for this Department to know to what extent the Governments of Great Britain and France are to be parties to any new arrangement.

Unless further study should modify the views expressed below, it is the plan of this Department to make advances to Liberia for the purpose of accomplishing the following ends:

(1) To pay the arrears of interest on the 5 per cent bonds of 1912. In connection with the payment of these arrears this Department will seek to obtain modifications of the trust agreement under which those bonds were issued so that provision will be made, among other things, for a sinking fund dependent on the revenues of Liberia instead of being fixed at a minimum amount as under the present agreement. In this way the sinking fund never can become a source of embarrassment to that Government. It is not equitable, nor is it feasible to exact from Liberia the repayment of its indebtedness at a rate greater than the resources of that country will permit, and I believe that the holders of the bonds will fully recognize the justice of this contention and assent to proper modifications as a condition for the advance by the United States of the funds necessary to pay the arrears of interest.

(2) To loan to Liberia the sums necessary to discharge the debts due to the British Bank of West Africa.

Other payments will undoubtedly be required to liquidate back salaries of officials, internal debts, and to provide for needed road improvements, etc., on some moderate scale.

So far as any such amounts are due to alien enemies of the United States, payment will either be made to the Alien Property Custodian or will be withheld in the Treasury of the United States until such time as their final disposition would be determined.

I should be glad to have an expression of the views of your Department as to the propriety of the above program. You will observe that that program involves two necessary steps: (1) A new arrangement with the bondholders of 1912; (2) some sort of supervision for the purpose of adjusting the internal debts, etc., of Liberia. Each of these steps will be different in point of form if the United States acts alone in this matter than they will be if Great Britain and France are to be associated with the United States.

Very truly yours,

W. G. McADOO

File No. 882.51/853

The Assistant Secretary of the Treasury (Rathbone) to the Secretary of State

WASHINGTON, November 11, 1918. SIR: I beg to refer to the credit of $5,000,000 which has been established by the Treasury Department for the Republic of Liberia. It is the opinion of the Treasury Department that prior to the making of any advances to the Republic of Liberia from the abovementioned credit, it should be provided among other things that a general receivership to collect and administer the total revenues of the Republic be established.

Because of the obvious disadvantage of the separate administration of this proposed general receivership, and of the present inter

national customs receivership instituted under the agreement for refunding loan entered into between the Republic of Liberia and certain banking institutions in New York, London, Paris, and Hamburg, it is essentially desirable that the general receivership should entirely absorb the existing customs receivership.

Inasmuch as the present loan is to be made by the United States only, there is of course no reason for the general receivership to assume an international character in its service of the present loan. On the other hand, after the establishment of the general receivership, a continued performance therein by the French and British receivers of their present duties, with no participation in the added functions of the general receivership, would present an awkward, if not insurmountable obstacle to successful administration.

For the reasons above stated, and equally to make possible for the proposed general receivership a maximum of efficiency, which is most difficult to attain when division of power and responsibility exists, it is the opinion of this Department that any general receivership of the revenues of the Republic of Liberia which may be established, as a condition to the proposed advances, should be a one-power receivership under the control of the United States.

In view of the fundamental character of this question, prior to a decision thereon, no permanent plan with reference to the general question of advances to Liberia can be prepared.

I shall be obliged if the Department of State will advise this Department of its opinion on this question and of any action which it may propose to take thereon, to the end that the Treasury may formulate a detailed plan of procedure.

Very truly yours,

File No. 882.51/876a

ALBERT RATHBONE

The Acting Secretary of State to the Chargé in Great Britain

(Laughlin)1

[Telegram]

WASHINGTON, December 7, 1918, 4 p. m. 3323. Following is substance of memoranda handed to representatives of British and French Embassies November 19, 1918:

In connection with credit $5,000,000 which has been established by United States Treasury Department for Republic of Liberia, it is planned by Government of United States to take following financial steps in converting Liberian loan of 1912 and administering affairs of Liberia :

1. Readjust international obligations of Liberia financially through supplementary amendment to refunding loan agreement of 1912, reconstructing and converting loan and its administration into an all-American receivership. It will be unnecessary to pay off or refund international loan of 1912 and float new one, but bonds may remain where they are except as individuals may wish to dispose of their holdings. In individual cases bonds might be bought for sinking fund, but seems unlikely that any considerable number will be offered now if interest promptly met.

2. Create an American Receivership of Customs and Internal Revenues, including departmental fees and port charges every nature, to be administered through American assistance to the general receiver of customs and Financial Adviser of Liberia,

The same (No. 6560), on the same date, to the Ambassador in France.

3. All arrears interest on refunding loan of 1912 to be paid to date at once, and future payments interest to be promptly met from month to month. Until revenues Liberia sufficient to meet this charge, necessary funds will be advanced by United States from loan-credit of $5,000,000 recently granted Liberia.

4. Payments to be made of unbonded arrears salary claims and bills against Liberia or receivership on joint approval Secretary of Treasury of Liberia and Financial Adviser. Practically all such arrears, claims, and bills were investigated, registered and bonded to and including July 1, 1918, by a domestic debt commission, consisting of Secretary of Treasury and Financial Adviser. Many claims and evidences of indebtedness were rejected. Domestic debt thus bonded amounts to about $200,000. This does not include claims enemy subjects.

5. Payment to be made of contemplated sinking fund and interest on domestic bonds issued by Liberia as of July 1, 1918.

6. Until revenues Liberia will permit it to assume such expenses, advances will be made from time to time on certificate of and through general receiver, of such sums as may be necessary for administrative expenses of Liberia or receivership; pay interest or sinking fund on domestic or international obligations; readjust indebtedness; provide improved transportation facilities by land and sea, as well as improved means for transmission mail and messages; provide harbor improvements, especially at Monrovia; assist organizing and maintaining modern public school system; provide scientific system intensive agriculture; provide sanitation and system potable water; establish and maintain just equitable administration of hinterland; maintain effective and efficient military police or constabulary as peace organization under American military officers, and develop potential resources and possibilities of Liberia.

