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paid a sales commission without performing any services, i.e. in
the case of sales to the United States through Republic Steel,
cannot be questioned but as it was not in conflict with the
provisions of the Collateral Agreement and the 1949 Iron Ore
Sales Agreement there were no legal grounds for the Government to
interfere with these payments which in combination with the
excessive commission fees allowed resulted in an estimated loss
for the Treasury of at least $ 3,000,000.00 during the 1951 -
1977 period.
The Mano River Iron Ore Deposits
After L.M.C. had been granted on April 11, 1957 (66) a license to
explore the Bea Mountains (67) and the Mano River area it
conducted exploration work and discovered deposits with a Fecontent
of over 55? in the Mano River area, about 45 - 50 miles
north-west of Bomi Hills. The Government, however, did not want
to give L.M.C. the de facto right to develop these deposits which
right L.M.C. already had under its 1945 mining concession
agreement with the Government. The official reason for this
refusal was that L.M.C. already held nearly the maximum 25,000
acres of Exploitation Lots, allowed under the 1945 concession,
but no doubt the enormous profits resulting from the mining
operations in Bomi Hills will have influenced the Government's
decision. President Tubman wanted the Mano River iron ore
deposits to be developed by a new corporation in which the
Liberian Government would have a 50? equity interest. In exchange
for the rights which L.M.C. had under the 1945 agreement with
respect to the exploitation of the Mano River deposits it was
offered a 15? equity interest in the company to be formed, and
"the Government promised that the income and any and all other
benefits which it would derive in the future from this 15?
interest would be free from all taxes and would not be included
in the "net profits" as defined in the Collateral Agreement, and
that the Government would not be interested in the assets value
of such investments (68). The following year (1958) a concession
agreement for the development of the Mano River Iron Ore Deposits
was concluded with the National Iron Ore Company (N.I.O.C.) in
which L.M.C. had taken a 15? equity interest (69) (see further
under N.I.O.C.).
The Bea Mountains Iron Ore Deposits
In early 1957 the Bea Mountains Iron ore deposit was discovered
by L.M.C, The Bea Mountains are located between Bomi Hills and
the Mano River deposits, and are at only about 9 miles distance
from Bomi Hills. However, by Executive Order No. 3, dated May 7,
1959 which was approved by the Legislature on May 11, 1960, the