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FROM CRISIS TO CHAIRMANSHIP OF DE BEERS 217
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react
most favourably on the diamond trade. Foregoing broadly outlines policy
I advocate and I submit same for your serious consideration and
comments. If policy approved in principle, I would suggest scheme
should embrace acquisition your Jagersfontein holding, our C.D.M.
holding and our joint Lichtenburg Port Nolloth interests. This would
give De Beers control all important producers Union and South West
Africa. Forwarding to L. Oppenheimcr details our interests. With regard
to C.D.M. I am convinced that present proved carats more than
sufficient pay 12 per cent dividend after meeting debenture interest
and redemption for 20 years without any capital expenditure of
consequence, if purchases from the big producers [are] at the rate of
-£8,000,000 per annum. Only northern portion C.D.M. property which
extends from Luderitz to the Orange River so far prospected but
generally conceded by leading geologists there is every prospect of
finding not only extension of Alexander Bay deposits but others in the
vast intervening area between the known deposits C.D.M. property and
those recently discovered south of Orange River. H.L.G. have just
concluded sale of 'M' and 'K' Grasfontein costing .£15,000 to Treasure
Trove. . . . This means firstly large profit, secondly assures
controlling interest Treasure Trove which is now dominant factor
Lichtenburg field. Condition of sale that all diamonds produced by
Treasure Trove must be offered to Syndicate. . . .
(c) From Ernest Oppenheimcr to the Secretary, De Beers, Kimberley (dated 5 May 1927):
Kindly submit the following to my colleagues on the board.
The
board is aware that I have kept, and am keeping, in the closest touch
with the recent alluvial developments in the Union, for which purpose
the Anglo American Corporation, of which I am chairman, created a
separate geological department. The alluvial discoveries in Lichtenburg
and Port Nolloth have created an entirely new situation which is also
appreciated by the Government, as is shown by the section in the new
Precious Stones Bill enabling the Government to create 'special
alluvial areas' which can be disposed of under the leasing system
similar to the one employed in the disposal of gold areas. It is
therefore evident that alluvial will play in future a much more
important part in diamond mining in the Union than hitherto.
After
the most careful study the Anglo American Corporation technical staff
advised me to acquire certain farms in the Lichtenburg area, which were
of great promise. As all information at my corporation's disposal has
been made available to the company, I need not enlarge on the care
taken in studying the whole Lichtenburg problem.
Mr.
S. B. Joel was fortunately in South Africa at the time. He visited
Lichtenburg and studied the reports made very carefully. In order to
protect the diamond trade we decided to buy jointly the farms in the
Lichtenburg district which are the most promising as far as diamond
contents are con-
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