The_Open_Door_deel1

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solidated Mines Ltd. of South Africa, aided by a Liberian,
Lloyd K. Whisnant, a close friend of President William Tubman,
made its entrance on the Liberian scene through two affiliates.
In 1962 one of the subsidiaries, "St. Andrews Securities, Ltd."
obtained a "classical" concession from President Tubman: exclusive
rights over a period of 50 years in a concession area of
over 2,350 square miles (approximately 1,500,000 acres) whereas
many articles and provisions of the agreement were similar to or
identical with those of the concession agreements with the African
Fruit Company, B.F. Goodrich, and LeTourneau of Liberia in
the 195O's. The "St. Andrews Securities Ltd." also operated
along the Lofa river, its concession area being south of the
"Liberian Swiss Mining Corporation Ltd." concession area. In
July 1964 the company, renamed after only one year and now called
the "Diamond Mining Company of Liberia Ltd.", exchanged areas
because little evidence had been found of the occurring of kimberlite
in the original concession area. But this is not the most
interesting aspect of this company. Its involvement in the then
Bureau of Natural Resources and Surveys through another company,
also an affiliate of De Beers, created a potentially dangerous
conflict of interests and an intolerable precedent allowed
by the Government of President Tubman, The second company of
De Beers Consolidated Mines to operate in Liberia, also
represented by Edward Dawe, the "Diamond Corporation of
West Africa Ltd.", signed on January 8, 1964 an agreement
with the Government for the establishment of a Diamond
Appraisal Office, within the Bureau of Natural Resources and
Surveys.
In the very early 196O's the official diamond appraiser, a
Liberian, had been allowed leave of absence to pursue more
advanced studies abroad and the Geological Survey (of the Bureau
of Natural Resources' and Surveys) had since carried out the
appraisal of diamond shipments, necessary to determine -Sovernment
revenue from royalties. As a result of the agreement entered
into with the "Diamond Corporation of West Africa Ltd." the
Diamond Appraisal Office was supplied with equipment and
trained and experience^ technicians, but at the same time
De Beers was given the legal opportunity to appraise its own
diamond production, at a fee of $ 30,000 per annum.
The decision to grant to one particular firm, which also happens
to be a diamond producer in the same country, the official appraisal
of diamonds, should be rejected in principal as it infringes
upon the Government's sovereignty and threatens the income
of the Government from the diamond sector. But It is the same type
of agreement that the Government made with Firestone which not
only determines the price of its own products but also those
of most other rubber producers in Liberia. Certainly Firestone
does not function within an official institution as does DeBeers,
but the outcome is practically indistinguishable (22).
Fortunately, in practice the consequences of the arrangement
with DeBeers were limited as the "Diamond Mining Corporation
of Liberia Ltd." in August 1966 relinquished its concession as