DIAMOND SMUGGLING

Greymouth Evening Star, 29 March 1941, Page 10

DIAMOND SMUGGLING

USE OF DIPLOMATIC BAG. LONDON, January 27. A diamond-smuggling organisation on a large scale is operating in Brazil to keep Germany’s war machine in motion. About 50 per cent, of the industrial diamond output, without which some of Germany’s vital war industries would be forced to cease work within six months, is being acquired by Germany at fancy prices. Making these statements, the United States newspaper P.M. says that since the war Germany has been cut off from South African supplies and has become dependent on the Brazilian fields.

Kurt Pruefer, German Ambassador to Brazil, is said to be directing the activities of Nazi diamond experts who are invading the market and smuggling diamonds out of Brazil. Berlin has ordered Pruefer to stop'at nothing to gain control of the supplies. Sir Geoffrey Knox, British Ambassador, is said to have furnished the Brazilian Government with proof that Pruefer is smuggling the diamonds out of the country in the Nazi diplomatic bag, thus evading export taxes and breaking international law.

The Brazilian Government appears to know of the traffic but hesitates to prejudice German-Brazilian relations by demanding Pruefer’s recall. Further, it is not assured that Britain would buy the diamonds if accounts were closed with Germany. British agents are unable to intercept the diamonds by waylaying Nazi agents on their way back from the diamond fields for fear of a breach in Anglo-American relations. Italian diplomats in Rio de Janeiro are aiding the export by flying the diplomatic bag in Italian aeroplanes of the Lati service to Rome by way of North Afrca.