re-establish
confidence in trade and in time preponderating influence of De Beers
and to ensure as much as possible its business and financial position.
To attain that object we shall have to submit to exacting terms from
Syndicate who know their power, notwithstanding that Sir Ernest
Oppenheimer at least realizes importance of fact that actual
commitments of Syndicate could, in certain circumstances, become most
dangerous for them. It seems to us that if progress is to be made
proposals should emanate from conference producers, and, being very
much impressed by importance of creation of selling company, which
would lead to appointment of a chairman Dc Beers, which is imperative
for the conduct of business on this side, we think it necessary, with a
view to securing support of S. B.Joel, Sir Ernest Oppenheimer to take
definite steps immediately and approach Syndicate with proposals. . . .
Nothing
could have put the real strength of Ernest Oppenheimer's position more
clearly and he must, of course, have fully realized it himself. The
truth is that agreement upon principle was not enough.
It
is clear that Viallate was influenced, behind the scenes, by doubts as
to the attitude S. B. Joel would take. On the very day that the
Kimberley board was appealing to London, Viallate, though adhering to
the principle of a buying and selling company, cabled London to the
effect that
Sir
Ernest Oppenheimer, who claims that he alone is able to carry through
the formation of selling company, would, if appointed chairman De
Beers, naturally conduct negotiations. But can we agree to his
appointment at this stage before formation of new company accomplished,
which is what he desires? For all I know Joel not be favourable
formation selling company and to Sir Ernest Oppenheimer being appointed
chairman of De Beers. In that case we would put ourselves into position
of being obliged to support [him] against S. B. Joel. . . . Buying
Lichtenburg farms, which cost -£143,000, plus fair profit is necessary
to induce Joel to agree to arrangement.
Nevertheless, 'I think we must make every effort to establish selling company, even giving way on important points'.
In
London the drift of opinion among the members of the London directorate
was more and more concerned with the distribution of power within the
proposed buying and selling company: both as regards the number of
directors to be appointed by the producers and the Syndicate firms
respectively, and as regards the right to appoint the chairman. On 17
October Louis Oppenheimer had cabled that 'had preliminary meeting with
De Beers yesterday and day preceding with S. B.Joel who wants me to put
forward some more definite proposal'.
