priority,
but not a monopoly, of the 'qualites d'Anvers'. These goods come not
only from the Belgian Congo productions, which would in themselves be
quite insufficient to maintain the Belgian diamond-cutting industry,
but chiefly from the vast quantities of these qualities contained in
the productions of all the major producers which pass through the hands
of the Diamond Trading Company for sale. Since the Belgian Government
has always insisted on such clauses being included in the contracts, it
does not seem unreasonable to suggest that it might insist that the
diamonds supplied under these clauses should be polished in Belgium,
thus affording the best possible protection against unemployment.
He
visited Antwerp early in the South African whiter of 1949. He reported
to the Dc Beers board on 17 August 1949: He said that at the first
meeting with his Belgian confreres,
he
complained of the new attitude which had developed in that petty
concessions were continually asked for, and that the old spirit of
trust seemed to be disappearing. Mr. van Bree was most distressed, and
assured him that he and his colleagues were most anxious to preserve
the close and friendly business relations which have existed between us
for so many years.
The
conversations continued in the most friendly spirit, and the
subsequent correspondence showed that there were no insuperable
difficulties in arriving at a new agreement.
Agreement
was duly arrived at: the really awkward point was the agitation
conducted by Antwerp dealers, which put the Diamond Trading Company and
the Belgian producing companies in a difficult position. On 9 August
1949 Ernest Oppenheimer had drafted a long memorandum, rebutting the
Belgian dealers' pretensions and arguing that, in fact, the Trading
Company had gone much too far to meet the supposed grievances:
The
inconvertibility of sterling, combined with the unbalanced exchange
position between England and other countries, and the creation of
different categories of pounds . . . has created in foreign countries
unofficial quotations for the pound which are generally lower than the
official rate of, say, $4.03 or 175 Belgian francs or 100 escudos, etc.
England
negotiates from time to time trade agreements with foreign countries
which hold the various categories of pounds, and agrees to release
varying amounts of blocked sterling for ordinary trade purchases—that
is to say, for purchase of merchandise in England.
Ignoring
this position, the Diamond Trading Company came to the conclusion that
it was its duty to carry on its business in new pounds only, that is
pounds for which $4.03 or 175 Belgian francs, etc., etc., had been paid
at the time the purchases of diamonds from it were made. With this
object
