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Ch. 5: Part III: Worst Crisis in Diamond Industry

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WORLD CRISIS AND WORLD LEADERSHIP                      241
might have again to be revised in accordance with its wishes, the main issue at this stage was, and remained, the recalcitrant attitude of the South West African Administration. Each side expected the other to bring the Administrator to heel; now the Union Government began to accuse the Diamond Corporation and the producers of causing 'unnecessary delays', the Minister of Mines taking the attitude that 'Minister requires completion of agreements immediately and their return to this office and is not prepared to allow further delays. Please advise definitely whether you intend the Minister to proceed to rati­fication or not.' There were certain minor modifications still under discussion, but the suggestion that the Diamond Corporation or the producers were primarily at fault was indignantly repudiated in a letter of 23 April, sent by the secretary of the Diamond Corporation to the Secretary for Mines.8
8 '. . . My directors cannot acknowledge that this company or its solicitors are respon­sible for the delay that has occurred in the ratification of the agreements and they strongly object to and deny all statements to the contrary effect appearing in the above telegrams. "While the record of correspondence clearly confirms that the foregoing is the position, I am referring later in this letter to the two points which it is suggested are responsible for most of the delay, namely, the Premier offer and the Honourable the Minister's demand for an amendment of clause 22 of the Administrator's agreement.
'The whole history of the diamond negotiations shows that the delay in concluding the agreements cannot be attributed to this company or the producers. Draft sales agreements were prepared early last year and submitted immediately after the conference held in Cape Town. At the behest of the Government and practically at the dictation of the Advisory Committee this company's solicitors prepared redraft after redraft through­out 1930, only for each one to be pulled to pieces or radically altered to comply with fresh demands by the Government. Finally, the present agreements were evolved and were approved of by you and the Government law advisers. Subsequently the Minister made it a condition of his submitting the agreements to the Cabinet that the offer, known as the Premier offer, should be made by this company. My directors having signified their willingness to make this offer, the Minister submitted the agreements to the Cabinet for its approval. Subsequently, on or about 11 December last, you advised our solicitors that such approval had been obtained. In view of this approval the agree­ments were signed on 13-19 December 1930.
'All the parties to the agreements regarded them as binding and valid from that date, and they were therefore amazed to find that by your telegram of 27 March last the Government looked upon them as provisional and held itself entitled to demand that further alteration should be made to them. It is apparent, therefore, that as late as the end of last month the Government regarded the agreements only as provisional and thus I repeat this company signed them under a misapprehension of fact and is not bound by them. Furthermore, I would point out that owing to the great delay that has occurred as a result of which the agreements cannot become operative until at least four months later than originally contemplated, the interests of this company and of other parties to the agreements have been most gravely prejudiced. In order, however, to show this com­pany's willingness, as far as circumstances now permit, to carry out the agreements, I am instructed to repeat the offer made in this company's telegram to you of the 15th instant, subject of course to the modifications referred to therein regarding the financial pro­visions, and to the settlement of all the outstanding points including that of the quota for July-December 1930. . . .'
Ch. 5: Part III: Worst Crisis in Diamond Industry Page of 688 Ch. 5: Part III: Worst Crisis in Diamond Industry
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