6.24.01 Reuters Backers of the bill, sponsored in the Senate by Sens. Dick Durbin, an Illinois Democrat, Russ Feingold, a Wisconsin Democrat and Mike DeWine, an Ohio Republican, said at a news conference that it would help build momentum for an international effort to curb trade in illicit diamonds. "Blood diamonds" are believed to account for only about 4 percent of the world's $7 billion trade in uncut stones, but they make enough money to keep wars going in places like Angola, Sierra Leone and DRCongo. |
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Conflict Diamonds forum: msg#4
Rep. Hall 9.13.00
Canada Foreign Aff. & Intl |
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"De-legitimizing the trade in conflict diamonds will make it more difficult, and less lucrative, for some of the most
odious actors on the international stage to continue pursuing their violent and abusive agendas," Feingold said.
With industry groups like the World Diamond Council joining with non-governmental organizations such as Oxfam
and World Vision to back the legislation, it stands a good chance of being passed by Congress. Wolf said he hoped
the legislation could be approved and signed into law before the Christmas gift buying season.
US buyers hold up progress on conflict diamonds
Brussels The Brussels conference at the end of last month, bringing together 38
govt delegations, EU, the Intl Customs Union, the UN sanctions committee on Angolan diamond
smuggling, World Diamond Council and a number of NGOs, failed to achieve much progress in
curbing illegal 'conflict diamond' exports, according to the NGO most involved in countering the
trade. Global Witness blamed the lack of
any negotiating mandate on US delegation; US
market is 60% of finished gemstones. Belgium was, however, lauded for its initiative in
setting up certification controls on the spot in Angola & Sierra Leone as well as at home in
Antwerp, against fraudulent diamond exports. The negotiations were supposed to extend the
certification procedure deployed in Belgium on a world scale. Antwerp accounts for 85% of raw
diamond imports, incl stones from Angola, Sierra Leone, or Liberia. Estimated 3.7% of
diamonds come from conflict zones according to UN figures.
A considerable part of the market for raw diamonds & finished stones (where Antwerp,
Bombay, New York and Tel Aviv are the major processing centres) is of doubtful origin. The
Brussels conference officially recognized this at 4% of turnover, a figure withheld, for instance,
by De Beers Central Selling Organisation. There are, however, major divergences on this
estimate. Independent diamond market experts estimate the figure as high as 14% (worth
around US$6 bn a year). A part of this would be of Russian origin. Not tackled but mentioned at
the conference was a new phenomenon of 'trade in certificates' (falsified or not) which
could well have the potential to ground the whole 'Kimberley Process'. Once a certificate is
obtained at an early stage of its handling for an individual stone, the certificate, not necessarily the
material stone, is subject to free trade rules and can be negotiated indefinitely. Control
mechanisms over the later stages are as yet absent.
Angola model for DRCongo
Angolan diamonds |
5.31.01 AP
The move follows De Beers' plans to enter the retail industry, reform its inefficient bureaucracy, continue selling off
its massive diamond stockpile and, perhaps most importantly, abandon its efforts to rule the diamond trade. "I sort
of view De Beers as being a bit like Muhammad Ali: terrific, powerful but just fought one too many battles,'' said
Charles Wyatt, editor of Minesite.com, an Internet site that reports on the mining industry. As recently as 1990, De
Beers controlled nearly 85 percent of the rough diamond trade, through diamonds it harvested itself in Africa and
those it bought from other mines, either to sell or stockpile to artificially inflate prices.
Since then, mines in Australia have become more independent. Diamonds have been found in Canada. And De
Beers' dominance in Africa has been challenged by other companies. If Russia declines at the end of the year to
renew its agreement to sell diamonds through De Beers, the company's control of the market could drop from 65
percent to about 50 percent, industry analysts said. It would still dominate the diamond trade but would no longer
rule it. "The world is not as it was 50 years ago,'' said Justin Pearson-Taylor, a diamond analyst at Standard
Equities. "There's too many other players now.''
It marketed chips of glistening carbon as the ultimate gift of love under its multibillion-dollar "A diamond is forever''
advertising campaign, and propped up the gems' price by buying up oversupply. Its Central Selling Organization
exercised such dictatorial power that it often forced diamond buyers to purchase poor-quality gems to get good
ones. Those who complained were frozen out, their careers destroyed. With its control of the market slipping,
however, De Beers was no longer able to make money simply by controlling diamonds.
"It's the fifth C - confidence,'' Pearson-Taylor said, referring to the "four Cs'' of diamond-buying: cut, color, clarity
and carat. "People,'' he said, "don't want to have their symbol of love and think that someone lost a limb for that.''
De Beers' new strategy hit "like a wave that is now moving the whole ocean,'' forcing others in the traditionally
conservative diamond world to look into news ways of making money as well, said Youri Steverlynck, spokesman
for the Diamond High Council in Antwerp, Belgium. "It is going very, very fast,'' he said. "And we have to see if it is
possible to change the market in such a profound way in such a short period of time.''
