The_Open_Door_deel1

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Liberian citizens. On October 11, 1974 the management contract
was amended transferring the management to the Amax Liberia
Corporation, a Liberian subsidiary of Amax Inc. (until July 1,
1974: American Metal Climax, Inc.), This U.S. mining company had
become interested in the development of the Wologisi ore
deposits. On December 24 of the same year a Manager's Tax
Agreement was concluded between the Liberian Government and the
Amax Liberia Corporation. The Tax Agreement stipulated that no
exchange control regulations, if ever introduced in Liberia,
would affect the Managing Company, that the transfer of e.g.
dividends and of payments of interest, principal and premium by
the Manager would at all times be free, and that the funds would
always be convertible into U.S. dollars or any other currency at
the then prevailing rate of exchange. Notwithstanding this, the
Manager agreed to maintain one or more accounts with Liberian
banks in amounts sufficient at all times to provide for payments
of current operating expenses incident to its operations. It was
also agreed that the Manager's (net) income from management fees
would be taxed at a rate of 50?. No tax would be levied on or
with respect to any income derived from the capital stock of the
Managing Company. The Manager's company would be exempt from all
other taxes or charges (measured by income) and would, in general,
be subject to the Liberian income tax laws of general
application. With respect to arbitration the same rules apply as
had been agreed upon with the 1975 Concession Agreement (Article
14) (132).
On December 24, 1974 a Sales Agency Agreement had also been
signed between LISCO, the "Japanese Group" and Amax Inc. The
Japanese Group consists of five Japanese companies, notably
Kawasaki Steel Corporation, C Itho & Co. Ltd., Nissho - Iwai
Co. Ltd., Marubeni Corporation, and Tiyo Menka Kaisha, Ltd.
A Sales Agency Tax Agreement, necessitated by the Sales Agency
Agreement, was signed the same day between the Liberian
Government, the Japanese Group and Amax Inc. This Tax Agreement
stipulated that the Sales Agent should maintain in Liberia
complete and accurate financial records in connection with its
sales agency activities. The other provisions of the Agreement
were identical to those of the Manager's Tax Agreement (see
above) (133). Also concluded in the same year was a Technical
Services Agreement between Amax Inc. and the Japanese Group on
the one hand, and Canadian Bechtel Ltd. and Bechtel and Company
on the other hand.
The Management and Sales Agency Agreements of 1974 conformed to
changes in ownership of LIAC, the parent company of LISCO. On
October 11, 1974 a Stock Agreement had been signed, which was
amended for the first time on May 13, 1975 and was followed by a
second amendment on June 10, 1976. The Japanese Group now owns
51? of the capital stock of LIAC, the remainder being held by
Amax (134).