The_Open_Door_deel1

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Finance in the 1970's, but owing to the appalling absence of data
in Liberian Government agencies and the non-accessible character
of the information at the Firestone Company's offices, any attempt
in this respect is bound to fail.
The change of Government after the death of one of the main
protectors of Firestone in Liberia, President William Tubman,
unfortunately did not improve matters. Though the situation did
change when the Tolbert Administration took over it did not differ
fundamentally as the new leaders have virtually the same business
interests as their predecessors (82). As a result no change in
Firestone's pricing policy was introduced in the new concession
agreement between the Republic of Liberia and the Firestone Tire
& Rubber Company of 1976.
The renegotiation of the 1926 Planting Agreement
The growing awareness in the 196O's of the unequal distribution of
the benefits derived from the country's Open Door Policy and of
the abuse of privileges granted in the generous concession
agreements signed under the rule of President William Tubman
caused the new Tolbert Administration to embark upon a policy
which aimed at reviewing all concession agreements. For a number
of reasons the first concession agreement to be reviewed was the
1926 Planting Agreement with the Firestone company.
First, being the oldest concessionaire in the country and,
historically, a pace-maker it was only natural that Firestone
would be tackled first. Furthermore, no other company in the
country had enjoyed (and to some extent still enjoyed) so many
privileges and exemptions as Firestone (83). Thirdly, there also
was the fact that the 1965 Supplementary Agreement to the 1926
Planting Agreement made the company liable to income taxes (45?)
in the period 1965 through 1973, and it was thought possible that
Firestone might claim a return to the situation prior to this
Agreement after 1973. The fourth reason first of all to modify the
agreement with the Firestone company was of an emotional nature:
the relationship which over the years had grown between the
Government of Liberia and the generation of Liberians closely
connected with it and involved in business and politics on the one
hand and the Firestone Tire & Rubber Company on the other.
Officially the Government sought to accomplish the following
objectives in its review of the 1926 Planting Agreement (84):
(1) increase its revenues by eliminating the privileges granting
Firestone exemption of payment of several dues, charges, and
taxes;
(2) improve the revenues of independent Liberian rubber farmers
selling their produce to Firestone by providing a fairer price
of latex and dry rubber;
(3) establish basic rules to aid the future development of
Liberian rubber processing and manufacturing plants;