The_Open_Door_deel1

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After the austerity measures had been introduced about twothirds
of the ordinary budget were still for salaries and a
further reduction was considered not practical in view of the
politically nature of these expenditures.
The introduction of the austerity measures, including the
introduction of an Austerity Tax which had far more deeply
affected the people in the lower income group than the existing
Income Tax legislation had been followed by political unrest and
a series of strikes which had paralysed the large foreign rubber
plantations as well as the iron mines. The only alternative
solution to cover the deficits would have had as a consequence a
limitation of the expenditures on high-priority development
projects. Not surprisingly, the Government decided upon increased
foreign public assistance (46). It goes without saying that
foreign governments whose nationals had made considerable
investments in Liberia had an immediate interest in the absence
of political unrest in this underdeveloped country. Strikes would
have a negative impact on the profitability of the investment
and would also affect the production of raw materials which were
in many cases processed In the country of origin of the investor.
In the long run they might even lead to a deterioration of the
general investment climate. The growing political willingness in
the 1960's industrial countries to provide assistance to
underdeveloped or developing countries combined with this
interest of certain (Western) governments largely explains the
pattern and volume of public foreign assistance to Liberia as
from the mid-1960's. As will be seen political motives also
played an Important role .
Public Foreign Assistance
Traditionally, Liberia had received foreign assistance from three
different sources and for three distinct purposes. First, private
foreign commercial institutions and banks had granted loans to
supplement the country's deficient domestic financial resources.
Secondly, foreign governments, notably those of the U.S.A. and
of Germany, had provided military assistance to the Government
in Monrovia to quell tribal revolts. And lastly, foreign nonprofit
organizations such as religious and philanthropic
organizations had made valuable contribution in the fields of
education and health, both in financial terms and with respect to
the supply of trained personnel.
The 1939 - 1945 war incited the U.S. Government to step up its
assistance to th'e West African Republic. As a result of the
Defense Area Agreement which the two Governments concluded on
March 31, 1942 the U.S. Army completed an international airfield
which had been started by the Firestone Plantations Company and
constructed two auxiliary roads as well as a road leading to the
interior of the Republic.