p PAGE 01 ORIGIN AF-01 STATE INFO ADS-00 DODE-00 L-03 P-Ol USIE-00 LOG-00 DINT-05 INR-01 PRS-01 T-01 '?Jl A"Z\~ L~'l -=--/ ~ ll~ ~e~ \- ~97f~ UNCLASSIFIED CONFIDENTIAL 311755 RELEASED IN PART B6 192238Z AGBE-00 ANHR-01 NSAE-00 SNP-01 /051R 422 AID-01 EB-01 NSCE-00 SP-01 AMAD-01 HA-09 OMB-01 SS-01 5833 DRAFTED BY: AF/W-AL: CBGURNEY APPROVED BY: AF /W-AL: ARMCKEE AF /W-AL: OPANDERSON AF /EPS: JFREUND , ------------------96CBCA P R 192240~-ft,\\'~~l) FM SECSTATE WASHDC~ TO AMEMBASSY MONROVIA PRIORITY INFO AMEMBASSY FBEETOWN CIAE-00 H-01 PA-01 STR-18 COME-00 INRE-00 PM-01 TRSE-00 192239Z /38 C 0 N F IDE NT I A L STATE 311755 E.O. 12356: DECL: OADR TAGS: EINV PINS PBEL EAGR EMIN LI SUBJECT: MAJOR INVESTORS CALIM TAYLOR DUPLICITY REF: (A) 91 MONROVIA 6537 1. CONFIDENTIAL -ENTIRE TEXT. 2. SUMMARY: J CONFIDENTIAL B6 JoF CONFIDENTIAL B6 FIBESTONE: SQUEEZED OUT? I /cALLED ON UNITED STATES DEPARTMENT OF STATE REVIEW AUTHORITY: JOHNS BLODGETT DATE/CASE ID: 25 FEB 2010 200806735 UNCLASSIFIED I B6 !:i:TJ !HE NPl SEVERAL AREAS WHERE THE RELATIONSHIP RECENTLY. CONFIDENTIAL CONFIDENTIAL LIMINCO: HOLDING ON AND HOLDING OUT 5. LIMINCO/AMCL WANT TO MAINTAIN THE YEKEPA IRON ORE MINING INFRASTRUCTURE IN HOPES OF WORKING OUT AN AGREEMENT LEADING TO EXPLOITATION OF THE HUGE MIFERGUI IRON ORE DEPOSITS IN GUINEA. THE HUGE CAPITAL INTENSIVE PROJECT DEPENDS UPON MAINTAINING INVESTOR CONFIDENCE BY MEETING CERTAIN DEADLINES FOR PROJECT DEVELOPMENT. ACCORDING TO THE DEADLINES ARE NOT ~B~E~IN~G~ME~Tm-.~M~O~RE~O~VE~R~,~N~P~F~L~RE~P~RE~ SENTATIVE TOM WOEWIYU RECENTLY INFORMED LIMINCO STAFF IN LIBERIA THAT THE MINING UNCLASSIFIED B6 COMPANY MUST BEGIN PAYING TAXES, OR THE~J!1~~JF!iEĀ® DOWN" THE PROJECT. / /WHO HAS BEEN IN TOUCH WITH IGNU LAWYERS REICHLER AND SOBLE, IS MINDFUL OF THE LEGAL PROBLEMS HE MAY FACE FROM THE IGNU IF HE ENTERS INTO SUCH AGREEMENTS WITH THE NPFL . HE THOUGHT HE HAD AN UNDERSTANDING WITH TAYLOR ON TAXES, AND PLANNED TO TRAVEL TO COTE D'IVOIRE TO SPEAK WITH TAYLOR ON SEPTEMBER 14. CONFIDENTIAL CONFIDENTIAL PAGE 04 STATE 311755 192238Z 6. NUMEROUS OTHER SMALLER MINING AND LOGGING COMPANIES HAVE ALSO BEEN IN TOUCH WITH DESKOFF IN RECENT WEEKS COMPLAINING THAT TAYLOR IS "MOVING THE GOALPOSTS", BY INSISTING ON NEW "TAXES" AND/OR CHARGING "FEES" FOR ALLOWING THEM ACCESS TO EQUIPMENT AND CONCESSION AREAS. COMMENT 7. THE DEPARTMENT HAS INFORMED THESE AND OTHER POTENTIAL INVESTORS OF THE DIFFICULTIES AND DANGERS OF DOING BUSINESS IN TAYLORLAND, AND REFERRED THEM TO IGNU ATTO~YS REICHLER AND SOBLE FOR A READOUT ON ANY POTENTIAL LEGAL PROBLEMS. THEIR OVERALL EXPERIENCE FROM THAT QUARTER POINTS UP THE PITFALLS THAT MAY BE ENCOUNTERED BY FIRMS ATTEMPTING TO RESUME ACTIVITY IN AREAS CONTROLLED BY THE NPFL. AMCL AND FIRESTONE ARE RELUCTANT TO WRITE OFF HUGE INVESTMENTS IN LIBERIA BUT SHOW INCREASING FRUSTRATION OVER EFFORTS TO CONDUCT BUSINESS "BY THE BOOK." 8. SINCE IT APPEARS UNLIKELY THAT BONG MINES WILL RETURN TO LIBERIA, IF LIMINCO AND FIRESTONE DECIDE TO CUT TIES AS WELL, THE COUNTRY WILL HAVE LOST ALL OF ITS FORMER 'BIG TICKET' FOREIGN EXCHANGE EARNERS. THE AD HOC ENTREPRENUERS SLIPPING INTO THE BREACH ARE NOT LIKELY TO HAVE THE CAPITAL TO REBUILD LIBERIA'S SHATTERED INFRASTRUCTURE. DEPARTMENT APPRECIATES ANY FURTHER COMMENT FROM EMBASSIES' PERSPECTIVE. CONFIDENTIAL CONFIDENTIAL PAGE 05 STATE 311755 192238Z UNCLASSIFIED B6 WILNEGIJNOD (1315118 339mgmav3