The_Open_Door_deel1

-86-
land, rights, acts of cooperation, etc., applicable to the
particular project, by a subsidiary of the Liberia Company in
which shares would be available to "all private useful and
qualified LiLerian, United States and other participants", the
proportion of ownership retained by The Liberia Company being such
"as facts would make appropriate in each case" (4). The duration of
this concession would be 80 years.
The Statement of Understanding, which was officially approved by
President Tubman on December 4, 1947, was made in good faith by
both parties, no clear definition being made of "net proceeds", not
providing a regulation of the financial structure of The Liberia
Company in the absence of a debt/equity ratio and leaving the
financing and execution of the projects entirely to the Company.
This agreement between President William Tubman and Edward
Stettinius calls to mind comparable efforts of previous
Administrations to entrust the development of (a part of) the
country to private foreign capital, notably the agreements between
President Arthur Barclay and Sir Harry Johnston, in 1906 (see
Chapter 2), and between President Charles King and Harvey S.
Firestone in 1926 (see Chapter 3). Compared to the concession
agreements with the Liberia Development Corporation in 1906 and
with the Firestone Tire & Rubber Company in 1926, however, this
agreement with the Stettinius Associates-Liberia, Inc. covered many
more activities, was much more comprehensive, while it also
differed from the other two as it included Government
participation, though this was limited to a minority share. In
fact, the decisions and events of 1947 were unique. Never before in
the history of the country, had a single private, and largely
foreign-owned company been given so many powers and so much
confidence. One century after the creation of the "independent and
sovereign State of Liberia" its development was handed over. A most
remarkable decision indeed, and it was to be explained and defended
both inside and outside Liberia, as "the Open Door Policy".
Most remarkable, however, is that whereas the Firestone
investments provoked ill-feelings in the 1920's and later, there
seems to have been virtually no opposition to these 1947 proposals
(5.). An explanation for this attitude of Liberia's ruling class'
might be that the Firestone company threatened the national
sovereignty which was at that time not even accepted throughout the
republic, and its investments were profit-oriented whereas the
plans of the Stettinius Associates-Liberia,Inc. - also contrary to
the activities of Sir Harry Johnston - did not primarily aim at a
direct profit, but were more altruistically motivated. This
characterisation, however, might be inaccurate and misleading.
Edward Stettinius was of the same generation as his successor
at the U.S. Department of State, Foster Dulles, and shared his
antipathy against the ideology and philosophy of the non-capitalist
world.
It was this anti- communist attitude which directed Stettinius'
involvement in the only African republic. The Statement of
Understanding therefore expressly mentioned that "private
initiative shall Le employed for every project to the fullest
extent available" (6).