The_Open_Door_deel1

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lating the rentals to be paid. In addition to a typing error,
a second error was made with respect to the amount to be paid,
$ 0.075 per acre, which is the same for two different types
of areas which were distinguished in the same section (70).
It is moreover worth mentioning that it is expressly stated
that the rentals are a deductable expense in the calculation
of taxable income, as is also the case with the royalties paid.
With an income tax rate of 50?, a royalty of 2? of the f.o.b.
value of the company's produce, which is tax-deductable,
results in an effective royalty of only 1?.
Though the first concession agreement with the Liberian Beach
Sands Exploitation Company was signed on May 11, 1973 another
one was signed on August 21 of the same year, and duly approved
by President Tolber one day later. The Effective Date of this
second agreement became August 23, 1973. The former agreement
had been declared null .and void as the first copy, not yet
signed by the President, had been misplaced and had vanished
(71).
The Liberian Beach Sands Exploitation Company relinquished a
greater portion of its exploration area of approximately 220
square miles in 1974 and retained 55 miles (in accordance
with the agreement) in an area between Greenville and the
Sehn-wehn river, in Sinoe County. It is this very area
which in 1952 had been granted to LeTourneau of Liberia Ltd.
which concession had never been officially cancelled as the
agreement was deficient in this respect (see Chapter 4). The
Dutch investors in the Liberian Beach Sands Exploitation
Company in 1975 asked the Government for an extension of the
Exploration Period, which was granted, and again in 1977 when
the extension was about to expire. Another year of extension
was obtained (72). In this respect it should be noted that
the procedures to obtain an extension of an exploration period
which are rather brief differ greatly from the efforts needed
for the realization of an Exploration Agreement as these
involve several discussions and many signatures of Government
top officials, including the President. The extension of the
exploration period agreed upon in 1977 was an obvious deviation
from the clause concerned in the concession agreement.
If the venture starts, which will not be before the 1980's, it
will require investments of over $ 10 million and may give
employment to over 100 persons. Estimated life of the rutile
deposits is 7 to 10 years.
In 1977 negotiations were started for mineral rights under
concession agreements with six companies:
1 . The Trico Mining Company: applied for a mining concession
for gold, diamonds and associated minerals within a
187,266 acres area of Grand Cape Mount County.
2. The Azuza Mining Company: re-entered its application for