Under
date 25 February ... Sir Ernest Oppenhcimer submitted a suggestion to
your company to the effect that neither the Anglo American Corporation
group nor your company should, for the time being, reduce further their
holdings of Rhodesian Anglo American shares, which, together,
constitute approximately one-half of the capital of the Rhodesian Anglo
American company. The object of this proposal was, as you no doubt
realized, to ensure that the control of the Rhodesian Anglo American
should remain in the hands of your company, my corporation and its
associates. To this suggestion we arc now in receipt of your reply,
stating that your company undertakes not to sell any of the shares in
question without first consulting us, and asking that we should give a
similar assurance. This undertaking Sir Ernest is, of course, perfectly
willing to give, and at his request I am writing to confirm officially
the above arrangement, as I hereby do.
Sir
Ernest was most gratified to note that your company was pleased to
conclude this agreement, because he is anxious to work in the closest
harmony with yourself and your company and to maintain the connexion
and friendly relationship which was established during your recent
visit to South Africa.
He
also urged the acquisition of more shares in Bwana M'Kubwa, and on 3
April the Rhodesian Anglo American board passed a resolution 'to
increase this company's holding in [this] company until an interest of
little more than 50 per cent is held therein'.
While
Edmund Davis was writing on 4 April, describing the position of the
negotiations as regards the R.C.B.C. as at that date, he received a
cable from Ernest Oppenheimer, urging closer co-operation between
R.C.B.C. and the Rhodesian Anglo American. On the same day, Ernest
Oppenheimer was informed by cable that
Sir
Edmund Davis has arranged for Mr. Chester Beatty's support which gives
groups control R.C.B.C. Groups are therefore withdrawing previous
proposals and are submitting new offer today. . . . New offer will be
considered by R.C.B.C. on 9 April and if necessary, Sir Edmund Davis
states, will be forced through as Mr. Chester Beatty has majority on
the board of directors.
Ernest Oppenheimer must have been greatly relieved. He replied:
I
am happy that you have arranged for support of Chester Beatty. This is
in conformity with our general desire to be on the most friendly terms
with Rhodesian Selection Trust. There are two operating groups, namely
Rhodesian Selection Trust and Rhodesian Anglo American, and we should
give each other every possible support both in finance and in
operations in the field. While I am convinced that it is necessary for
Rhoanglo to have fair share of holdings in all operating companies in Northern Rhodesia,
