• Abstract and Figures
• Public Full-text

DIAMOND December 7, 2010 | Vol.25 No.634 By Chaim Even-Zohar INTELLIGENCE Ultimatum to Zimbabwe – Take It or Leave It “Take it or leave it.” That is the implicit operational message contained in an otherwise diplomatic and courteous letter that the Chair of the Kimberley Process (KP), Boaz Hirsch, sent yesterday to Zimbabwe Minister of Mines and Mining Development Obert Mpofu. This reference is, of course, to the proposed draft decision agreed by the Working Group on Monitoring (WGM) members in its recent Brussels meeting. What Hirsch actually wrote was: “I wish to suggest that Zimbabwe will convey its unreserved acceptance to the Draft Administrative Decision, as forwarded to you in my letter of the 29th of November 2010. KP Chair Boaz I also recognize that your concerns should be addressed, and I suggest Hirsch that to that end, that the issue you have raised will be discussed at the coming Intersessional.” [See page 6330 for the full text of the letter.] The letter came in a reply to Zimbabwe’s strong opposition to the so-called “violence clause,” which allows two members of the WGM to trigger a complete export halt from all mines in the Marange area, including fully KP-compliant BRIEFS producers, subject to a further decision by the full WGM. What really irked the Zimbabweans was the so-called “reverse consensus” condition tied to the cessation of exports. The Brussels text reads that a consensus of the WGM is needed to resume exports after stoppage, while Zimbabwe claims that it had agreed to a clause requiring a consensus to maintain a cessation of exports. Zimbabwe acknowledges that it had agreed to the Jerusalem Agreement - but not to this specific clause. The Chair thinks otherwise. In his December 6th letter, the KP Chair makes it clear that any reservations Zimbabwe may have can be discussed next June in Kinshasa, when the next KP Intersessional will take place. Until then, the county can “take it or leave it.” In fact, there is really no mechanism to consider further changes – the southern African governments close down for summer vacation, while the rest of the world also approaches a holiday season. Zimbabwe: Regarded as Pariah State The hardest thing to swallow for the Zimbabweans is that nobody really cares. To the world, Zimbabwe’s status seems on par with Iran, North Korea, Syria, Cuba or other countries commonly referred to as “terror states” or “pariah states.” To be blunt about it, a few countries (i.e. KP Participants) and some NGOs couldn’t give an iota and actually prefer that A Confidential Service for Zimbabwe’s rough diamonds will not – or will never – be officially exported. Executives in the Diamond and Diamond 6331 4 CORNERS OF THE GLOBE Jewelry 6334 DIGGING THE DIRT 6335 BRIEFLY NOTED 6336 OFF THE SHELF Business EDITORIAL Rough diamond stocks belonging to the former Canadile joint venture in Marange, which lost Plenary), the impression was given that its mining license amid corruption charges. the United States had become more conciliatory toward Zimbabwe, some KP Participants felt having a higher comfort level for sounding support for Zimbabwe. When the tune in Washington hardened (during the subsequent Brussels meeting), the music changed as well. The world has only one Superpower. Wikileaks Says It All A secret cable by former U.S. Ambassador to Zimbabwe, Christopher W. Dell, made at the end of his tour of duty, sums up his country’s policy: “My views can be stated very simply as stay the course and prepare for change. Our policy is working and it’s helping to drive change here. What is required is simply the grit, determination and focus to see this through. Then, when Unofficial Exports the changes finally come we must be ready to move quickly to There is little need to repeat here the preferred diamond- help consolidate the new dispensation.” industry position that it is far better for the diamond community to The ambassador (in 2007) expected the regime change absorb Marange diamonds through visible, traceable, monitored and official channels than to have everything simply smuggled Christopher Dell, out and paid through laundered money – as is the case of the former U.S. Venezuela. Moreover, even within the industry there are cracks: ambassador to Zimbabwe there are those (and I believe this includes De Beers) that worry that Marange diamonds in the formal distribution channels of the organized trade might contaminate the image of diamonds. Keeping them “out” might better protect the diamond image – and would allow exorcising the “less desirables” from industry ranks. Additionally, it is clear to producers that the current high rough diamond prices could not have been achieved if the Marange stockpile would have been sold off already. There are reasons to believe that, at least in the eyes of the