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SIR ERNEST OPPENHEIMER
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proposed
international agreement drafted just before the outbreak of World War
I, which was rendered abortive by that catastrophe. On 18 November,
Ernest Oppenheimer sent the Minister proposals, discussed previously
with him, by means of which 'the diamond trade could be put on a
permanent and satisfactory basis'; these proposals were expressly
stated to be 'only the personal views of Sir Robert and myself'. When
later on they were rediscussed with the Minister in December 1932, Sir
Basil Blackett joined in the conversations.
The
detailed features of the scheme were summed up in a letter addressed to
the Minister by Ernest Oppenheimer on 18 November 1932. The essence of
the scheme was a pooling arrangement23 of actual stocks and
future production of all South African producers and of the actual and
future stocks of the Diamond Corporation, accruing from past purchases
and future purchases from the outside producers. The Diamond
Corporation was to act as the selling agent of the producers : it was
to 'sell only from the selling parcel and the participants to sell only
through the pool'. The pool was to be controlled by a board of five; the Government representative was also to be chairman; this
was obviously a very considerable concession to the Government. The
South West African Government was also to have a separate
representative 'on behalf of the producers in that territory'.
Somewhat
later, in early December, Ernest Oppenheimer summed up the situation in
a memorandum drafted after repeated interviews with the Minister. These
conversations were purely exploratory on both sides: an important point
that emerged was agreement that the decisions of the proposed pool
board were to be unanimous; in case of any disagreement, the matter in
dispute was to be referred back to the principals, and ultimately, if
necessary, it was to go to arbitration.
23'.
. . A re-examination of the projected arrangement in 1914, a copy of
which is attached, leaves us convinced that this is an excellent basis
for starting our negotiations, and that the principles of that
agreement are applicable, though naturally a number of amendments are
necessary to meet the changed position that exists today.
'A
producers' pool to be formed, which will act as custodian of the whole
of the stocks and all future productions of De Beers, Jagersfontein,
Premier, Consolidated Diamond Mines, Cape Coast and Koffyfontein
companies, and the Union Government. The Diamond Corporation would
bring into the producers' pool its stock, including the Merensky
diamonds and all future outside purchases, whether from foreign
producers or from alluvial and small mines within the Union. The pool
to hold the diamonds handed over to it in the first instance separate,
but to make up a selling parcel in which each participant will have his
agreed proportion or quota, and the diamonds in this parcel to be
mixed. The selling parcel to be replenished from time to time from the
producers' pool always maintaining the quotas.
'The
proceeds of the sales of pool diamonds would be divided among the
participants in the producers' pool in proportion to their quotas. . .
.'
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