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tain rights in cooperation with economic development in
the Country and this phrase might iniejtfere with the
right of citizens," (4)
Aparently, President Tubman did not share this view as the Bugs'
gestion was not reflected either in the final concession agreement,
or in those that were to follow this agreement with BFG.
With regard to the payment of rentals, duties, taxes, etc. to the
Government it was ultimately understood and agreed that BFG would
pay for the use of public lands within the concession area the
(old) rate of 6 cents per acre per annum, with a minimum of
50,000 acres ($ 3,000 per annum), that it would be entitled to
duty-free imports - except for the payment of documentary stamp
taxes of general application - in relation to its operations, to
duty-free exports of its produce, to an income tax holiday of 16|
years whereas the payment of income taxes would replace all other
existing and future taxes, duties, charges, etc. Throughout the
80-year term of the concession agreement the company would be
exempt from any and all other taxes, levies, duties, royalties,
stamps (except the one mentioned above), licenses, tolls, tariffs,
fees, etc.
The Secretary of the Treasury, William E. Dennis, had suggested a
yearly rental of 25 cents per acre, and also the Under-Secretary
of State, J. Rudolph Grimes, had opposed the application of a
nearly 30-year old rate, though the latter did not provide an
alternative. The most important suggestions for the improvement of
the concession agreement in this respect, however, were made by
the Director of the Bureau of the Budget, L.A. Marvey, who
stressed emphatically - but in vain - that duty free import
privileges should cease as soon as the plantation would begin to
produce. He was, partly, supported in this view by the Acting
Secretary of Public Instruction, Ellen Mills Scarbrough, who
suggested a gradual abolishment over a period of 25 years. L.A.
Marvey further reminded President Tubman of the golden
opportunities Liberia had missed a few years earlier, during the
Korea-crisis and the accompanying boom in the prices of raw
materials, when the Government was prevented from imposing an
export tax on all rubber exported because of contractual
exemptions (granted to Firestone under the 1926 Planting Agreement
and subsequent amendments). He therefore advised against the
making of any commitment for the duty free export of rubber. His
concern in this matter was shared by Secretary of State Dennis who
in his comments also pointed to the lessons from the past.
However, the final concession agreement did not mention a term for
the duty free import privilege, and also granted exemption from
export duties for a non-specified period of time.
The original draft of the concession agreement further stated that
the use of public lands by the company for transportation,
communication, and other facilities, situated outside the
concession area, would be allowed without payment. Strangely
enough, only two persons raised objections to this privilege,
Ellen Mills Scarbrough, the Acting Secretary of Public Instructipn,
and L.A. Marvey, the Director of the Bureau of the Budget. In the
final agreement BFG was allowed the exclusive use of lands outside
the concession area for these purposes, but only on the condition
that it would first obtain the approval of the Government. No