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-70-<br />

Liberia proved abortive. However, Firestone's attitude was not<br />

unprecedented as already in 1951 the Firestone Plantations Company<br />

had put pressure upon the Liberian Government to conclude<br />

a trade agreement with Spain (to supply the company's factory<br />

in that country with Liberian rubber) (69).<br />

After new talks in Akron in October 1969 between the Liberian<br />

Secretary of Treasury, J. Milton Weeks, and Firestone officials,<br />

the former left the U.S.A. with the impression that Firestone<br />

agreed to build a tyre plant with a capacity of 55,000 tyres a<br />

year and involving an expenditure of $ 6 million. If the<br />

Liberian Government were to reach the trade agreements with<br />

Sierra Leone and the Ivory Coast an additional $ 2.5 million<br />

would be expended toincrease the plant's capacity to 125,000<br />

tyres (70). However, one month later Firestone communicated<br />

that it merely wanted to undertake another feasibility study<br />

(71). <strong>The</strong> correspondence which subsequently developed between<br />

the two parties showed the feelings of disappointment and<br />

exasperation of prominent liberian Government officials while<br />

the Firestone company's attitude was increasingly insulting.<br />

<strong>The</strong> climax was reached when the company's managers, now under<br />

heavy pressure from the President himself, William Tubman,<br />

submitted another proposal in May 1970 which reduced all previous<br />

proposals to the creation of a satellite (plant) of the<br />

Firestone-owned tyre plant in Ghana, with a capacity on only<br />

47,000 tyres a year and involving a $ 3 million investment<br />

whilst employing 38 persons of whom 28 would be unskilled. It<br />

would produce only passenger-car and light truck tyres, and<br />

its raw material component...would be imported from Ghana.<br />

<strong>The</strong> Firestone Tire and Rubber Company besides the usual investment<br />

incentives with respect to import duty exemptions<br />

and a tax holiday demanded the exclusive right to import<br />

tyres into the country together with an embargo for an indefinite<br />

time period on such type of tyres as would be produced<br />

locally (72).<br />

<strong>The</strong> indignation aroused by this proposal led among other things<br />

to the personal intervention of President William Tubman. In a<br />

letter to Raymond C. Firestone (dated June 12, 1970) which was<br />

hand-delivered in Akron, U.S.A. by his son, William V.S. Tubman,<br />

Jr., and the Economic Advisor to the President, Lafayette K.<br />

Morgan, he expressed his anger about the proposal and reaffirmed<br />

the Government's willingness to encourage the establishment of<br />

a tyre factory by Firestone in Liberia. As Firestone had stated<br />

that a 55,000 tyre factory would not be economically feasible,<br />

the Government then proposed to share in a loss that would be<br />

sustained by a tyre factory with that capacity, while maintaining<br />

the investment incentive of a tax holiday of least ten<br />

years.<br />

<strong>The</strong> angry letter of President Tubman and the general feelings<br />

provoked by the proposal of Firestone resulted in a new, and<br />

final proposal. Late in 1970 (October) the Firestone Tire &<br />

Rubber Company proposed the establishment of a factory with a

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