15243.txt
The Gannett Lecture Series
January 20, 2005
"The Peril of Ignoring, Small, Regional Conflicts: Sierra Leone, Diamonds
and Al Qaeda"
Presented by Greg Campbell Discussed by: Tim Martin and Mary Hess
>> Paul: WELCOME TO THIS SECOND IN THE WINTER SERIES OF CAROLINE WERNER
GANNETT LECTURES. I AM PAUL GREBINGER, AND MY ROLE IS AS OFFICIALLY
GANNETT LECTURER AND COORDINATOR OF SENIOR SEMINAR. I AM THE ONE WHO,
WITH THE SENIOR SEMINAR FACULTY, HAVE ORGANIZED THIS SERIES OF LECTURES
THIS YEAR. THE INTERPRETING SERVICE TONIGHT IS BEING PROVIDED BY TERESA
JONES ON MY RIGHT, AND SHE WILL PERIODICALLY BE SPELLED BY MIRIAM LERNER.
WE APPRECIATE VERY MUCH THEIR AGREEING TO NOT ONLY INTERPRET THIS EVENT
TONIGHT BUT ALL OF THEM IN THE WINTER SERIES, AND I'VE BEEN TRYING TO
TALK THEM INTO STAYING ON THROUGH THE SPRING, TOO. THEY'RE WONDERFUL
INTERPRETERS. I'M GOING TO INTRODUCE THE PARTICIPANTS TONIGHT IN THE
ORDER OF THEIR APPEARANCE AND GIVE YOU A LITTLE INTRODUCTION FOR EACH OF
THEM ALL AT ONCE, RATHER THAN INTRODUCE THEM AS THEY APPEAR. I ALSO WANT
TO SAY THAT WE HAD HOPED THAT TIM MARTIN WOULD BE WITH US TONIGHT, BUT HE
COULD NOT MAKE IT. CANADIAN GOVERNMENT BUSINESS KEPT HIM IN OTTAWA, SO HE
WILL BE PRESENT VIA A PHONE HOOKUP THAT WE HAVE ESTABLISHED, AND IT SEEMS
TO BE WORKING SO I'M VERY EXCITED ABOUT THIS NEW DIMENSION OF THE GANNETT
SERIES. SO LET ME FIRST THEN SAY THAT THE TALK THIS EVENING IS-- THE
TITLE IS "THE PERIL OF IGNORING SMALL, REGIONAL CONFLICTS: SIERRA LEONE,
DIAMONDS AND AL QAEDA." AND THE MAIN SPEAKER THIS EVENING IS GREG
CAMPBELL. TODAY GREG CAMPBELL IS EDITOR-IN-CHIEF OF THE "FORT COLLINS
WEEKLY," AND EARLIER IN HIS CAREER HE SERVED AS EDITOR OF THE "BOULDER
WEEKLY." HOWEVER, GREG HAS ALSO BEEN A FREELANCE JOURNALIST. IT IS FROM
SUCH EXPERIENCE IN AFRICA BETWEEN APRIL 2001 AND SEPTEMBER 2002 THAT HE
HAS WRITTEN "BLOOD DIAMONDS, TRACING THE DEADLY PATH OF THE WORLD'S MOST
PRECIOUS STONE," WHICH WAS PUBLISHED BY WESTVIEW PRESS, WHICH I BELIEVE
IS ALSO LOCATED IN COLORADO, IN BOULDER. EARLIER FREELANCE WORK TOOK GREG
TO YUGOSLAVIA AND AN EARLIER BOOK "THE ROAD TO KOSOVO," A BALKAN DIARY.
HE'S DONE FREELANCE WORK FOR THE "CHRISTIAN SCIENCE MONITOR" AND THE "SAN
FRANCISCO CHRONICLE," AMONG OTHER NEWSPAPERS. "BLOOD DIAMONDS," ABOUT
WHICH HE WILL BE SPEAKING THIS EVENING, HAS WON THE 2003 COLORADO
NONFICTION BOOK AWARD AND THE 2003 AMERICAN LIBRARY ASSOCIATION NOTABLE
BOOK AWARD. "BLOOD DIAMONDS" IS ONE OF THOSE BOOKS THAT DRAWS YOU IN
WITHIN THE FIRST PARAGRAPH OF NARRATIVE. IT'S A GREAT READ. SO I AM
PLEASED TO BE ACTUALLY ABLE TO HEAR THIS STORY FROM GREG HIMSELF THIS
EVENING. AFTER GREG HAS FINISHED, WE WILL THEN HEAR FROM TIM MARTIN LONG
DISTANCE FROM OTTAWA. GREG HAD HOPED THAT HE WOULD ACTUALLY MEET TIM
MARTIN FACE-TO-FACE THIS EVENING. THESE ARE TWO PEOPLE WHO KNOW ONE
ANOTHER'S WORK BUT HAVE NOT ACTUALLY MET PERSONALLY. UNFORTUNATELY TIM'S
WORK ON TSUNAMI RELIEF AND OTHER IMPORTANT ISSUES FOR THE CANADIAN
GOVERNMENT JUST NOW WILL KEEP HIM IN OTTAWA TONIGHT. AS IN THEIR PREVIOUS
EXPERIENCE, GREG AND TIM WILL CARRY ON THIS DISCUSSION LONG DISTANCE VIA
THE TELEPHONE LINK-UP THAT I'VE MENTIONED. TIM MARTIN IS CURRENTLY
DIRECTOR OF PEACEBUILDING AND HUMAN SECURITY DIVISION OF THE DEPARTMENT
OF FOREIGN AFFAIRS WITH THE CANADIAN GOVERNMENT. HE WAS ALSO CHAIR OF THE
KIMBERLEY PROCESS ON CONFLICT DIAMONDS FOR 2004, AN INTERNATIONAL EFFORT
TO CONTROL TRADE IN SUCH DIAMONDS. HE TOOK OVER THAT ROLE FOR THE
CANADIAN GOVERNMENT FROM SOUTH AFRICA. THE PICTURE YOU'LL SEE OF HIM WHEN
HE'S TALKING ACTUALLY WAS TAKEN IN THE CONTEXT OF THE TRANSFER OF THAT
RESPONSIBILITY FROM SOUTH AFRICA. TIM HAS SERVED VARIOUS DIPLOMATIC ROLES
FOR THE CANADIAN GOVERNMENT IN AFRICA AND SOUTHWEST ASIA. HE IS THE
RECIPIENT OF THE TREASURY BOARD'S AWARD OF EXCELLENCE IN PUBLIC SERVICE
FOR HIS LEADERSHIP RESPECTING CANADA'S HUMANITARIAN RESPONSE TO
PALESTINIAN CHILDREN AFFECTED BY CONFLICT. THE FINAL DISCUSSANT THIS
EVENING WILL BE MARY HESS. SHE ACTUALLY IS HERE, AND MARY IS-- SHE'S
TRAINED IN HISTORY, AND IN FACT IS CURRENTLY COMPLETING A Ph.D. IN
AMERICAN STUDIES AT UNIVERSITY AT BUFFALO, SUNI SYSTEM, AND TEACHES
HISTORY AND SENIOR SEMINAR IN THE ADJUNCT FACULTY ROLE HERE AT RIT AND
HAS RECENTLY TAKEN ON THE ROLE AS ADVISOR IN THE RIT EXPLORATIONS PROGRAM
IN THE COLLEGE OF LIBERAL ARTS. SO MARY IS A PERSON OF MANY PARTS. SHE IS
A FREELANCE WRITER. HER REVIEWS FILMS-- WHO REVIEWS FILMS AND HAS
CONTRIBUTED TO McGILL CINEMA ANNUAL. SO YOU MAY IMAGINE MY SURPRISE WHEN
SHE CAME TO ME LATE LAST SPRING WITH A COPY OF "BLOOD DIAMONDS"
SUGGESTING THAT THE TOPIC AND GREG CAMPBELL WOULD BE A GOOD CHOICE FOR
THIS YEAR'S CAROLINE WERNER GANNETT LECTURE SERIES. IT WAS THEN THAT I
LEARNED THAT MARY IS A MEMBER OF THE GEMOLOGICAL INSTITUTE OF AMERICA AND
HAS MORE THAN TEN YEARS OF EXPERIENCE FROM THE 1980s TO THE EARLY 1990s
WORKING IN THE DESIGN JEWELRY BUSINESS AND ACTUALLY HAD HER OWN JEWELRY
FIRM. SO I BELIEVE MARY TONIGHT IS GOING TO TRY TO PROVIDE US WITH A
UNIQUE PERSPECTIVE FROM THE POINT OF VIEW OF THE RETAIL SALE OF DIAMONDS
AND PERSPECTIVE I THINK THAT MIGHT HELP YOU AS A CONSUMER BETTER
UNDERSTAND WHAT MAYBE YOUR ROLE MIGHT BE VIS-A-VIS THESE DIAMONDS
PRODUCED IN CONFLICT. AT THE END OF THE TALKS AND THE DISCUSSION, I'M
GOING TO OPEN THE SESSION TO QUESTION AND ANSWER. I WILL HAVE A REMOTE
MIC. I WILL BRING IT AROUND. I WANT YOU TO SPEAK, PLEASE, INTO THE MIC.
THAT WAY TIM MARTIN CAN HEAR YOUR QUESTIONS, AND IN FACT IF YOU HAVE A
QUESTION FOR TIM, YOU MAY IN FACT ASK IT AND HE CAN RESPOND TO YOU. OKAY?
THANK YOU VERY MUCH. GREG, I'M VERY PLEASED TO INTRODUCE YOU. LOOKING
FORWARD TO YOUR TALK. >> Greg: THANKS VERY MUCH. GOOD EVENING. THANK YOU
FOR HAVING ME HERE. IT'S A REAL HONOR. I'M UNDER INSTRUCTIONS TO "A" NOT
BORE YOU... (No audio) UNFORTUNATELY I DON'T HAVE A WATCH, SO IF ANYBODY
CAN BE... (No audio) WHEN I GET TO ABOUT 30 MINUTES OR SO. I WAS TRYING
ON MY WAY HERE TODAY FROM COLORADO TO THINK OF THE BEST WAY TO BEGIN THIS
DISCUSSION. I WENT THROUGH A COUPLE DIFFERENT THINGS IN MY MIND. IN FACT
I JUST WENT AND HAD DINNER WITH SOME OF THE WONDERFUL FACULTY HERE, AND A
LOT OF OUR DISCUSSION WAS TALKING-- IT WAS KIND OF CIRCLING AROUND THE
IDEA OF GLOBALIZATION AND HOW WE ARE CONSTANTLY BECOMING EVEN MORE AND
MORE INTERCONNECTED. I THOUGHT MAYBE A GOOD WAY TO START WAS TO KIND OF
EXPLAIN A LITTLE BIT ABOUT HOW I CAME UP WITH THE IDEA TO GO COVER
CONFLICT DIAMONDS IN SIERRA LEONE IN THE FIRST PLACE... (No audio) MAYBE
TAKE IT FROM THERE. I'D HEARD OF THE COUNTRY OF SIERRA LEONE AT SOME
POINT IN HIGH SCHOOL OR SOMETHING. YOU KNOW, I DIDN'T REALLY-- I KNEW IT
WAS IN AFRICA. I KNEW IT WAS PROBABLY A COLONIAL COUNTRY. I DIDN'T KNOW
MUCH MORE BESIDES THAT, AND BEING A MEDIA CONSUMER IN THE UNITED STATES,
I'M A... (No audio) WHICH IS THAT I GET ALL OF MY NEWS BASICALLY FROM
NBC, CBC AND NBC AND ALL OF THE WIRE SERVICES, ASSOCIATED PRESS AND
REUTERS AND SO FORTH. AND IT WASN'T UNTIL I ACTUALLY STEPPED OUT OF THAT
REALM AND DISCOVERED THE WONDER ACTUALLY OF INTERNATIONAL JOURNALISM
BASICALLY BASED IN OTHER COUNTRIES THAT I WAS KIND OF INTRODUCED TO
THE... (No audio) ONE NIGHT IN COLORADO. (No audio) NETWORK, THIS BRITISH
CABLE TELEVISION NETWORK, THAT WAS-- THEY WERE PLAYING SOME FOOTAGE FROM
THE ENVIRONMENT CALLED SIERRA LEONE. THERE'S THIS GUY ON THE SCREEN
SWEATING AND CRAZY AND JUST LOOKING TERRIFIED AND BULLETS ARE FLYING AND,
YOU KNOW, PEOPLE ARE RUNNING AROUND WITH MACHINE GUNS IN THE BACKGROUND.
