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Most notable among these clauses are the provisions with respect
to health care for the company's employees and the education of
their children. The Liberian Government should address itself as
to whether the inclusion and enforcement of such obligations of
the employer are justified or whether it considers these activities
as the exclusive responsibility of the National Government.
If the latter would be the case, the foreign investors'
role would be limited to the payment of a fair amount of taxes
and/or royalties and to contribute to the development of a balanced
economy in conformity with the economic policy of the Government
of Liberia.
VI. Natural resources should be exploited economically
In the iron ore mining sector another gap must be filled. Reference
has already been made as to the necessity of the Liberian
Government effectively controlling the natural resources of its
country. Iron ore mining agreements should include a clause
which guarantees more than a "balanced exploitation". It should
be required that both high grade ore (hematite, 68 percent ferrous
content) and low grade ore (itabirite, 35 to 45 percent ferrous
content) be extracted. Of course, such a requirement should
not conflict with a rational exploitation of the natural resources
or with the outcome of a feasibility study. As shown in
chapter 8, this principle directly applies to the operations of
the LAMCO J.V.
Abuses also exist in the timber sector which should be stopped
without delay. The so-called "creaming of the forests" is an
example of such an abuse (see chapter 9). Further, by definition,
illegal harvesting of timber is unacceptable but in case it is
done by companies which hold legal concession agreements, these
foreign investors should be exemplarily dealt with to make clear
the Government's determination to "clean" this sector of the national
economy.
This also applies to illegal mining operations, notably those involving
gold and diamonds. Each year Government is deprived of
considerable revenue when these valuable commodities leave the
country uncontrolled.
VII. Local lumber processing obligations and
reforestation regulations should be enforced
Another way to improve the performance of the forestry sector
concerns the strict enforcement of the alread existing obligation'
of the logging companies to process the produce of their
activities in Liberia. In addition to this, the companies should
be obliged to contribute to the reforestation of areas which they
have harvested and with species prescribed by the Liberian Government
or its representative in conformity with a national reforestation
policy and programme. The Forest Development Authority
could assume the role of executing agency in this respect. It is
incumbent upon the government to define such a national reforestation
policy and programme.