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358
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SIR ERNEST OPPENHEIMER
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He
had even resisted pressure from the United States authorities to reopen
a mine in order to prevent any possible shortage of industrials. He
wrote to Harry on 22 August 1942: 'We are still arguing about
industrial diamonds and the American authorities are still pressing us
through the Government to open a mine. Stallard agrees that it is just
nonsense and that there is no risk of a shortage of industrials.' A
week later:
The
question of the imaginary shortage of industrial diamonds has again
been raised by the American authorities in London and with our
Government here. I prepared a memorandum on the whole subject which we
cabled to London. ... I show in my statement that the only method of
dealing with the problem (if it exists) is to include better class
diamonds and that this will make more industrial diamonds of better
quality available than could be obtained if we worked at the three
mines in Kimberley and adhered to the present qualities only.
Nevertheless, by the middle of 1943 it had become clear that such was the demand for gem stones
that stocks were on the point of extinction. In a memorandum prepared
by De Beers and dated 27 May 1943, it was pointed out that 'at the
present rate of sales, the industry will simply be unable to meet the
demand this year and is faced with the immediate necessity—which is
acute—of finding additional gem diamonds. In 1944, the position will be
much worse', a total of -£6,500,000 might be expected from all sources, including stocks at the State alluvial diggings.
This
is utterly inadequate and such a position, if permitted to crystallize,
is fraught with the gravest peril, not only for the Union and South
West producers, but for the industry as a whole. If the industry fails
to meet the demand for gem diamonds, the plain unmistakable issue of
such a contingency is that the industry will lose control of the
market, which will pass to dealers and other interested parties. As a
consequence, prices would soar with disastrous results to the industry
when more normal world conditions once again prevail.
Attention
has been given to the problem. With the huge volume of sales being
made, the outside producers are being taxed to the utmost capacity in
meeting their obligations to the Diamond Corporation and little help
can be expected from them. However, as a matter of policy, even if any
of the outside producers could assist, it would be most unwise to
these
mines will be reopened and worked on a scale commensurate with the
plant mentioned in 2 above, for two years continuously, starting from
the date of the first production, the working of these mines thereafter
to be governed by the relevant laws.'
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