882.635 Neep/90

Memorandum of Conversation, by Mr. Henry S. Villard of the Division of Near Eastern Affairs

Mr. John M. Sias, a Vice President of the United States Steel Corporation, accompanied by Mr. Charles Muller, one of the corporation’s geologists, called today to inquire about the analysis of a boring which had been made of the Bomi Hills iron ore deposits in Liberia. Mr. Sias asked whether he could see the boring analysis and I gave him a copy for his strictly confidential information.

After a preliminary inspection of the boring report, Mr. Muller stated that it contained insufficient data to determine the content or quality of the deposits in question. He said that it might be a selected sample analysis, with certain factors undisclosed, or it might be a composite analysis of several holes which might have been drilled. There was no way of determining whether the iron ore deposits were sufficiently interesting to the United States Steel Corporation, according to Mr. Muller, unless further data was obtained. In particular, he said, it would be desirable to have samples of the ore and an analysis of deposits taken from different sections of the area.

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I said that we had done all we could to obtain samples and a copy of the geological report which it is understood has already been prepared by the Neep interests, but that so far it had been impossible to obtain them. Mr. Sias expressed the opinion that the only way of determining accurately the extent and quality of the iron ore deposits would be to send an expert to Liberia from this country, who would render an impartial and independent report. I gave him a copy of the bill which was recently passed providing for the loan of civilian employees to the Government of Liberia and said that President Barclay had been informed of the contents thereof.

Mr. Sias said that he would like to discuss with his principals the question of sending a geologist from the United States Steel Corporation to make a reconnaissance of the iron ore deposits in Liberia. He asked for suggestions as to the best method for obtaining the consent of the Liberian Government, if it were decided to do this. I said that if a decision were reached by the corporation to the effect that it wished to send one or more geologists to Liberia, it might be well to inform the Department of that fact and request the Department’s advice in the matter. I said it might be possible, in such an event, to instruct the Legation at Monrovia to request permission from the Liberian Government for the entry of the geologists and their equipment. We would, of course, have to consider carefully just how far we could go in seeking the consent of the Liberian Government to the proposed operations of an American geological expedition in an area concerning which a concession had already been negotiated with foreign interests.

Mr. Sias thanked me for the information which we had made available to him and said that the Department would hear further from the United States Steel Corporation as soon as he had discussed the matter of sending geologists to Liberia.