DIAMOND DEAL.

Press, Volume LVI, Issue 16721, 2 January 1920, Page 8

DIAMOND DEAL.

SENSATIONAL BISE IN SHABES

PRETORIA, November 12

For some (time past negotiations havo been in progress for tho transfer of tho German interests in tho diamonds of South-West Africa to another control. The arrangements in this connexion havo now been completed, and tho Press Agcncy has been officially informed that tho following is the position:—Undor the iegis of the Anglo-American Corporation ot South Africa, Ltd., in which Messrs J. P. Morgan and Co., tho American financiers, aro interested, an amalgamation has been arranged between the following group of companies operating in tho South-West African Protectorate:—Pomona Diamanten GesellBchaft, Kolonialo Beigbau Gesellschaft, Dcutsclio Diamenten Gosellschaft (including an interest in the Harbscheido Gesellschaft) Diamanten Pacht Gesellscliaft, Diamanten Aktien (including Ncuo Hansa Gosellschaft), Vercrnento Diamanten Minen Aktien Gesellschaft, Gescllschaft, Uahnfclder Diamanten Gesellschaft, and Grubanbahn Gesellschaft. Tho interests held by tho Dcutsclio Kolonialo Gosellschaft aro also included in the.amalgamated company, but as this is ono of the concession companies, tho rights and titles of which the Government intends to investigate by a Concessions Commission shortly to bo appointed, the official approval ns far as this company is concerned is standing over for the present. A limited liability company with a nominal capital of "£3,500,000 will be formed and registered in Capo Town under tho style of tho "Consolidated Diamond Mines of South-West Africa, Ltd." This company will acquire and take over all the assets of the above-named German companies. Tho effect of this transaction will ho to transfer tnri control of three von- extensive diaxnond fields from Berlin to the Lmon of South Africa. The Government, after very carefully considering tlio application, and inquiring into the position of these different companies, has signified its assent to tho transaction generally, with the reservation tliat until the Concession Commission has reported on tho position of tho Deutsche Kolonialo Gesellschaft, the transfer of the assets of that company to the new corporation cannot yet bo sanction°d, or could only bo sanctioned subject to tho reservation that the title is being inquired into. Yesterday tliero were sales in the big stock *at 495, a riso of 19s in twenty-six days—that is to say, one corporation's assets were deemed to have increased by over £600,000 m less than a month. Tho "Sunday Times" wants to know: On what"terms the Anglo-Ame-rican Corporation has acquired these interests. Why tho whole of the negotiations havo been shrouded in such secrecy, only a chosen few apparently being in the know, donbtless to their financial advantage. What steps, if any, the Government has taken to ensure thnt the ground acquired by Mr Oppenheimer and his corporation will be properly worked and not closed down to suit the policy of the Diamond Buying Syndicate. In the event of no stops of this kind having been taken, from what source does the Government proposo to derive the revenue necessary to administer tho newlyacquired territory? A full and frank statement on the subject- at the earliest possible moment is nsked. for the renson that, two exMinisters are popularly supposed to have interested themselves in this deal, and the public at present regards the wholo thing with a good deal of suspicion.