme Court.
6. The complaint touching the failure of the Secretary of the Treasury to submit to the Financial Adviser the Budget at the time and in the manner specifically required by the Loan Agreement, may [Page 409] again arise because the time within which corrective measures could be adopted this year has passed. Finance Corporation is assured that steps will be taken to readjust the administration of the Treasury.
7. The Liberian Government hold a different view of the matter complained of in paragraph 7, namely, the nomination of the Acting Financial Adviser. The view of the Liberian Government is that the Financial Adviser does not lose his status while absent on leave. The Liberian Government has held to the opinion that notwithstanding the absence of the Financial Adviser from his post of duty he cannot divest himself of the responsibility for the proper performance and carrying on of the business of the office. To make it possible for the Financial Adviser to control his office in his absence, and to hold him responsible, he himself should select the official who acts in his stead. This is a procedure calculated to secure continuity of policy in an important office.
8. The statement made by the Secretary of the Treasury to the effect that under the organic law of Liberia the President has the right to set aside or annul any existing acts of the Legislature, is unauthorized and not warranted under either the organic or Statutory laws of the Republic.
9. The basis of the authority of the Financial Adviser is fixed in the Loan Agreement and the Government will support his authority expressly granted or that which may be lawfully implied.
Under Article 9 of Loan Agreement the status of Fiscal Officers is specifically fixed and these officers, in the performance of their duties, are responsible to the Financial Adviser.
- (i)
- The matter complained of in Paragraph 8 of Finance Corporation’s letter will be remedied by administrative action.
- (j)
- The Liberian Government is agreeable to the Financial Adviser making suggestions and offering plans to rehabilitate the finances of the Government and to his preparing regulations for financial administration. Finance Corporation may be certain that the Liberian Government will give appropriate attention to suggestions of the Financial Adviser which are not contrary to the constitution and laws of Liberia. It is believed that the corrective measures set out in this letter together with the assurances of cooperation will satisfy all concerned as to the Liberian Government’s intention to adjust apparent differences of opinion and settle questions which have arisen concerning procedure.
Yours very truly,