The_Open_Door_deel1

Recommendations

Info

-174- had been paid to the Liberian Government, 32 cents had been cashed by the company's shareholders, and 52 cents had represented the costs of mining and selling the ore. But in reality the benefits for the shareholders had been much greater than this statement suggests. To make this point clear one must take a more detailed look at two financial issues affecting gross profits: the determination of the sales price of the Bomi Hills ore and the computation of L.M.C.'s mining and production costs. <strong>The</strong> Sales Agreement with Republic Steel Through a complicated arrangement, based on the Iron Ore Sales Agreement signed in 1949 between the Republic Steel Corporation and L.M.C and as revised by the 1952 collateral agreement between L.M.C and the Liberian Government (note here the implicit approval of the Government of Liberia) Republic Steel had been allowed to purchase a maximum quantity of 450,000 tons per calender year of lump ore for open hearth use, containing or more iron in the natural state, at privileged prices. It was agreed that Republic Steel would pay a price equal to 50? of the yearly average selling price of iron ore sold by L.M.C to purchasers other than Republic Steel (with a minimum price based on the 1949 Iron Ore Sales Agreement). Thus, Republic Steel saved approximately $ 29,500,000.00 during the years 1955 through 1968 (35). Information related to years prior to 1955 was not available whereas after 1968 Republic Steel ceased buying at reduced prices. In addition to this, Republic Steel had paid inaccurately computed prices during the years 1955 through 1963 resulting in paying in some cases more (I 185,646.00) and in others less ($ 715,211.00) than the amounts required pursuant to the 1949 and 1952 agreements (36) thereby reducing already undervalued sales proceeds by a further $ 530,000,00 in this period. In 1958 L.M.C had completed the construction of a beneficiation plant with a yearly capacity of 900,000 tons of ore and in 1961 and I962 had expanded the plant, raising its yearly capacity to 1,200,000 tons and 1,400,000 tons of ore respectively. In 1962 mining operations were changed which involved the crushing of a portion of the lump ore for open hearth and which resulted in a gradual reduction of the production of lump ore for open hearth and an increase of the production of blast ore. After 1963 L.M.C. even ceased the production of lump ore for open hearth and from then on only produced blast furnace ore, natural fines, and concentrates. (Blast and fines were direct shipping ores which were generally sold as mined. Concentrates, on the other hand, were produced in the beneficiation plant where lower grade ores were processed. <strong>The</strong> increased emphasis on the production of concentrates came as a result of the gradual "depletion" of the rich main ore body and the subsequent mining of ore with a lower Fe-content though L.M.C. never achieved the full utilization of
-175- the - increased - capacity of its beneficiation plant (see Table 8). Year 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 Blast.. Furnace _ _ 1,075 1,294 1,412 1,343 1,226 1,391 1,586 1,430 1,407 1,171 916 755 926 882 1,014 887 1,058 734 1,148 811 888 555 806 - IRON ORE -1 Fines 1 _ 96 547 604 762 419 384 364 370 336 456 874 583 798 1,016 827 906 891 844 778 855 584 430 557 142 TABLE 8 SALES L.M.C. 1951 Concentrates _ _ - _ - 442 977 1,104 1,192 1,333 1 ,102 1 ,120 1,155 1,048 846 890 1,059 795 889 700 925 603 451 587 152 - 1977 -I TOTAL 167 877 1,280 1,171 1,841 2,016 2,104 2,087 2,752 3,054 2,992 3,076 2,729 2,911 2,493 2,771 2,744 2,731 2,853 2,744 2,467 2,626 2,590 2,076 1,437 1,951 295" Sales 2 Revenue 0.749 8.169 14.460 12.008 18.503 21.380 22.867 22.128 25.904 29.097 27.633 26.823 22.676 22.578 19.047 20.766 20.365 19,526 20.048 21.569 20.800 22.638 21.096 21.644 22.263 29.275 9.120 24,717 14,424 17,371 58,835 543.132 Notes: (1) In thousands of long tons (2) In millions of U.S. dollars S ource: - Concessions Secretariat, Ministry of Finance, Monrovia
Page 1 and 2:
VEROFFENTLICHUNGEN AUS DEM UBERSEE-
Page 3 and 4:
i 1 THE OPEN DOOR POLICY OF LIBERIA
Page 5 and 6:
DE.B1CA710N For £IA. Together we s
Page 7 and 8:
Vll CHAPTER 3: (continued) Page The
Page 9 and 10:
ix CHAPTER 9: THE FORESTRY SECTOR P
Page 11 and 12:
Footnotes Annexes Bibliography Inde
Page 13 and 14:
xiii National Iron Ore Company, the
Page 15 and 16:
XV China at the end of the 19th cen
Page 17 and 18:
xvii economically more developed co
Page 19 and 20:
XIX blancs, dans le developpement d
Page 21 and 22:
XXI des Liberiens de toutes les cla
Page 23 and 24:
xxiii DE OPEN DEUR POLITIEK VAN LIB
Page 25 and 26:
XXV deze scheiding tussen kustgebie
Page 27 and 28:
personeel - niet opgewassen was en
Page 29 and 30:
\ I.M.F. i \ INTRUSCO i i j I.T.C.
