DIAMOND CONTROL.

Otago Daily Times, Issue 19473, 7 May 1925, Page 10

DIAMOND CONTROL.

GIGANTIC PROFITS FOR COM

LINED MONOPOLY,

Mr Boyers, South African Minister of Mines, when moving tho second reading of the Diamond Control Bill, made a direct and slashing attack- on the London Diamond Syndicate, which, he alleged, controlled tho policy of the De Beers Consolidated Minos, reports the Capetown correspondent of the Daily Telegraph. Though iis members only held a minority of the shares in that corporation, they had been able to pocket millions in extra profits at (he expense of tho producers of diamonds. The Minister said it had boon represented that (ho 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 losses which would otherwise have accrued to it by inducing the producers not ro enforce tlicir agreements. Consequently the syndicate came out about even, while the producers suffered. Fortified by this success, ho said, the syndicate dictated terms 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 bad 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 Anglo-American Syndicate tinder a five years’ agreement. Consequently the syndicate had perforce to pay higher prices for the Do Boors output. Dealing with the competition of producers outside the Union, Mr Boers declared it did not matter, as all the diamonds really worth having wore 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 sword of Damocles, which would he held over the Diamond Syndicate to ensure fair treatment. The Governmnl wore determined that the South African producers should get the best price possible. The Bill was an attack on De Beers only in so far as De Beers had allowed its interests to be subordinated to those of tho syndicate.