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

Ch. 5: Part III: Worst Crisis in Diamond Industry Page of 688 Ch. 5: Part III: Worst Crisis in Diamond Industry Text size:minus plus Restore normal size   Mail page  Print this page
WORLD CRISIS AND WORLD LEADERSHIP                      253
of the outside producers. On the first day of the conference, the Minister went so far as to say that he thought the request to relieve the Diamond Corporation of the obligation to take immediate delivery of £1,200,000 and to stagger the amount over the remaining period of the original contract 'a perfectly justifiable request, but what', he added, 'would be the position if you had to close down on i January [1932]?' To this Ernest Oppenheimer simply replied that 'we would have to close down if we do not sell -£600,000 of goods, which does not even cover our total expenditure'. However, the main point at issue, as at the De Aar conference, was the attitude to be taken up by the Government and it was impossible to get the Minister to commit himself, though there was an implied threat. He said:
I intend from now on to let you go on as you suggest, as you propose to do, but to watch from day to day what the position is. If the position does not ease, and if that is the only measure you can adopt, well, we cannot expect you to do more. ... If you give to the outside countries the same treatment as you are giving to the Union, well, then I suppose we will not have much to complain about, but I do not think that from the information which we have before us now you can expect us to agree to proposals or bind ourselves to the proposals.
Naturally, Ernest Oppenheimer protested that that attitude was not altogether reasonable:
. . . These conditions were insisted upon after discussions which lasted for over a year, and in practice they proved unworkable. Now, when we come to the Government and ask for its consent to certain proposals they will not say 'yes' or 'no'. We are placed in the position that you hold the sword of Damocles over our head, and tins you must agree is by no means satisfactory.
Mr. Fourie, though perfectly friendly in Iris choice of terms, would not budge from his standpoint. 'I do not think that this is the time to make new arrangements. It is not fair towards the industry when things are right down to try and negotiate a new agreement for a lengthy period' (though in fact all that the Government was being asked to do was to agree to an ad interim arrangement). He went on:
My attitude really is this—in a time such as we are going through we should cease hostilities if you like and suspend for this period judgment on the operations, and you do the best you can. The Government will see that you are doing your best, and if you are doing it you are not doing any wrong and will not get into trouble. If, however, you were to take an undue advantage of the position the Government is free to say that you shall not do it.
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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