The Diamond Story
PART ONE
TO THE FORMATION OF THE NEW SYNDICATE
1919-1925.
These six years —from Ernest Oppenheimer's thirty-ninth to his
forty-fifth year—were eventful ones both for him and for the world of
diamonds. There were clear signs that Southern Africa's monopoly of the
output of diamonds was coming to an end. In Southern Africa itself the
integration of South West African production into the dominant pattern
of ownership and of distribution became acute with the ending of World
War I. By acquiring control over the South West African diamond fields
and unifying production there, by acquiring interests in, and making
marketing arrangements with, the 'outside producers' and by
establishing ever closer connexions with Barnato Brothers, the largest
individual shareholders in De Beers, Ernest Oppenheimer's bargaining
power greatly increased, and it was, therefore, inevitable that Anglo
American Corporation should become a member of the Diamond Syndicate
(Dunkelsbuhler's had been a member for decades). Nevertheless, tension
inside the Syndicate was building up and Ernest Oppenheimer was already
considering a new combination. After a violent conflict over the
conclusion of a new sales contract with De Beers, Anglo American
Corporation and Dunkelsbuhler's were asked to leave the 'old'
Syndicate, but in the end—in October 1925 —a new Syndicate having been
formed, the 'old' Syndicate was bought out.
These
years also witnessed the introduction of legislation greatly increasing
the powers of Government over the diamond industry, and the beginning
of a determined effort by Government to create a diamond-cutting
industry in South Africa. In the discussion of these matters in
Parliament, Ernest Oppenheimer played a leading and critical role.
♦ I ♦
T
hough ernest oppenheimer had
ceased to be resident in Kimberley from an early date in the history of
World War I, his firm (in which he was not yet a partner, but in which
he held an interest) continued to be concerned with the diamond trade,
and he himself continued to have an office at Kimberley. Moreover,
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