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130
SIR ERNEST OPPENHEIMER
Arrangements
had been made with [the above-mentioned company] for the purchase of
their future outputs, with the result that there was no diamond
production worthy of note which was not now controlled either by the
Syndicate or by the corporation and Messrs. Barnato Bros, jointly.
At
the annual meeting on 3 June 1922, when Ernest Oppenheimer was in
Europe, Mr. F. R. Lynch, deputizing for him, read a prepared statement
referring to this transaction in which it was said that 'I hope that I
shall be able to cement and strengthen these friendly relations during
my visit to Europe to the advantage of both producers, and thereby
promote the stability of the diamond trade'.
Speaking at the annual meeting of the Anglo American Corporation on 9 June 1923, Ernest Oppenheimer explained that
while
in England last year I also concluded an arrangement by which your
corporation joined with Messrs. Barnato Brothers in acquiring an
interest in the Companhia de Diamantes de Angola. I feel sure that
co-operation between all the important diamond producers, among whom
must be included the Angola company, is in the interests of the diamond
trade. The transaction referred to is simply the outcome of our general
desire to strengthen and maintain the position we occupy among the
diamond producers of Africa. I have joined the board of the Angola
company as your representative. . . .
He
visited Angola hi July 1923 and, as is evident from his
correspondence, established friendly personal relations with the
Portuguese authorities.
The
arrangements with the Angola company included not only a share
interest, but a contract for the purchase of their diamonds, the effect
of which was, as was explained to the shareholders of Anglo American
Corporation on 16 May 1925, 'that we entered into the field of diamond
merchants, hi addition to being largely interested in producing
companies'. Ernest Oppenheimer had already, a year previously,
announced the important consequences to his shareholders. Speaking on
27 May 1924, he pointed out that
I
have had a very lengthy connexion with the diamond trade, and my
experience has taught me that, only by limiting the quantity of
diamonds put on the market, in accordance with the demand, and by
selling through one channel, can the stability of the diamond trade be
maintained. We have done everything possible to further this
co-operation, and in order to strengthen the diamond trade have
arranged to hand over the contract for the purchase of Angola diamonds ... to the London Diamond Syndicate, acquiring in return a participation in the general Syndicate business. All
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