The_Open_Door_deel1

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6 cents per acre had to be paid. The company would for forty years
have an option on the remaining 550,000 acres. Only the failure to
develop 600,000 acres within forty years after the formal granting
of the concession would cause the African Fruit Company to loss
this option. As the Statement of Understanding does not provide
the Government of Liberia with any possibility to terminate the
agreement earlier than the period stated in it (80 years) it is
not certain whether the company can still claim this vast area.
Although the development and cultivation of an area of 50,000
acres was never realised the Statement of Understanding only
states in this respect that
"(.,.) Leginning on or Lefore one year from the execution
of the formal agreement Letween the GOVERNMENT and
the A7C the latter shall select that part of Said lands
aLove deScriLed, which it will start developing as may
Le convenient and in accordance with the economic and
progressive development of said holdings,
(...) 7he A7C will develop the Lalance of said acreage
of 550,000 acres at its option, and as soon as the A7C
has developed the first fifty thousand (50,000) acres
of land hereinaLove deScriLed, A7C agrees to make every
reasonable effort to develop said lands, Lut it is
understood and agreed that it will be done only at its
option and as the same can reasonably Le done, provided
however that the total acreage granted in the concession
shall be cultivated and developed within forty
years after the formal granting of the concession." (18)
The absence of a concession agreement ("the formal granting of
the concession") may render a claim on these and other provisions
of the Statement of Understanding illegal and useless though the
owners of the African Fruit Company may argue that they have a
legitimate right to their full and unimpeded execution. This
becomes the more important in view of the company's privileges,
notably its exemption of virtually all taxes (except income taxes)
- hence including freedom of import and export duties (19) - and
the absence of a specification of the duration of this period of
tax exemption. However, the Supreme Court of Liberia, which could
give a ruling on this case, seems to be severly hog-tied in this
matter by the Chief Justice's close relationship with the new
owners of the African Fruit Company (bought in 1974 by a Liberian
company) and the political character of the country's judicial
system (see below).
Originally, i.e. under the Statement of Understanding of 1952,
the African Fruit Company had the right to construct and operate
within and without its premises transportation and communication
facilities, including buildings, warehouses, selling offices etc.
No provision was made for the Government's approval or even
consultation. The Government only had the right to inspect such
installations from time to time, and to request that the general
public could,upon payment.,use these facilities. The use of strips
of land in the Baffu Bay area, in Sinoe County for the construction
of "roads, ports, wharfs, landing places (and such like)"