The_Open_Door_deel1

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LIBERIAN GOVERNMENT ESTEL 16.1? -246- CHART 3 BONG MINING COMPANY OWNERSHIP STRUCTURE AS OF DECEMBER 31, 1'977 BONG MINING COMPANY . INC FINSIDER (Italian) 32.5? PRIVATE SHAREHOLDERS AUGUST THYSSEN HUTIE 37. A? THYSSEN INDUSTRIE 5.4? EXPLORATION UND BERGBAU KONSORTIUM LIBERIA (German) 67.5? J LIBERIA ERZ BETEILIGUNGS GmbH 30.1? KRUPP HUTTEWERKE
-247- Prices of sales to affiliated corporations are defined as follows: "Market prices f.o.b. Monrovia for sales of concentrates and pellets to any affiliate of Concessionaire will be calculated annually based on the contract price c.i.f, Rotterdam in respect of the iron content comparable concentrates or fine ores and comparable pellets, respectively, bought by the German and/or Italian steel works affiliated to the Concessionaire, deducting the annual freight cost, insurance and connected charges, contracted for the transport of concentrates and pellets, respectively, from Monrovia to Holland" (101). According to an investigation conducted in 1977 and covering the years 1973 through 1976 Bong's market prices had been fairly calculated (102). A possible source of disagreement, however, is the testing of the ore at the port of discharge to determine the Fe-content of each shipment - the basis on which the f.o.b. value is determined - by an employee of Exploration und Bergbau on behalf of B.M.C As the employee of Exploration und Bergbau who carries out the testing is indirectly employed by the buyers of the ore an undesirable potential conflict of interest is created (103), The concession Agreement states that generally accepted accounting principles must be applied except where specifically excluded by the Agreement. However, in 1978 the Government commissioned auditing firm of Whinney Murray Ernst & Ernst concluded that for the period 1973 through 1976 in eight different instances deviations from these principles had occurred resulting in an understatement of the company's net profits in this period of $ 4,460,000.00. In this way the Government was deprived of about $ 2.2 million in corporate income taxes from the company (104). The auditing firm at the same time reported that certain comments, criticisms and suggestions made by Whinney, Murray & Company in 1970 when submitting an audit report of the company's 19 68 Financial Statements - and which resulted in over $ 100,000,00 additional payments - were still valid (105). The Supplemental Agreement failed to bring about improvements with respect to fundamental issues such as the tax-exemptions. Exemption from customs duties and excise taxes alone saved B.M.C, over $ 6 million in one year (1976) (106). This represents a loss of about $ 3 million for the Treasury or nearly 40? of the amount actually received from the company in this year. Also"B.M.C. 's claim on a concession area which is far in excess of its actual needs and for a period which far exceeds the expected life of the mine remained unchanged in the 1974 Supplemental Agreement. The Agreement will expire on December 18, 2028 whereas the ore reserves of the Bong Mine will be depleted by 1990. It should be borne in mind, however, that these remarks apply to most of the Agreements held by other Concessionaires.
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VEROFFENTLICHUNGEN AUS DEM UBERSEE-
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i 1 THE OPEN DOOR POLICY OF LIBERIA
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DE.B1CA710N For £IA. Together we s
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Vll CHAPTER 3: (continued) Page The
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ix CHAPTER 9: THE FORESTRY SECTOR P
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Footnotes Annexes Bibliography Inde
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xiii National Iron Ore Company, the
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XV China at the end of the 19th cen
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xvii economically more developed co
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XIX blancs, dans le developpement d
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XXI des Liberiens de toutes les cla
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xxiii DE OPEN DEUR POLITIEK VAN LIB
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XXV deze scheiding tussen kustgebie
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personeel - niet opgewassen was en
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\ I.M.F. i \ INTRUSCO i i j I.T.C.
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xxxi LIST OF FIGURES, MAPS, CHARTS
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TABLES (continued) Page 33 Planned
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XXXV TABLES (continued) 68 Exports
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II century, notably the Open Door P
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IV earth in Liberia. It had been th
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VI Tubman was very well aware of th
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VIII MAP 1
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exporters. It has attracted more th
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XII the more so, since no comprehen
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XIV development of rural Liberia, i
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XVI Firestone's financial contribut
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XVIII officer who had served in Lib
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XX Chapter 11 pays attention to one
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CHAPTER 1 THE PEPPER COAST BEFORE 1
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-3- "Malagueta Coast" or "Pepper Co
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-5- embarrassment towards a (growin
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in honor of the 5th President of th
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Numerous colonists from the U.S.A.
