The_Open_Door_deel1

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-330- capacity with the proceeds of these depletable resources. (This will be dealt with in more detail in the next section, "Development Planning and Expenditure Patterns" . The financial contribution of companies engaged in the production of agricultural and forestry products - which activities are in principle perpetual ones - was very low. The only significant plantation company/tax payer (Firestone) never contributed more than $ 4.7 minion to domestic revenues (in 1963) whereas this company's yearly average during these 15 years amounts to only $ 3 million. Considering the company's role in the domestic economy this can be called a modest performance. The main cause of the plantation sector's small contribution to the Treasury lies with the basic principles of the Open Door Policy. The consequences of the generous granting of tax exemptions and income tax holidays have been further aggrevated by Liberia's poor administrative system and by tax evasion. The occasional inability of the Ministry of Finance to determine the expiration dates of tax holidays and of duty free privileges, the use of disguised equity capital, the concessionaires' reluctance and even refusal to provide the Liberians with information requested and Firestone's manipulations as to the fixing of the price(s) of its product(s) may serve as examples. Unless stopped, the evasion by most of the logging companies of the reafforestation rules will put a definite end to income derived from the exploitation of the country's rich tropical forests, not to mention the extreme harm it causes to the environment as a result of the subsequent erosion of the soil. The Government's income from the concession sector is far from being maximized. The Treasury has foregone millions of dollars annually because of the unnecessary continuation of privileges granted initially as an incentive to start production. If the Government had granted these (tax) privileges in order to make a production profitable which it would not .be without these exemptions, this would simply mean that the Liberian Government is subsidizing the export of the country's natural resources in general and its depletable resources in particular. However, the yearly profits of these companies do not justify this conclusion. Firestone's duty free import privileges and exemption from export taxes on rubber (abrogated in 1976) were not justified either by the company's "pioneering effort" or by the financial losses which might have resulted from an elimination of these privileges. The 1935 payment does not form a sufficient justification either. Total revenues foregone because of the exemptions granted are immeasurable. The Liberian Treasury lost potential revenues of nearly $ 300 million just during the five years 1975 - 1979 as a result of the policy of granting (import) duty free privileges. This means that every year an amount averaging almost J 60 million was foregone, representing about 40 per cent of the annual average Domestic Revenue of the Government (53). It is true that not only foreign concessionaires and investors enjoyed
Year 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 Total 1963/77 -331- TABLE 38 CUSTOMS REVENUES 1963 - 1978 (in millions of U,S. dollars) Tot. Dom. Rev. 37.3 40.1 42.4 46.7 48.1 51.8 61.8 66.5 69.5 78.1 90.0 108.6 125.3 149.8 172.7 190.6 1,188.7 Customs 16.9 16.6 16.4 18.4 18.5 17.8 20.8 20.7 22.1 23.5 24.9 33.0 33.8 41.4 59.6 73.0 384.4 as % of D.R. 45.3 41.4 38.7 39.4 38.5 34.4 33.7 31.1 31.8 30.1 27.7 30.4 27.0 27.6 34.5 38.3 32.3 (average) Source: Author's research based on Economic Surveys of Liberia, 1976 - 1978.
