far more preferable if Barnato's took a lead in forming such a new combination.
The
fact of a new syndicate succeeding the old one would have no effect on
the diamond market. I think it is very important that we should
consider these aspects of the case, and that wc should exchange views
by cable. I am not certain enough of Barnato's attitude to really feel
comfortable about the position, and I am frightened that, by missing
our chances of getting a share now, wc may miss it altogether. There is
to my mind one way of making quite sure of the closest co-operation
between Barnato's and ourselves and that is if we could acquire such a
holding in De Beers, say 60,000 or 70,000 shares, as to make Barnato's
and our holding jointly, say, 200,000 shares, which would establish an
absolute control of De Beers.
Naturally,
the problems involved continued to worry him and a stream of cables and
letters passed to and from London and JohannesÂburg, but he adhered to
what he considered the main point: at the end of May he was still
insisting that 'I have only one aim and that is to work jointly with
Barnato's and to shape the policy out here in such a manner as they and
you may think fit. I am specially keeping the Anglo American
Corporation in a very strong cash position so that it can take its
proper share in the Syndicate with the greatest ease.'6
The
negotiations dragged on, and he was not always prepared to be so
acquiescent. On 28 June 1923, he cabled to London what in effect was an
ultimatum:
In
order to know how we stand Anglo American Corporation should now make
official offer to Barnato Brothers, and A. Dunkelsbuhler and ComÂpany,
giving undertaking . . . against their pledge support for securing 10
per cent participation in new diamond contract.
If Barnato Brothers refuse we know once and for all that we must rely solely on our own resources.
Wc
would then have to decide either to buy Consolidated Diamond Mines of
South West Africa out for Anglo American Corporation or give-up the
whole idea of Anglo American Corporation entering diamond trade. The
latter we arc not prepared to do.
In
the end he obtained what he wanted, though the Anglo American
Corporation quota in the Syndicate was less than he desired: and the
participation dated only from 1 January 1924, and not 1 July 1923,
which he had hoped for. But, at any rate, the corporation was in the
Syndicate, a matter of prestige as well as of profit. The relationship
with Barnato's had become closer and Ernest Oppenheimer was
6 To Walter Dunkels in a letter dated 29 May 1923.
