Ch. 6: Part IV: War Years and After

Ch. 5: Part III: Worst Crisis in Diamond Industry

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	CHAPTER VI

	The Diamond Story

	PART FOUR THE WAR YEARS AND AFTER 1934-1957. The fundamental technological factor which characterized the war years was the enormous increase in the demand for diamonds for industrial purposes, which revolutionized the position of 'bort', the diamond material unfit for use as a gem and, therefore, somewhat of an embarrassment to certain producers. Systematic research into extended uses for bort began to be undertaken by the diamond industry, with Ernest Oppenheimer's encouragement, in 1934, when the Diamond Development Company was created in London: a little earlier Mr. Nevcn of Antwerp had invented the 'Neven' process which involved the use of crushed diamond: a new and important industry was ultimately to arise as a consequence. The upswing in the demand for 'industrials' had important consequences not only on the financial position of the industry but also on the vexed question of the Diamond Corporation's 'quotas'; in the end industrial diamonds were exempted from quota restrictions. Throughout the war period, Ernest Oppenheimer was much concerned with negotiations with Government over the renewal and reshaping of the agreements by which the rights of the various members of the Diamond Producers' Association (including the Diamond Corporation) were defined: further negotiations were necessary from time to time in the post-war period also. An unexpected consequence of the war was an uprush of demand for gem stones: in the end it was found necessary to begin mining for gem stones again. The post-war period witnessed an unprecedented demand for gem stones: the Diamond Corporation could finally dispose of its pre-war stocks. At the same time, serious problems were raised by the disorganization of the world's monetary systems and by the problems of illicit mining and illicit marketing of part of the output of West Africa, as well as by the increase of production there and in Tanganyika. The rise of independent African states has since brought about considerable changes in the marketing systems of West Africa. In 1956 Ernest Oppenheimer (then 76) celebrated his sixtieth year of association with the diamond industry: in the last year of his life the opening of the new diamond office in London gave him the opportunity of summing up the past and expressing his hopes for the future.

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