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242
SIR ERNEST OPPENHEIMER
Nevertheless, on 8 May Ernest Oppenheimer, having just returned to South Africa, was able to report to De Beers in London that
I
expect to hear at any time now that the Administrator has abandoned his
claim, as I have given the Minister to understand that, unless absolute
finality is reached at once, we shall withdraw from the negotiations
entirely. . . . I think the Government begins to understand the
position, and . . . even if they do not unreservedly work with us, they
will certainly not be definitely hostile as in the past; better
relations have undoubtedly been established, and, needless to say, I
shall spare no effort to maintain and foster this improvement.
These
delays inevitably affected the diamond market. On 12 May, Louis
Oppenheimer cabled: 'Things are going from bad to worse: market totally
disorganized and only chance is immediate settlement.'
This was
the moment chosen by Barnato Brothers to throw a bombshell. Without
the prior knowledge of Dunkelsbuhler and Company, their long-standing
associates, they sent a cable to the Minister announcing that
'provisional agreement not having been ratified, we now withdraw from
all habilities and obligations in connexion therewith'. This was on 13
May, at the very moment that the Diamond Corporation was cabling
Government that:
We
agree importance of immediate ratification of agreements but repudiate
statement that we are failing to place Government in position to
ratify. There is not a single point left to which the corporation or
any producer objects and as parties to the agreements they desire you
to ratify. Onlv difficulty outstanding is that raised by Administrator
over whom we have no control. Wc are ready to submit agreements for
ratification immediately consent Administrator is obtained. Wc urge
that it is monstrous that Administrator South West should be in a
position hold up agreements and jeopardize structure of great diamond
industry of Union by unreasonable attitude and urge Government to take
every step in its power to secure his concurrence.
At the same time the Diamond Corporation in Kimberley was urging on London:
It
is evident that it is essential in interest of diamond market generally
to get agreements ratified and it must not be forgotten that we have
asked far more from Government than was contemplated when Sir Ernest
Oppenheimer and R. Philipson-Stow sailed. In addition, there is moral
obligation to producers and we feel that we cannot take advantage of
any non-vital matter to break off negotiations. Only outstanding vital
matter is Administrator's concurrence in understanding about
July-December 1930 quota
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