882.6351 U.S. Steel Corporation/4: Telegram
The Minister in Liberia (Walton) to the Secretary of State
[Received 2 p.m.]
55. Your 32, July 23, 11 a.m. President Barclay informs me the Liberian Government has granted the United States Steel Corporation exclusive rights to conduct surveys for 6 months or more. He has [Page 811] served notice on Neep, through company’s legal representative at Monrovia, that Neep immediately halt all operations as company has failed to furnish Liberian Government with desired information. It is estimated that Neep has spent $100,000 in making borings since January, which was done at company’s risk. Liberian Minister at Paris has been instructed to discontinue all negotiations with Neep and Amsterdamsche Bank. Officials of bank reported to have become suspicious over Neep’s refusal to answer questions relative to capitalization, stock ownership and statistics on boring findings.
No satisfactory geological report has ever been turned over to the Liberian Government.
Liberian Government does not regard boring analysis report submitted in May as authentic. Same was transmitted to the President by Caffe after repeated requests from the Liberian Government for data on the subject. Report is typed on piece of paper minus name or anything that would offer or insure a source of creditability. Liberian officials inclined to think report should have been more comprehensive and informing.
I have been permitted to see a letter from a German national who confides that Monte-Cantino of Italy has been interested in exploiting Liberian iron ore deposits, but he frowns on the advisability of the Liberian Government forming such an alliance. Writing from his homeland he declares that Germany would not deal with Neep promoters for obvious reasons, but would be willing to deal through Muller which he points out has the confidence of German capitalists and industrialists.
There is every indication that Liberia prefers to become associated in the devolvement [development?] of its iron ore resources with American interests.