The_Open_Door_deel1

XVI
Firestone's financial contribution to Liberian Treasury in
the 1926 - 1977 period is discussed. It is the almost classical
story of the opposing, interests of the company's shareholders
and those of the host Government. One of the most
mysterious aspects of Firestone's financial operations in
this respect concerns the company's rubber pricing policy.
The reluctance of the company's owners and management to
provide the necessary information to evaluate this policy,
and their defiance of the Liberian Government by refusing to
co-operate in this respect, is also shown in this chapter.
Firestone's contribution to the economic development of
Liberia would have been far greater if a rubber processing
industry had accompanied or followed the establishment of the
rubber plantations. However, as is explained on the basis of
hitherto not published documents, plans to create a tyre factory
in Liberia failed, despite the generous privileges which
the Liberian Government offered to the rubber company.
The last section of this Chapter discusses the new, revised,
concession agreement which in 1976 was signed with Firestone.
Soon after it began to be exported, rubber dominated
Liberia's exports. During the 1940's rubber even constituted
over 90$ of total exports. This explains the attempts of the
Government to diversify the export of agricultural products.
On an increasing scale the Tubman Administration began to
grant concessions to foreign companies for the production of
agricultural products other than rubber. This is discussed in
Chapter 4. The first of the companies which signed an agreement
with the Liberian Government was the Stettinius Associates-Liberia
Inc., a company created by a former U.S. Secretary
of the same name who had developed great interest in the
development of Liberia. In 1947 President Tubman agreed that
the overall development of the country would be entrusted to
this company. Significantly, the specific objectives of the
company created for this purpose, The Liberia Company, were
almost identical with those of a Five-Year Development Plan
launched by President Tubman in 1946 but which had not been
implemented owing to lack of funds and shortage of manpower.
Due to circumstances further explained in this Chapter the
objectives of the company became less ambitious during the
1950's when notably the development of coffee and cocoa plantations
was envisaged. Conditions for these products seemed
good, expecially for coffee since Liberia is one of the few
countries in the world where coffee grows wild. However, both
projects failed and nowadays the operations of the company in
Liberia are restricted to a relatively small rubber plantation
in the interior of the country, in Nimba County.
A German attempt to grow cash crops other than rubber also
failed. In 1952 the African Fruit Company started the development
of banana plantations but already gave up after five
years. In 1973 the Germans even withdrew from Liberia and sold
the company to a Liberian company which tran3action and related
circumstances revealed a struggle for power within the
ruling elite, the Americo-Liberians.