134
SIR ERNEST OPPENHEIMER
Ernest
Oppenheimer's position was one of great delicacy. He wanted Anglo
American Corporation to be a great power in the diamond world and he
had, in fact, built up an interest of importance both on the producing
and distributing sides. Nevertheless, the corporation was not a member
of the Syndicate until 1923-4, and even Dunkels-buhler's was not a
predominant element in the Syndicate—that role was played by Barnato
Brothers and by Breitmeyer and Company, the 'clearing house' for
Syndicate transactions. He knew that Breitmeyer and Company were
unfriendly, if not actively hostile. Further, though his voice at the
Consolidated Diamond Mines was powerful it was not all-powerful.
Neither Anglo American Corporation nor Dunkelsbuhler's was important at
Kimberley. He could and, in fact, did initiate a policy of building up
a position there by the acquisition of shares, but this demanded large
cash resources and he was already committed to Consolidated Diamond
Mines, which was affected by the depression, as all other producers
were, and he could not run too many risks. Even in his own 'household'
as it were, he had to contend with difficulties. As early as August
1921, he was writing to Honnold in New York that, on his arrival at
Cape Town, he was
straight
away engaged on diamond matters. Hull and Graaff— especially the
latter—had evidently made up their minds to bring about a break with
the Syndicate, which in these times would have been fatal to the
diamond trade. I interviewed the Government, but it is useless worrying
you with all the unpleasant discussions I had to indulge in. . . .
Nor
did he always see eye to eye with his friends in London. Quite apart
from his own ambitions, he was impatient of Syndicate policy, and both
his friends, Walter Dunkels and his brother Louis, had at times to
soothe him. In January 1922 he was writing to his brother apropos of
the suggested policy of reducing prices, that
we
have always looked upon the reduction of prices by the Syndicate as
fatal, and I am convinced perfectly of this truth even now. ... I am
quite sure in my own mind that the Syndicate policy of selling at any
price so as to capture the trade must be followed by a scramble among
the producers to produce the biggest portion of the trade and tins will
finally lead to a general collapse. It seems to me that we are
absolutely wrong in following any such policy .... Having had my
grumble, I can only tell you that I shall do everything in my power to
assist the Syndicate but I would never agree to a deal which would
cripple South West Africa permanently.
It
did not make things easier that the proposers of the policy criticized
were De Beers and that they were backed by Breitmeyer's.
