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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
282                                     SIR ERNEST OPPENHEIMER
A serious problem now faced the producers. They were afraid that the composition of the proposed commission of inquiry made it unlikely that they would get a fair hearing. They could, alternatively, plead before the commission that its composition was defective and ask it to resign; if the tribunal refused to do this, then, subsequently and under protest, the producers could give evidence. Or the pro­ducers could protest against the composition of the commission and, if it did not resign, refuse to give evidence, facing any consequences which might flow from such refusal. The producers, naturally, took legal opinion and on 25 April 1932 the following cable was sent to De Beers in London:
At a meeting of the board held today at which [counsel were] present after investigating whole position they strongly advise:
(1)    That we and associated companies should again claim that lay members of commission are on account of their past actions and connexions with the industry and Advisory Committee incapable of coming to an impartial decision.
(2)    That charges be framed against these lay members of directly contribut­ing in part to industry's present condition and that these be laid before the commission.
(3)    That the application for them to recuse themselves be renewed on the grounds that their own conduct becomes subject of investigation by themselves.
If they recuse themselves the matter ends. If not, counsel advise that we and associated companies and Oppenheimer decline to take any further voluntary part in proceedings which can in our view only end in biased finding.19
19 The detailed case for such refusal to attend was based on the following line of argument:
'Counsel advise that the Governor General cannot legally confer upon the commission any powers of compulsory attendance before it except in respect of persons resident in the Transvaal and then only to enforce attendance in the Transvaal. This view is based on the territorial limitations existing when Transvaal Ordinance No. 30 of 1902 was passed and upon section 16 of the South Africa Act. There is apparently no pre-Union Cape legislation as regards commissions and no Union legislation. Counsel feel strongly that voluntary participation after recusal application refused will amount to submission inevitably enabling Government to say that as there was with full knowledge submission to the proceedings and as the case was fully investigated practically by consent it is too late after the finding to contend that such finding is not a proper one—this assumes of course an unfavourable finding. We feel there is gravest risk of this owing to bias of lay members and influence they will undoubtedly bring to bear upon third member. Government's possible contention above referred to, however fallacious, is specious enough to cause grave potential prejudice to ourselves, associated companies and Sir Ernest Oppenheimer. On the other hand, refusal to appear before commission which in our conviction is largely biased will lead either to its collapse or to its proceeding to the Transvaal which we beheve very unlikely and in which event Sir Ernest Oppenheimer
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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