AND HE'S TALKING ABOUT WHAT A HORRIBLE ENVIRONMENT... (No audio) WE NEED
TO SWITCH THIS UP? SORRY. OKAY. TAKE TWO. SO IN ANY EVENT-- SURE. OKAY.
IN ANY EVENT, DID IT GO OUT? OKAY. LET'S JUST DO THIS THE EASY WAY. IS
THIS THE INSTITUTE OF TECHNOLOGY? (Laughter) (Scattered applause) OKAY.
THAT SOUND BETTER ACTUALLY. IN ANY EVENT, HERE I AM WATCHING THIS POOR
REPORTER SWEATING TEN POUNDS OFF OF HIS BODY WEIGHT, AND TALKING ABOUT
THIS HORRIBLE THING. AND I HAD JUST GOTTEN BACK FROM BOSNIA AT THE TIME.
AND COVERED THAT WAR, WHICH OBVIOUSLY WAS COVERED ALL OVER THE PLANET,
COVERED VERY WELL BY MAG-- THERE WAS UNITED STATES INVOLVEMENT. IT WAS
ESSENTIAL TO LIFE IN EUROPE. IT HAD FAR-REACHING EFFECTS ACROSS A NUMBER
OF DIFFERENT COMMUNITIES. SO THAT WAS SOMETHING I JUST GOT BACK FROM, AND
I WAS KIND OF LOOKING FOR SOMETHING ELSE TO COVER. AFRICA WAS NEVER ON MY
MIND UNTIL I WATCHED THIS FOOTAGE, AND IT WAS LITERALLY ONLY MAYBE A TENMINUTE SEGMENT, AND IT SHOWED THE GRAINY, YOU KNOW, HARD-TO-CAPTURE VIDEO
COMBAT VIDEO OF GUYS RUNNING AROUND AND BULLETS FLYING AND SO FORTH, AND
I REMEMBER SEEING IT AND THINKING, WOW, THAT PLACE-- I'LL NEVER GO THERE.
FORGET IT. JUST LOOKS TOO HORRIBLE, TOO TERRIBLE. THERE WASN'T REALLY ANY
CONTEXT TO WHY THESE PEOPLE WERE FIGHTING. ALL THERE WAS A MENTION OF WAS
A REBEL GROUP AND THE GOVERNMENT AND PEOPLE SUFFERING. AND AT THE VERY
END OF THE BROADCAST SAID, OH, AND BACK TO YOU IN THE STUDIO. OH, BUT BY
THE WAY ALL THIS HAS TO DO WITH DIAMONDS. SO BACK TO YOU, NANCY. THE
SCREEN WENT CRAZY. AND NANCY'S LIKE, OKAY, GARY. THANKS VERY MUCH. AND
THAT WAS IT. THERE WAS NO KIND OF LARGER DISCUSSION ABOUT WHAT ROLE
DIAMONDS WERE PLAYING IN THIS KIND OF HORRIBLE ENVIRONMENT, THIS HORRIBLE
CONFLICT THAT I HAD JUST SEEN. SO I WAS ACTUALLY GOING ON VACATION AND
WENT TO THE LIBRARY TO PICK UP A BOOK ON CONFLICT DIAMONDS OR DIAMONDS
AND THE WAR IN SIERRA LEONE AND FOUND OUT LO AND BEHOLD THERE WASN'T ONE.
I FELT THAT WAS A PERFECT OPPORTUNITY FOR ME TO GO AND FIND OUT A LITTLE
BIT ABOUT IT FOR MYSELF. THAT'S ONE OF THE BIGGEST REASONS THAT I
ACTUALLY BECAME A JOURNALIST IN THE FIRST PLACE WAS TO LEARN A LITTLE BIT
ABOUT KIND OF THE CAUSE AND EFFECT THAT THINGS HAVE ON ONE ANOTHER AND
HAVE ON EVENTS THAT OCCUR DOWN THE LINE AND THROUGHOUT HISTORY. THERE'S A
LOT OF INTERNATIONAL JOURNALISTS, MANY OF THEM ARE FRIENDS OF MINE, WHO
ARE VERY INTERESTED IN GOING AND COVERING SPOT NEWS. THEY DON'T CONSIDER
THE DAY A SUCCESS UNLESS THEY'VE GOTTEN FOOTAGE OF A WILD FIREFIGHT OR IF
THEY CAN GO COVER THE PRESS CONFERENCE AND THEN WRITE A SMALL STORY ABOUT
IT. BUT WHERE MY INTEREST REALLY LIED WAS IN KIND OF COVERING THE WHOLE
HOW DID IT BEGIN? HOW DID WE GET HERE? WHAT IS THIS ACTUALLY ALL ABOUT?
AND WHAT ARE THE REPERCUSSIONS ACTUALLY GOING TO BE? AND SO I WENT TO
SIERRA LEONE. I HAD AN INTERESTING TIME, WHICH I'LL GET TO IN A LITTLE
BIT FURTHER DETAIL. BUT I WAS IN THE OFFICES OF DE BEERS, ACTUALLY, THE
INTERNATIONAL DIAMOND CARTEL IN LONDON, ON SEPTEMBER 11th, 2001. AND IT'S
SIGNIFICANT BECAUSE, ON THAT DAY, ACTUALLY THAT WHOLE WEEK, THAT WEEK OF
SEPTEMBER, THE KIMBERLEY PROCESS WAS MEETING; THE INTERNATIONAL COMMUNITY
HAD COME TOGETHER AND DECIDED TO HAVE THESE KIND OF ROUNDTABLE
DISCUSSIONS THAT ROTATED FROM COUNTRY TO COUNTRY, INTERESTED COUNTRIES,
TO DISCUSS ABOUT HOW TO END THIS TRADE IN CONFLICT DIAMONDS. SO I WAS
THERE TO OBSERVE THAT, AS WELL AS TO GET SOME INTERVIEWS WITH THE DE
BEERS REPRESENTATIVES WHILE I WAS THERE IN LONDON. AND, YOU KNOW,
OBVIOUSLY THE EVENTS OF THE DAY THREW EVERYBODY'S SCHEDULE INTO TURMOIL,
MINE INCLUDED. I NEVER GOT AROUND TO GOING AND VISITING THE KIMBERLEY
PROCESS. I WAS MUCH MORE WORRIED ABOUT MY FAMILY AND FRIENDS AT HOME IN
NEW YORK, AND OBVIOUSLY JUST, LIKE EVERY OTHER AMERICAN IN THE WORLD,
WITH MY HEAD IN MY HANDS ABOUT WHAT HAD GONE ON, TRYING TO COME TO GRIPS
WITH WHAT HAD HAPPENED ON SEPTEMBER 11th. AND AT THAT POINT ON THAT DAY,
WHEN I WAS ACTUALLY SITTING THERE IN THE OFFICES WATCHING THE FOOTAGE OF
THE TWIN TOWERS COME DOWN, DIAMONDS WERE THE FURTHEST THING FROM MY MIND.
I COULD HAVE CARED LESS ABOUT CONFLICT DIAMONDS AT THAT POINT. SUDDENLY
MY STORY THAT I WAS WORKING ON TOOK ON A VERY, VERY MINUSCULE ROLE IN MY
MIND. IT JUST SO HAPPENED THAT I WAS GOING TO SIERRA LEONE LATER ON IN
THE WEEK, ONCE THE FLIGHT ROUTES REOPENED. NOT SURPRISINGLY THE FLIGHTS
BETWEEN EUROPE AND AFRICA WERE NOT VERY DEEPLY IMPACTED SO I WAS ABLE TO
STAY ON SCHEDULE. AND I FELT LIKE I WAS ESCAPING INTO THE FURTHEST CORNER
OF THE WORLD. THE STORY, IN MY MIND, IS GOING ON IN AFGHANISTAN. IT WAS
HAPPENING IN NEW YORK AND WASHINGTON AND RURAL PENNSYLVANIA. AND IT JUST
NEVER OCCURRED TO ME THAT THE STORY THAT I WAS ACTUALLY RESEARCHING MAY
HAVE PLAYED A CENTRAL ROLE IN THE EVENT OF SEPTEMBER 11th, OR AT LEAST
WERE A FACET OF THE PLANNING FOR THOSE TERRORIST ATTACKS. AND IT ONLY
CAME OUT THAT THAT WAS THE CASE A LITTLE BIT LATER, NOT MUCH LATER, BUT
IT WAS THANKS TO THE GOOD AND HARD WORK OF OTHER JOURNALISTS,
SPECIFICALLY MY COLLEAGUE DOUGLAS FARAH, WHO WORKS FOR THE "WASHINGTON
POST." SO JUST TO STEP BACK FOR A MINUTE OR TWO, I WANT TO TAKE A LOOK-I JUST WANT TO EXPLAIN TO YOU A LITTLE BIT ABOUT THIS WHOLE KIND OF
CAUSE-AND-EFFECT RIPPLE THAT HAS REALLY COME FULL CIRCLE AS OF SEPTEMBER
11th. WHEN DIAMONDS WERE FIRST DISCOVERED IN SIERRA LEONE IN THE 1930s,
THAT REPRESENTED A CONTINUING EXPANSION OF WHERE DIAMONDS WERE FOUND IN
THE WORLD. AT THE TIME, ACTUALLY MAYBE A COUPLE OF DECADES A LITTLE BIT
SOONER, DIAMONDS WERE AS RARE AS-- BACK THEN, AS THEY ARE PURPORTED TO BE
TODAY. THE THING THAT PROBABLY YOU GUYS KNOW MOST ABOUT DIAMONDS, WHICH
IS WHAT I DID WHEN I STARTED THIS PROJECT, WAS LITTLE MORE THAN I LEARNED
IN TELEVISION COMMERCIALS. DIAMONDS ARE FOREVER. GIVE HER A DIAMOND AND
IT WILL LAST FOR ANOTHER 1,000 YEARS OR WHATEVER THAT PARTICULAR SLOGAN
IS. ALL I REALLY KNEW ABOUT THEM WAS THAT THEY'RE EXTREMELY EXPENSIVE AND
THAT, IF I EVER HOPE TO GET MARRIED, I KNEW I WAS GOING TO HAVE TO BUY
ONE SOME DAY MANY AND THAT'S PRETTY MUCH THE WAY THE DIAMOND INDUSTRY
WANTS-- AND THAT'S ALL THE DIAMOND INDUSTRY WANTS YOU TO KNOW ABOUT THE
PRODUCTS THAT THEY SELL TO YOU. IT'S KIND OF A VERY OBSCURE INDUSTRY, OR
AT LEAST IT WAS UP UNTIL THE LAST COUPLE OF YEARS. SO KIND OF LOOKING AT
THIS WHOLE IDEA OF THIS HORRIBLE HELLHOLE ENVIRONMENT IN WEST AFRICA AND
DIAMONDS TOGETHER, THE TWO JUST SIMPLY DIDN'T MESH. YOU'VE GOT ONE
ENVIRONMENT THAT IS EXTREMELY NEGATIVE; EVERYTHING POSSIBLY THAT YOU CAN
THINK OF, A HELLISH WARFARE ENVIRONMENT, SIERRA LEONE HAD IN SPADES AND
THEN SOME. AND IN FACT THE REVOLUTIONARY UNITED FRONT, THE REBEL GROUP
THAT WAS CONDUCTING THE CIVIL WAR, HAD VIOLATED EVERY SINGLE WAR CRIME IN
GENEVA CONVENTION THAT THEY ACTUALLY MADE UP THEIR OWN WAR CRIMES AT SOME
POINT. THEY NEEDED ANOTHER ONE PERHAPS, BUT IT WAS INTENTIONAL MUTILATION
OF CIVILIAN NON-COMBATANTS. THEY WILL DO THIS BY AMPUTATING PEOPLE'S
ARMS, LEGS, BREASTS, THEIR TONGUE, THEIR EARS. IT WAS JUST KIND OF UP TO
WHATEVER THE COMMANDERS FELT LIKE DOING THAT PARTICULAR DAY, AND EACH OF
THE INDIVIDUAL SOLDIERS. AND THIS STRATEGY ACTUALLY SERVED A MILITARY
PURPOSE. IT WASN'T JUST PURE BARBARITY, ALTHOUGH IT CLEARLY SOUNDS LIKE
IT AND LOOKS LIKE IT. IT ACTUALLY SERVED THE PURPOSE OF CAUSING MASS
POPULATION MOVEMENTS AWAY FROM THE DIAMOND MINES, AND THE DIAMOND MINES
IN SIERRA LEONE ARE PARTICULARLY VALUABLE. THEY'RE VERY, VERY WEALTHY.
