The_Open_Door_deel1

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purchasing agent of the Government it was agreed that the company
would do so at a commission rate to be agreed upon on all imports
for a period of two years from the effective date of the agreement.
In consideration of the Liberian Government's 25? stock interest in
The Liberia Company, and the 10? stock interest of The Liberian
Foundation, and the rentals and royalties to be received by the
Government of Liberia, the latter agreed that in the case of each
of the projects mentioned under (1) to (5) inclusive above, no
taxes other than those imposed by this revised Statement of
Understanding would be levied for a period of twelve years after
the effective date of the agreement. Thereafter, any taxes levied,
assessed or collected would be of general application.
It was also agreed that should The Liberia Company fail to exercise
the rights granted for any project within two years after the date
of the agreement, or should The Liberia Company cease operation on
any project for two years, except in case of force majeure, the
rights granted for such a project would lapse.
The following provision is worthy of note as the agreements entered
into with the oldest investor in the country, Firestone, did not
include such an obligation until 1976:
"7he Liberia Company confirms that it shall be of primary
concern of 7he Liberia Company, as stated in Article
5 of the Statement of Understanding, to advance the
welfare of the people of Liberia, and the organization
of each project shall be accompanied Ly appropriate provision
for health and training of Liberians who are employees
of such project, and it shall be the policy of
7he Liberia Company to give preference of employment to
citizens of Liberia," (8)
The only long-term economic activity undertaken by The Liberia
Company under the provisions of the revised Statement of
Understanding of December, 1949 was the start of a plantation for
which purpose the company entered into an agreement with the
Government of Liberia on August 23, 1950. Under this agreement,
called "Indenture of Lease", an area was leased for a period of
forty years at a yearly rental of six cents per acre, in conformity
with the 1949 agreement.
Also in accordance with the revised Statement of Understanding was
the exemption which was granted from any and all taxes and duties
on the importation of materials and substances for use upon the
lands leased, including residences, processing plants and other
buildings thereon, and in the operation and development thereof.
The company obtained the exclusive right to construct, maintain and
operate highways, railways, tramways, waterways, natural water and
hydro-electric power lines and plants, and pipe lines (regardless of
whether facilities for energy were inside or outside the concession
area), telephone and telegraph lines, and other communication
systems, airstrips, airports, radio and radio telephone
installations and communication stations, and mills, factories,
warehouses and other suitable structures provided they were for the
efficient operation and development of the enterprise. All trails
across the area leased- which had been used by the population from
time immemorial should remain open to free use by the population if
such use would not interfere with the efficient or economic