moment
Anglo American Corporation had gained control of a low-cost producer
with estimated reserves of between 14 and 16-1/2 million carats and
with the prospect of still further reducing costs through unification
of the various undertakings absorbed. Moreover, Anglo American
Corporation was made consulting engineers, not without some opposition
from within the board—for the German vendors were still represented by
four directors and their attitude was not always very co-operative.
But, apart from considerations of profitability in the present, the
formation of Consolidated Diamond Mines did not merely represent the
first step towards the attainment of Ernest Oppenheimer's ambitions; it
placed him at once in a position of great strategic value. He
controlled an important diamond-producing unit, and could henceforward
play a direct role in the formulation of diamond policy.
The
shock to De Beers must have been severe: the more so as it was
unexpected. The board of De Beers had first discussed the acquisition
of 'interests in the South West African diamond fields' on 21 July
1919, and it was agreed that Mr. Hirschhorn, in company with Mr.
Frames, should, if possible, obtain an interview with General Botha on
the matter.
These two gentlemen saw General Botha in due course, and, as was reported to London,
from
their conversation with General Botha, there is no doubt Hull and.
Graaff are endeavouring to obtain interests in South West Africa. Botha
made no statement what attitude Government will take up to acquiring
rights of German holders in South West Africa. It is very important,
therefore, that we should be first in the field before Hull arrives,
and, if possible, acquire rights from German holders subject to
ratification by Union Government.
London still remained optimistic; Kimberley was told that
referring
to your telegram 330, German holders under belief that they will remain
in possession of their property and from our inquiries in Germany these
holders are not disposed to sell at present. We think under these
circumstances Hull's mission will be a failure.
The
end of the story was a telegram to London, dated 3 November 1919: 'We
are informed that the whole of the diamond interests in German South
West Africa have been acquired by Hull on behalf of the Anglo American
company.'
There
was, however, further discussion between London and Kimberley. On 30
December 1919, the minute books of De Beers reported the following:
