NEW “EL DORADO”

Poverty Bay Herald, Volume LIV, Issue 16622, 13 April 1928, Page 5

NEW “EL DORADO”

DIAMOND FIELD FIND “RICHEST IN WORLD” CAPETOWN, April 6. A diamond field which the Union Minister of Mines described as an El Dorado “ unique in the history of South Africa,” and Sir David Harris, a director of the De Beers Co., who is a member of the House of Assembly, said was the " richest ever discovered in that or any other country,” is that at Alexander Bay, Namaqualand. Originally discovered a few months ago by Dr. Merensky, the finding of this field caused much perturbation in the diamond market, owing to the extraordinary supply it yielded of firstclass stones, coupled with the ease with which they could be obtained. The occasion for these revelations was provided by the Government’s announcement of its intention to e.stabiish under the Precious .Stones Act a State diamond-digging at Alexander Bay. An animated debate took place last night, and is boing continued to-day. The Opposition, led by General Smuts, criticised the project, notably on the ground that it created a highly dangerous precedent for State Socialism.

£160,000 WORTH IN SIX WEEKS. Mr. Beyers, Minister of Mines, pleaded that there was no possible alternative in the peculiar circumstances. Dr. Merensky, with 18 men, had found 160,000 worth of diamonds in six weeks. The discovery was on Crown land, and it was stated that a considerable part of .Alexander Bay was as rich as, if not richer than, the hundred claims allowed to the discoverers. Naturally, the Government, said Mr. Beyers, would use proper judgment. With £2,000,000 of revenue derived from the other diamond sources at stake, it was ridiculous to suppose that the Government would spoil the market or destroy confidence. But the situation was exceptional. It was of great importance that the State should take charge of this El Dorado, which was unique in the history of South Africa, and. at. any rate, remove the diamonds near the surface, which might otherwise be stolen by trespassers. The Government intended to employ 60 or 70 men. The discoverers’ claims would be worked by private people.

General Smuts retorted that it was a disastrous beginning to State Socialism, to which he would never he a party.

Mr. Havenga, Minister of Finance, foreshadowed legislation providing that the profits made in these operations should bn placed to capital account. Why, ho asked, should the Government share this very valuable asset with anybody? Sir David Harris said Alexander Bay was the richest diamond field ever discovered in this or anv other country. It was essential that‘the Government should exercise strict control MINISTER PICKS UP STONES. Colonel Creswell, Minister of Labor, said the technical advisers of the Government held that there was not the faintest chance of a loss. No Government could dream of leasing out such a treasure chest. The Minister of Mines added that there was actually a shortage to-day of these highest-class stones. When the debate was continued this afternoon Mr. Beyers explained that today diamonds are found within a few feet of the surface. He personally had picked up with his own hands £6OO worth of diamonds within an hour. A native scraped the ground, and he saw stones peeping out. The Minister added that the Government would only proclaim a small portion of the ground as a, State digging. Altogether there were about 30,000 claims. When the proclamation took place the Government would, if necessary, use its power to compel the owners of discoverers’ claims to limit their production. They were, ho believed, willing to make an arrangement. The Argus points out that Alexander Bay does not stand alone, as recently there was news of a big find some 30 or more miles south of Port Nolloth, resultimr in a parcel of diamonds valued at £300,000. The journal adds that a new factor has entered into, the diamond • situation, and much will depend on the amount of wisdom and restraint which characterises the action of the Government. It accepts Mr. Beyers assurance that the Government will do nothing to impair confidence. When reports of the wealth of the new Namaqualand diamond fields were published it was stated that offers of millions o/ pounds had been made to the Government for the rights to develop them. Mr. Beyer announced as far back as December 13 that the fields would he worked in the interests of 1 the State, and that a start would bo made with 60 Namaquatanders, who would receive good wages. On December 15 the Government Gazette contained a notice that all diamond prospecting on Crown nijid private lands would he prohibited for a year.