The_Open_Door_deel1

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Planting Agreement was in Akron looked upon as an act of
ungratefulness, and that the company's managers were ostensibly of
the opinion that the company (had) already contributed enough to
Liberia.
During the first meeting of Government officials and Firestone
representatives, in July 1974, the emotional bomb exploded, and
Finance Minister Steve Tolbert, as Chairman of the Concessions and
Investment Commission and backed by his brother, the President of
Liberia, demanded the withdrawal of Firestone's reply which - it
was felt - had insulted Liberia. He forced the company's
International Vice-President publicly to apologize for his letter
(86). Apparently Firestone now understood that it was difficult to
play games with the new Administration, and in particular with
Steve Tolbert, himself a tough businessman-millionaire. Within a
month the company conceded to a number of proposals of the
Liberian Government as can be seen on the Summary Table of
Renegotiation of the 1926 Planting Agreement (see Annex 8).
The items to be reviewed which Firestone continued to reject were,
however, of greater importance than the changes it had decided to
accept. In particular, mention should be made here of the
exclusive position of Firestone in its concession area and its
rights to engage in all activities (both agricultural and mining).
The company did not give up these prerogatives until 1975. In the
same year compromises were reached on a number of issues, e.g. the
stumpage tax on rubber wood and rubber wood products, the right of
the Government to buy the company's produce (under certain
conditions), and the automatic termination of the Agreement. In
addition compromises putting the Government in a weak position,
e.g. with respect to the reversion of Firestone's facilities and
infrastructure to the Government at the expiration of the
concession agreement, and the Liberian desire to ship Firestone's
products to overseas markets, were agreed upon. The company was
emphatic in its refusal (1) to pay the export tax on rubber and
all other future taxes levied directly on income, and (2) to be
subject to Liberian Laws of General Application. As a result of
the disappearance of Minister Tolbert, who died in a mysterious
plane-crash in April 1975 (87), the discussions suffered a serious
setback and the renegotiations were discontinued in June 1975.
The question was, in fact, not solved until May 5, 1976, when the
(Acting) Minister of Finance, Gerald Padmore, received the message
that the Board of Directors of the Firestone Tire & Rubber Company
had agreed to the company being subject to the laws of general
application as pertaining to the Liberian Tax Code.
Once the green light had been given it was only a matter of
agreeing upon the exact wording of the final Agreement. After
almost three years of preparation and negotiations the new
agreement, hereafter referred to as the Firestone Concession
Agreement, was signed by the Firestone company and representatives
of the Government of Liberia.
The agreement, signed on August 20, 1976, was approved eight
days later by the National Legislature.