He
put forward for his brother's comments a scheme for a £3,000,000
company, which might go up to .£8 million, divided between producers
and Syndicate. It was to buy not only outside production in South
Africa but also to take over all the Syndicate contracts with Angola,
B.C.K., Congo, the African Selection Trust, the Hans Merensky
Association, etc. The then existing contracts with the conference
producers were to run their course and thereafter the new company was
to take over the existing stocks and new contracts were to be made by
the new company for ten years. The Syndicate was to provide sales
facilities and selling organization and was to deal only for the
company. The De Beers directorate and the Syndicate were to nominate an
equal number of directors; nothing was said as to who was to nominate
the chairman. On 20 October Ernest Oppenheimer replied, substantially
agreeing. On 23 October these terms were submitted to the London
transfer office by Solly Joel.
On
the very same day the London directors were cabling Kimberley: 'Is it
not possible that De Beers company take place of producers, that is,
that participants be 50 per cent Syndicate 50 per cent De Beers?' At
the same time, Solly Joel was being put into a difficult position: on
the day after the cable just cited had been dispatched, Louis
Oppenheimer and Walter Dunkels were cabling: 'We have definitely told
S. B. Joel that no deal will be made unless you are elected chairman
and, in view of S. B. Joel's difficulty with Sir David Harris, have
good reason to know Sir David Harris is being sounded on subject.'
Louis Oppenheimer was doing his best: he cabled on the same day,
'Myself [and] G. Imroth impressed on S. B. Joel immediate action
necessary and that he must support you'. Five days later Louis
Oppenheimer and Walter Dunkels were cabling: 'S. B. Joel has cabled Sir
David Harris. You can look on matter chairman as settled.'
This
provoked an outburst. It implied, practically, a veto exercisable by
Sir David Harris and inevitably evoked memories of the days when Ernest
Oppenheimer had been deprived of his seat on the board of the
Jagersfontein Mine. He replied.
For
your guidance, in any case, Sir David Harris's attitude towards me ever
since I arrived in South Africa such that I would never agree leave
myself in his hands. No doubt next suggestion will be fix up company
and leave chairmanship over until S. B. Joel arrives. Please prevent
suggestion being made as I would refuse unless you and Walter insist on
my agreeing.
What made matters worse was that a short time afterwards Solly Joel had swung over to the view that only De Beers and the Syndi-