The_Open_Door_deel1

THE AFRICAN FRUIT COMPANY
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The start of cash crops other than rubber by the Liberia Company,
i.e. cocoa and coffee, inspired the Government of Liberia in
November 1951 to approach the "Afrikanisch Frucht-Compagnie Laeisz
& Co., Hamburg" for the development of banana and other
plantations as well as the handling and exportation of these
products. The "Afrikanisch Frucht-Compagnie Laeisz & Co., Hamburg"
had experience in Africa with the production and export of bananas
since 1910 (notably in the former German colony of Cameroon) and
was before the 1940's Germany's main importer of this tropical
fruit (15).
In July 1952 a Statement of Understanding was signed between
representatives of this German company and of the Government
of Liberia whereby it was agreed that the former was granted
a 80-year concession on 600,000 acres in Sinoe, Sangwin, and
Webbo District (Palipo, Glaro, Glio, Konobo) for the purpose
of a large-scale development of bananas, other fruits and tropical
products plantations. At the same time the company created, under
this agreement, the African Fruit Company Laeisz & Co. (Liberia)
Ltd. , obtained the rights to engage in mining operations and the
harvesting of timber in this concession area although these
activities would require additional agreements before export
operations could commence.
Though the Statement of Understanding granted the company
exclusive rights within the three concession areas (16) the
Government later granted many concessions to logging companies in
the same areas. It is important to note here that a formal
concession agreement between the two parties was never signed or,
consequently, approved by the National Legislature. The Statement
of Understanding of 12 July, 1952 was signed on behalf of
the Republic of Liberia by the then Minister of Agriculture
J.W. Cooper, and by Richelieu Morris (as witness), and had only
been approved by President Tubman. After the African Fruit Company
had started its operations in November 1952 the National
Legislature approved the original Statement of Understanding,
unmodified, on March 30, 1953 and the African Fruit Company Laeisz
& Co (Liberia) Ltd. was incorporated on September 30, 1954. In
1973 a cabinet minister considered the company to be operating
without a concession agreement (17). Comments on and criticism of
the Statement -Of Understanding were thus never taken into consideration
and the following - brief - discussion of the Statement's
main provisions should be viewed against this background.
Under the agreement of 1952 (which remained unchanged at the
time this chapter was written) the African Fruit Company was
granted a concession area of 600,000 acres and on very liberal
conditions (see below). Within one year the company had to start
the initial development of 50,000 acres which area would at the
same time form the minimum acreage on which the annual rental of