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-11- Figure 1
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-13- The'vicious circle started wit
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-15- the other - to the disadvantag
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-17- Of the colonists notably the A
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-19- The closing of the Door: The E
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-21- Consequently, both tribal peop
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The Roye Administration -23- The te
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-25- He also wanted the general edu
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-27- territory Liberia claimed by E
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m -29- The commission created in 18
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-31- re-activating the first conces
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-33- European. Its expense paid Ly
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-35- Treasury and an unfavourable e
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-37- their salaries. The resulting
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-39- Therefore President Howard of
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j -41- :j % One of the recommendati
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-43- twentieth century the Presiden
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-45- The British and French absence
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-47- In December 1923 the first mis
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-49- and he proposed the constructi
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-51- itself, upon acceptance of the
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-53- equal to 4 per cent of the cou
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-55- between the U.S.A. and Liberia
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-57- Government of Liberia agreed w
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-59- The expansion of the governmen
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-61- Another disagreement arose ove
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] -63- J Notes: ? : :i (1) Fireston
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-65- question had never been adequa
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-67- had varied from $ 8 million to
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-69- In order to protect the new co
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-71- capacity of 55,000 tyres, requ
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J -73j :i quantities of dry rubber
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-75- The charge of 3.44 cents per p
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-77- Finance in the 1970's, but owi
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-79- Planting Agreement was in Akro
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-81- on the basis of competitive pr
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-83- with the 7iresione Plantation
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-85- 1. Organization of a national
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-87- However, before he could reali
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-89- operation of the plantation. T
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j -91- i have taxed the portion of
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-93- in 1947, but also entrusted hi
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-95- company's main interest is no
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-97- poration for the period 1963 -
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-99- TABLE 4 LIBERIA COMPANY'S DIVI
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-101- 6 cents per acre had to be pa
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The Port near Greenville -103- Afte
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-105- rubber. Little is known of th
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-107- the management of the company
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j -109- } S taxes or imposts of any
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-111- The concession agreement, wit
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-113- concluded with other foreign
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-115- which is owned by a political
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-117- owners of the concession. The
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-119- eleven persons were: Vice-Pre
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-121- tain rights in cooperation wi
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-123- It is significant that despit
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-125- scribed above., providing suc
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-127- materials, the rights of the
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-129- the possibilities offered by
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I -131- sion, and sales to affiliat
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-133- concession area of 100,000 ac
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-135- such payments out of profit,"
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-137- tually all of these companies
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-139- The 1898 concession agreement
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-141- Normann, from England, which
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-143- to the English "Providence Mi
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-145- the company had in previous y
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-147- of "Globex Minerals (inc.)",
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-149- the excess acreage (38) does
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-151- old Tchien and Gbaepo Distric
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-153- only two of them referred to
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-155- not provide for a price of go
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-157- Meanwhile, the exploration ac
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-159- The excessively liberal terms
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-161- a concession for gold, diamon
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-163- difficulties which had to be
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-165- of 50? and which was of direc
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-167- The concessionaire became exe
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-169- These statements of the two s
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-171- Note that until i960 L.M.C.'s
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-173- salaries to ex-patriate perso
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-175- the - increased - capacity of
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-177- '••:] Sales Agreement bet
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-179- On January 3, 1963 a Memorand
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-181- L.M.C. would have acted in co
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-183- area described as the Bea Mou
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-185- Agreement signed by represent
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-187- geologists, economists and la
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CHRONOLOGY SUMMARIZED HISTORY OF L.
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-191- N.I.O.C. dated January 1, 196
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Year 1962 1963 1964 1965 1966 1967
Page 253 and 254: -195- for further details of the 19
Page 255 and 256: -197- soon demonstrated by the call
Page 257 and 258: -199- of 3.2 million long tons in a
Page 259 and 260: -201- TABLE 10 FINANCIAL OBLIGATION
Page 261 and 262: -203- achievements were made in spi
Page 263 and 264: -205- After the change of the name
Page 265 and 266: -207- to concentrate on the new fin
Page 267 and 268: -209- one steel factory, in the cou
Page 269 and 270: -211- The Liberian Government owns
Page 271 and 272: -213- 1952, legal ownership of abou
Page 273 and 274: -215- Th is second part of the conc
Page 275 and 276: -217- one of its sixteen Swedish su
Page 277 and 278: -219- For these services G.I.M. is
Page 279 and 280: -221- Prior to 1974 fifty per cent
Page 281 and 282: -223- depreciation of (capital) equ
Page 283 and 284: -225- of the revision of the 1960 M
Page 285 and 286: i -227- 3 prescribing such a review
Page 287 and 288: -229- But now, having accepted bein
