INTRODUCTION
27
subsequent
stage, a unanimity of view as to what should be done to cope with the
successive crises which threatened the future of the industry: there
were divergencies of view and personal antagonisms to be overcome, both
within De Beers and the Syndicate. Moreover he had to win the
acquiescence of Government, and at times Government was very far from
being friendly. He required friends, he required wealth and he required
power, to achieve his ends. He could not hope to attain them simply by
argument and persuasion.
The
strategy which he employed was the strategy of 'indirect approach'. If
he could not persuade, he could bargain, but to bargain successfully he
had to make it clear that he did so with some very strong cards in his
hands. The story began when the Anglo American Corporation, which had
been founded in 1917, acquired control, in the immediate period after
World War I, of the diamond mines of South West Africa. This was
followed by participation in, and the conclusion of purchase agreements
with, 'outside producers'—Angola, the Congo and elsewhere. It was
accompanied by the steady acquisition of shares in De Beers: and in the
commencement of friendly relations with the largest shareholder in De
Beers— Solly Joel and his firm of Barnato Brothers. Ernest
Oppenheimer's bargaining power was clearly on the increase—it was
increased when Anglo American Corporation became a member firm of the
Diamond Syndicate. His prestige and power in the diamond world were
greatly augmented when, shortly afterwards, as the result of
disagreement and dissension with both De Beers and certain members of
the Syndicate, Ernest Oppenheimer withdrew from it and founded a 'new'
syndicate of his own from which certain old firms, hitherto of great
importance in the marketing structure, were excluded. For a time the
sacred principle of 'sales through a single channel' was thereby
violated, though not for long, since the 'old' Syndicate was bought out
by Ernest Oppenheimer's group in October 1925. Ernest Oppenheimer's
second great 'coup' was thus a brilliant demonstration of his courage
and his determination, and established his reputation in the entire
world as the 'coming man' in the future formulation of diamond policy.
He added greatly to his power and prestige by successively acquiring
control of the most important diamond claims in the Lichtenburg area,
forming a separate company to hold them, and by subsequently obtaining
control of the enormously valuable (and potentially highly dangerous)
accumulations of diamonds resulting from the Namaqualand discoveries,
all the while maintaining the relationships with the 'outside'
producers. The
