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WORLD CRISIS AND WORLD LEADERSHIP 257
These
new arrangements were, obviously, a great triumph for Ernest
Oppenheimer: it might still be possible for the Union Government to
quarrel with the Diamond Corporation over the 'ratio' of sales of Union
diamonds to 'outside' diamonds actually effected, but it was not possible
to question the good will displayed by the outside producers in helping
to overcome the financial difficulties caused by the world crisis.
While
these negotiations were being brought to a successful conclusion in
Europe, arrangements were also being made in South Africa for bringing
to an end the dispute between European and South African cutters as to
the terms upon which the latter were receiving diamonds. The obvious
solution was complete centralization of sales and standardization of
assortments and prices. The complete realization of this solution was
not possible so long as the Government insisted on maintaining its own
selling office. In a memorandum prepared by Ernest Oppenheimer, dated
31 August, he made the position clear: 'Parity of assortment and prices
at all selling centres, i.e. Kimberley, Cape Town, London and, later
on, we hope New York, is absolutely essential for the diamond trade.'
The conference producers, other than the Consolidated Diamond Mines of
South West Africa, were establishing as from 1 September 'a central
sorting office in Kimberley'; the Consolidated Diamond Mines company
would fall into line as soon as it obtained the consent of the South
West Africa Administration; 'in the meantime any deliveries of
Consolidated diamonds taken by Dicorp will be shipped to Kimberley and
reassorted and valued on standard lines. The same procedure will be
applied to any Government diamonds that may be purchased by Dicorp.' As
regards the Government,
.
. . for political reasons the Government is not yet willing to allow
the sorting of its diamonds to be done in Kimberley at the central
sorting office. They think that the discontinuation of direct sales to
South African cutters would be detrimental to the establishment of the
cutting industry in South Africa, or, anyhow, be used as an argument
against them by their political opponents. On the other hand they are
most willing to co-operate with us and adopt similar assortment and
prices. The close collaboration recently arranged between our Kimberley
office and the Government office in Cape Town will provide adequate
safeguards for the observance of the standard assortment and price. . .
.
It
was essential, he continued, for the standard assortment and the
standard prices to be laid down in South Africa, in consultation with
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