WORLD CRISIS AND WORLD LEADERSHIP 27I
To these representations I was unable to agree, and I intimated to the producers and the Diamond Corporation that if matters were as represented to me the corporation and
the producers should act as they thought best in order to keep the
trade and industry going and prevent unemployment, without obtaining
the specific consent of the Government, leaving the Government jree at
any time to call upon the parties to carry out the terms of their
agreements as from that time. Under the proposals submitted the
producers undertook to keep the mines going until the end of June 1932,
provided the replacement figure for the first half of 1932 based on
five-eighths of the corporation's total sales of conference producers'
and outside diamonds was equal to -£600,000.
In
January of this year the Hon. Member for Kimberley [Sir Ernest
Oppenheimer], on behalf of the corporation, informed me that as the
replacement figure calculated in South African currency was only
£450,000-odd, they were not bound by the undertaking given, viz. to
continue working the mines on their existing scale till the end of
June 1932. (Sales under the sales agreement which form portion of the
inter-producers' agreement are calculated in English currency.) I may
say that sales by the corporation from 1 January 1932, up to the 6th
instant, amounted to £312,000-odd. I had a discussion with Sir
Ernest Oppenheimer and other representatives of the industry on the 4th
instant and also on a subsequent date when the question of closing down
was discussed, but no definite decision was come to and before I was
prepared to give my consent, I wanted certain undertakings from the
producers regarding reopening. No conclusions were arrived at between
the producers and the Government and I expected to hear further from
them with more definite proposals. It was therefore surprising to
see the statement in the Press last night. I am unable to say more at
present, but the whole question is being very carefully investigated by
the Government and it is hoped that it may yet be possible to obviate
such drastic action as contemplated by the company. I would just like
to add that the Government is still allowing prospecting in the
district of Van Rhynsdorp and certain areas of Namaqualand but it is
not at present prepared to allow the working of any discoverer's rights.
