“To you, Firestone is just a brand. Where I come from, it is someone’s life – everything they will ever know”
A Liberian friend
Firestone Tire and Rubber Plantation’s history is painfully enlaced with Liberia’s.
In 1920s, the Liberian government was on the verge of bankruptcy and under severe pressure from international creditors for repaying a US$ 2 million debt.
Along came Firestone. It bargained with the government for a lease of one million acres of land for one hundred years. The price? 6 cents an acre, plus 1% in tax on the value of the exported rubber, giving the company unlimited control over 10% of Liberia’s total arable land. Included in the contract was the infamous Clause (K), which conditioned the deal on a loan from Firestone to the government of Liberia of $5 million at an interest rate of 7% (that was 2% higher than the interest rate on any of Liberia’s other debts).
Cornered and careless, the government signed.