Page 31 and 32:
xxxi LIST OF FIGURES, MAPS, CHARTS
Page 33 and 34:
TABLES (continued) Page 33 Planned
Page 35:
XXXV TABLES (continued) 68 Exports
Page 38 and 39:
II century, notably the Open Door P
Page 40 and 41:
IV earth in Liberia. It had been th
Page 42 and 43:
VI Tubman was very well aware of th
Page 44 and 45:
VIII MAP 1
Page 46 and 47:
exporters. It has attracted more th
Page 48 and 49:
XII the more so, since no comprehen
Page 50 and 51:
XIV development of rural Liberia, i
Page 52 and 53:
XVI Firestone's financial contribut
Page 54 and 55:
XVIII officer who had served in Lib
Page 56 and 57:
XX Chapter 11 pays attention to one
Page 59 and 60:
CHAPTER 1 THE PEPPER COAST BEFORE 1
Page 61 and 62:
-3- "Malagueta Coast" or "Pepper Co
Page 63 and 64:
-5- embarrassment towards a (growin
Page 65 and 66:
in honor of the 5th President of th
Page 67 and 68:
Numerous colonists from the U.S.A.
Page 69 and 70:
-11- Figure 1
Page 71 and 72:
-13- The'vicious circle started wit
Page 73 and 74:
-15- the other - to the disadvantag
Page 75 and 76:
-17- Of the colonists notably the A
Page 77 and 78:
-19- The closing of the Door: The E
Page 79 and 80:
-21- Consequently, both tribal peop
Page 81 and 82:
The Roye Administration -23- The te
Page 83 and 84:
-25- He also wanted the general edu
Page 85 and 86:
-27- territory Liberia claimed by E
Page 87 and 88:
m -29- The commission created in 18
Page 89 and 90:
-31- re-activating the first conces
Page 91 and 92:
-33- European. Its expense paid Ly
Page 93 and 94:
-35- Treasury and an unfavourable e
Page 95 and 96:
-37- their salaries. The resulting
Page 97 and 98:
-39- Therefore President Howard of
Page 99 and 100:
j -41- :j % One of the recommendati
Page 101 and 102:
-43- twentieth century the Presiden
Page 103 and 104:
-45- The British and French absence
Page 105 and 106:
-47- In December 1923 the first mis
Page 107 and 108:
-49- and he proposed the constructi
Page 109 and 110:
-51- itself, upon acceptance of the
Page 111 and 112:
-53- equal to 4 per cent of the cou
Page 113 and 114:
-55- between the U.S.A. and Liberia
Page 115 and 116:
-57- Government of Liberia agreed w
Page 117 and 118:
-59- The expansion of the governmen
Page 119 and 120:
-61- Another disagreement arose ove
Page 121 and 122:
] -63- J Notes: ? : :i (1) Fireston
Page 123 and 124:
-65- question had never been adequa
Page 125 and 126:
-67- had varied from $ 8 million to
Page 127 and 128:
-69- In order to protect the new co
Page 129 and 130:
-71- capacity of 55,000 tyres, requ
Page 131 and 132:
J -73j :i quantities of dry rubber
Page 133 and 134:
-75- The charge of 3.44 cents per p
Page 135 and 136:
-77- Finance in the 1970's, but owi
Page 137 and 138:
-79- Planting Agreement was in Akro
Page 139 and 140:
-81- on the basis of competitive pr
Page 141 and 142:
