The_Open_Door_deel1

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respect to foreign concessionaires is involved. The respective
chapters dealing with the major concessionaires have already
dealt extensively with principal weaknesses, dificiencies and
omissions of the various concession agreements, both with respect
to their formulation and their implementation.
Three categories of concession agreements have been distinguished,
(1) The so-called "sleeping agreements"! concessions which,
one year after the signing of the concession agreements
still have not become operational. These agreements
should immediately and without reservation, be officially
revoked by the Government. The present practices
have resulted in a situation which cannot be allowed
to continue since the Liberian Government has
granted territories to foreign concessionaires which
eexeeed the total area of the country. This situation
inevitably occurred since no records were maintained
as to the number of concessions granted much less the
total cumulative acreage involved.
Another consequence of the above described practices
is that legal holders of concessions who fail to make
their concession operational, prevent more serious investors
from making use of the available investment
opportunities and further hinder the development of
the country.
(2) The second group of concession agreements embrace all
agreements which have been signed for less than one
year and which still have not become operational.
These concessionaires should be given a deadline on
which production activities must have begun. This period
should in no case exceed twelve months. Failure
to comply with this official request would automatically
result in the definite cancellation of the agreement.
Since the Plan of Action to be adopted would include
the provision in all new, as well as old, concession
agreements that production must begin within
a well defined time period, this second category
would enly exist temporarily.
(3) The third group of concession agreements includes all
foreign owned concessions which are operational as .
well as all future concession agreements.
A "Plan of Action" is proposed which should be executed in two
phases. During Phase I, all agreements of the second and third
categories (see above) should be immediately subjected to discussion
and, if necessary, revision. The suggestions mentioned
below to improve the concession sector and the study presented
in the preceeding chapters will provide valuable elements to
consider when discussing these agreements.
After all agreements will have been satisfactorily discussed and
possibly revised ("Phase I"), a general policy of renegotiating