THEY-- LIKE I SAID, THEY WERE DISCOVERED IN 1930, AND SUDDENLY SIERRA
LEONE WAS ON THE MAP AS A DIAMONDIFEROUS REGION. IT WAS SOMETHING THAT
ONLY A VERY FEW, A VERY SMALL HANDFUL OF COUNTRIES IN THE WORLD HAD THIS
DESIGNATION THAT VERY FEW COUNTRIES HAD AT THAT POINT IN TIME. SO WHEN
DIAMONDS WERE DISCOVERED THERE, IT SHOULD HAVE BEEN AN INCREDIBLE BOON TO
THIS REGION AND THIS COUNTRY IN PARTICULAR. IT SHOULD HAVE BEEN SOMETHING
THAT WAS TAKEN AND EXPLOITED FOR THE BENEFIT OF THE GOVERNMENT AND FOR
THE BENEFIT OF THE PEOPLE WHO LIVE IN SIERRA LEONE BUT IN FACT DIAMONDS
HAVE PRETTY MUCH NEVER BEEN USE FOR THE BENEFIT OF THE PEOPLE IN SIERRA
LEONE. THE GOVERNMENT HAS NEVER HAD A GOOD HANDLE ON BEING ABLE TO
CONTROL THE RESOURCES AND EXPLOIT THEM TO THEIR OWN BENEFIT. WHAT
HAPPENED INITIALLY WAS THAT THE DE BEERS GROUP SET UP A SISTER COMPANY IN
SIERRA LEONE TO COME IN AND EXTRACT THE DIAMONDS ON A MONOPOLY BASIS,
BECAUSE AT THE TIME SIERRA LEONE WAS STILL ADMINISTERED BY THE CROWN OF
ENGLAND, SO THEY WERE PRETTY EASY TO BE ABLE TO KIND OF NEGOTIATE THIS
AGREEMENT. AND THAT DIDN'T WORK OUT TOO WELL BECAUSE SIERRA LEONE AT THE
TIME WAS THIS UNMAPPED JUNGLE, THIS WILD, UNTAMED JUNGLE WITH, YOU KNOW,
LIONS AND CHIMPANZEES OUT IN THE MIDDLE OF NOWHERE THAT NOBODY WAS
NECESSARILY AWARE OF ALL THE DIFFERENT VILLAGES AND ALL THE POPULATION
AND WHAT TYPES OF DIFFERENT RESOURCES HAD EVEN BEEN IN THE COUNTRY. IT
PROVED TO BE AN INCREDIBLY DIFFICULT MINING ENVIRONMENT AND IN FACT IT
WAS IMMEDIATELY SUSCEPTIBLE TO THE ONE KIND OF INHERENT COST OF BUSINESS
OF DIAMOND MINING, WHICH IS SMUGGLING. PEOPLE IMMEDIATELY, JUST LIKE THE
CALIFORNIA GOLD RUSH, FLOODED IN FROM DIFFERENT COUNTRIES. THE INDIGENOUS
PEOPLE QUIT WORKING FOR THE DE BEERS SISTER GROUP AND STARTED GOING IN IN
THE MIDDLE OF THE NIGHT AND DIGGING PILES OF DIRT AND THROWING THEM IN
THEIR PILLOWCASES AND TAKING THEM OVER THEIR SHOULDERS IN THE MIDDLE OF
THE NIGHT SO THEY COULD WASH THE DIRT AND LOOK FOR DIAMONDS THEMSELVES,
AND THEY OPENED DIAMOND SMUGGLING CHANNELS INTO LIBERIA AND INTO GUINEA
AND THEY STARTED SELLING THESE DIAMONDS ON THE OPEN MARKET AND PROVED A
FAIRLY LUCRATIVE TRADE. THAT'S THE WAY SIERRA LEONE'S DIAMONDS HAVE MORE
OR LESS ALWAYS BEEN THROUGHOUT THE FOLLOWING DECADES. IN 1991, 1992, THE
R.U.F. DECIDED TO COME IN AND ACTUALLY DO AN ARMED INSURGENCY. THEY
INVADED FROM LIBERIA. THEY EXPLOITED THE MINES. THEY RAN ROUGHSHOD OVER
THE VILLAGERS AND THE VERY, VERY KIND OF MINIMAL SECURITY AND POLICE
PROTECTION THAT WAS AVAILABLE THERE AT THE TIME, AND FOR ALMOST A DECADE
HAD COMPLETE CONTROL OF ALL OF THE PRODUCTION OF DIAMONDS IN SIERRA
LEONE. AND IT'S AT THIS POINT WHERE YOU KIND OF UNDERSTAND THE NARRATIVE
AND YOU UNDERSTAND, OKAY, THIS MIGHT HAVE BEEN WHAT HAPPENED, BUT BY AND
LARGE, IT'S EASY TO SAY "WHO CARES?" IT'S A SMALL CONFLICT. IT'S A CIVIL
WAR. IT HAS TO DO WITH THIS ONE LITTLE COMMODITY, AND IT'S IN THIS TEENY
LITTLE CORNER OF WEST AFRICA. IT'S EASY TO SEE WHY WESTERN GOVERNMENTS,
INCLUDING OUR OWN, REALLY DIDN'T WANT TO GET INVOLVED. TO UNDERSTAND THE
CONFLICT AS WHAT IT REALLY WAS, WHICH IS AN ONGOING KIND OF ECONOMIC
ACTIVITY; IT WAS ORGANIZED CRIME; IT WAS A JEWELRY HEIST THAT HAD BEEN
TAKING PLACE ON AND ON FOR TEN YEARS. THAT TOOK A LITTLE BIT MORE KIND OF
UNDERSTANDING AND A LITTLE BIT MORE OF A SAVVY P.R. CAMPAIGN THAN I THINK
ANYBODY WAS ACTUALLY WILLING TO COMMIT TO AT THAT TIME. BY THE TIME THE
SIERRA LEONE WAR REACHED ITS FEVER PITCH IN 1999, THE UNITED STATES AND
EUROPE WERE ALREADY VERY, VERY WELL DEEPLY ENTRENCHED IN THE BALKAN WARS
AND WHAT WAS HAPPENING IN KOSOVO. AT THE TIME OF ONE OF THE GREATEST
MASSACRES IN SIERRA LEONE, JANUARY 6, 1999, THAT WAS MERE MONTHS BEFORE
NATO STARTED BOMBING YUGOSLAVIA IN I THINK WHAT TURNED OUT TO BE A 77-DAY
CAMPAIGN THAT DRAGGED THE ENTIRE WORLD IN AND HAD RIGHTLY KEPT
EVERYBODY'S ATTENTION. SO THESE LITTLE REGIONAL CONFLICTS, THESE ARE THE
TYPE OF KIND OF FLARE-UPS THAT SEEM TO HAVE OCCURRED WITH REGULARITY IN
THE PAST 10 OR 20 YEARS WHERE THE UNITED STATES DOESN'T NECESSARILY HAVE
A-- DIDN'T SEEM TO HAVE A VERY FIRM STRATEGY ON EXACTLY HOW TO DEAL WITH
THEM. BACK IN THE '50s AND '60s, THE POLITICAL LANDSCAPE WAS DEFINED BY
THE COLD WAR. IT WAS VERY EASY TO SAY, WE'RE THE GOOD GUYS. DEMOCRACY
GOOD. COMMUNISM, U.S.S.R. BAD. AND ALL WE HAVE GOING FOR IT IS THIS VERY
BLACK-AND-WHITE ISSUE. THE LINE IS VERY, VERY CLEAR. OBVIOUSLY THAT'S A
SUPERFICIAL LINE THAT'S BEING FED TO MEDIA AUDIENCES BECAUSE THERE'S A
LOT OF COVERT STUFF THAT HAPPENS IN A WHOLE BUNCH OF DIFFERENT COUNTRIES
IN ORDER TO KIND OF KEEP THAT BALANCE AND TO GO UNDERNEATH THE RADAR, TO
EFFECT CERTAIN CHANGES IN DIFFERENT COUNTRIES. IN FACT THE UNITED STATES,
AIDING THE TALIBAN IN AFGHANISTAN AGAINST THEIR CAMPAIGN AND AGAINST THE
RUSSIANS COMES TO MIND. SO IT'S NOT HARD TO SEE WHY LITTLE CONFLICTS LIKE
THIS WERE NOT USED TO GETTING ANY ATTENTION FROM FOREIGN POLICY MAKERS IN
UNITED STATES. RWANDA IS ANOTHER EXAMPLE. BUTCHERY. THERE'S NO OTHER
EXPLANATION FOR THE SLAUGHTER THAT HAPPENED IN RWANDA. AND YET IT WAS
IGNORED. BOSNIA, IN THE HEART OF EUROPE, IT TOOK YEARS BEFORE THE UNITED
STATES DEVELOPED EVEN A SEMICOHERENT POLICY THAT IT COULD ARTICULATE TO
THE VOTERS OF THE WORLD TO SAY, OKAY, WE'RE ACTUALLY GOING TO GO IN AND
DO SOMETHING HERE. THERE IS NO NATIONAL SECURITY THREAT NECESSARILY, BUT
GOING IN IS MORALLY THE RIGHT THING TO DO. IT'S THE RIGHT THING TO DO TO
AID THEIR EUROPEAN ALLIES. SIERRA LEONE EVEN FELL SHORT OF ALL THOSE
THINGS, EVEN WHEN YOU COME DOWN TO IT'S THE MORALLY RIGHT THING TO DO.
YOU DON'T HAVE TO LOOK FAR. IN FACT YOU CAN LOOK EVEN IN AFRICA AT
SOMALIA. PRESIDENT CLINTON DECIDED THAT NOW THAT THE COLD WAR WAS OVER,
PERHAPS IN AN EXPERIMENTAL WAY, WE'RE GOING TO USE OUR MILITARY TO
DELIVER AID IN SOMALIA. THAT HAD DISASTROUS RESULTS AND DISASTROUS PUBLIC
RELATIONS RESULTS, AS A MATTER OF FACT. THE TRUTH OF THE MATTER IS THAT
SOLDIERS, U.S. SOLDIERS THERE, IF THEY DECIDED TO PUSH FORWARD AFTER THE
BIG BLACK HOP-DOWN GUNFIGHT, THEY PROBABLY WOULD HAVE BEEN ABLE TO SECURE
THAT TOWN AND KEPT ON GOING. MAKES YOU WONDER, YOU KNOW, IF THE
LEADERSHIP WAS DIFFERENT AT THE TIME, IF GEORGE BUSH WAS IN THERE, MAYBE
WE WOULD HAVE DONE SOMETHING LIKE THAT. BUT INSTEAD THE UNITED STATES
RETREATED BECAUSE IT WAS A PUBLIC RELATIONS DISASTER. 18 U.S. SOLDIERS
WERE KILLED IN THIS ONE 24-HOUR PERIOD, AND THE WAY IT LOOKED FROM THE
OUTSIDE, FROM THE OTHER SIDE OF THE NEWS LENS, WAS THAT WE DIDN'T KNOW
WHAT WE WERE DOING. WE HAD NO IDEA WHY WE WERE THERE. PEOPLE HAD NEVER
EVEN HEARD OF SOMALIA. AGAIN THEY'RE LIKE WHAT ARE WE DOING IN THIS
PLACE? WHY ARE OUR SOLDIERS GETTING KILLED FOR THESE FUTILE LITTLE FIGHTS
THAT REALLY DON'T HAVE ANYTHING TO DO WITH THE SECURITY OF OUR BORDERS?