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To circumvent the government-granted monopoly, black-market traders smuggled many diamonds out through the neighboring Republic of Congo. IDI's 18-month deal also reportedly included an agreement for Israeli military experts to train Congolese anti-smuggling force, according to the investments adviser of the late Congo president. Congo quickly denied that alleged part of the deal, and took the adviser into custody soon after he made the alleged disclosure in September. IDI's head, Dan Gertler, told The Associated Press in Tel Aviv this year he had only provided Congo with names of Israeli military specialists. Laurent Kabila mortgaged much of his country's mineral wealth to pay for his side of Congo's civil war, launched when Rwanda, Uganda & their Congo rebel allies opened a military campaign to oust him. Angola, Zimbabwe & Namibia joined the war on Congo's side. Joseph Kabila, who took office after his father was assassinated in January, had made clear from the start his dislike of deals such as the Israeli firm's monopoly. "With all these measures, Congo moves ahead with the liberalization of the strategic diamond sector promised by the President in his inaugural speech,'' Kawaya said in a statement in Congo's newspapers Saturday announcing cancellation of the deal.
105. The UN embargo effectively stopped this legitimizing trend for several
months, and pushed traders back into their old & time-tested smuggling routes. Because
there was no embargo on diamonds from any of Sierra Leone's neighbouring countries, the ban
actually punished the victim & rewarded its enemies. This has now changed, and it is to be
hoped that the new system will attract a significant volume of diamonds back into legitimate
channels.
106. Where the RUF's conflict diamonds are concerned, the legitimate export
system, whether it was foolproof or not, was irrelevant, and it will remain so. As long as there are
no controls in neighbouring countries, the RUF will continue to be able to move their diamonds out
with impunity.
107. For this reason, it is imperative that a standardized global certification
scheme be introduced as soon as possible. The issue of conflict diamonds has now been
addressed at four intergovtal meetings in the 'Kimberley Process' and at a further meeting in
London in Oct. 2000. On 12.1.00, the General Assembly passed a resolution on the role of
diamonds in fuelling conflict (A/RES/55/56), and expressed 'the need to give urgent & careful
consideration to … the creation & implementation of a simple & workable intl
certification scheme for rough diamonds'. The resolution stated that this scheme should meet
internationally agreed minimum standards, it should secure the widest possible participation, and
that diamond exporting, processing & importing States should act in concert. The resolution
also noted the need for transparency and for arrangements to help ensure compliance.
108. This resolution is strongly endorsed by the Panel. It is a major step forward
in recognizing the need for what the diamond industry calls 'rough controls'. If implemented, it
could go a long way in solving some of the problems identified in this report. Govt of Namibia
will convene a workshop early in 2001 to consider technical aspects pertaining to envisaged
certification scheme. The Panel very much welcomes the Namibian offer to help move the
process forward.
109. The Panel notes with concern, however, that some govts & some
industry members may be approaching the idea of intl 'rough controls' with reluctance or antipathy,
urging a minimalist approach and a lengthy period of study & negotiation. The Panel believes
that any intl system must be developed carefully, and that it must be appropriate to the need. But
the Panel is in no doubt about the urgency or the importance of the proposal. Despite all the
meetings of the past year, despite the work of the UN & many govts, the wars in Sierra
Leone, Angola & the Democratic Republic of the Congo continue; diamonds continue to serve
as fuel for these wars and as a catalyst for the continuing misery of hundreds of thousands of
people.
Case study: … The S.African Diamond Board scrutinizes all official diamond imports, but as
with other countries, diamonds can be smuggled into, as well as out of the country. Panel
members visited the Diamond Board and examined the available documentation on a sample
import from Zambia. Along with the S.African paper work, the importer had supplied a Zambian
export certificate. The fact that Zambia mines few diamonds notwithstanding, the 'certificate' was a
document that could have been created in five minutes with a rubber stamp & a laptop.
Facilities for checking back with Zambian authorities as to its authenticity, or the authenticity of the
information contained in it were minimal.
G. Conclusions on Sierra Leone diamonds
110. The issue of Sierra Leone's conflict diamonds is complex, but it is not
unfathomable. As will be noted later in this report, it is tied to the wider issue of illicit diamonds,
and this has been recognized in a forthright manner by the diamond industry in WDC
documentation. A detailed proposal has also been made by WDC for a 'System for Intl Rough
Diamond Export & Import Controls', which should be an excellent basis for intergovtal
discussions.
111. At the beginning of 1999, the industry denied the problem of conflict
diamonds, and govts appeared to be taking decisive action. The situation has now changed, with
the most specific initiatives coming from industry. Despite the 12.1.00 passage of General
Assembly resolution 55/56 on the need for a global system of 'rough controls', the intergovtal
process may take several more months of negotiation. For this reason, where Sierra Leone is
concerned, it will be imperative for the Security Council to take early steps on broadening the
existing Sierra Leonean certification system throughout West Africa at least.
