The_Open_Door_deel1

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salaries to ex-patriate personnel and the payment of e.g.
consultancy fees, which payment in general represents a fair
compensation for the use of "foreign labour" as well as an
incentive to reside in or stay temporarily in a foreign country
(and which payments are treated as expenses) there does not seem
to exist a consensus with respect to the remuneration for the
use of foreign capital.
Period
1951 -
1955 -
1965 -
1 971 -
1965 -
1951 -
1954
1964
1970
1977 1
1977 1
1977 1
TABLE 7
SUMMARY OF L.M.C.'S PROFITS AND
GOVERNMENT'S INCOME FROM L.M.C.
1951 - 1977
(in millions of U.S. dollars)
Taxable
Net
Profits
t 21.905
126.559
45.023
29.884
74-907
$ 223.371
Govt.
Income
From
L.M.C.2
$ 4.903
39.373
22.150
17.568'
39.718
1 83.994
Notes:
(1) L.M.C closed March 31, 1977;
(2) includes royalties and income taxes;
(3) before payments of royalties and taxes,
Source:
- Table 6
Profits
After
Taxes
$ 17.002
87.186
22.877
12.312
35.189
$ 139.377
Average
Annual
Yearly
Profits
Before
Taxes3
$ 5.476
12.656
7.514
4.269
5.761
$ 8.273
The political risks involved in investing in a particular country
or the nature of the activities in which investments are made,
such as investments in the extractive industry, are usually
mentioned to warrant a high rate of profitability during the
initial years of commercial production (see Chapter 14 where this
issue is further discussed). In this case, however, the invested
equity capital had only been $ 4.6 million and the owners of it
had derived an income of $ 168 million from it thereby earning
twice as much from the exploitation and the sale of the ore as
the owners of the natural resources, the Republic of Liberia.
Out of every dollar income of the Liberia Mining Company 16 cents