882.01 Foreign Control/576: Telegram
The Ambassador in Great Britain (Bingham) to the Acting Secretary of State
[Received June 28—8:08 a.m.]
194. From General Winship. My telegram 193, June 24, 1 p.m. Cecil asked me to call on him Monday evening and told me that after further exploration of the nationality question he was now forced to withdraw the assurance previously given me that an American would be appointed. He said he could not speak for the ultimate decision of the Council in the matter.
I pointed out that this left Firestone in a very difficult position, especially since at the request of the experts Firestone had already submitted for incorporation in Ligthart’s report a memorandum indicating the specific conditions on which his interests would be prepared to underwrite the League plan, and that Firestone had omitted the nationality of the Chief Adviser on my own recommendation, after I had explained to him that Cecil had apparently arranged the matter. I said that obviously this point must now be covered.
It was decided after discussion between Cecil, Firestone and me before the final meeting of the International Committee yesterday morning that Firestone should make an oral statement, which he did. He concluded by stating that his interests were entirely willing for the American Chief Adviser to be chosen by, responsible to, and removable by, the Council of the League.
Grimes immediately objected to an American, saying that as the Chief Adviser might be called upon to make decisions in cases involving the Financial Adviser and the Firestone interests, he believed that the Chief Adviser should be of a different nationality. The representatives of Italy, France and Poland reserved the positions of their respective governments. The Committee accepted without vote Cecil suggestion that no reference to nationality be included in the written “report by the Committee to the Council” (although of course it will appear in the minutes of the meeting), but that Firestone’s views should be communicated to the Council by the rapporteur (the representative of Poland) at the proper time. I made no statement during this discussion.
The Committee then proceeded to adopt the revised text of the plan of assistance, together with Ligthart’s annexed report, both of which will be transmitted to Liberia under cover of a strongly worded “Report by the Committee to the Council” which summarizes the results of the recent negotiations and makes most favorable reference to the Finance [Page 920] Corporation financial proposals in connection with the plan.51 It concludes as follows:
“The Committee now submits to the Council the plan of assistance in the form of a protocol to be accepted by the Council and by the Liberian Government. Certain modifications have been introduced in the original plan in order to provide further for its effective working.
“The Liberian representative has promised to refer the protocol to his Government, and the Finance Corporation only has provisionally accepted the arrangements provided for in this document.
“The plan as it stands appears to the Committee, with the exception of the Liberian representative, to be fair and practical and in fact to constitute the only way in which to comply with the request for assistance of the Liberian Government. Consequently the Committee strongly recommends it to the Council and to the Liberian Government. The Committee emphasizes the necessity of the acceptance by the Liberian Government of the plan as a whole if it desires the assistance of the League. Finally the Committee would draw attention to the danger of further procrastination. The Committee has had the question under consideration for over 2 years, and in these circumstances has asked the Liberian Government to reach a decision before the meeting of the Council in September 1933. The Committee is informed that for this purpose it will be necessary for a special session of the Legislature of Liberia to be called.”
Grimes objects to several of the modifications incorporated in the plan of assistance, and also to Ligthart’s report. At Grimes’ request a long memorandum outlining his views will be annexed to the documents already mentioned.
I referred to the seriousness of general conditions in Liberia, and urged that Liberia act favorably without delay upon the League plan and the amended loan agreement.
The Committee as such would not consider the loan agreement. Ligthart went over it at length with Firestone, Lyle and Grimes, and certain changes were made at Ligthart’s suggestion. Ligthart has promised to supplement his oral endorsement of the financial provisions by a letter to Grimes.
Favorable action was taken by the Committee on my suggestions that League representatives’ letter [be] despatched to Liberia (see penultimate paragraph of my telegram 19352) and Mackenzie will probably be sent.
It was found impracticable to convene the Council in special session. [Winship.]