DIAMOND CONTROL.

Hawera Star, Volume XLV, 12 May 1925, Page 6

DIAMOND CONTROL.

GIGANTIC PROFITS

ATTACK ON MONOPOLY

Mr. Beyers, South African Minister of Alines', when moving the second reading of the Diamond Control Bill, made a direct and' slashing attack on the London Diamond Syndicate, which, he alleged, controlled the policy of the De Beers Consolidated Alines, reports the Capetown correspondent of the Daily Telegraph. Though its members only held a minority of the shares in that corporation, they had been able to pocket millions in extra profits at the expense of the producers of diamonds. The Aiinister said it had been represented that the Diamond Syndicate was a wonderful organisation, able to guarantee the industry against wild fluctuations in the demand. During the slump in 1921 the syndicate, however, avoided the losse s which would otherwise have accrued to it by inducing the producers not to enforce their agreements. Consequently the syndicate came out about even, while the producers suffered. Fortified by his success, he said, the syndicate dictated terms 1 to the producers. The present Government had intervened, owing to the failure of the efforts to obtain an agreement more favourable to the producers, and had v threatened State action in certain contingencies. The result was that the producers were freed from their obligation to sell only through the London syndicate, and better terms for the South-West Africa output were obtained from the AngloAmerican Syndicate under a five years’ agreement. Consequently the syndicate had perforce to pay higher prices for the De Beers output. Dealing with the competition of producers outside the Union, Air. Beyers declared it did not matter, as all the diamonds really worth having were produced in South Africa. He admitted that the Government had no intention of carrying out the Bill unless the necessity arose. It- was simply a s word of Damocles, which would he held over the Diamond Syndicate to ensure fair treatment. The Government were determined that the South African producers should get the best prices possible. The Bill was an attack on De Beers only in s o Jar as De Beers had allowed its • interests to be subordinated to those of the syndicate.