Barclay was selected to complete King's term as president. One of his first official decisions was to repeal the famous Port of Entry Law of 1864 that had restricted the economic activities of foreigners in the country. Subsequently, in the early 1930s concession agreements were signed between the Liberian Government and Dutch, Danish, German and Polish investors. Barclay is credited with helping the country survive some of Liberia's greatest threats to its sovereignty in that country's history. These included threats by the
League of Nations led by the
German,
British and
American governments to
occupy the country unless reforms were made, aggressive diplomatic intrigues by
France and a coup attempt by the
Firestone Tire and Rubber Company which owned much of Liberia's land.
Renegotiation of loan payments In 1926, the Liberian government granted a major rubber concession to the Firestone Tire and Rubber Company and secured a $5 million loan through a Firestone subsidiary. The
Great Depression severely affected Liberia’s economy, as global rubber prices collapsed. By the early 1930s, rubber prices had fallen to only a few cents per pound, rendering production largely unprofitable and sharply reducing government revenues. Government income declined significantly during this period, contributing to a fiscal crisis. By 1931, Liberia was unable to meet its loan obligations and sought relief from its creditors. In 1932, the Liberian legislature enacted a moratorium on loan repayments pending renegotiation. The crisis prompted Liberia to appeal to the
League of Nations, which established a commission to examine the country’s financial condition. The commission recommended a program of financial assistance combined with oversight measures, including the appointment of foreign advisers to key government functions. Some members of the League advocated placing Liberia under a form of international control, but the Liberian government resisted measures it viewed as infringing on national sovereignty. Following negotiations, a financial reorganization plan was implemented in 1934 under League supervision. The arrangement introduced external financial oversight while allowing Liberia to retain its formal independence and resume loan repayments.
World War II 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.
Strategic importance of Liberia 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." 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.
Defense Pact with the United States (1942) 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.
Provision of war supplies to the North African theater 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.
Franklin Roosevelt's visit to Liberia (1943) during World War II, 1943 Liberia's strategic importance to the Allied war effort was underscored in January 1943 when U.S. President
Franklin D. Roosevelt visited the country following the
Casablanca Conference. During the visit, Roosevelt sought to secure continued access to Liberia's natural rubber supplies, expand U.S. military facilities including Roberts Field, and encourage Liberia to sever remaining ties with Axis nationals. Liberia formally declared war on Germany and its allies on 27 January 1944. In May 1943, President Edwin Barclay visited the United States, where he addressed the
United States Congress. He was among the first African heads of state to be formally received and recognized by Congress during the wartime period. ==Retirement==