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-128-<br />

the agreement signed five years earlier with BFG consisted of the<br />

introduction of the principle that LAC's output could be freely<br />

exported only after Liberia's domestic needs had first been met.<br />

Significantly, the Liberian Government never seized the<br />

opportunity which this clause provided and never enforced its<br />

application.<br />

In 1960 LAC started with the clearing of land in its Grand Bassa<br />

County concession area for the development of a rubber plantation<br />

which according to the initial plans would comprise 100,000 acres<br />

by 1975. <strong>The</strong> concession area situated in the eastern part of the<br />

country aroused the concession owners' enthousiasm because of its<br />

encouraging prospects for oil palm, cocoa, and sugar cane<br />

plantations as well as for the exploitation of the rich tropical<br />

rainforests. Just as the other major investors in agricultural<br />

ventures in Liberia (Firestone and Goodrich in rubber<br />

plantations, <strong>The</strong> Liberia Company in the cultivation of cocoa and<br />

coffee, and the African Fruit Company in banana plantations) the<br />

LAC decision makers were highly optimistic about the success of<br />

their investments In Liberia as was reflected in the total size<br />

of the concession area sought and obtained, the far-reaching<br />

goals set, and the ambitious projects started. Two of the major<br />

mistakes nearly all these concessionaires made whilst developing<br />

their investment plans and signing the concession contracts were<br />

that they overrated the country's labour potential, and<br />

underestimated the problems resulting from being engaged in an<br />

extremely underdeveloped country where human constraints, natural<br />

environment, and the lack of infrastructure placed obstacles<br />

which were difficult to overcome. This explains the disappearance<br />

of investors such as LeTourneau of Liberia and Juan Jesus Ramos<br />

Associates, the pulling out of the original concessionaires and<br />

the subsequent selling of the concessions in two cases (the<br />

African Fruit Company and, as we shall see, the Liberian<br />

Agricultural Company), also the adjustment to more realistic<br />

ventures in two other instances (Firestone and B.F.Goodrich), and<br />

the change in crops, on a very modest scale in the case of <strong>The</strong><br />

Liberia Company, and on a larger scale by the African Fruit<br />

Company. LAC started with its operations in its concession area<br />

in Grand Bassa County. <strong>The</strong>re were several reasons which motivated<br />

this choice. First, the announcement of plans to construct a<br />

railroad connecting the Nimba Mountains with Buchanan, where a<br />

major port was to be built. Both railroad and port would be close<br />

to LAC's concession area, thus facilitating its accessibility as<br />

well as the exportation of the plantation's output. Secondly,<br />

favourable geo-physical conditions such as not too heavy<br />

rainforest which made penetration more easy, and a relatively<br />

flat countryside which was more adapted to the operations<br />

inherent to a rubber plantation. Thirdly, the relatively densely<br />

populated area was attractive, considering the company's need for<br />

a large number of labourers. Fourthly, the absence of other major<br />

concessionaires in the area (19).<br />

As mentioned before, no attempt was ever made by LAC to utilize

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