The_Open_Door_deel1

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one steel factory, in the country, then this hope was definitely
shattered with this long term contract since a major share of
LAMCO's future output was thus committed for export whereas
Bethlehem Steel Corporation was already entitled to 25? of the
Joint Venture's total yearly output under the Joint Venture
Agreement with LAMCO. With the cooperation of these German ore
buyers the German financial (lending) institution, Kreditanstalt
fur Wiederaufbau became a likely source of a $ 50,000,000 loan
to LAMCO (13).
After having already invested so much in the Project (about
$ 18,000,000.00 by the end of 1959) the Swedish became anxious
to complete the financing and to start the first construction
activities with respect to the Project. The Export-Import Bank
was again contacted, this time for a loan of $ 36,250,000.00.
When a final decision on this loan application was delayed and
after the First National City Bank of New York had made known
Its willingness to supply $ 6,250,000,00 of this loan (December
1959) it was decided not to wait any longer but to raise more
funds from the general public than had been originally planned.
The Joint Venture and Management Agreements, the Mining
Concession Agreement and the Bethlehem Tax Agreement were once
more revised and again approved by the Government on May 7,
1960, and by the National Legislature four days later. Among
other things it was then decided that Stockholms Enskilda Bank
would receive from LAMCO f 750,000.00 (over five years commencing
July 1, i960) for its services in respect to the entire financing
of the project. Nearly all of the activities referred to had been
carried out by S.E.B.-officials. Notably Marcus Wallenberg, the
President of the Bank, Erik "Lionhead" Leijonhufvud, the Bank's
Assistant Vice-President, and - at a later stage - Jan Ekman,
also an Assistant Vice-President of the Bank, had been the chief
negotiators with the Liberian Government and with the other
investors (Bethlehem Steel, the banks) as well as with the ore
buyers, besides their activities in respect to the obtaining of
the consent of the Swedish exchange authorities for both the size
and the form of the investment (14).
In early July 1960 the Kreditanstalt fur Wiederaufbau officially
agreed to provide LAMCO with a $ 50 million loan. The public sale
of shares to secure the balance of the funds needed was due a few
days later, on July 7, but the development of events in the Congo
following the independence on July 1, combined with the
nationalization of U.S. investments in Cuba resulted in a lastminute
cancellation of this method of attracting public funds.
The Export-Import Bank was again approached and it decided just
in time, in December i960 to supply the balance of the funds
needed to finance the Project.
Finally the financing of one of the largest undertakings by
private investors in Africa at this time had been completed. In
fact, it had been a "narrow escape" as Bethlehem Steel could have
withdrawn from the project if the financing had not been