882.635 Neep/56: Telegram
The Secretary of State to the Chargé in Liberia (Wharton)
10. Referring to paragraph 3 of the Legation’s 17, March 3, 10 a.m.,13 it is assumed that by “definite income” President Barclay has in mind a guaranteed minimum royalty instead of the sliding scale provided for in the amended Neep concession. Please inform the President that while we will be glad to study the matter in accordance with his request it may well prove impracticable to suggest at this time what a customary minimum royalty per ton might be, pending determination of the extent as well as the character and quality of the iron ore deposits through an examination of the promised geological report.
For the President’s information it may be stated that it is not unusual for foreign concessions to provide for a minimum royalty based on an estimated average annual production and, in addition, a graduated payment in proportion either to earnings or to actual tonnage produced.
- Not printed. In the third paragraph the Chargé stated: “President Barclay desires definite income rather than fluctuating return from concession and asks if you are able to suggest a fair sum per ton to be fixed as royalty.” (882.635 Neep/51)↩