WELL, SIERRA LEONE AGAIN, IT FELL DOWN ON THAT SCALE. NOBODY WAS WILLING
TO GET INVOLVED IN SIERRA LEONE BECAUSE, FROM A DISTANCE, IT LOOKED LIKE
NOT WHAT IT WAS. IT DIDN'T LOOK LIKE THIS ECONOMIC, ORGANIZED CRIME KIND
OF ACTIVITY. WHAT IT LOOKED LIKE WAS A MORASS THAT NOBODY WANTED TO GET
INTO. NOBODY WANTED TO GET THEMSELVES INVOLVED IN THIS REALLY COMPLICATED
CONFLICT THAT DISPLAYED OTHERWORLDLY BUTCHERY. I MEAN YOU'RE TALKING
ABOUT LITTLE CHILDREN WHOSE HANDS AND LEGS ARE CHOPPED OFF WITH HOMEMADE
MACHETES, HOMEMADE AXES. I'VE SEEN THESE THINGS. THEY'RE TREE BRANCHES
BASICALLY WITH A CRUDE PIECE OF METAL STRAPPED AROUND THE END, AND IT
OFTENTIMES TOOK 12 TO 15 BLOWS IN ORDER TO AMPUTATE AN ARM OR A LEG. AND
THERE ARE PLENTY OF THESE PEOPLE WHO ARE WALKING AROUND IN SIERRA LEONE,
AND THE APPETITE FOR-- PERHAPS WE SHOULD INTERVENE HERE, JUST REALLY
WASN'T WITH THE UNITED STATES. NOW THE DIFFICULTY IS THAT THE WHOLE WORLD
ENTERED A NEW KIND OF PARADIGM AFTER THE COLD WAR. COLD WAR ENDED AND
THERE WAS NO MORE GOOD, BAD, SUPER-POWER GLOBAL PRESENCES THREATENING
MUTUAL ANNIHILATION. WHAT INSTEAD YOU HAD NOW ARE THESE LITTLE POCKETS OF
RESISTANCE, THESE LITTLE TERROR CELLS WHO WERE POPPING UP LEFT AND RIGHT,
AND IN FACT THEY HAD BEEN POPPING UP MUCH SOONER THAN MANY OF US IN THE
UNITED STATES HAD BECOME AWARE OF THEM POPPING UP. AND THEY WERE A LITTLE
MORE SAVVY ABOUT WHAT THE U.S. WAS WILLING TO LOOK AT, WHAT THEY WERE
WILLING TO COMMIT TO AND WHAT THEY WERE WILLING TO PAY ATTENTION TO. AND
THE TRUTH WAS THAT NOBODY WAS PAYING ATTENTION TO THE INTERNATIONAL
DIAMOND INDUSTRY AND HOW IT WORKED. AND HOW IT WORKED WAS A VERY-- NOW IF
YOU WANT TO LOOK AT THIS IN A COMPLETELY CLINICAL FASHION, IT WAS A VERY
ADMIRABLE EXAMPLE OF A MONOPOLY AND HOW TO DO IT RIGHT. DE BEERS WAS
INSTITUTED IN 1888, AND AT THE TIME, IN SOUTH AFRICA, IT UNDERWENT THIS
HUGE BOOM. WHEN DIAMONDS WERE FIRST DISCOVERED IN SOUTH AFRICA, EVERYBODY
THOUGHT THAT YOU COULD ONLY FIND DIAMONDS IN EITHER INDIA OR BRAZIL, THE
ONLY TWO PLACES. SO THEY FOUND A BIG WHOPPER OF A DIAMOND ONE DAY IN
SOUTH AFRICA. IT WAS WRITTEN OFF AS A FLUKE. CAN'T FIND THOSE ANYWHERE.
THAT'S JUST-- SOMEBODY MUST HAVE DROPPED IT. WELL, THEY FOUND ANOTHER BIG
WHOPPER, THEN ANOTHER, THEN ANOTHER. PRETTY SOON PEOPLE WERE DIGGING UP
THE STREETS, DIGGING UP THEIR LATRINES. HOUSES WERE FALLING INTO THE
MINES. I MEAN, IT WAS LITERALLY A HUGE SWISS-CHEESE ENVIRONMENT. THE
PICTURES OF IT ARE INCREDIBLE. IT LOOKS LIKE THE MOON WITH A WHOLE BUNCH
OF LITTLE WOODEN HOUSES UP ON PEDESTALS WHERE THEY DIDN'T DIG IT OUT
COMPLETELY. AND MINERS CAME FROM EVERYWHERE. THE BEST GEM HOUSES IN
EUROPE SENT THEIR BEST GUYS. YOU KNOW, THEY ALL RAN DOWN THERE. THEY ALL
WANTED A BIG PIECE OF THE PARTY, AND EVERYBODY WAS GETTING RICH. PEOPLE
WERE FINDING DIAMONDS LEFT AND RIGHT. SO IF THIS ROOM IS SOUTH AFRICA AND
ALL OF YOU GUYS ARE THE MINERS, WHAT DE BEERS DID, IN THE FORM OF CECIL
RHODES, THE FOUNDER, WAS THAT CECIL STOPPED AND THOUGHT INTO THE FUTURE
FOR A LITTLE BIT. HE THOUGHT A COUPLE OF MOVES DOWN THE LINE, AND BEING
THE INCREDIBLY SMART PERSON THAT HE WAS, HE UNDERSTOOD SUPPLY AND DEMAND,
THAT IF EVERY ONE OF YOU GUYS KEEPS FINDING YOUR DIAMONDS AND WE ALL SELL
THEM OFF TO THE OPEN MARKET TO EVERYBODY WHO WANTS THEM, IT'S NOT GOING
TO BE LONG BEFORE THE PRICE OF DIAMONDS COMES DOWN BECAUSE EVERYONE'S
FINDING GREAT DIAMONDS. SO IF I'M CECIL, I WOULD GO TO YOU AND YOU AND
YOU AND SAY SELL ME YOUR SHARES, GIVE ME YOUR MINES. LET'S GET TOGETHER.
LET'S HAVE ONE BIG COMPANY. ALL THE DIAMONDS WILL GO INTO THAT ONE BIG
COMPANY AND WE'LL CONTROL THE SUPPLY OF ALL THE DIAMONDS IN THE WORLD.
AND THAT'S EXACTLY WHAT HAPPENED. WHEN DE BEERS WAS INCORPORATED IN 1888,
CECIL WAS 35 AND HE CONTROLLED, I THINK THE FIGURE IS 95% OF THE RAW
DIAMOND PRODUCTION IN THE ENTIRE WORLD AT THE TIME. AND THAT'S AN AMAZING
AMOUNT OF WEALTH. THE PROBLEM WITH THE MODEL, AT LEAST THE SEMIPROBLEM
WHEN IT CAME TO CONFLICT DIAMONDS, WAS THAT FOR DE BEERS TO KEEP UP WHAT
IT HAD DONE, IT WAS REQUIRED TO GO AND KEEP ON TOP OF ALL THE DIAMONDS
WHEREVER THEY WERE FOUND IN THE WORLD. AND DIAMONDS WERE NOT CONFINED TO
JUST SOUTH AFRICA, INDIA AND BRAZIL. THEY STARTED POPPING UP EVERYWHERE
ELSE. THEY CAME UP IN NAMIBIA. THEY CAME UP IN BOTSWANA. THEY'RE FOUND IN
RUSSIA, WHICH IS THE SECOND LARGEST PRODUCING COUNTRY IN THE WORLD NOW.
THEY'RE FOUND IN CANADA. THEY'RE FOUND IN THE UNITED STATES, AS A MATTER
OF FACT. SO DE BEERS IMMEDIATELY IMPLEMENTED THIS REALLY AGGRESSIVE
STANCE WHEREBY IT WOULD SWOOP IN; IT WOULD NEGOTIATE WITH THE GOVERNMENT,
OR IT WOULD BUY THE CLAIMS TO THE MINE SO THAT IT COULD KEEP ITS CONTROL
ON THE SUPPLY. AND THE ONLY REASON TO KEEP THE CONTROL IN THE SUPPLY IS
SO THAT YOU CAN DICTATE THE PRICE. THAT'S ONLY HALF THE EQUATION. THE
OTHER HALF OF THE SUPPLY AND DEMAND IS THE DEMAND PART. THERE'S NO
INTRINSIC VALUE TO DIAMONDS. THEY ARE WORTHLESS STONES FOR THE MOST PART.
THEY'RE VERY, VERY HARD, AND THEY'RE VERY GOOD FOR CUTTING OTHER HARD
THINGS, BUT THAT CHARACTERISTIC TRANSLATES INTO I THINK-- THE LAST FIGURE
I HEARD WAS ABOUT 30 TO $40 PER CARAT BECAUSE OF ITS HARDNESS. BUT WHEN
IT COMES TO BEAUTY AND CLARITY AND REFRACTION OF THE LIGHT, THEY CAN'T BE
BEAT IN TERMS OF REALLY PRETTY STONES. BUT IN ORDER TO MANUFACTURE THIS
DESIRE FOR THEM, THEY EMBARKED ON THIS INCREDIBLE CAMPAIGN, AND IN FACT
AGAIN WE WERE TALKING ABOUT THIS AT DINNER. I THINK IT WAS IN 1930s WHEN
THE PHRASE "A DIAMOND IS FOREVER" WAS FIRST COINED BY A SECRETARY AT THE
DE BEERS CONSORTIUM. AND LO AND BEHOLD THAT BECAME ONE OF THE GREATEST
MARKETING SLOGANS IN THE HISTORY OF HUMAN COMMERCE. AND IT ENDURES TO
TODAY. AND WHAT IT IMPLIES IS THAT, WHEN PEOPLE FALL IN LOVE, THEY ARE
REQUIRED TO HAVE A DIAMOND TO IMMORTALIZE IT FOR FOREVER. I MEAN, ANYBODY
HERE MARRIED? HAVE YOU HEARD-- OKAY. YOUR HUSBAND PROBABLY WENT TO THE
JEWELER AND THE JEWELER PROBABLY SAID, WITH A LOT OF GRAVITY, YOU KNOW,
IF YOU WANT TO BUY THE-- YOU HAVE TO PUT ASIDE TWO OR THREE MONTHS' WORTH
OF SALARY. THAT'S THE TYPICAL PRICE OF A DIAMOND. WHO CAME UP WITH THAT?
THE DIAMOND INDUSTRY CAME UP WITH THAT. THERE'S NO-- I MEAN THAT'S NOT
SOMETHING THAT'S HANDED DOWN IN TRADITION, OTHER THAN BY THIS COMPANY,
THIS INDUSTRY. SO UNFORTUNATELY, IN ORDER TO KEEP TRACK OF THE SUPPLY, IN
ORDER TO KEEP ON TOP OF WHERE ALL OF THE DIAMONDS WERE BEING FOUND, THAT
MEANT DOING BUSINESS WITH SOME PRETTY UNSAVORY CHARACTERS FROM TIME TO
TIME. AND THAT IS THE WHOLE POINT BEHIND CONFLICT DIAMONDS, BECAUSE THE
R.U.F., REVOLUTIONARY UNITED FRONT, REALIZED BECAUSE OF THE WEALTH AND
THIS ARTIFICIAL WEALTH PLACED ON DIAMONDS, THEY COULD BE LIQUIDATED
PRACTICALLY IMMEDIATELY, AS LONG AS YOU GET THEM INTO THE RIGHT HANDS.
