FROM CRISIS TO CHAIRMANSHIP OF DE BEERS 201
♦ IX ♦
The
spring months of 1928 were to be critical in more than one respect. The
question of the chairmanship of De Beers was still undecided, yet the
dynamic leadership of Ernest Oppenheimer and his growing degree of
control over the new sources of diamond supply were changing the
balance of power in the diamond world to the disadvantage of De Beers
and were causing anxiety at Kimberley. But any move designed to put De
Beers into a more advantageous position implied negotiations with
Ernest Oppenheimer, which would inevitÂably and immediately raise the
question of the chairmanship.
On 20 September 1928 Louis (then in South Africa) and Ernest Oppenheimer sent the following cable to Solly Joel:
Returned
from Kimberley this morning where had long discussion with De Beers
directors. . . . They do not like that Namaqualand diamonds are all in
our hands and are anxious to come to some arrangement with you and us
so that conference producers could join with us in purchasing H.M.
Association, Cape Coast Exploration and Government diamonds. I am
negotiating for purchase Government diamonds on your and our behalf. De
Beers' idea is that we should form company to purchase these diamonds
in which Syndicate and conference producers should have half each. . .
. De Beers have just telephoned me that whole board coming Johannesburg
see me tomorrow. I shall take up attitude, without committing you in
any way, that producers cannot expect us to let them share merely in
portion of our outside business but that I could only recommend any
business to you if they participate in all our outside business whether
good diamonds or inferior. Further that Syndicate must get reasonable
commission on turnover of this company for handling business. . . . If
company could be formed on lines we have in mind it seems to us to have
following great advantages:
2.
It consolidates position for all time. We would of course take
care to safeguard that Syndicate are managers of company.
3.
Huge sums will be required for outside business as it is certain
that for long time there will be considerable output of Government
diamonds. Perhaps we could also put Lichtenburg farms into new company.
. . .
There
was thus revived a suggestion which must have been perfectly familiar
to Solly Joel, since in its original form, before Lichtenburg and
Namaqualand had even been discovered, it had formed part of the
proposed settlement in connexion with the transfer of the Barnato
shares in the Premier (Transvaal) Mine to De Beers in 1917. There had
