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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
284
SIR ERNEST OPPENHEIMER
the diamond industry was 'shutting up shop' altogether. The Kim­berley mines, the Premier Mine and the Jagersfontein Mine closed down on 31 March, Consolidated Diamond Mines closed on 30 June, and the Cape Coast Exploration Company on 23 July. As Ernest Oppenheimer explained to the De Beers shareholders in December 1932,
This means that with the exception of the State diggings and the alluvial production, all production of diamonds in the Union of South Africa and in South West Africa has ceased for the time being. The producers outside the Union21 have co-operated with producers in the Union in bringing about material reductions in production and prospecting work, and in reducing or ceasing deliveries of diamonds and to this is due the small improvement in the diamond market which has been evident for the last three months.
XIV
Whatever passions may have been aroused by the events described in the previous section, no one was more acutely aware that things could not be allowed to go on as they were than Ernest Oppenheimer himself. In July 1932 he was in London, dealing with the position of the Congo outside producers and on the 27th of that month he cabled the results of his negotiations:
Please inform colleagues arranged following with Forminiere:
(1)    Forminiere, Beceka will make no delivery for 1932 except ^40,000 saleable goods.
(2)    That they will reduce operations considerably and they will make official announcement.
21 Some idea of the difficulties involved may be gathered from the following cable from Diamond Corporation, London, to Diamond Corporation, Kimberley, under date of 22 February 1932:
'Have discussed with Consolidated African Selection Trust question closing down they are inclined favourably consider. Forminiere in reply similar inquiry made commu­nication of which following is precis: Despite your explanations of arrangements made in conjunction with South African Government for limitations alluvial, we can state large quantities these goods arrive on our market, which appear to be outside control, and it is equally certain that large quantity is outcome of illicit diamond buying. We must therefore conclude that manner of supervision is insufficient, because we can only affirm our belief that great part of these illicit shipments come from alluvial workings including those of State diggings, and to us the only remedy appears complete shutting down all such workings as encourage this traffic. Should this be done our companies would be ready to approach Belgian Government either to reduce production or close workings altogether.'
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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