DIAMONDS ARE AMONG THE MOST PORTABLE FORMS KNOWN TO MAN. YOU CAN CARRY
HUNDREDS OF THOUSANDS OF DOLLARS, MILLIONS OF DOLLARS WORTH OF DIAMONDS
ON YOUR NAKED BODY. YOU CAN SWALLOW THEM AND FIND SOME PRIVACY TO
RETRIEVE THEM LATER. THEY WILL NEVER SET OFF AN AIRPORT METAL DETECT
TOMORROW. ONCE THEY'RE REMOVED FROM THE SOURCE, THEY ARE VIRTUALLY
UNTRACEABLE SO YOU CAN'T TELL WHERE THEY CAME FROM IN THE FIRST PLACE. I
TALKED TO MANY A JEWELER WHO SAYS YOU TAKE A DIAMOND AWAY FROM THE SOURCE
AND YOU'LL NEVER BE ABLE TO TELL WHERE IT CAME FROM. SO THEY SERVE
NEFARIOUS PURPOSES VERY, VERY WELL. THEY'VE GOT THIS EXTREMELY HIGH
ARTIFICIAL VALUE. THEY'RE VERY SMALL. THEY'RE EXTREMELY PORTABLE. THEY
COULD BE MOVED AROUND THE WORLD WITH EASE AND THEY COULD BE EASILY
LIQUIDATED. THERE WAS NOBODY ON THE OPEN MARKET WHO WAS BUYING DIAMONDS
BECAUSE OF THIS ARTIFICIAL VALUE WHO WAS GOING TO TURN THEM AWAY IF THEY
THOUGHT THAT THEY WERE FROM A QUESTIONABLE SOURCE. NOBODY EVER EVEN
BOTHERED TO ASK. IN FACT, THE COUNTRIES LIKE LIBERIA AND GAMBIA AND OTHER
SMALL WEST AFRICAN COUNTRIES, SOME OF WHICH DON'T EVEN HAVE DIAMOND
MINES, WERE EXPORTING TO BELGIUM INCREDIBLE AMOUNTS OF DIAMONDS DURING
THE R.U.F. WAR. THAT'S THE TIMES WHEN THERE WAS A U.S. SANCTION ON
DIAMONDS BEING EXPORTED FROM SIERRA LEONE. THE ONLY POSSIBLE EXPLANATION
WAS THAT THE REBELS WERE SMUGGLING THEM OUT TO OTHER PLACES AND THEN THEY
WERE BEING EXPORTED INTO THE LEGITIMATE CHANNELS, WHERE THEY WERE BOUGHT
BY DIAMOND TRADING COMPANY AT DE BEERS OFFSHOOT AND PUT INTO A VAULT IN
LONDON, WHERE THEY LITERALLY HOARDED ALL OF THE DIAMONDS. THE DIAMONDS
WERE RELEASED ON A FIVE-WEEK CYCLE. EVERY FIVE WEEKS, A HAND-SELECTED
CADRE OF PREFERRED BUYERS WOULD SHOW UP IN LONDON WITH A BRIEFCASE FULL
OF CASH IN ONE HAND AND THEY'D PUT IT ON THE TABLE AND THEY'D TURN AROUND
AND PICK UP A BRIEFCASE FULL OF DIAMONDS IN THE OTHER AND WALK OUT THE
FRONT DOOR. HAPPENED EVERY FIVE WEEKS. SOMETIMES YOU GOT GREAT PARCELS OF
DIAMONDS. SOMETIMES YOU GOT TERRIBLE PARCELS OF DIAMONDS BUT YOU NEVER
COMPLAINED TO DE BEERS BECAUSE YOU WERE A HAND SELECTED BUYER AND DE
BEERS IS THE LARGEST SUPPLIER OF ROUGH STONES IN THE WORLD, STILL IS. SO
IT'S THIS KIND OF INTERDEPENDENCY OF THE SYSTEM THAT REALLY TRANSCENDS
KIND OF GOVERNMENTAL BOUNDARIES AND POLITICAL BOUNDARIES THAT WAS
EXPLOITED BY THE R.U.F., AND THEY USED THEIR FUNDS TO HAVE PERSONAL BANK
ACCOUNTS. THEY USED IT TO RESUPPLY THEIR MILITARY HARDWARE. THEY USED IT
TO BUY DRUGS. THEY PUT IT ASIDE. ESTIMATES ARE THAT SOME 75 TO $125
MILLION A YEAR WORTH OF ILLEGAL DIAMONDS LEFT SIERRA LEONE DURING THE
HEIGHT OF THE REBEL WAR. THAT DOESN'T SOUND LIKE VERY MUCH, BUT THE KIND
OF UNDERSTOOD COST OF DIAMONDS WAS THAT THEY COST BETWEEN 10 AND 15% OF
WHAT THEY WOULD OTHERWISE SELL AS ROUGH STONES IF THEY WERE MINED IN A
LEGITIMATE ENVIRONMENT. SO THE UPMARK ON THEM, ON THE OTHER END AS THEY
WENT THROUGH THE PIPELINE, WAS BEING CUT, POLISHED AND SET INTO JEWELRY
AND THEN GIVEN TO SOMEBODY AS A NICE TENNIS BRACELET OR A SET OF DIAMOND
EARRINGS, WAS INCREDIBLY HIGH. IT WOULD REACH EXPONENTIAL PROPORTION OF
THEIR VALUE. WELL, THIS WAS PRETTY WELL KNOWN TO MANY IN THE DIAMOND
INDUSTRY. IT'S KIND OF HARD TO HAVE A GREAT AFRICAN OUTPUT OF DIAMONDS
FROM GAMBIA, WHICH DOESN'T HAVE ANY DIAMOND MINES AND HAS ACTIVE
SANCTIONS ON EXPORTS FROM SIERRA LEONE, LIBERIA, AND ANGOLA AND CONGO.
BUT THE DIAMOND INDUSTRY HAD THIS DON'T ASK, DON'T TELL POLICY. AND THE
ONLY PROTOCOLS FOR GETTING DIAMONDS INTO BELGIUM WERE FOR DIAMOND
IMPORTERS TO FILL OUT WHERE THE COUNTRY WAS THAT THEY LAST CAME FROM.
WHERE ARE YOUR DIAMONDS COMING FROM? OH, THESE ARE SWISS. YOU COULD
PRACTICALLY SAY ANY COUNTRY YOU LITERALLY JUST FLEW IN FROM. I JUST FLEW
IN FROM CHICAGO VIA COLORADO. SO IF I SMUGGLED DIAMONDS FROM COLORADO, I
COULD FILL OUT ON THE FORM THESE WERE CHICAGO DIAMONDS. THEY WERE
APPARENTLY LOOKED AT WITH REALLY NO BIG DEAL AND PUT INTO THE SYSTEM AND,
YOU KNOW, BECAUSE THE WHOLE POINT OF THE DIAMOND INDUSTRY WAS TO MAKE
MONEY AND KEEP THE PROFITS CHURNING AND KEEP THE PRICE HIGH. BECAUSE THEY
CAME FROM NEFARIOUS GUYS WHO WOULD CHOP OFF ARMS AND LEGS AND KILL LITTLE
KIDS AND RECRUIT ORPHANS INTO THEIR RANKS TO MURDER CIVILIANS, THERE WAS
NEVER ANY REAL KIND OF MORAL QUESTIONING OF WHETHER OR NOT THAT SHOULD
HAPPEN, BECAUSE FROM A BUSINESS MODEL, WHICH IS HOW ALL THESE DECISIONS
HAVE BEEN MADE THROUGHOUT THE LAST CENTURY, FROM A BUSINESS MODEL IT MADE
SENSE TO CONTINUE WITH THIS PRACTICE, TO CONTINUE WITH ALLOWING CONFLICT
DIAMONDS TO KIND OF GO ON UNDER THE RADAR BECAUSE, WELL, IT WAS GOOD FOR
BUSINESS. NO ONE WAS COMPLAINING ABOUT IT. THEY WERE GETTING GREAT
DIAMONDS. SIERRA LEONE AND ANGOLA ARE SOURCES OF SOME OF THE BEST
DIAMONDS THAT HAVE EVER BEEN DISCOVERED AND WE WANT THEM ON THE MARKET.
WE WANT THEM TO MAKE MONEY ON THEM. WE WANT THEM TO BE PURCHASED AND CUT
IN SMALLER STONES AND JUST KEEP THE MONEY FLOWING FOR US. IT WASN'T UNTIL
IN THE LATE 1990s WHEN N.G.O.s, NON-GOVERNMENTAL ORGANIZATIONS, STARTED
TO RAISE QUESTIONS ABOUT WHERE SOME OF THESE CAME FROM. WHERE, YOU KNOW,
ANGOLAN DIAMONDS ARE DIAMONDS THAT ARE BEING BROUGHT IT GREAT PROPORTION.
THAT WAS ONE OF THE BOASTS OF 1996 DE BEERS ANNUAL REPORT WHERE THEY HAD
GREAT SALES ONE YEAR, AND THEIR CHAIRMAN WAS EXPLAINING, YOU KNOW, HOW
THEY CAME UP WITH THESE GREAT NUMBERS. OH, ANGOLAN DIAMOND. PRODUCTION'S
WAY UP AND THESE BRAVE PEOPLE ARE OUT THERE BUYING THESE DIAMONDS ON THE
OPEN MARKET. WELL, IT TURNS OUT THAT AT THE TIME HE MADE THOSE COMMENTS,
THE REBELS IN ANGOLA WERE IN CONTROL OF 70% OF ALL THE DIAMOND MINES OUT
THERE. SO THEY WERE USING FORCED SLAVE LABOR TO EXTRACT THE DIAMONDS AND
SEND THEM OFF INTO MARKET. SO THERE CAME A POINT WHEN THESE N.G.O.s
FINALLY STARTED RAISING THESE MORAL QUESTIONS AND STARTED SAYING, HEY,
HOLD ON; THIS ISN'T RIGHT. SOMETHING NEEDS TO BE DONE. PEOPLE BECAME
OUTRAGED. SUDDENLY THE TERM CONFLICT DIAMONDS WAS ACTUALLY COINED, AND
PEOPLE SUDDENLY STARTED ASKING QUESTIONS ABOUT THE ORIGINS OF THESE
STONES IN THE CORNER JEWELRY STORE. AND IT WAS ONLY AT THAT POINT WHEN
THE MARKET STARTED TO BACKLASH AGAINST THE DIAMOND INDUSTRY, WHEN PEOPLE
STARTED TO WHISPER THE DREADED "B" WORD, BOYCOTT, THAT SUDDENLY, OKAY,
THE DIAMOND INDUSTRY DID AN ENTIRE 180 AND, HEAD BY DE BEERS, WHICH ENDED
OPEN BUYING IN ANY MARKET BASE, AND THAT MEANS ANYWHERE SOMEBODY'S
SELLING A DIAMOND, DE BEERS WAS WILLING TO BUY IT. SO THEY ENDED THE OPEN
MARKET BUYING AND THEY JUST CONCENTRATED ON KEEPING THEIR OWN DIAMOND
PRODUCTION GOING WHERE THEY HAD MINES IN NAMIBIA, BOTSWANA AND SOUTH
AFRICA. AND THEY STARTED PUTTING THE CERTIFICATES INTO ALL THEIR PARCELS
THAT THEY WERE GIVING TO THE SITE HOLDERS SAYING WE GUARANTEE NONE OF
THESE DIAMONDS HAVE COME FROM ANY CONFLICT AREAS. SO THAT WAS A LITTLE
DISINGENUOUS. THAT REALLY DIDN'T GO FAR WITH THE PEOPLE WHO KNEW A LITTLE
BIT ABOUT THE INDUSTRY BECAUSE, LIKE I MENTIONED, DE BEERS HAD THIS $4
BILLION STOCKPILE WORTH OF DIAMONDS IN THEIR VAULT, AND THAT HAD BEEN
GATHERED OVER THE DECADES SO NOBODY REALLY KNEW WHERE ANY OF THOSE
DIAMONDS CAME FROM. YOU COULDN'T PICK ONE UP AND SAY OH, THIS ONE'S FROM
SIERRA LEONE. LET'S NOT USE IT. SO THERE WAS LITTLE GUARANTEE THERE. IN
1999/2000, THAT'S WHEN THE KIMBERLEY PROCESS STARTED TO PICK UP STEAM.
THIS WAS AN EFFORT BY DIAMOND-PRODUCING COUNTRIES, NON-GOVERNMENTAL
ORGANIZATIONS AND THE DIAMOND INDUSTRY ITSELF TO DEVELOP SOME SORT OF A
PROGRAM TO END THE TRADE IN CONFLICT DIAMONDS, TO TRY TO FIGURE OUT
EXACTLY WHAT MECHANISMS CAN BE USED WHILE THESE ARMED CONFLICTS ARE GOING
ON WHERE DIAMONDS ARE INVOLVED. HOW CAN WE KEEP THOSE FROM GETTING IN THE
MAIN CHANNELS? KIMBERLEY PROCESS EVOLVED BECAUSE SEVERAL OTHER IDEAS
PEOPLE HAD JUST TURNED OUT TO BE NOT FEASIBLE WHATSOEVER. THERE WERE
IDEAS WHERE MAYBE YOU COULD BRAND THE DIAMONDS ON-SITE ONCE THEY'RE
PULLED OUT OF THE MINE. YOU BRAND THEM WITH A LITTLE LASER BRAND. THAT
JUST PROVED TOO COST-PROHIBITIVE. ANOTHER IDEA WAS TO VAPORIZE A LITTLE
PORTION OF THE DIAMOND WITH A LASER BEAM AND THEN DO MASS SPECTROMETRY.
