Liberia ^ 



(then Secretary to the Liberian Treasury), Mr, J. C. Stevens 

 (Attorney-General), and Mr, Henry Hayman (Consul-General). 

 The negotiations were materially assisted by Mr. I. F. Braham, 

 manager of the Liberian Rubber Syndicate,^ 



' I append the text of this agreement: 



Liberian Government 7 per cent. External Loan of 1871. 

 Bases of Agreememt submitted by the Honourable A. Barclay, Secretary of 

 the Treasury, and the Honourable J. C. Stevens, Attorney-General of the 

 Government of Liberia, of the one part, and approved by the Committee 

 of Liberian Bondholders acting in conjunction with the Council of Foreign 

 Bondholders of the other part. 



I. The interest on the debt to be reduced as follows : 3 per cent, for three 

 years; 3^ per cent, for three years; 4 per cent, for three years [the present rate 

 of interest] ; \\ per cent, for three years ; 5 per cent, thereafter until extinction. 

 Interest to be paid half-yearly in gold in London, by a banking house to be 

 appointed by the Government of Liberia and approved by the Council. The 

 first payment of interest to be made on October ist, 1899. 



II. Amortisation of the principal of the bonds deposited with the Council 

 under this arrangement, in accordance with Article VIII., to commence after 

 five years, viz. on October ist, 1904, by means of an accumulative sinking fund 

 of I per cent, per annum, to be applied half-yearly by purchases on the market 

 or by tenders, as the Government may decide, when the price of the bonds is 

 under par, or by drawings for redemption at par when the price is at or above 

 par. The Government reserves the right to increase the sinking fund at any time, 

 or to put it into operation at an earlier date. 



Ill For the arrears of interest reckoned up to March 31st, 1899. the Council 

 of Foreign Bondholders will issue non-interest bearing certificates, which shall 

 be redeemed in the following manner. After the extinction of the principal 

 of the debt, the Government of Liberia will continue to remit in the manner 

 hereinbefore provided, for a period of four years, the like amount of interest 

 and sinking fund payable at the date of such extinction in respect of the amount 

 of bonds which may be deposited with the Council within the period prescribed 

 by Article VIII. This sum shall be applied by the bankers charged with the 

 service of the debt to the redemption of the certificates, either by a pro rata 

 payment or by half-yearly drawings as may be determined by the Council in 

 conjunction with the Committee. The Government of Liberia is entitled to 

 purchase certificates on the market at any time if it so desires, and to participate 

 with the holders of the other outstanding certificates in the fund appropriated for 

 their redemption. 



IV. As security for the service of the debt the Government especially assigns 

 the expiorts duty of 6 cents per lb. on rubber, to be paid by the exporters direct 

 to the Consul-General for Liberia in London, and to be handed by him to the 

 bank charged with the service of the debt. Any sums hereafter paid to the 



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