Preface

The issue of diamonds that are used by rebels to finance a conflict, the so-called "conflict diamonds" is a complex matter. In the first place, it handles about a conflict. At stake is the power of being the legitimate government. A conflict is fought out with weapons and machinery that needs oil. Diamonds can be used to finance these purchases.

In that sense, diamonds are really a prisoner of war of the conflict. If diamonds are found on the field, they will be sold. The revenues can be used to buy food, medicines, build out a well-fare system of … to buy weapons.

Diamonds bring prosperity in a lot of producing countries. The economies of South Africa, Namibia or Botswana depend in an important way on the diamond industry. That is why, although conflict diamonds represent less than 4% of the world production of diamonds, the diamond industry fully and actively supports the international initiatives that aim to prevent conflict diamonds entering the legitimate market.

The goal is indeed to end the conflicts. Because the only difference between a diamond and a conflict diamond is the conflict. End the conflict and there are only diamonds, diamonds that bring prosperity.

For that purpose, a joint action of all industries involved and the international community is required. The history of the conflicts learns indeed that separate actions were not sufficient.

The civil war between UNITA and the Government of Angola started after the country’s independence in 1975. The United Nations intervened when UNITA refused to proceed with the implementation of a peace agreement in May 1998. The U.N. Security Council installed sanctions against UNITA, lead by Mr. Jonas Savimbi. UNSC Resolution 1173 restricts the trade of natural resources.

By UNSC Resolution 1176 of 28 July 1998, an embargo was launched against weapons, oil, diamonds, banking accounts and foreign travelling by UNITA.

In the Report of the Sanctions Committee of 15 March 2000, diamond industry and governments hosting diamond centres are pointed with the finger, Belgium and Antwerp, hosting the largest market, in particular.

The diamond industry served as a lever to bring the humanitarian drama of the African conflicts in the public attention in order to provoke political action. Antwerp was mainly taken as an example because it hosts the largest diamond market and because it is the only one that publishes detailed statistics on imports.

The HRD, as the representative of the Belgian diamond industry and the Belgian government have argumented that some accusations were based on wrong facts. A reading of this Report will help to understand the reasons behind this.

In UNSC Resolution 1295 of 18.04.00, corrections were made mentioning the Belgian initiatives. Belgium indeed has the strictest control system worldwide and was together with De Beers, first to take actions against the trade in conflict diamonds.

The conflict in Sierra Leone started in March 1991 when RUF fighters launched a war against the government of Mr. Kabbah. By UNSC Resolution 1132 of 08.10.97, an oil and arms embargo was imposed.

When new fights ended the terms of the Lomé peace agreement of 07.07.99, the United Nations imposed by Resolution 1306 of 05.07.00 an embargo on diamonds from Sierra Leone, unless certified by the legitimate government in order to take away a source of financing from the RUF.

This Report gives an overview of the general legal frame of diamond trade in Belgium and of the measures, taken by the Belgian government and diamond industry. Reference is made to the conclusions and recommendations of the Sanctions Committee.

Belgium took the lead in developing workable solutions. As leading diamond trade centre, it was our responsibility. Meanwhile, it is necessary to evaluate the actions of all players on the market. Not only trade centres but also producers. Not only the biggest players but also the emerging markets. Not only the diamond business but also all industries involved in conflicts, starting with the oil and weapon industry.

Antwerp, 1 November 2000

Peter MEEUS

Managing Director HRD