YOU COULD FIGURE OUT EXACTLY WHICH MINE IT CAME FROM IN THE WORLD, SO YOU
COULD FIGURE OUT IF IT'S BEEN IN AN AFRICAN MINE OR A RUSSIAN MINE. BUT
THAT JUST PROVES TECHNOLOGICALLY INFEASIBLE AS WELL. SO THE KIMBERLEY
PROCESS IS A SCHEME WHEREBY ANY DIAMONDS THAT IMPORT OR EXPORT COUNTRIES,
AND THIS IS DONE A PARTICIPANT BASIS. YOU ACTUALLY HAVE TO SIGN UP FOR IT
AND AGREE TO IT. THEN YOU'RE ABLE TO MOVE DIAMONDS ACROSS YOUR BORDERS,
AS LONG AS THOSE DIAMONDS ARE ACCOMPANIED BY A CERTIFICATE, WHICH
GUARANTEES THEIR AUTHENTICITY, AND WHAT IT'S SUPPOSED TO DO IN THEORY IS
TO SHOW THAT ALL THESE DIAMONDS HAVE BEEN ACCOUNTED FOR FROM THE MOMENT
THAT THEY WERE MINED, THROUGH EVERYBODY'S HANDS IN THE COUNTRY OF ORIGIN,
UNTIL THEY WERE FINALLY PUT INTO A SECURITY BOX WITH AN UNFORGEABLE PAPER
TRAIL OF DOCUMENTS. YOU CAN LOOK AT THE ORIGIN OF ALL THESE STONES AND
FIGURE OUT WHERE THEY ALL COME FROM. THIS ONLY COVERS ROUGH STONES. AT
THAT POINT YOU'RE ABLE TO EXPORT THEM AND THEN YOU GET THE PARCEL IN YOUR
COUNTRY WHERE YOU'RE GOING TO CUT AND POLISH THEM AND SUPPOSEDLY
EVERYTHING IS GOOD TO GO. I'M GOING TO LEAVE-- I THINK I'M GETTING CLOSE
TO MY-- AM I GETTING THERE? I'VE GOT FIVE MINUTES. OKAY, GREAT. I CAN
DRONE ON EVEN MORE. I'M GOING TO LEAVE MANY OF THE PARTICULARS ABOUT THE
KIMBERLEY PROCESS TO TIM, WHO'S LISTENING FROM OTTAWA, BUT I WILL SAY
THAT THERE'S-- I THINK AT THIS POINT THERE'S 45 COUNTRIES WHO-- MID 40s,
I'M NOT SURE OF THE EXACT NUMBER, WHO ARE NOW PARTICIPATING. SOME
COUNTRIES ARE NOT PARTICIPATING, AND THEY HAVE BEEN BANNED FROM BEING
ABLE TO IMPORT OR EXPORT DIAMONDS. THIS IS AN AREA THAT I'M SURE TIM
WOULD BE HAPPY TO TALK ABOUT. I BELIEVE LEBANON IS ACTUALLY ONE OF THOSE
COUNTRIES. OTHER COUNTRIES HAVE BEEN FOUND NOT TO BE COMPLYING WITH THESE
PROTOCOLS, NOT TO BE PUTTING FORTH THE PROPER SET OF PROTOCOLS IN ORDER
TO ENSURE THAT THE KIMBERLEY PROCESS IS BEING FOLLOWED PROPERLY, AND
THEY'VE BEEN BANNED. IN FACT REPUBLIC OF CONGO IS ANOTHER ONE THAT COMES
TO MIND. SO THE QUESTION, HOWEVER, THAT MANY PEOPLE HAVE IS JUST EXACTLY
HOW EFFECTIVE IS THIS AT ENDING CONFLICT? OR THE TRADE IN CONFLICT
DIAMONDS. I HAVE MY SKEPTICISM SIMPLY BECAUSE I HAVE BEEN IN THE
ENVIRONMENTS WHERE THE DIAMONDS HAVE ACTUALLY BEEN MINED. I'VE SEEN THEM
COME OUT OF THE GROUND, AND YOU HAVE TO KEEP IN MINDS THAT THIS INDUSTRY
IS A $6 BILLION-A-YEAR INDUSTRY, AND IT LITERALLY INVOLVES PEBBLES THAT
CAN BE SWALLOWED OR SMUGGLED IN ANY WAY THAT YOU CAN POSSIBLY CONCEIVE.
ANYBODY WITH AN IMAGINATION CAN FIGURE OUT HOW TO STEAL THOUSANDS AND
HUNDREDS OF THOUSANDS OF DOLLARS WORTH OF ROUGH DIAMONDS AND MOVE THEM
ACROSS BORDERS. I'M NOT SURE I KNOW OF VERY MANY INSTANCES WHERE DIAMONDS
HAVE BEEN THROWN AWAY BECAUSE THEIR ORIGIN HAS BEEN SUSPICIOUS OR WHERE
THERE WASN'T A POSSIBILITY THAT DIAMONDS FROM A QUESTIONABLE ORIGIN COULD
BE MIXED IN WITH DIAMONDS FROM A KNOWN ORIGIN. AND THEN THAT BOX GETS
CERTIFIED AS BEING FROM A LEGITIMATE SOURCE. IT'S THE PROPERTY OF THE
COMMODITY THAT IS MEANT TO BE REGULATED THAT IS THE CAUSE FOR THE MOST
SKEPTICISM FOR MANY PEOPLE IN THE WORLD. THERE'S A COUPLE OF OTHER
SERIOUS CONCERNS AS WELL, SOME OF WHICH ARE BEING ADDRESSED. ONE OF THEM
IS THE ABILITY TO MONITOR THESE COUNTRIES THAT ARE PARTICIPATING AND TO
MAKE SURE THAT THEY'RE ACTUALLY FOLLOWING A UNIFORM SET OF PROVISIONS TO- SO THAT THE KIMBERLEY PROCESS IS BEING FOLLOWED UNIFORMLY ACROSS THE
GLOBE, THROUGHOUT ALL THESE PARTICIPATING COUNTRIES. WHAT ARE THOSE
PROTOCOLS? WHO IS GOING TO GO IN AND ACTUALLY INDEPENDENTLY ANALYZE
WHETHER OR NOT THEY'RE STEPPING UP TO THE PLATE AND MEETING THEIR
REQUIREMENTS THAT HAVE BEEN CALLED FOR? SO I THINK THAT MIGHT BE A GOOD
SPOT FOR ME TO MAYBE END IT HERE AND TURN IT OVER TO TIM, BECAUSE I KNOW
THERE HAVE BEEN SOME UPDATES AND SOME NEW DEVELOPMENTS, AT LEAST IN TERMS
OF THE NEW CHAIRMANSHIP FOR THE NEXT YEAR AND SOME REASSURANCES THAT HAVE
BEEN GIVEN TO THE INTERNATIONAL COMMUNITY IN THAT REGARD. TIM, IF YOU'RE
WITH US I'LL TURN IT OVER TO YOU. >> Tim: THANKS VERY MUCH, GREG, AND
YOU'RE A TOUGH ACT TO FOLLOW. PAUL IS THE MODERATOR. I HOPE YOU'LL
INTERRUPT ME IF THE EYES ARE GLAZING OVER, AND THAT'S SOMETHING I CAN'T
SEE. CAN YOU HEAR ME OKAY? >> Paul: I'LL KEEP MY EYE ON YOU-- ON THEM,
EXCUSE ME. >> Tim: THANKS VERY MUCH. IT'S WONDERFUL TO BE THERE
VIRTUALLY, IF I CAN'T BE THERE VIRTUOUSLY WITH YOU FOR THIS LECTURE, BUT
THANKS SO MUCH FOR INVITING ME TO COMMENT ON THIS. FIRST OF ALL I THINK
GREG'S PRESENTATION VERY, VERY WELL ILLUSTRATED HOW WE'RE ALL CONNECTED
ON THIS PLANET, NO MATTER WHERE WE LIVE, AND WE DO HAVE TO CARE ABOUT
SMALL REGIONAL CONFLICT, NOT ONLY FOR THE HUMANITARIAN AND MORAL REASONS
THAT ARE VERY OBVIOUS, BUT ALSO FOR NATIONAL SECURITY REASONS, BECAUSE
WHEN THERE ARE THESE REGIONAL CONFLICTS THAT CREATE VACUUMS OF THE RULE
OF LAW AND DEMOCRATIC GOVERNANCE, THAT VACUUM IS FILLED, AND SOMETIMES BY
ORGANIZED CRIME, WARLORDS OR EVEN TERRORISTS. BUT MOVING TO THE KIMBERLEY
PROCESS OR THE K.P., AS WE CALL IT, I'M GOING TO GIVE FULL DISCLOSURE. I
THINK IT'S A VERY GOOD SYSTEM. I THINK IT'S THE FIRST AND BEST EXAMPLE OF
THE INTERNATIONAL COMMUNITY ADDRESSING A CONFLICT COMMODITY IN AN
EFFECTIVE WAY. BUT GREG, YOU KNOW, WAS VERY RIGHT TO CAST A SKEPTICAL
GLANCE ON THIS. LET'S TRY AND GET PAST SOME OF THE SELF-CONGRATULATION
AND SEE IF IT'S DOING THE JOB THAT IT WAS INTENDED TO DO. SO I THINK
THERE'S A COUPLE BASIC QUESTIONS THAT THE KIMBERLEY PROCESS HAS TO
ANSWER. ONE: HOW MUCH OF THE DIAMOND TRADE DOES IT COVER? TWO: IF IT'S
VOLUNTARY, HOW DO YOU KNOW THAT IT'S REALLY BEING IMPLEMENTED, AND WHAT
CAN WE DO IF A COUNTRY BREAKS THE RULES? THREE: IS IT MAKING A DIFFERENCE
IN COUNTRIES THAT SUFFERED FROM CONFLICT DIAMONDS? AND FOUR: NOW THAT
CONFLICT DIAMONDS ARE OFF THE FRONT PAGES, WHY CONTINUE WITH THE
KIMBERLEY PROCESS? FIRST OF ALL, IN TERMS OF THE DIAMOND TRADE, JUST A
LITTLE BIT OF BACKGROUND, THE VALUE OF ANNUAL PRODUCTION OF ROUGH
DIAMONDS IS A LITTLE OVER $8.5 BILLION U.S. BUT ITS VALUE GOES BEYOND
THAT BECAUSE THIS ROUGH DIAMOND PRODUCTION FEEDS A DIAMOND JEWELRY
INDUSTRY THAT'S WORTH ABOUT $60 BILLION. TOP PRODUCERS IN RANK ORDER NOT
BY VALUE ARE BOTSWANA, RUSSIA, CANADA AND SOUTH AFRICA, FOLLOWED BY
ANGOLA, THE DEMOCRATIC REPUBLIC OF CONGO, AUSTRALIA, AND THEN A NUMBER OF
SMALLER PRODUCERS, INCLUDING SIERRA LEONE, FOR EXAMPLE. AND AS GREG SAYS,
IT HAS A PAST HISTORY OF SECRECY, UNREGULATION, AND LET'S FACE IT SOME
PRETTY SHADY DEALINGS. SO HOW MUCH OF THIS TRADE DO WE COVER NOW, IN
JANUARY 2005? THERE'S 44 COUNTRIES THAT ARE PARTICIPANTS, PLUS THE
EUROPEAN UNION. WE FIGURE THAT THAT COVERS 99.8% OF GLOBAL PRODUCTION.
THERE'S STILL A FEW COUNTRIES, LIBERIA WHICH IS UNDER SANCTIONS, GABON
AND INDONESIA, WHICH IS SEEKING TO PARTICIPATE, THAT ARE OUTSIDE THE
SCHEME. BUT STILL WE HAVE 99.8% OUTSIDE PRODUCTION INSIDE. IF IT'S
VOLUNTARY, HOW DO WE KNOW IT'S BEING IMPLEMENTED? WELL, AS GREG SAID,
WE'VE ESTABLISHED A MONITORING SYSTEM, AND I THINK, YOU KNOW, THIS IS
SOMETHING THAT'S NOT ALWAYS APPRECIATED IS THAT MONITORING IS USUALLY THE
ACHILLES HEEL OF INTERNATIONAL AGREEMENT. LET'S JUST LOOK AT IRAQ AND
IRAN. I MEAN, MUCH MORE DRAMATIC EXAMPLES. BUT THAT QUESTION OF
MONITORING COMPLIANCE HAS BEEN A FUNDAMENTAL PROBLEM WITH RESPECT TO ARMS
IN THOSE COUNTRIES. THIS ISN'T QUITE THE SAME, BUT WE'VE HAD TO WORK HARD
TO BUILD CREDIBILITY BY ESTABLISHING A MONITORING SYSTEM, WHICH WE DO BY
PUTTING TOGETHER TEAMS OF EXPERTS THAT GO FOR AN ON-THE-GROUND
ASSESSMENT. AND ONE OF THE THINGS THAT MAKES THE KIMBERLEY PROCESS
INTERESTING IS THAT IT'S A TRIPARTITE SYSTEM THAT INCLUDES GOVERNMENTS,
INDUSTRY AND CIVIL SOCIETY. SO WHAT WE DO IS WE FORM TEAMS OF FIVE
EXPERTS, THREE FROM GOVERNMENT, ONE FROM INDUSTRY AND ONE FROM CIVIL
SOCIETY, PRIMARILY INTERNATIONAL N.G.O.s SUCH AS GLOBAL WITNESS, TO GO
FOR ON-THE-GROUND INSPECTIONS. AND OVER THE PAST YEAR SINCE WE STARTED
THIS INSPECTION METHODOLOGY, WE'VE DONE 13 REVIEW VISITS. I WON'T GO
THROUGH THEM BUT THEY DO INCLUDE SOME OF THE TOUGH ONES LIKE THE
DEMOCRATIC REPUBLIC OF CONGO, EUROPE AND SOUTH AFRICA, AND THAT COVERS
80% OF GLOBAL EXPORTS AND MORE THAN 90% OF GLOBAL IMPORTS. OKAY. WHAT DO
YOU DO WHEN SOMEONE BREAKS THE RULES? AND IN FACT WE HAD A VERY EGREGIOUS
CASE OF THIS WITH THE REPUBLIC OF CONGO. NOW I DON'T KNOW HOW FAMILIAR
PEOPLE ARE THERE WITH AFRICAN GEOGRAPHY BUT THERE'S TWO CONGOS. ONE'S THE
BIG ONE, WHICH IS THE DEMOCRATIC REPUBLIC OF CONGO, THE D.R.C. OR "Dr.
