been
an acrimonious exchange of views between the diamond committees in
London and Kimberley on the subject in 1919: London then taking up the
standpoint that 'we shall have nothing to do with buying and selling
company'. Moreover, in the course of 1925, there had been further
correspondence between the diamond committee in Kimberley and London
relating to a scheme of a selling company to be registered in England
which would have given 60 per cent of the capital to the producers and
40 per cent to the Syndicate, with the producers also having a majority
on the board. The scheme had evidently been inspired by Ross Frames and
had been discussed with Solly Joel and F. Hirschhorn in February 1925,
as well as with Lord Bessborough.
Ernest
Oppenheimer's cable of 20 September was followed by a cable from De
Beers, Kimberley, to Dc Beers, London, substantially in the same terms.12
In the light of subsequent discussions, the important point was that in
addition to F. Hirschhorn and odier old directors of De Beers, it was
signed by A. Viallate, the representative of the Paris Rothschilds and
of French shareholders generally on the board of De Beers. Although
also signed by Ernest Oppenheimer, the cable ended by pointing out that
'although Sir E. Oppenheimer had participated in all discussions
referred to in this cable and has agreed to sign it, he made it
perfectly clear that he could not commit Syndicate'.
Yet
within a fortnight Ernest Oppenheimer was threatening to resign from
the board of De Beers! On 4 October 1928 in a cable to Louis announcing
the release of 100,000 carats of Merensky diamonds and the purchase of
100,000 carats of Government diamonds, he added:
'Scheme
reference selling company prepared by Viallate absolutely impossible.
Generally speaking attitude (except certain named persons) so offensive
that I shall probably resign De Beers board asking them appoint you.'
Whether
he had serious intentions of resigning or whether he was simply
exasperated by opposition, the truth is that a very tangled
12
The following is the important passage in the cable: '. . . We
recommend for your serious consideration formation of buying and
selling company composed of conference producers and Syndicate in
respective proportions of 50 per cent and 50 per cent with the object
of taking over from the Syndicate their existing contracts in respect
of Namaqualand diamonds including their contract with the Merensky
syndicate and Cape Coast Exploration Company, namely Kleinzee, and also
of endeavouring to come to terms with Government to purchase diamonds
from their Namaqualand claims in which direction Sir Ernest Oppenheimer
is now working for Syndicate account on lines that deliveries and
payments spread over long period and generally to handle all outside
business at present done by Syndicate except contracts at present
running with conference producers.'