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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
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-195- for further details of the 19
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-197- soon demonstrated by the call
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-199- of 3.2 million long tons in a
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-201- TABLE 10 FINANCIAL OBLIGATION
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-203- achievements were made in spi
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-205- After the change of the name
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-207- to concentrate on the new fin
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-209- one steel factory, in the cou
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-211- The Liberian Government owns
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-213- 1952, legal ownership of abou
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-215- Th is second part of the conc
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-217- one of its sixteen Swedish su
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-219- For these services G.I.M. is
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-221- Prior to 1974 fifty per cent
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-223- depreciation of (capital) equ
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-225- of the revision of the 1960 M
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i -227- 3 prescribing such a review
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-229- But now, having accepted bein
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-231- As a result of this review in
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-233- TABLE 14 FINANCIAL COSTS OF C
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DELIMCO/B.M.C. -235- Long-standing
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-237- equity participation (unlike
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Year 1965 1966 1967 1968 1969 1970
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-241- these funds to B.M.C. in the
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-243- negotiations which were held
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-245- S ources: - "Technical Inform
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-247- Prices of sales to affiliated
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S ource: -249- TABLE 17 INVESTMENTS
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-251- due time a mining concession
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-253- The 1967 concession agreement
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-255- Changes of the concession agr
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-257- Some reasons why the Wologisi
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-259- CHAPTER 9 THE FORESTRY SECTOR
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-261- Surveys of Liberia's Forest P
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-263- (see below) repealed the port
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-265- were authorized to issue perm
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-267- TABLE 18 LIBERIA'S NATIONAL F
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-269- The Forestry Development Auth
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-271- TABLE 19 TIMBER CONCESSIONS G
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-273- TABLE 20 PRODUCTION OF TIMBER
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-275- Souree: - Annual Report, Depa
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-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
Page 355 and 356: -297- expenditures in the period pr
Page 357 and 358: -299- In these years the debt servi
Page 359 and 360: -301- TABLE 28-A COMPARATIVE STATEM
Page 361 and 362: -303- the second half of the 1930's
Page 363 and 364: -305- first to benefit from this U.
Page 365 and 366: M -307- •' \ •:i TABLE 30 fSS]
Page 367 and 368: -309- Government Revenues 1941 - 19
Page 369 and 370: TABLE 31-B MAIN SOURCES OF DOMESTIC
Page 371 and 372: -313- situation renders the Treasur
Page 373 and 374: -315- The trend of public expenditu
Page 375 and 376: -317- •• \ During the 1950 's t
Page 377 and 378: -319- $ 117 million were due for re
Page 379 and 380: -321- In 1943 Liberia and the U.S.A
Page 381 and 382: Sector -323- TABLE 33 PLANNED EXPEN
Page 383 and 384: Type of Assistance I. Economic Asst
Page 385 and 386: THE 1963 - 1978 PERIOD Revenue Perf
Page 387: Year 1963 1964 1965 1966 1967 1968
Page 391 and 392: 1963 1964 1965 1966 1967 1968 1969
Page 393 and 394: -335- of the Ministry of Finance wh
Page 395 and 396: -337- Development Planning and Expe
Page 397 and 398: 1.1 Agriculture 2.1 Rural Roads 2.2
Page 399 and 400: -341- The Plan which was approved b
Page 401 and 402: -343- "Uhile the performance of the
Page 403 and 404: -345- TABLE 43 PLANNED DEVELOPMENT
Page 405 and 406: -347- The unenvisaged expenditures
Page 407 and 408: -349- Under the revised Plan total
Page 409 and 410: 1964 1965 1966 1967 1968 1969 1970
Page 411 and 412: Note: (1) Preliminary figures. Auth
Page 413 and 414: -355- Bushrod Island; a new bridge
Page 415 and 416: -357- TABLE 51 U.H. ASSISTANCE TO L
Page 417 and 418: -359- happened in a haphazard way.
Page 419 and 420: -361- The (investment) activities o
Page 421 and 422: -363- '••] the most organized a
Page 423 and 424: -365- exploited this situation by s
Page 425 and 426: -367- all offered staff positions o
Page 427 and 428: -369- allied to the Tolbert clan bu
Page 429 and 430: -371- history, secrets and traditio
Page 431 and 432: -373- At the time of the arrival of
Page 433 and 434: -375- The very few books which inde
Page 435 and 436: GOVERNMENT. MISSION. PRIVATE. TRIBA
Page 437 and 438: -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
Page 457 and 458:
-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
Page 475 and 476:
-417- Besides, this segment of the
Page 477 and 478:
-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
Page 503 and 504:
-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
Page 513 and 514:
-455- II. The Government of Liberia
Page 515 and 516:
-457- Most notable among these clau
Page 517 and 518:
-459- ADDENDUM On April 12, 1980, a
Page 519:
ISBN 3-88299-040-6 ISSN 0344-4317
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