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FROM CRISIS TO CHAIRMANSHIP OF DE BEERS
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nucleus
directorate, if thought advisable form company later'. He added in
another, and separate cable: 'I firmly adhere to my proposition not to
form company for the moment as all waste of time must be avoided.'
This whole line of proceeding outraged Ernest Oppenheimer and on the very next day he sent a very sharp cable to his brother:
...
I am not prepared offer opinions on suggestions made personally by any
director. I warned you against becoming involved in preliminary pourparlers and
pointed out that definite proposals must come from board if success is
ever to be achieved. Proposed method negotiation entirely unworkable as
De Beers remain free while we would be committed by anything we said. Must be evident that two things are essential if negotiations are ever to lead to successful issue (i) there
must be mutual respect and goodwill between producers and impression
must be avoided that there are different classes of producers (2) my
colleagues must be willing to acknowledge that I have special knowledge
of diamond business as far as South Africa is concerned and must be
willing utilize my services as I am not prepared to retire from
business. I refer you to clause three. This makes it evident these
premises do not exist. What sacrifice does De Beers make to arrive at
suitable settlement? None. Where is South West Africa and Jagers
representation? Non-existent. I see part Bessborough, Viallate,
Hirschhorn, Stow will play in future. Is there any suggestion as to my
future position? It is quite useless proceeding on these lines. To
settle various points in connexion with company would delay matters
unduly and this solution should not be pursued at this juncture. With
regard other scheme I will naturally support you on the assumption that
my own position finally and definitely settled prior completion
agreement. . . .
'The
other scheme', referred to in the last paragraph, relates to the
attempts to interest the conference producers, or some of them, in a
joint purchase scheme. On 20 May Kimberley was cabling Lord Bessborough:
Sir
Ernest Oppenheimer has put before us suggested joint purchase by
producers and Syndicate of all Namaqualand and outside alluvial
diamonds. . . . We think suggestion is acceptable and in the best
interests of producers and would like to come to definite settlement.
What are your views? Sir Ernest Oppenheimer informs us ... he is under impression S. B. Joel is also in favour of this joint purchase. . . .
Lord Bessborough showed himself sceptical in the extreme. He was unwilling to commit himself unless, inter alia, De
Beers was given direct representation on Syndicate, adding, 'from
personal knowledge Paris would be against proposal and maintain opinion
in favour of buying selling company as only durable solution of diamond
problem'.
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