in
view, it laid down special rules and insisted on undertakings from our
customers which interfered with and curtailed their freedom in
marketing the diamonds they had purchased from us.
We
went so far as to penalize a whole country, that is, Palestine, because
it wanted to use pounds which had been released by the British
Government out of its blocked sterling balances for the very purpose of
making purchases in England.
Why
did we adopt this attitude? The answer is that we were under the
impression—now proved quite erroneous—that by this means we could
maintain the parity of rough in the various polishing centres and at
the same time render a special service to Great Britain.
In
practice, all cutting centres found ways and means to purchase their
requirements of rough or polished goods for 'cheap sterling'. However,
the Antwerp diamond dealers claimed that they were the only people in
the trade, except our American customers, who had no means of
purchasing for cheap sterling, and that, therefore, Belgium was at a
great disadvantage compared with other centres, and that the Antwerp
cutting industry was being ruined. The Congo diamond-producing
companies were alarmed at the propaganda against them, inspired by the
Antwerp dealers, and even the Belgian Government took big dealers'
representations 'au serieux .
The
continuous pressure brought to bear on us by the Belgian companies and
the Belgian Government was a further reason why we continued our policy
of trade restrictions and discrimination against countries for the
supposed benefit of the Antwerp merchants.
Our
recent correspondence ... illustrates the alarm created by the Antwerp
merchants' propaganda. It is evident, from the Belgian export and
import figures for the first six months of 1949, that Antwerp dealers
have found a new system of exchange wangle. The extract from our
private official mail . . . shows that apart from legal means, the most
undesirable illegal method is being made use of nowadays.
When
one sees the disastrous effect on our sales, and indeed the danger to
our trade as a whole, which has been brought about by trying to meet
the requests of Antwerp dealers, one cannot help blaming ourselves, the
Congo producing companies and the Belgian Government for being so
gullible. . . .
He summed up as follows:
Let us examine the position we have created:
1. England: By exacting special undertakings, we have prevented the development of the industry.
2. Holland: By demanding special undertakings from our Dutch buyers, we have prevented the growth of their industry.
3. Palestine: By
refusing to sell to Palestine in order to please Antwerp dealers, we
have closed an important outlet for chips without creating a demand
from Antwerp.
