indemnification
of the Syndicate by the producers in case of prejudicial action by the
Government of the Union and of South West Africa which might affect the
Syndicate.
Time
was running short and a position of great delicacy was developing. The
situation was complicated by the increasing apprehensions felt by the
older producers, especially De Beers, at the growth of 'outside'
production, in the Union as well as in the outside world, which meant
that to be given the same quota in an inter-producers' agreement did
not imply being given the same percentage of total world sales as De
Beers had formerly enjoyed. De Beers, therefore, desired a larger
quota, if possible, and insisted that in no case would the company
submit to a lower percentage quota. The other big Union
producers—Jagersfontein and the Premier (Transvaal) mines—were also
opposed to any lowering of their quotas. The Consolidated Diamond Mines
were dissatisfied with their own quota and wanted an increased
percentage: besides this, they were desirous, if possible, of shaking
off the hand of the Administrator in the conduct of negotiations. The
'outside' producers in South West Africa also wanted an increased
percentage. The Administrator, naturally, wanted to conserve his legal
rights, maintain his revenue from diamonds, on which he so largely
depended, and to preserve the position of South West Africa as a
producer against the Union producers. The Syndicate, besides its usual
preoccupation with the volume of purchases (in terms of money), the
volume of replacements, and prices, was also anxious to safeguard
itself against the effects of possible adverse taxation, even going so
far as to suggest being given the right of cancellation of the contract
in certain contingencies.
The
producers met at Pretoria at a conference on 3 November 1924, the
Minister of Mines being in the chair. No agreement could be arrived at;
Ross Frames, representing De Beers, actually going so far as to
threaten to revert to open competition if he was to be called on to
sacrifice anything more: 'we would rather give free vent, free exercise
to what we consider our competitive capacity. We would rather die
fighting if we are to go down.' That was not 'quite the spirit of
compromise', as Sir David Graaff, representing the Consolidated
Diamond Mines, put it, but he was bluntly answered 'We do not want a
compromise'.
Ross
Frames showed himself less intransigent as time went on, but if there
was a gradual approximation to agreement on the subject of the South
West Africa quota, there still remained the problem of the
