The_Open_Door_deel1

-146-
failed to comply with Article XI of the concession agreement,
i.e. to post a performance bond of $ 50,000 within three months
immediately following the signing of the agreement, and
assigned 50? of the concession to "Globex Minerals (Inc.)", also
a U.S.-company, without the required prior written consent of
the Liberian Government, which act constituted a second breach
of contract, the then Minister of Justice, Clarence L. Simpson
on December 15, 1972 rescinded the agreement with Stern's
company before even Legislative approval of the agreement had
been given (27).
The real reasons for the revocation of Stern's concession agreement
may have been different from those which were officially
stated though the double breach of contract presented genuine
grounds for cancelling the agreement. In the course of 1972 Stern
had disagreed with one of his Liberian partners, A.B. Tolbert,
and as a result lost the latter's political support which had
made his company vulnerable to attacks from others (28). The
President of "Globex Minerals (Inc.)", John F. Nisco, with whom
Stern had signed a Joint Venture Agreement on October 12,
entered into negotiations for a new concession agreement with
Minister Stephen A. Tolbert, then Minister of Finance and
Chairman of the Concession and Investment Commission. He also
secured the (legal) assistance of Counsellor C. Cecil Dennis,
who was then emerging as the strong man in Liberian politics.
He was later appointed Minister of Foreign Affairs by President
Tolbert. Dennis was a close friend of Minister Stephen Tolbert
for whom he worked as a Counsellor in his enterprise, the
Mesurado Group of Companies. Under pressure a new draft agreement
was discussed, as was stated in an official Memo of the
Ministry of Finance (29), the Model Mining Concession
Agreement which had been drafted earlier was discarded,
and on December 23, 1972 a new Diamond Mining Concession
Agreement was signed by the Minister of Lands and Mines
(then A,E. Nyema Jones), the Minister of Finance (Stephen
Tolbert) and the President of "Globex Minerals (Inc.)",
John Nisco, President Tolbert approved the agreement on
January 12, 1973.
John Nisco by skilful manipulation had obtained the
concession area which half a year earlier had been given to
his partner. In an attempt to rally support within the U.S.
State Department for his cause Stern, in 1973, wrote an
acrimonious letter to several influential Americans about
what he felt was a betrayal by the Liberian Government (30).
The concession area had been held by the "Providence Mining
Company - Liberian Swiss Mining Corporation" before - a
tract of land extending 500 feet on either side of the Lofa
river, situated in Lofa and Grand Cape Mount Counties, and
two adjacent areas, containing a total concession area of
16,400 acres. A discussion of the most important provisions
of the concession agreement can be found in Annex 9.
Soon after the start of activities a conflict arose between
"Globex Minerals (Liberia) Inc.", the Liberian subsidiary