The_Open_Door_deel1

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The expansion of the government's financial programmes motivated
the Liberian Government in the 1950's to seek yet another revision
of the Planting Agreement. This resulted in the 1953 Supplementary
Agreement to the Planting Agreem.ent whereby it was agreed that the
company's rate of income tax in the period 1953 - 1964 should be
set at 25? (43). In the proceeding three years, however, the
Government had lost several millions of dollars owing to the very
liberal tax provisions of the agreements with the company, which
in this period had made tremendous profits (notably during the
Korea-crisis - see Table 1 below).
The Planting Agreement was again amended in 1959 when the
Firestone company agreed to pay in the period 1959 - 1973 an
income tax of 35? with the same provisions found in previous
arrangements that if the export tax on rubber were to result in a
higher amount the latter would be paid (44). It took another six
years before Firestone was put on an equal footing with other
firms operating in the country (in this context) and the Planting
Agreement was amended to the effect that the company was to pay a
45? income tax in the years 1965 to 1973, both inclusive (the
1965 Supplementary Agreement to the Planting Agreement) (45).
This development in the Firestone - Government of Liberia
relations was on the one hand caused by the loss of dependency
vis-a-vis the Firestone Plantations Company as the iron ore minig
companies gradually took over the position this company had
occupied for so many years in the national economy, whereas, on
the other hand, the growing awareness that the company had
profiteered for too long without allowing an adequate share to the
Government put pressure on the Government to increase the
company's contribution to the Treasury. The company's other
privileges, however, were not affected and Firestone continued to
enjoy a considerable number of privileges of which notably the
exemption from other taxes, duties, and imposts and the low
charges (rental, royalty on lumber exported) yearly deprived the
Government of a considerable amount.
The death of President William Tubman in 1971 marked a turningpoint
after which the Firestone Plantations Company was deprived
of the privileges of the past, though it took the new
Administration five years to accomplish this.
The deeply rooted love - hate relationship of nearly fifty years'
standing between high ranking Liberian Government officials and
the once dominating but still powerful Firestone company, combined
with the - now openly admitted - conviction that the distribution
of the benefits of the privileges had been very unequal resulted
in the start of a renegotiation of the 1926 Planting Agreement
with all its Supplementary Agreements. In these negotiations the
Government was represented by President William Tolbert's brother,
Steve Tolbert, who had been appointed Minister of Finance in 1972.
The renegotiation procedures started in late 1973. However, as a
result of the various tactics to delay discussions and postpone
decisions, and greatly helped by the sudden disappearance from the
political stage of the ambitious and tough Minister of Finance who
died in 1975 when his private plane crashed, the Firestone Tire &