WORLD CRISIS AND WORLD LEADERSHIP 255
and
in future all sales to cutters by Government will be made under joint
consultation ourselves and Government, and with exchange of fullest
information between producers, Dicorp and Government. By arrangement
Dicorp again buying alluvial goods in small volume from diggers, which
action will stabilize prices. Government reduced its own quota to
enable Dicorp to do so without additional commitments, as sales to
cutters here will provide funds [for] alluvial purchases without other
financial obligations. Government doing its best within its political
power restrict alluvial production and has proclaimed no new farms for
three months and closed Nama-qualand for prospecting. At recent
conferences regard illicit diamond buying Government agreed to take
additional steps to restrict and suppress illicit traffic and it is
expected that these measures will be made effective. In view foregoing
believe Angola, Congo, and Gold Coast Colony producers should feel
assured of effective steps being taken in South Africa protect industry
[and] that the policy of sales through one channel is being brought
into practical effect with Government's co-operation and that
suppression illicit traffic is having earnest attention of Government.
Therefore arrangement by producers for postponement of deliveries for
July-December period ought to be agreed to by outside producers. Please
use your best endeavours get them to co-operate by postponing their
deliveries for July-December period.
As
a return for the assistance the conference producers, and particularly
De Beers, extend to Dicorp we should stipulate that Dicorp will, in
selling, adhere to prices which will substantially maintain the prices
fixed in January. These prices are already on a pre-war basis and, what
is more, producers cannot afford to sell much cheaper and in the long
run must get better prices if deferred dividends are ever to be
resumed. As Dicorp would have no new purchases to make for some time
and would have time to meet its bills, the pressure to force sales
would be removed, and it should not prove difficult to comply with this
condition. . . .
In
spite of the uncertainties which the attitude of Government implied,
there is no doubt either that Ernest Oppenheimer was genuinely pleased
or that, for the moment at any rate, relations with the Government had
greatly improved. He wrote as much to the deputy chairman of De Beers
on 19 August:
.
.. The negotiations with the Government, although strenuous, were most
pleasant; the Government is really out to help and the best of
relations exist between the industry and the Government. The recent
appointments, i.e. Farrer, Pollak and Dickinson and Coaton (general
manager), have all contributed to this happy state of affairs. I also
want to emphasize that the success achieved in our talks with the
Government was only made possible because De Beers could speak for all
producers. . . .
