THE WAR YEARS AND AFTER 357
or
their stock of industrial diamonds: finally, the Diamond Corporation
'shall be free to purchase industrial diamonds from outside producers
without restriction and all diamonds produced by the Consolidated
African Selection Trust Limited shah1 be classified as industrial diamonds'. The obligation thus imposed on the Diamond Corporation was no light one, though the obligation to buy was only definite so far as Union (and South West African) producers were concerned.
♦ XVIII ♦
Prescient
as he was, in one respect Ernest Oppenheimer was overtaken by events.
As he had told Harry Oppenheimer, his policy was 'do not miss any sales
now'; the revision of the terms of the diamond producers' agreement was
intended to facilitate the liquidation of existing stocks and he had
spent much time in proving to the Minister that it was
inexpedient—indeed, given the war situation, impossible— to reopen a
mine during the war. He had succeeded: General Smuts, as Minister of
Defence, was on his side and the Minister of Mines had acquiesced.32
32 In a letter dated 15 December 1942, dealing with the issue of the reopening of the
mines, the Minister agreed that:
1.
As soon as the present hostilities cease (the actual date to be
determined by the Minister of Mines), De Beers will immediately put in
hand the work necessary for bringing one mine at Kimberley to the
producing stage and will complete this work as soon as possible.
Production of diamonds will commence when:
(a) the
Government has relinquished the use of the compounds, workshops, and
the other appurtenances of the company to the extent that will permit
of the working of die mine;
(b) the company's employees on active service have been demobilized by the military authorities;
(c) the
Minister of Mines and the chairman of De Beers are in agreement that
there is a reasonable prospect of the sale of the company's diamonds
reaching a figure of ,£750,000 during the period of twelve months
following on the date when the Minister requires that production shall
commence.
2.
Steps shall be taken immediately upon the cessation of
hostilities to re-equip the Premier and Jagersfontein mines and to
complete this work as soon as possible so as to furnish them with an
up-to-date plant in all respects, capable of treating 3,000 loads per
shift of eight hours in the case of the Premier and in the case of
Jagersfontein, 5,000 loads per shift of eight hours. The reconditioning
of the workings of both mines for production shall be undertaken at the
same time as the erection of the new plant.
3. [Relates to detailed technical arrangements as regards the disposal of plant at the Premier Mine.]
4.
As soon as the Minister of Mines and the chairman of De Beers
agree that there is a reasonable prospect of either or both the
Jagersfontein and Premier companies effecting sales of their diamonds
to a sufficient extent to cover their working expenses,