-83- with the 7iresione Plantation
Page 143 and 144:
-85- 1. Organization of a national
Page 145 and 146:
-87- However, before he could reali
Page 147 and 148:
-89- operation of the plantation. T
Page 149 and 150:
j -91- i have taxed the portion of
Page 151 and 152:
-93- in 1947, but also entrusted hi
Page 153 and 154:
-95- company's main interest is no
Page 155 and 156:
-97- poration for the period 1963 -
Page 157 and 158:
-99- TABLE 4 LIBERIA COMPANY'S DIVI
Page 159 and 160:
-101- 6 cents per acre had to be pa
Page 161 and 162:
The Port near Greenville -103- Afte
Page 163 and 164:
-105- rubber. Little is known of th
Page 165 and 166:
-107- the management of the company
Page 167 and 168:
j -109- } S taxes or imposts of any
Page 169 and 170:
-111- The concession agreement, wit
Page 171 and 172:
-113- concluded with other foreign
Page 173 and 174:
-115- which is owned by a political
Page 175 and 176:
-117- owners of the concession. The
Page 177 and 178:
-119- eleven persons were: Vice-Pre
Page 179 and 180:
-121- tain rights in cooperation wi
Page 181 and 182: -123- It is significant that despit
Page 183 and 184: -125- scribed above., providing suc
Page 185 and 186: -127- materials, the rights of the
Page 187 and 188: -129- the possibilities offered by
Page 189 and 190: I -131- sion, and sales to affiliat
Page 191 and 192: -133- concession area of 100,000 ac
Page 193 and 194: -135- such payments out of profit,"
Page 195 and 196: -137- tually all of these companies
Page 197 and 198: -139- The 1898 concession agreement
Page 199 and 200: -141- Normann, from England, which
Page 201 and 202: -143- to the English "Providence Mi
Page 203 and 204: -145- the company had in previous y
Page 205 and 206: -147- of "Globex Minerals (inc.)",
Page 207 and 208: -149- the excess acreage (38) does
Page 209 and 210: -151- old Tchien and Gbaepo Distric
Page 211 and 212: -153- only two of them referred to
Page 213 and 214: -155- not provide for a price of go
Page 215 and 216: -157- Meanwhile, the exploration ac
Page 217 and 218: -159- The excessively liberal terms
Page 219 and 220: -161- a concession for gold, diamon
Page 221 and 222: -163- difficulties which had to be
Page 223 and 224: -165- of 50? and which was of direc
Page 225 and 226: -167- The concessionaire became exe
Page 227 and 228: -169- These statements of the two s
Page 229 and 230: -171- Note that until i960 L.M.C.'s
Page 231: -173- salaries to ex-patriate perso
Page 235 and 236: -177- '••:] Sales Agreement bet
Page 237 and 238: -179- On January 3, 1963 a Memorand
Page 239 and 240: -181- L.M.C. would have acted in co
Page 241 and 242: -183- area described as the Bea Mou
Page 243 and 244: -185- Agreement signed by represent
Page 245 and 246: -187- geologists, economists and la
Page 247 and 248: CHRONOLOGY SUMMARIZED HISTORY OF L.
