While,
as is apparent, demand tor better quality goods is being filled by
sales made to cutters and alluvial exports from South Africa, we fear
very much it is impossible to obtain for conference producers
reasonable share of trade on this side. We must also emphasize that
diamonds cut in South Africa are being sold in Amsterdam and Antwerp at
prices considerably below figures at which similar diamonds cut in
Europe from rough purchased from Dicorp could be sold. This can only be due to one or two causes:
(1)
That sales made in South Africa are made in such a way as to be
equivalent to underselling London; namely, cutters are allowed
purchase sizes qualities they require leaving out the less marketable
sizes and qualities in contradiction to methods selling employed by
corporation in London. We believe this to be real cause.
(2) That illicit diamonds are being cut and exported. We have naturally no knowledge of this.
In present limited market, price both cut and rough is established by prices at which buyers are able purchase South African goods, and it follows that no buyers are willing pay our standard prices for cuttable goods.
As
long as these conditions exist disproportion between sales outside and
conference producers goods could only be rectified by refusing sell
inferior qualities for w7hich there is demand which would
make it impossible for Dicorp pay outside producers, and would result
in these goods being sold in market against Dicorp.
The
Cape Town negotiations were the last to be conducted by Mr. Fourie as
Minister of Mines. On 31 March 1933 the Smuts-Hertzog Ministry replaced
the Hertzog Government, and the Hon. Patrick Duncan, K.C., C.M.G.
(later to be His Excellency the Governor