In handing these memoranda to British and French representatives, they were informed that this Government contemplated proposed action merely as means of assisting Liberia; that the international arrangement by which responsibility was divided among four Governments had not proved a working plan, but very expensive and cumbersome; that this Government is deeply interested in welfare of Liberian people and desires to give them in this way an opportunity to prove whether they may not themselves improve their own condition; that the new credit is to be used for betterment of conditions generally and development of Liberia. Representatives were also told that this Government hoped that their Governments would receive the matter sympathetically.

For your information: This is a matter which is of importance and Department desires to know at earliest possible moment attitude of Government to which you are accredited.

POLK

File No. 882.51/878

The Ambassador in Great Britain (Davis) to the Secretary of State

[Telegram]

LONDON, December 21, 1918, 1 p. m. 4796. Important. Your 3323, December 7, 4 p. m. Foreign Office has confirmed formally the views set forth in my 4527 December 11, 5 p. m.1 and states that the Chargé d'Affairs in Washington has been telegraphed instructions to inform the Department that British Government appreciate the force of American contention regarding the advantage of replacing the present method of administrating Liberian finances and affairs, but suggest that the question should

'Not printed.

be considered with other analogous questions at the approaching Peace Conference. Repeated to Paris.

DAVIS

File No. 882.51/884

The Chargé in France (Bliss) to the Secretary of State

[Telegram]

PARIS, December 30, 1918, 11 p. m.

6568. Department's 6560, December 7, 1 p. m. In reply to the Embassy's note which transmitted the Department's communication relative to a loan to the Liberian Government and requested information regarding the attitude of the French Government thereon, I have received a note from the Ministry for Foreign Affairs of which the following is a translation of the pertinent portions.

The Government of the Republic has taken note with pleasure of this declaration, namely, on the one hand, that the Government of the United States has no intention of establishing a protectorate over Liberia nor to bring about any change in its international status, and on the other hand, that French interests in Liberia will be safeguarded but, if the financial plan set forth in the American Government's memorandum is put into effect with its consequences, there would be a question nevertheless of the establishment of a real protectorate by the United States over Liberia, whose entire administration would be placed thereby under the control of this sole power and which would thus take on the responsibility therefor.

If such is not the intention of the Federal Government it should be inclined to accept the invitation of the French and British Governments to collaborate equally in the financial assistance of the Black Republic and to continue the work begun in 1912, it being well understood that Germany is excluded.

It is said that the financial Entente established in 1912 has not given the expected results. This is undoubtedly due, on the one hand, to the fact that the funds placed at the disposition of the Black Republic were insufficient, and on the other hand, to the fact that the Germans attempted by their intrigues to acquire predominance in Liberia.

As the Federal Government knows, the French Government has no aim threatening the independence or integrity of Liberia. It desires only to participate in the economic development of a country bordering French possessions which of necessity will have relations therewith as neighbors.

BLISS

MEXICO

BORDER DISTURBANCES

Firing across the Boundary between the United States and Mexico and Crossing into Mexico by American Troops in Alleged Violation of the Sovereignty of Mexico; Violation of the Sovereignty and Neutrality Laws of the United States by Mexican Conspirators, Troops, and Raiders; Pursuit of Mexican Bandits into Mexico by United States Troops 1

File No. 812.0144/45

The Mexican Ambassador (Bonillas) to the Secretary of State

No. A-928

[Translation]

WASHINGTON, December 18, 1917. EXCELLENCY: I regret to inform your excellency that the Department of State of my Government has forwarded to me the following report from Gen. J. C. Murguía, commander of the garrison at Ciudad Juárez :

By telegram No. 88 dated the 10th instant a report was sent to the citizen Gen. E. Hernández, Chief of Military Operations, in the matter of the firing of shots at the ford of the island, which came from the American troops without being returned from the Mexican side, as it appears from the investigation of the case and the declarations of two men who were picked up on the river bank wet through, one of them wounded, who said that they tried to cross to the American side at about 9 p. m. in company with a 50-year-old lady, the sister of one of the men, and were spied before they were half way across the river by the American guards who, without a warning of any kind, fired more than 60 shots at them, killing the woman and wounding one of the men, and the woman fell in the water. She was carried off in the stream and they hastily ran back to the Mexican side. The American patrols very often fire on the revenue officers along the dividing line and have killed their horses. In every case the firing was not returned from the Mexican side, for the revenue officers as well as the soldiers on watch duty were under positive orders not to fire as much as one shot at the American side. The foregoing is here transcribed for your information.

Supplementing my telegram of November 5 I have the honor to transcribe the message I have just received from the S. M. of Ciudad Juárez :

Your telegram 2026. On October 30 last, Francisco and Luis O-Gas and Mrs. Matilde Torres tried to go over to the American side at the Libertad Gate. It might have been 3 or 4 in the afternoon. As they can not read and were asked for the bath ticket, they could not meet the requirements and were turned back. The same persons tried to cross the river one kilometer away from the Reforma Gate between 10 and 11 in the night, when Francisco lost a shoe about the middle of the stream and cried out to Luis to leave him behind and go on. It was then that the American soldiers noticed their presence and immediately opened a steady fire which sent the men back to the Mexican side. Mrs. Matilde Torres who probably was hit by the bullets was carried away by the stream and drowned. She

'The greater part of the correspondence relating to these subjects is not printed, as it deals merely with repeated incidents, reports, and proceedings similar to those here included.