Edwin Barclay

In 1926, the Liberian government had granted a major rubber concession to the Firestone Tire and Rubber company and undertook to borrow $5 million (~$61.9 million in 2021) from a Firestone subsidiary.[6]

The Great Depression of the 1930s brought Liberia to the verge of bankruptcy. As the global economy collapsed, so too did prices of all commodities, including those for rubber. By 1932, rubber prices had fallen to a low of 3¢ a pound. Although the trees planted by the Firestone Company in 1926 and 1927 were reaching tapping age, the market price of rubber would cover only a small fraction of the cost of tapping, processing and transportation to market. Firestone did not bother to harvest and produce the rubber. Without this revenue, government revenues fell steadily to a low of $321,000 (~$5.44 million in 2021) in 1933.[7]

By 1931, it became apparent to the Liberian administration that the revenue shortfall made continued loan repayments impossible. The government asked the lending bank and Firestone for forbearance on the loan payments but to no avail. Harvey Firestone attempted to persuade the United States government to employ "gunboat diplomacy" to compel compliance with the loan agreement. U.S. President Franklin D. Roosevelt refused to interfere in Liberian internal affairs, writing in a memorandum to the State Department: "At all times we should remember that (Harvey) Firestone went to Liberia at his own financial risk, and it is not the business of the State Department to pull his financial chestnut out of the fire except as a friend of the Liberian people."

In 1932, the Liberian Legislature passed the Moratorium Act suspending payment of the Firestone loan until terms could be negotiated that were more in line with Liberia's ability to pay. The US suspended diplomatic relations but did not take further action.

When Barclay appealed to the League of Nations for help, the Council of the League of Nations established a commission of inquiry. The report of the commission recommended providing financial aid to Liberia with certain conditions that reflected concerns that the government of Liberia would not be able to pay a renegotiated loan without some level of monitoring. Some European powers in the League of Nations had advocated mandate status for Liberia, a move which would have abrogated the independence of the republic.[8]

Barclay and other members of his cabinet objected to the proposed conditions on the grounds that they would infringe upon the sovereignty of Liberia. For example, one of the conditions would have required that the League's delegates be placed in key positions within the Liberian government.

After Barclay implemented some of the measures that had been proposed by the League of Nations, U.S. President Franklin Roosevelt restored diplomatic relations with Liberia in 1934. After three years of negotiation, an agreement was reached along lines suggested by the League. Two key League officials were placed in positions to advise the government, but with limitations set forth by the Liberian government. With this assistance program in place, Liberia was able to resume making loan payments.

Poster from U.S. Office of War Information. Domestic Operations Branch. News Bureau, 1943

In 1937 President Barclay, under pressure from the United States, withdrew the concession agreement with the German investors, who were accused of sympathies with the Nazi regime in their home country. Until 3 January 1944, Barclay was Liberian President, to be succeeded by William Tubman.

After the fall of Malaysia and Singapore to the Japanese during World War II, Liberia became very strategically important as its rubber plantation was the only source of natural latex rubber available to the Allies, apart from plantations in Ceylon (now Sri Lanka). Among many other uses, natural rubber was needed to build tires for war planes, military jeeps, aircraft guns, and sensitive radar equipment. As a result of the simultaneous sharp increase in demand and drastic reduction in supply, prices soared for natural rubber in the United States and measures were taken to reduce demand.

Writing in his memoirs, former U.S. Secretary of State Cordell Hull wrote, "With Japan's occupation of the Rubber producing areas in the Far East, Liberia became of greatly increased importance to us as one of the few remaining available sources of natural rubber."[9] President Barclay assured the Americans that Liberia would supply all the natural rubber that the United States and its allies needed for the war effort.

Barclay visiting the United States at Fort Belvoir

In 1942 Liberia signed a Defense Pact with the United States. This commenced a period of strategic development, including the construction of roads, airports and other infrastructure projects. Robertsfield Airport was built with runways long enough for B-47 Stratojet bombers to land for refueling, giving Liberia the longest runway in Africa to this day.[10]

The provision of war supplies to the North African theater was difficult, expensive, and time-consuming. German U-boats had taken complete control of the North Atlantic Ocean routes, making shipping in the North Atlantic Ocean hazardous to American warships and merchant vessels. In order to transport American soldiers and war supplies to North Africa, the United States needed to open up a South American-Liberian air corridor.

Because of its proximity to South America, Liberia became the first major West African bridgehead for the South Atlantic air ferry route. For this reason, the Liberian Government also granted to the United States use of its territory to store war supplies and to construct military bases in Montserrado County and Grand Cape Mount County at Fisherman's Lake. United States military supplies were collected in Florida, transported through South America to Brazil, then flown from Brazil to the military depot at Roberts Field. There 5,000 United States African-American troops stored and maintained the inventory. From Roberts Field, the war supplies were flown to their final destinations in Morocco, Tunisia and Algeria.[11]

President Edwin Barclay (right) and President Franklin D. Roosevelt during World War II, 1943

Liberia's strategic importance to the Allied war effort was evidenced by the fact that, in January 1943, U.S. President Franklin D. Roosevelt traveled to Liberia after participating in the Casablanca Conference in order to secure Liberia's support. Roosevelt's objectives were to negotiate the establishment of U.S. military bases in Liberia, secure Liberia's commitment to continue supplying the U.S. with natural rubber, urge the Liberian government to expel German citizens and persuade it to abandon its neutrality and declare war on the Axis powers.

In May 1943, Edwin Barclay visited the United States. He was the first black man to be officially introduced from the rostrum of the United States Congress as a guest of honor.