SinghKing
Banned
First, a bit of OTL background info. During the 1920s, the United States access to rubber was restricted by the European colonial powers (Britain and the Netherlands), which held a monopoly in rubber production. Herbert Hoover, then Secretary of Commerce, considered rubber a vital resource due to its usage for car tires, and began working with American rubber companies in order to find a rubber source that was controlled by US interests. As part of a worldwide search for a place for rubber plantations subsidised by the US Department of Commerce, rubber magnate Harvey Samuel Firestone sent experts to Liberia in December 1923 to do a soil survey. The results were good, and in 1926, the Liberian government granted Firestone a 99-year lease for a million acres (to be chosen by the newly created Firestone Natural Rubber Company, anywhere in Liberia) at a price of 6 cents per acre, and Firestone created the world's largest rubber plantation.
Firestone also provided a $5 million loan, quoted at a 7% interest rate, to the Liberian government to pay off its foreign debts, and to build the harbor needed by Firestone to export rubber from the plantation. The loan was given in exchange for complete authority over the government's revenues, which the Firestone Natural Rubber Company would hold until the loan was totally repaid. The loan took a larger and larger portion of the Liberian government's incomes: it grew from 20% of the total revenue of Liberia in 1929, to 32% in 1930, to 54.9% in 1931, and nearly the whole national revenue of Liberia in 1932. An estimation made by a member of the American Legation in Liberia said that Liberia really paid a 17% interest rate for the loan, and Liberia only finally managed to repay the loans to the company (and to retake control of its own national revenues from the Firestone Natural Rubber Company) in 1952.
During the Great Depression, as rubber price fell, Firestone stopped its development of the plantation, using just 50,000 acres. By cutting wages in half, he deprived the Liberian government of tax incomes, and forced the government to miss a loan payment to the company. With his self-contrived cassus-belli, Firestone subsequently asked the US government to send a warship to Monrovia to enforce the debt payment, but President Franklin Delano Roosevelt rejected the "gunboat diplomacy"- or at least, he did IOTL.
What would have happened if, in an ATL, FDR had agreed to Firestone's proposal, sending the requested US warship to the Liberian capital of Monrovia to support Firestone's coup, and the USA had either officially annexed Liberia as a US territory or installed Firestone as Liberia's new dictator?
Firestone also provided a $5 million loan, quoted at a 7% interest rate, to the Liberian government to pay off its foreign debts, and to build the harbor needed by Firestone to export rubber from the plantation. The loan was given in exchange for complete authority over the government's revenues, which the Firestone Natural Rubber Company would hold until the loan was totally repaid. The loan took a larger and larger portion of the Liberian government's incomes: it grew from 20% of the total revenue of Liberia in 1929, to 32% in 1930, to 54.9% in 1931, and nearly the whole national revenue of Liberia in 1932. An estimation made by a member of the American Legation in Liberia said that Liberia really paid a 17% interest rate for the loan, and Liberia only finally managed to repay the loans to the company (and to retake control of its own national revenues from the Firestone Natural Rubber Company) in 1952.
During the Great Depression, as rubber price fell, Firestone stopped its development of the plantation, using just 50,000 acres. By cutting wages in half, he deprived the Liberian government of tax incomes, and forced the government to miss a loan payment to the company. With his self-contrived cassus-belli, Firestone subsequently asked the US government to send a warship to Monrovia to enforce the debt payment, but President Franklin Delano Roosevelt rejected the "gunboat diplomacy"- or at least, he did IOTL.
What would have happened if, in an ATL, FDR had agreed to Firestone's proposal, sending the requested US warship to the Liberian capital of Monrovia to support Firestone's coup, and the USA had either officially annexed Liberia as a US territory or installed Firestone as Liberia's new dictator?