to
nothing during this period. For the moment, Ernest Oppenheimer
concentrated on strengthening his position while accepting the de facto situation.
By the end of February, he had concluded an agreement with the
Administrator of South West Africa by which a five-year contract was
substituted for the one-year contract. In London, also, the situation
was being consolidated. He wrote to Louis on 23 February,
.
. . our position is now secured as we have a five-year contract. I hope
that you will be able to come to more definite arrangements with the
Belgians and with West Africa, so that our business for many years will
be secured. Anyhow, I know that we shall make a great success of all
affairs. . . .
I
note from your letter of the 29th that you have arranged a syndicate
consisting of Pierpont Morgan and Company in New York, Morgan Grenfell
in London, A. Dunkelsbuhler and Company and the Anglo American for the
purpose of the South West agreement; also that the contract with
Angola, Congo, B.C.K. remains the property of the Anglo American
Corporation; that you have offered Barnato Brothers 50 per cent in any
of these transactions on condition that the Syndicate is not
interested. . . .
Nevertheless,
it is to be remembered that, while relations with Barnato Brothers were
thus friendly, this firm continued to be a member of the 'old'
Syndicate.
It
is sufficiently clear that Ernest Oppenheimer continued to attach great
importance to being on friendly terms with Barnato Brothers— not only
because of the diamond trade, but because of the influence which their
large holdings gave them over De Beers and the Jagersfon-tein company.
It was, however, by no means clear in the autumn of 1925 what, finally,
the attitude of Barnato Brothers—and this in practice meant S. B.
Joel—was going to be.
By
the end of May, Walter Dunkels was writing to Ernest Oppenheimer that
S. B. Joel had told Louis that he favoured a change in the chairmanship
of De Beers and that
further,
he has decided that all the diamonds must be sold through one channel,
that a new syndicate shall be formed. There is no objection to Central
Mining having a share, nor L. Bf eitmeyer and Company . . . and that
Louis Oppenheimer will try to persuade you to agree to this. ... So
Louis and I think that we will have attained our ends before very long.
. . .
However,
at the beginning of July, when Louis Oppenheimer was also temporarily
in South Africa, the following message was received:
Following
cable received by Harris from S. B. Joel. Syndicate intend proposing
five-year contract. Think it desirable in general interest establish