Page 249 and 250: -191- N.I.O.C. dated January 1, 196
Page 251 and 252: Year 1962 1963 1964 1965 1966 1967
Page 253 and 254: -195- for further details of the 19
Page 255 and 256: -197- soon demonstrated by the call
Page 257 and 258: -199- of 3.2 million long tons in a
Page 259 and 260: -201- TABLE 10 FINANCIAL OBLIGATION
Page 261 and 262: -203- achievements were made in spi
Page 263 and 264: -205- After the change of the name
Page 265 and 266: -207- to concentrate on the new fin
Page 267 and 268: -209- one steel factory, in the cou
Page 269 and 270: -211- The Liberian Government owns
Page 271 and 272: -213- 1952, legal ownership of abou
Page 273 and 274: -215- Th is second part of the conc
Page 275 and 276: -217- one of its sixteen Swedish su
Page 277 and 278: -219- For these services G.I.M. is
Page 279 and 280: -221- Prior to 1974 fifty per cent
Page 281 and 282: -223- depreciation of (capital) equ
Page 283 and 284:
-225- of the revision of the 1960 M
Page 285 and 286:
i -227- 3 prescribing such a review
Page 287 and 288:
-229- But now, having accepted bein
Page 289 and 290:
-231- As a result of this review in
Page 291 and 292:
-233- TABLE 14 FINANCIAL COSTS OF C
Page 293 and 294:
DELIMCO/B.M.C. -235- Long-standing
Page 295 and 296:
-237- equity participation (unlike
Page 297 and 298:
Year 1965 1966 1967 1968 1969 1970
Page 299 and 300:
-241- these funds to B.M.C. in the
Page 301 and 302:
-243- negotiations which were held
Page 303 and 304:
-245- S ources: - "Technical Inform
Page 305 and 306:
-247- Prices of sales to affiliated
Page 307 and 308:
S ource: -249- TABLE 17 INVESTMENTS
Page 309 and 310:
-251- due time a mining concession
Page 311 and 312:
-253- The 1967 concession agreement
Page 313 and 314:
-255- Changes of the concession agr
Page 315 and 316:
-257- Some reasons why the Wologisi
Page 317 and 318:
-259- CHAPTER 9 THE FORESTRY SECTOR
Page 319 and 320:
-261- Surveys of Liberia's Forest P
Page 321 and 322:
-263- (see below) repealed the port
Page 323 and 324:
-265- were authorized to issue perm
Page 325 and 326:
-267- TABLE 18 LIBERIA'S NATIONAL F
Page 327 and 328:
-269- The Forestry Development Auth
Page 329 and 330:
-271- TABLE 19 TIMBER CONCESSIONS G
Page 331 and 332:
-273- TABLE 20 PRODUCTION OF TIMBER
Page 333 and 334:
-275- Souree: - Annual Report, Depa
Page 335 and 336:
-277- Attempts To Establish A Natio
Page 337 and 338:
YEAR 1967 1968 1969 1970 1971 1972
Page 339 and 340:
-281- As a consequence the export v
Page 341 and 342:
-283- December 31, 1977 Liberia lev
Page 343 and 344:
Botanical Name Category 1 Ent, cyli
Page 345 and 346:
-287- these 33 companies; year of s
Page 347 and 348:
-289- were also the principal share
Page 349 and 350:
-291- alleged corruption involving
Page 351 and 352:
-293- It is important to note here
Page 353 and 354:
CHAPTER 10 -295- FISCAL PERFORMANCE
Page 355 and 356:
-297- expenditures in the period pr
Page 357 and 358:
-299- In these years the debt servi
Page 359 and 360:
-301- TABLE 28-A COMPARATIVE STATEM
Page 361 and 362:
-303- the second half of the 1930's
Page 363 and 364:
-305- first to benefit from this U.
Page 365 and 366:
M -307- •' \ •:i TABLE 30 fSS]
Page 367 and 368:
-309- Government Revenues 1941 - 19
Page 369 and 370:
TABLE 31-B MAIN SOURCES OF DOMESTIC
Page 371 and 372:
-313- situation renders the Treasur
Page 373 and 374:
-315- The trend of public expenditu
Page 375 and 376:
-317- •• \ During the 1950 's t
Page 377 and 378:
-319- $ 117 million were due for re
Page 379 and 380:
-321- In 1943 Liberia and the U.S.A
Page 381 and 382:
Sector -323- TABLE 33 PLANNED EXPEN
Page 383 and 384:
Type of Assistance I. Economic Asst
Page 385 and 386:
THE 1963 - 1978 PERIOD Revenue Perf
Page 387 and 388:
Year 1963 1964 1965 1966 1967 1968
Page 389 and 390:
Year 1963 1964 1965 1966 1967 1968
Page 391 and 392:
1963 1964 1965 1966 1967 1968 1969
Page 393 and 394:
-335- of the Ministry of Finance wh
Page 395 and 396:
-337- Development Planning and Expe
Page 397 and 398:
1.1 Agriculture 2.1 Rural Roads 2.2
Page 399 and 400:
-341- The Plan which was approved b
Page 401 and 402:
-343- "Uhile the performance of the
Page 403 and 404:
-345- TABLE 43 PLANNED DEVELOPMENT
Page 405 and 406:
-347- The unenvisaged expenditures
Page 407 and 408:
-349- Under the revised Plan total
Page 409 and 410:
1964 1965 1966 1967 1968 1969 1970
Page 411 and 412:
Note: (1) Preliminary figures. Auth
Page 413 and 414:
-355- Bushrod Island; a new bridge
Page 415 and 416:
-357- TABLE 51 U.H. ASSISTANCE TO L
Page 417 and 418:
-359- happened in a haphazard way.