KP, some illegal rough exports have already taken place to be near. He observed that “Robert Mugabe has survived for in recent weeks. The KP Chair alludes to this when he writes in so long because he is more clever and more ruthless than any his letter: “Meanwhile, I would reiterate my call that Zimbabwe other politician in Zimbabwe. To give the devil his due, he is a refrain from making exports until consensus can be reached.” brilliant tactitian and has long thrived on his ability to abruptly If diamonds were exported, they must either float in the change the rules of the game, radicalize the political dynamic air or be at a free trade zone. No KP Participant has imported and force everyone else to react to his agenda. Zimbabwe rough from the November tender to date. However, he is fundamentally hampered by several factors: Regime Change Remains Ultimate Goal All the rhetoric in recent weeks from some southern African President Robert Mugabe producer countries, Dubai, and even China, has shown that, at the end of the day, nobody wants to risk a confrontation with the United States over diamonds. It has nothing to do with fairness – some KP countries’ human rights violations are far more serious than Zimbabwe’s – it has everything to do with politics. Other countries literally get away with murder and rape, while in Zimbabwe, each guard dog bite can trigger an international outcry. But that is what the KP is – a political union, whether we like it or not. When, just for a short period (before and during the KP DIAMOND INTELLIGENCE BRIEFS 6329 EDITORIAL his ego and belief in his own infallibility; his obsessive focus on the of the comrade’s favorite phrases, could ‘go hang,’ leaving it to past as a justification for everything in the present and future; his the international community to stave off the worst humanitarian deep ignorance on economic issues (coupled with the belief that consequences,” says the ambassador. his 18 doctorates gives him the authority to suspend the laws of This is not the place to argue a leaked – and outdated – U.S. economics, including supply and demand); and his essentially cable, except to stress that the U.S. government’s fears that short-term tactical style.” the Zimbabwe president will enrich himself and stay in power The U.S. ambassador devotes most of his cable to the various through diamond revenues is as acute today as it was before. end-scenarios, on how the regime change will happen. He When Ambassador Dell wrote his cable, there were few concludes that “The final, and probably worst, possibility is that outside investors in the Marange diamond areas. Corruption Mugabe concludes he can settle for ruling over a rump Zimbabwe, is still rife, as the still-unraveling Canadile saga underscores. maintaining control over Harare and the Mashon heartland, the Everything is a matter of degree. Even the United States should critical forces of the National Reserve Force and CIO and a few ask itself what will achieve its policy objectives more effectively: key assets gold, diamonds, platinum and Air Zimbabwe to fund allowing official transparent rough diamond exports or letting the good times. Under this scenario, the rest of the country, in one anarchy prevail. H.E. Minister Obert Mpofu December 6th, 2010 Minister of Mines and Mining Development Zimbabwe Your Excellency, Thank you for your letter of 2 December 2010 concerning the proposed draft Administrative Decision presented as a result of the consultations held at Val Duchesse. I welcome your decision to accept the terms of the proposed Administrative Decision. It is my view that substantial progress has been made during the last few weeks towards finding an agreed approach allowing for the resumption of KP endorsed exports from compliant mines in Marange. It has been my goal to find a consensual approach between, on the one hand, the understandable desire of Zimbabwe to resume immediate and unconditional exports from compliant mines and, on the other, the demands of the international community that conditions for those exports should meet international requirements. However, I note with concern your reservation regarding the oversight mechanism in para 3.b. This safeguard mechanism was set up to address concerns of WGM members that may arise in the course of implementation, and will self-dissolve if no notifications are made within one year. As you well know, such oversight mechanism is a key element of the draft Administrative Decision, which constitutes a package and cannot be dissembled. I also note that the mechanism was already part of the proposal agreed upon by Zimbabwe in Jerusalem on 4 November, and has simply been reformulated at the Val Duchesse consultations in light of comments from various Participants and with a view to ensuring its consistency with KP rules.

Load more

  10

Copy Link