Liberia
Liberia proposes U.N. monitor its diamond trade
U.N. Threatened with U.N. sanctions over allegations that it trades arms for illicit
diamonds, Liberia proposed Wednesday that the United Nations take control of its entire diamond
trade. Liberian Foreign Minister Monie Captan old CNN that Liberia will ask the United Nations to
deploy monitors and to establish a certification system to keep illegal diamonds out of Liberia's
legitimate diamond business. Efforts to reach U.N. officials for comment were not immediately
successful. Captan said an additional offer by
President Charles Taylor on Tuesday, to open up his personal financial records to U.N.
investigators, is evidence that the country is willing to cooperate in stemming the trade in rough
diamonds smuggled by Sierra Leone rebels.
1.24.01 CNN
Captan, who will appear at an open Security Council meeting to be convened on Thursday to
consider the issue, said his country "has been demonized" and unfairly targeted by countries that
are seeking to impose sanctions against the Taylor regime. Captan included the United States in
that category. In December, a U.N. report linked the Liberian president to the guns-for-
diamonds trade to rebels in Sierra Leone. Captan questioned the objectivity
of that report. "When you accuse a country of selling $200 million worth of diamonds and you can
show no money trail, then you have to ask, what is the credibility of
that report?," he said.
"Is the U.N. interested in apportioning blame or is it interested in putting in place a mechanism that
would address the concerns that we all have, that can lead to peace and stability in the region,"
Captan said. Captan told CNN that Liberia would be
willing to accept U.N. monitors at its airports, seaports and borders to stem diamond smuggling.
The foreign minister met Wednesday morning with Bangladeshi Ambassador Anwarul Karim
Chowdhury, head of the U.N. sanctions committee on Sierra Leone diamonds. Captan said he laid
out his proposals for U.N. monitoring of the Liberian diamond trade, which he
will present formally to the Security Council on Thursday.
Role of Liberia's Logging Industry on National & Regional
Insecurity
1/24/01 IRIN
In this document addressed to the Security Council, Global Witness suggests the immediate
imposition of a total embargo on Liberian timber, which, it says, plays an important role in Taylor's
revenues, even more than the diamond trade.
Helms even invited the Council members to visit Washington so his colleagues in the Senate
and in the House of Representatives can acquaint themselves better with the problems facing the
U.N. Chowdhury, who met the House of Representatives Appropriations Committee chairman
here, said the lawmaker showed interest in various U.N. peacekeeping operations and the
problems faced by the world body in various areas, inclung funding. "I think it
was a very useful meeting and in the context of the U.N.-US relations, I must say it was a major
step forward," he said. Chowdhury said on March 31, all 15 members
of the Security Council will travel to Washington and will have talks with Helms, his colleagues in
the Senate as well as other Congressional leaders. Meetings are
also scheduled with US Secretary of State Madeleine Albright and National Security Adviser
Samuel Berger, he said.
"In the context of the US-U.N. relationship, this visit will be very important and will have the
potential of putting our relations on a much stronger and better
foundation," he said. "In the context of the U.N.'s role in the next decade, US-U.N. relations are
very important," he added.
Most of these so-called "blood diamonds" have been sold to the international diamond exchanges
in Antwerp, Belgium, and eventually found their way into pieces of jewellery sold around the world.
"I think if people realised that the diamonds on their engagement rings or on their necklaces might
have been sold to fund a campaign that butchered innocent
children, they would understand the importance of what the UN is doing," a senior UN official said.
A former Sierra Leone Government minister, Amy Smythe, told a recent UN conference that
$A590 million in diamonds went from the rebel-controlled Sierra Leone mines to Liberia last year.
The UN suspects that much of that money found its way back to the rebel front and was used to
fuel its war machine.
"We have all watched in horror as the civilian population in Sierra Leone has endured
unimaginable suffering and hardship," the deputy US ambassador to the UN, Nancy
Soderberg, said in the Security Council on Wednesday. "In banning the illicit trade in
diamonds, we now take a strong stand against war and for peace." Britain's UN ambassador,
Jeremy Greenstock, drafted the embargo resolution, saying it took an unusual approach to
diplomacy by asking the diamond industry to block the trade in "conflict diamonds". "The aim is
ensure, eventually and at long last, that diamonds bring benefit and not misery to the long-
suffering population of Sierra Leone," Sir Jeremy said. UN inspectors will enforce the diamond
embargo and will supply regular reports to the Security Council.
The UN has also established a new sanctions committee, headed by Bangladeshi UN ambassador Anwarul Chowdhury, to explore more ways of using sanctions as a weapon against rebels. The Sierra Leone embargo will be seen as a test case, and will be reviewed in 18 months by the Security Council to gauge its effectiveness. The US argued that the embargo should be open-ended, warning that a time limit could be seen as giving the rebels "time off for bad behavior". But most of the Security Council supported the 18-month limit, arguing that it could be extended through a second resolution.
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