Page 419 and 420:
-361- The (investment) activities o
Page 421 and 422:
-363- '••] the most organized a
Page 423 and 424:
-365- exploited this situation by s
Page 425 and 426:
-367- all offered staff positions o
Page 427 and 428:
-369- allied to the Tolbert clan bu
Page 429 and 430:
-371- history, secrets and traditio
Page 431 and 432:
-373- At the time of the arrival of
Page 433 and 434:
-375- The very few books which inde
Page 435 and 436:
GOVERNMENT. MISSION. PRIVATE. TRIBA
Page 437 and 438:
-379- TABLE 54 1962 POPULATION AND
Page 439 and 440:
-381- about 19,000 were between 5 a
Page 441 and 442:
-383- Liberia College in 1862. Elem
Page 443 and 444:
-385- mark of 70$. This shocking an
Page 445 and 446:
-387- The 1978 National Education S
Page 447 and 448:
-389- TABLE 58-B SCHOOL ATTENDING P
Page 449 and 450:
-391- TABLE 60 A. NUMBER OF STUDENT
Page 451 and 452:
-393- It seems likely that the rela
Page 453 and 454:
-395- Author's research based on th
Page 455 and 456:
CHAPTER 12 -397- TRANSPORTATION AND
Page 457 and 458:
-399- It thus facilitated the immed
Page 459 and 460:
-401- how many people were employed
Page 461 and 462:
GEOGRAPHICAL DISTRIBUTION OF COUNTY
Page 463 and 464:
-405- in Liberia was owned, finance
Page 465 and 466:
-407- TABLE 65 ABSOLUTE AND RELATIV
Page 467 and 468:
-409- were politically well covered
Page 469 and 470:
-411- railroad which, with the exce
Page 471 and 472:
-413- the concession sector (LAMCO)
Page 473 and 474:
-415- 5 seater twin-engined Cessna
Page 475 and 476:
-417- Besides, this segment of the
Page 477 and 478:
-419- The telecommunication relay s
Page 479 and 480:
-421- with Germany and hence affect
Page 481 and 482:
-423- :: The 1960 - 1979 Period j F
Page 483 and 484:
-425- with Sierra Leone is less tha
Page 485 and 486:
-427- alarming (see Chapter 10), th
Page 487 and 488:
-429- structural changes and the de
Page 489 and 490:
-431- from roughly one third in 197
Page 491 and 492:
-433- by Fouad Khalifa, a Lebanese,
Page 493 and 494:
-435- The Government indebted itsel
Page 495 and 496:
-437- a very large part of G.D.P. i
Page 497 and 498:
-439- to the distribution of power,
Page 499 and 500:
-441- heard. As early as 1830, but
Page 501 and 502:
-U3- was wrongly thought in those d
Page 503 and 504:
-445- 1962. In the 1950's the triba
Page 505 and 506:
-447- Tubman Estate (66). Interesti
Page 507 and 508:
-449- National Legislature, This de
Page 509 and 510:
-451- The creation of state owned c
Page 511 and 512:
-453- respect to foreign concession
Page 513 and 514:
-455- II. The Government of Liberia
Page 515 and 516:
-457- Most notable among these clau
Page 517 and 518:
-459- ADDENDUM On April 12, 1980, a
Page 519:
ISBN 3-88299-040-6 ISSN 0344-4317
show all

The_Open_Door_deel1

Create successful ePaper yourself

Delete template?

Save as template?