CONGO," AS THEY SOMETIMES LIKE TO CALL THEMSELVES, AND THE R.O.C., WITH
THE CAPITAL BRAZZAVILLE, WHICH IS JUST NORTH OF THAT. WE HAD A SITUATION
THERE, WHERE CONGO BRAZZAVILLE WAS REPORTING 5 MILLION CARATS OF ANNUAL
EXPORT. THAT'S WORTH ABOUT $400 MILLION. AND THEY REPORTED ZERO
PRODUCTION. THEIR NEIGHBOR, THE DEMOCRATIC REPUBLIC OF CONGO, WHICH IS A
MAJOR DIAMOND PRODUCER, WAS WORRIED THAT THEIR STONES WERE BEING SMUGGLED
OUT OF THE REPUBLIC OF CONGO. SO WE HAD A GEOLOGICAL ASSESSMENT MADE OF
BRAZZAVILLE'S CAPACITY TO PRODUCE DIAMONDS, WHICH WAS VERY MARGINAL. I
WENT THERE TO TALK TO THE GOVERNMENT ABOUT THIS. WE HAD AN ON-THE-GROUND
INSPECTION, CONNED FIND ANY PRODUCTION, AND SO WE REMOVED THEM FROM THE
SYSTEM AND THEY'RE EXCLUDED FROM THE INTERNATIONAL TRADE IN ROUGH
DIAMONDS. I THINK THAT WAS A VERY IMPORTANT BRIDGE FOR US TO CROSS,
BECAUSE THIS PROBLEM OF COMPLIANCE WAS REALLY DRAINING OUR CREDIBILITY.
AND IN FACT THE HEADLINE ON MAY 28th ON THE FRONT PAGE OF "THE FINANCIAL
POST" IN LONDON WAS: "U.N.-BACKED CERTIFICATION TEAM TACKLES WORLD'S
MOST BLATANT CASE OF DIAMOND SMUGGLING." SO THAT WAS AN IMPORTANT BRIDGE
FOR US TO CROSS. IS IT MAKING A DIFFERENCE IN COUNTRIES THAT SUFFERED
FROM CONFLICT DIAMONDS? WELL, YES, IT IS, IN A VERY INTERESTING WAY.
LET'S TAKE SIERRA LEONE, WHICH HAS SUFFERED SO MUCH FROM CONFLICT
DIAMONDS. IN THE YEAR 2000, THEIR OFFICIAL EXPORTS WERE $10 MILLION. NOW
THAT DOESN'T MEAN THAT'S THEIR PRODUCTION. THAT'S BECAUSE THE GOVERNMENT
DIDN'T CONTROL THAT PRODUCTION. IT WAS GOING THROUGH REBEL CHANNELS AND
THROUGH LIBERIA AND CHARLES TAYLOR, THE WELL-KNOWN WAR CRIMINAL, WHO WAS
DOMINATING THAT CONFLICT DIAMOND BUSINESS. WELL, IN 2004, THEY REPORTED
$130 MILLION WORTH OF EXPORTS, FROM 10 MILLION UP TO $130 MILLION. AND
THAT'S BECAUSE IT IS ILLEGAL FOR DIAMOND IMPORTERS WHO ARE INSIDE THE
KIMBERLEY PROCESS TO IMPORT DIAMONDS WITHOUT A CERTIFICATE. THAT INCLUDES
UNITED STATES, WHICH IS A VERY IMPORTANT PARTICIPANT, AND ITS
PARTICIPATION IS REGULATED BY THE CLEAN DIAMOND TRADE ACT, WHICH STATES
THAT THE PRESIDENT SHALL PROHIBIT THE IMPORTATION INTO OR EXPORTATION
FROM THE U.S. OF ANY ROUGH DIAMOND FROM WHATEVER SOURCE THAT HAS NOT BEEN
CONTROLLED THROUGH THE KIMBERLEY PROCESS CERTIFICATION SYSTEM. AND
FINALLY, NOW THAT CONFLICT DIAMONDS ARE OFF THE FRONT PAGES AND, YOU
KNOW, FORTUNATELY WE LOOK AT ANGOLA; WE LOOK AT THE DEMOCRATIC REPUBLIC
OF CONGO; WE LOOK AT SIERRA LEONE, EVEN LIBERIA. PEACE PROCESSES THERE
AND IN THE LAST THREE COUNTRIES, HUGE U.N. PEACEKEEPING FORCES OF ABOUT
10,000 TROOPS APIECE. WELL, THOSE PEACEKEEPING FORCES SHOW THAT THESE
PEACE PROCESSES ARE VERY FRAGILE AND THINGS COULD GO OFF THE RAILS. SO WE
BELIEVE VERY MUCH THAT WE HAVE TO KEEP CONTROLLING THIS INTERNATIONAL
TRADE, THROUGH THE KIMBERLEY PROCESS, SO THESE DIAMONDS DON'T GET IN THE
HANDS OF REBELS AGAIN AND REIGNITE THESE CONFLICTS THAT HAVE CAUSED SO
MUCH PROBLEM. AND THAT'S NOT TO SAY THAT THERE AREN'T OTHER COUNTRIES
WHERE THERE MIGHT BE PROBLEMS WITH CONFLICT DIAMONDS THAT WE HAVE TO
WATCH. IN FACT, IN IVORY COAST, THERE IS A SITUATION WHERE THE REBELS ARE
IN CONTROL OF THE DIAMOND-PRODUCING AREAS, AND WE HAVE TO KEEP A VERY
CLOSE EYE ON THAT SITUATION. WE HAVE ADVISED ALL PARTICIPANTS TO BAN
EXPORTS-- TO BAN IMPORTS OF DIAMONDS FROM IVORY COAST, AND THAT IS IN
PLACE. SO I DON'T WANT TO GO ON TOO MUCH FARTHER ON THIS, BUT I JUST
WOULD LIKE TO PICK UP ON THE TITLE OF THIS, "THE PERIL OF IGNORING SMALL,
REGIONAL CONFLICTS." AND I THINK THAT'S SOMETHING THAT WE ALL HAVE TO
REFLECT ON. CANADA'S POLICY, WE CALL IT HUMAN SECURITY. ON THE ONE HAND,
THERE'S NATIONAL SECURITY. BUT ON THE OTHER HAND WE ALSO HAVE TO BE
WORRIED ABOUT THE SECURITY OF INDIVIDUALS AND LOOK AT SECURITY FROM THE
VANTAGE POINT OF VULNERABLE POPULATIONS SO THAT WE MAKE INTERNATIONAL
POLICIES AND ESTABLISH GLOBAL PUBLIC POLICY SO IT TAKES INTO ACCOUNT WHAT
ARE THE THREATS TO PEOPLE'S SAFETY? WHAT ARE THE THREATS TO PEOPLE'S
LIVES? AND WHAT ARE THE THREATS TO PEOPLE'S HUMAN RIGHTS? AND WE PUT IN
PLACE THE SYSTEM TO TRY AND REINFORCE PROTECTION AT THE INTERNATIONAL
LEVEL, AND THAT'S THE PERSPECTIVE THAT WE TAKE ON THE KIMBERLEY PROCESS.
AND, PAUL, I THINK I'LL JUST CONCLUDE MY REMARKS THERE. >> Paul: OKAY,
TIM. THANKS VERY MUCH. JUST HOLD ON, PLEASE, BECAUSE WE'LL PROBABLY BE
GETTING BACK TO YOU. OKAY? >> Mary: GOOD EVENING. I'M GOING TO OFFER A
MORE PERSONAL PERSPECTIVE FROM MY EXPERIENCES IN THE JEWELRY TRADE. I'M
NO LONGER ACTIVE AS A JEWELER. I KEEP MY HAND IN A LITTLE BIT, BUT MORE
AS AN OBSERVER. AND A SOMETIMES PURCHASER. MY HUSBAND CAN ATTEST TO THIS.
IN ANY CASE, I DON'T BUY DIAMONDS. I'M GOING TO STATE THAT UP FRONT. GREG
CAMPBELL'S BRAVE INVESTIGATIVE JOURNALISM HAS PRODUCED A STARTLING,
HORRIFYING ACCOUNT OF THE STATE OF THE DIAMOND TRADE TODAY, ONE WHICH WE
AS CONSUMERS SHOULD NOT IGNORE, AND HAS LEFT THOSE SAME CONSUMERS
CONFUSED AND FRUSTRATED. IT PRESENTS A MORAL DILEMMA. IS IT EVER POSSIBLE
TO BUY A DIAMOND THAT DOES NOT HAVE A SECRET HISTORY OF TERROR AND MISERY
ATTACHED TO IT? AND I WOULD ALSO POINT OUT AT THIS POINT THAT SOUTH
AFRICA'S HANDS ARE NOT CLEAN. THE DIAMOND BUSINESS HAS BEEN VERY DIRTY
FOR A VERY LONG TIME. IF YOU DON'T THINK SO, DO A LITTLE RESEARCH ON-GREG MADE A VERY GOOD POINT TALKING ABOUT HOW THAT ORIGINAL, YOU KNOW,
RUSH CREATED CHAOS IN THAT COUNTRY, AND I THINK WE'RE STILL SEEING THE
RESULTS OF THAT. QUITE FRANKLY SOUTH AFRICA IS A VERY UNLUCKY COUNTRY,
EVEN THOUGH IT IS NOW THE NEW SOUTH AFRICA. IT IS OFTEN DIFFICULT TO
SUGGEST PRACTICAL ALTERNATIVES IN OUR CONSUMER-DRIVEN SOCIETY WHEN
VIRTUALLY EVERY PAIR OF SHOES, CLOTHING OF ALL SORTS, TOYS, ELECTRONICS
AND ON AND ON, ALL MANUFACTURED OUTSIDE OF THE U.S., HAVE QUESTIONABLE
ORIGINS THAT WOULD TROUBLE US IF ONLY WE KNEW THE FULL STORY BEHIND THE
BARGAINS WE ENJOY AT TARGET OR WAL-MART. IT IS A GIVEN THAT IN OUR
CURRENT TROUBLED ECONOMY, MANY PEOPLE HAVE NO CHOICE BUT TO SEEK THOSE
BARGAINS. IT IS A DIFFERENT STORY WITH LUXURY GOODS. THERE WILL ALWAYS BE
BUYERS FOR THEM, AND THERE IS A THEORY THAT HOLDS THAT LUXURY GOODS,
ALONG WITH EDUCATION, WILL ALWAYS DO WELL EVEN IN HARD TIMES. AS A
JEWELER, I OFTEN OBSERVED PEOPLE MORE THAN WILLING TO SPEND WELL BEYOND
THEIR SLENDER MEANS TO BUY BOBBLES THAT WOULD EITHER EXPRESS THEIR LOVE
FOR ANOTHER OR TO REWARD THEMSELVES. SOME OF THOSE PEOPLE REWARDED
THEMSELVES EVERY WEEK. (Chuckling) SO-- SORRY. FOR SOME PEOPLE, THE
PURCHASE OF THE DIAMOND IS THE ONLY MAJOR JEWELRY THEY WILL EVER ACQUIRE.
