The_Open_Door_deel1

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financing of the construction works, stipulated that the
Government was to repay the company the construction costs,
estimated at between $ 3.5 million and $ 4 million, plus interest
on the outstanding balance at a rate of 6 per cent per''annum, in
five yearly equal instalments starting at the end of the year in
which construction would be completed (originally anticipated for
December 31, 1957) but not later than December 31, 1958.
However, because of a sea-quake and violent current patterns in
this area off the Atlantic coast of Sinoe County, changes in the
construction had to be introduced causing an increase of over $ 1
million above the originally estimated amount of construction
costs, raising these costs to $ 5 million - $ 5.5 million. The
contractors were faced with financial problems because of this
increase, so that it became doubtful whether they still could
finance the construction of warehouses and other facilities
without which the port would be useless (27). The Government
suffered a second set-back as the Panama disease had struck the
banana plantations of the African Fruit Company and the company
had been compelled to switch to the growing of rubber and coffee
in the second half of the 1950's. As a result there were no
exports of any significance and the Government's income from
harbour dues or other charges were negligable. When the
Government had to start repaying the African Fruit Company at the '
end of 1958 it foresaw difficulties and it requested the company
to allow repayment over a period of ten to fifteen years. It was
at this time that the German Government stepped in and, upon
request of the Liberian Government, promised in December 1958 to
give financial assistance provided the latter would meet the first
repayment of t 891,000 plus interest due on January 1, 1959. After
the Liberian Government had paid this first instalment to the
African Fruit Company it in January 1959 was granted a loan of
DM 12.8 million (over $ 3 million (28) ) by the Federal German
Government. In addition, a line of commercial credit totalling
DM 5 million (approximately $ 1.2 million) was guaranteed by the
same Government to cover the purchase of equipment for the port
(29). The repayment of the construction costs of the port was
thus re-scheduled over a period of ten years, the African Fruit
Company being repaid as originally agreed in five years with this
loan from the German Government, and though Article XII of the
Port Construction Agreement - regarding the Transfer of Rights -
had not been violated by the company as it had not transferred
its claims against the Government of Liberia, its intention had
been evaded by the latter itself.
In 1964 the port was officially opened. The Liberia Government's
lack of awareness of the social and political realities of the
country was shown once more, when it named the Port after
Samuel A. Ross (30), even at this late date (see Chapter 2).
In November 1952 the African Fruit Company had started a banana
plantation of some 2,000 acres in Sinoe County, about twenty
miles north of Greenville, but three years later the "Panama
disease" struck and wiped out most of the plantings. The company
replanted the area in 1957 with coffee and rubber but the former
proved unsuccessful and the company therefore continued only with
what had already become almost a traditional product of Liberia,