pletely.
Further acquire our shareholding African Selection Trust also
Consolidated Diamond Mines latter about 500,000 shares including the
100 shares exchanged for debentures which carry voting power all
debentures so that, instead of Anglo American Corporation having
control, control passes to De Beers and I can give all my attention De
Beers instead of the division of interests which now exists. Such
scheme will go long way restore leading position De Beers but would
only be attractive if S. B. Joel were agreeable my taking leading
position South Africa. It seems fair to me, that we should only charge
commission on selling Port Nolloth diamonds shipped and pay over profit
to buyers of share interest.
(b) Ernest Oppenheimer to Solly Joel (cablegram
dated 19 April 1927): . . . Consider advisable inform you fully my
views. Articles of association De Beers show that founders contemplated
securing control other diamond deposits as and when discovered, in
addition to those already discovered at Kimberley: they also encouraged
formation Syndicate in order to ensure sale through one channel. After
death early leaders, this policy no longer carried through with energy
and by degrees developed into policy belittling new discoveries instead
of investigating and, if necessary, obtaining control of them. Control
Premier only obtained through your own personal enterprise and
willingness strengthen De Beers by handing over same. Again, in spite
of suggestion yourself myself, no action taken with regard to recent
alluvial deposits and only by our combined efforts has any measure
control been secured. Finally, with regard to Port Nolloth, as Becker
would not wait had to take isolated action on behalf of C.D.M., which
action you endorsed by joining. Even now must decide before end of
April whether to buy further 22,000 shares secure control. Discoveries
Lichtenburg Port Nolloth have created entirely new position which is
appreciated by Government who in new bill ask for powers to lease
alluvial discoveries. Alluvial production therefore must be recognized
factor ever increasing importance and essential existing interests must
take steps to deal with this position. Ideal position would be
amalgamation all important producers but this would take some time,
whereas object can be achieved immediately in a great measure by one
party securing controlling interest these concerns and making them
subsidiary companies. Obviously De Beers should take lead; but if they
are to do so, essential policy be definitely endorsed by the board of
directors. Half-hearted action such as limiting outlay to -£500,000
without inquiry or study both unbusinesslike and futile as it is so
inadequate would achieve nothing. Further in my opinion appointment
chairman resident South Africa essential in order to take initiative
negotiations particularly with the Government with whom as a result
trend legislation negotiations will be of ever increasing frequency and
importance. If my suggestion is approved of, confident I could
carry out new policy successfully and I would appreciate chance and
opportunity revive old position De Beers, an event which would, in my
opinion,