Page 289 and 290: -231- As a result of this review in
Page 291 and 292: -233- TABLE 14 FINANCIAL COSTS OF C
Page 293 and 294: DELIMCO/B.M.C. -235- Long-standing
Page 295 and 296: -237- equity participation (unlike
Page 297 and 298: Year 1965 1966 1967 1968 1969 1970
Page 299 and 300: -241- these funds to B.M.C. in the
Page 301 and 302: -243- negotiations which were held
Page 303: -245- S ources: - "Technical Inform
Page 307 and 308: S ource: -249- TABLE 17 INVESTMENTS
Page 309 and 310: -251- due time a mining concession
Page 311 and 312: -253- The 1967 concession agreement
Page 313 and 314: -255- Changes of the concession agr
Page 315 and 316: -257- Some reasons why the Wologisi
Page 317 and 318: -259- CHAPTER 9 THE FORESTRY SECTOR
Page 319 and 320: -261- Surveys of Liberia's Forest P
Page 321 and 322: -263- (see below) repealed the port
Page 323 and 324: -265- were authorized to issue perm
Page 325 and 326: -267- TABLE 18 LIBERIA'S NATIONAL F
Page 327 and 328: -269- The Forestry Development Auth
Page 329 and 330: -271- TABLE 19 TIMBER CONCESSIONS G
Page 331 and 332: -273- TABLE 20 PRODUCTION OF TIMBER
Page 333 and 334: -275- Souree: - Annual Report, Depa
Page 335 and 336: -277- Attempts To Establish A Natio
Page 337 and 338: YEAR 1967 1968 1969 1970 1971 1972
Page 339 and 340: -281- As a consequence the export v
Page 341 and 342: -283- December 31, 1977 Liberia lev
Page 343 and 344: Botanical Name Category 1 Ent, cyli
Page 345 and 346: -287- these 33 companies; year of s
Page 347 and 348: -289- were also the principal share
Page 349 and 350: -291- alleged corruption involving
Page 351 and 352: -293- It is important to note here
Page 353 and 354: CHAPTER 10 -295- FISCAL PERFORMANCE
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-297- expenditures in the period pr
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-299- In these years the debt servi
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-301- TABLE 28-A COMPARATIVE STATEM
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-303- the second half of the 1930's
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-305- first to benefit from this U.
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M -307- •' \ •:i TABLE 30 fSS]
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-309- Government Revenues 1941 - 19
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TABLE 31-B MAIN SOURCES OF DOMESTIC
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-313- situation renders the Treasur
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-315- The trend of public expenditu
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-317- •• \ During the 1950 's t
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-319- $ 117 million were due for re
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-321- In 1943 Liberia and the U.S.A
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Sector -323- TABLE 33 PLANNED EXPEN
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Type of Assistance I. Economic Asst
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THE 1963 - 1978 PERIOD Revenue Perf
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Year 1963 1964 1965 1966 1967 1968
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Year 1963 1964 1965 1966 1967 1968
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1963 1964 1965 1966 1967 1968 1969
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-335- of the Ministry of Finance wh
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-337- Development Planning and Expe
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1.1 Agriculture 2.1 Rural Roads 2.2
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-341- The Plan which was approved b
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-343- "Uhile the performance of the
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-345- TABLE 43 PLANNED DEVELOPMENT
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-347- The unenvisaged expenditures
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-349- Under the revised Plan total
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1964 1965 1966 1967 1968 1969 1970
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Note: (1) Preliminary figures. Auth
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-355- Bushrod Island; a new bridge
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-357- TABLE 51 U.H. ASSISTANCE TO L
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-359- happened in a haphazard way.
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-361- The (investment) activities o
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-363- '••] the most organized a
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-365- exploited this situation by s
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-367- all offered staff positions o
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-369- allied to the Tolbert clan bu
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-371- history, secrets and traditio
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-373- At the time of the arrival of
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-375- The very few books which inde
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GOVERNMENT. MISSION. PRIVATE. TRIBA
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-379- TABLE 54 1962 POPULATION AND
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-381- about 19,000 were between 5 a
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-383- Liberia College in 1862. Elem
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-385- mark of 70$. This shocking an
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-387- The 1978 National Education S
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-389- TABLE 58-B SCHOOL ATTENDING P
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-391- TABLE 60 A. NUMBER OF STUDENT
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-393- It seems likely that the rela
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-395- Author's research based on th
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CHAPTER 12 -397- TRANSPORTATION AND
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-399- It thus facilitated the immed
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-401- how many people were employed
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GEOGRAPHICAL DISTRIBUTION OF COUNTY
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-405- in Liberia was owned, finance
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-407- TABLE 65 ABSOLUTE AND RELATIV
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-409- were politically well covered
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-411- railroad which, with the exce
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-413- the concession sector (LAMCO)
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-415- 5 seater twin-engined Cessna
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-417- Besides, this segment of the
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-419- The telecommunication relay s
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-421- with Germany and hence affect
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-423- :: The 1960 - 1979 Period j F
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-425- with Sierra Leone is less tha
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-427- alarming (see Chapter 10), th
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-429- structural changes and the de
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-431- from roughly one third in 197
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-433- by Fouad Khalifa, a Lebanese,
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-435- The Government indebted itsel
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-437- a very large part of G.D.P. i
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-439- to the distribution of power,
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-441- heard. As early as 1830, but
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-U3- was wrongly thought in those d
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-445- 1962. In the 1950's the triba
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-447- Tubman Estate (66). Interesti
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-449- National Legislature, This de
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-451- The creation of state owned c
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-453- respect to foreign concession
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-455- II. The Government of Liberia
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-457- Most notable among these clau
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-459- ADDENDUM On April 12, 1980, a
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ISBN 3-88299-040-6 ISSN 0344-4317
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