OTHERS ARE COMPELLED TO SHOP FOR FINE JEWELRY, CARRIED TO EXTREMES, IT
MEANS AN ENDLESS APPETITE FOR STONES AND PRECIOUS METALS. THESE PEOPLE
ARE NOT LIKELY TO BE AFFECTED BY ANY REVELATIONS ABOUT THE SUFFERING
BEHIND THE ITEMS THEY COVET. I CAN VIVIDLY RECALL MY DISGUST WHEN CLIENTS
CAME INTO THE SHOP SPORTING A MASSIVE ROCK, AND HERE I HASTEN TO POINT
OUT THIS INCLUDES MEN AS WELL AS WOMEN. THEY WOULD WHINE THAT THE DIAMOND
THEY WORE NEEDED TO BE BIGGER, BRIGHTER, CLEANER AND, ABOVE ALL, MORE
DAZZLING, SO AS TO UNWITTINGLY FULFILL (Unclear) ABOUT THE NATURE OF
CONSPICUOUS CONSUMPTION. MUCH AS I LOVED WORKING WITH METAL AND PRECIOUS
STONES, I WAS REPULSED BY THE INQUISITIVENESS AND GREED THAT SEEMED TO
DRIVE THE INDUSTRY. YET I CONFESS TO BEING SHAMELESSLY SENTIMENTAL IN
DEALING WITH CLIENTS WHO WERE MAKING A HOPEFULLY ONCE-IN-A-LIFETIME
PURCHASE OF A DIAMOND ENGAGEMENT RING. A COUPLE SHOPPING TOGETHER WAS
USUALLY A PLEASANT EVENT, OFTEN CELEBRATED IN OUR DESIGN BUSINESS WITH A
CHAMPAGNE TOAST TO THEIR FUTURE HAPPINESS UPON A DELIVERY OF THE RING
AFTER THE RITUAL SKETCHES, WAXING, CASTING, STONE SELECTION AND POLISHING
HAD ALL BEEN FINISHED. IT SOUNDS LIKE FUN, AND IT USUALLY WAS; UNLESS OF
COURSE YOU SUSPECTED THAT THE PRICE WAS TOO STEEP FOR THE LOVEBIRDS, AND
THAT THEY'D BE BETTER SERVED BY BUYING A LESS PRICY DIAMOND AND USING
THAT CASH FOR SOMETHING MORE PRACTICAL, LIKE RIT TUITION OR A DOWN
PAYMENT ON A HOUSE. THE INDUSTRY'S FORMULA DICTATES THAT YOU SHOULD SPEND
THREE WEEKS' SALARY-- THAT'S THE CONSERVATIVE END OF IT. GREG MENTIONED
TWO TO THREE MONTH, AND OF COURSE THE INDUSTRY WOULD LIKE TO JACK IT UP
TO THAT POINT. THE OTHER FIGURE THROWN AROUND IS 6% OF YOUR ANNUAL
INCOME. THINK ABOUT THAT FOR A MINUTE. THE SIMPLE ACT OF WALKING OUT OF
THE STORE MEANS THAT THE VALUE OF THAT STONE DROPS ABRUPTLY, AND IT
CANNOT BE RETRIEVED. I DON'T KNOW ABOUT YOU, BUT THIS SEEMS WRONG AND
RIDICULOUS. IT DOESN'T STOP THERE. MOST OF US ARE WELL AWARE OF ONE OF
ADVERTISING MOST FAMOUS SLOGANS AND GREG REFERRED TO IT AS WELL. DE
BEERS, A DIAMOND IS FOREVER. THIS PHENOMENALLY SUCCESSFUL TELEVISION
CAMPAIGN BOASTS LAVISH PRODUCTION VALUES AND ARRESTING VISUALS, STIRRING
MUSIC MATCHED BY STARRY-EYED ROMANCE. DE BEERS' GENIUS HAS GONE BEYOND
ITS UNPRECEDENTED MANIPULATION OF THE MARKET, ASSURING THAT DIAMONDS WILL
ALWAYS BE COSTLY AND DESIRED. THEY HAVE SKILLFULLY MARKETED NEW ESSENTIAL
PRODUCTS: THE TENNIS BRACELET, THE ANNIVERSARY RING, THE GAUDY BALLERINA
RING, KNOWN TO THOSE OF US IN THE TRADE AS "ROCK PILES," ALL EXAMPLES OF
DE BEERS CREATING A DEMAND FOR THEIR PRECIOUS COMMODITY BEYOND THAT FIRST
DIAMOND PURCHASE. I RECENTLY NOTICED A NEW CAMPAIGN IS PROMOTING THE
RIGHT-HAND RING AS THE DIAMOND ENGAGEMENT RING AND WEDDING BAND ARE WORN
ON THE LEFT HAND, WHERE FOLKLORE SAID THE HELD THAT THE FINGER LED
STRAIGHT TO THE HEART, THE VEIN BEING THE ONE THAT GOES RIGHT TO THE
HEART. THERE'S A SUBTLE SUGGESTION THAT THE WOMAN HERSELF MIGHT PURCHASE
IT, AFFIRMING HER INDEPENDENCE AND ECONOMIC POWER, NO MATTER WHAT HER
MARITAL STATUS MIGHT BE. I FIND IT HARD TO BELIEVE THAT IF THE FACTS WERE
BETTER KNOWN THAT AMERICANS, WHO CONSTITUTE 80% OF THE WORLD'S DIAMOND
CONSUMPTION, WOULD NOT FEEL COMPELLED TO PUT SOME PRESSURE ON THE
INDUSTRY TO REFORM. AND IN FACT YOU'VE HEARD THAT THEY HAVE HAD SOME
IMPACT. BUT OBVIOUSLY I THINK WE NEED TO DO MORE. RONALD REAGAN'S
SECRETARY OF STATE, THE LATE AND UNLAMENTED DONALD REAGAN, ONCE FAMOUSLY
REMARKED THAT AMERICAN WOMEN WOULD NEVER GIVE UP THEIR DIAMONDS. HE WAS
REFERRING TO THE ATTEMPTED APARTHEID IN SOUTH AFRICA AND THE BOYCOTT
ATTEMPTED ON DIAMONDS. WHILE HIS CYNICAL PERSPECTIVE PROVOKED OUTRAGE, IT
HAD THE EFFECT OF RAISING AWARENESS, AND SOME OF US DID FORSAKE DIAMOND
RINGS WHEN WE WED. MY COLLEAGUE, Dr. JESSICA LIEBERMAN, CHOSE AN ANTIQUE
SAPPHIRE RING, WHICH SHE PROUDLY WEARS TO THIS DAY. I DECIDED ON NO RING,
BUT THAT HAD MORE TO DO WITH MY INNATE (Unclear) THAN ANY VIRTUE. AGAIN,
WHAT'S A PERSON TO DO? CUSTOM HOLDS THAT THE RING IS IMPORTANT TO THE
RITUAL, AND SOME OF YOU ARE THINKING THAT YOU WILL BE MAKING THAT
PURCHASE NO MATTER WHAT THE COST. AND I URGE YOU TO THINK LONG AND HARD
BEFORE SWALLOWING DE BEERS' OUTRAGEOUS FORMULA AND MORTGAGING AWAY YOUR
FUTURE FOR THE SAKE OF CUT, COLOR, CLARITY AND OF COURSE CARATS, THE
INDUSTRY'S BELOVED FOUR C's. IF ALL THE WORLD LOVES A LOVER, NO ONE
REALLY WANTS TO SPOIL YOUR PLEASURE IN THIS HAPPY EXCHANGE. SO I WOULD
ADVISE YOU TO STAY AWAY FROM THE MALLS WHERE YOU ARE JUST SO MANY SHEEP
WAITING TO BE SHEARED. HOW, THEN, TO SQUARE YOUR CONSCIENCE WITH THE FACT
THAT, AS GREG CAMPBELL AND OTHERS HAVE DOCUMENTED, THAT IT IS VERY HARD
TO DETERMINE WHETHER OR NOT YOUR DIAMOND COSTS TOO MUCH TO PEOPLE YOU
WILL NEVER KNOW? YOU CAN OF COURSE SELECT A LOVELY COLORED STONE, SUCH AS
RUBY OR EMERALD, SO I CAN TELL YOU TO AVOID JADE, WHICH HAS A BRUTAL
HISTORY OF ITS OWN. AS DOCUMENTED BY BBC JOURNALIST ADRIAN LEVY AND CATHY
SCOTT-CLARK IN THEIR 2001 BOOK "THE STONE OF HEAVEN." IT IS A SAD TRUTH
THAT MINING AS AN INDUSTRY HAS BRED MISERY THROUGHOUT HISTORY AND ACROSS
THE GLOBE. FROM THE EXPLOITATION BY THE SPANISH OF INDIAN SILVER MINERS,
IN THE INFAMOUS SEA, IN PRESENT DAY BOLIVIA TO THAILAND, WHERE JADE
PRODUCTION MEANS SLAVERY, PROSTITUTION AND AIDS FOR THE MINERS
UNFORTUNATE ENOUGH TO WORK THERE. AMERICANS RECEIVED A RUDE SURPRISE IN
THE CHRISTMAS SEASON OF 2001 WHEN IT WAS REVEALED BY "THE WALL STREET
JOURNAL," IN AN ARTICLE WRITTEN BY DANNY PEARL, THE REPORTER LATER
EXECUTED ON CAMERA IN PAKISTAN, THAT THE LATEST GEMSTONE DU JOUR, THE
EXQUISITE LAVENDER-COLORED TANZANITE, WAS A SOURCE OF INCOME TO NONE
OTHER THAN OSAMA BIN LADEN, WHO HAD LEARNED FROM THE EXPERIENCE OF THE
MUJAHIDEEN IN AFGHANISTAN, HAVING FINANCED THEIR REBELLION AGAINST RUSSIA
BY SMUGGLING ANOTHER BEAUTIFUL GEMSTONE, TO A READY AND WILLING AMERICAN
MARKET. HAPPY IN THIS CASE TO SUPPORT FREEDOM FIGHTERS. AND JUST TO LET
YOU KNOW, THERE ARE WEB SITES THAT WE WILL POST FOR YOU THAT WILL BE
AVAILABLE, AND YOU CAN READ SOME OF THE STUFF YOURSELF. IT MAKES VERY
INTERESTING READING. Q.B.C., WHO HAD HAPPILY HOCKED THIS NEW STONE TO
RECEPTIVE PUBLIC, ABRUPTLY PULLED THE STONE FROM ITS INVENTORY; THE
INDUSTRY EMBARRASSED, RESOLVED TO WORK TOWARDS FULL DISCLOSURE. THERE, I
BELIEVE, IS THE KEY. CONSUMER PRESSURE. AND I REALIZE THIS IS VERY NAIVE,
BUT I THINK THAT IN FACT WE HAVE TO TRY, IN OUR HEARTS, TO TRY TO DO
SOMETHING JUST TO SATISFY OURSELVES. THIS IS THE ONLY SOLUTION I CAN
OFFER YOU. AMERICANS, ONCE THEIR CONSCIENCE IS ROUSED, ARE DECENT PEOPLE,
AND THE MARKET CAN AND WILL RESPOND TO SUCH PRESSURE. IN AN INDUSTRY
DRIVEN BY DREAMS AND ROMANCE, YOU, THE CONSUMER, CAN MAKE A DIFFERENCE.
ASK QUESTIONS. USE YOUR INTELLIGENCE. DO RESEARCH. BE AN INFORMED
CONSUMER. IT'S EASY TO DISMISS SUCH EFFORTS AS JUST ANOTHER FRUITLESS
EFFORT UNDER THE VAGUE CATEGORY OF POLITICAL CORRECTNESS. I WOULD REMIND
YOU THAT GRASSROOTS EFFORTS HAVE POWER. AND IF YOU MAKE A SINCERE EFFORT
TO EDUCATE YOURSELF AND INSIST ON A HUMANE AND DECENT MARKETPLACE, THEN
ALL OF US BENEFIT. I HAVE TAUGHT RIT STUDENTS FOR THE PAST FIVE YEARS,
AND I HAVE FOUND THEM TO BE THE MOST THOUGHTFUL AND PRACTICAL STUDENT I
HAVE EVER ENCOUNTERED. TAKE THE SKILLS YOU'VE LEARNED HERE AND APPLY
THEM. MAKE AN INFORMED CHOICE. THANK YOU. (Applause) >> Paul: OKAY. I'M
MOBILE AND I HAVE A MIC, AND I BELIEVE THERE'S GOT TO BE, OH, TEN
QUESTIONS THAT WE NEED TO ASK BEFORE WE FINISH HERE AT 9 p.m. SHARP. SO
WHO WANTS TO ASK THE FIRST QUESTION? OKAY. NO. YOU HAVE TO USE THE MIC,
I'M SORRY. HOLD ON. AND REMEMBER THAT TIM MARTIN IS AVAILABLE FOR
QUESTIONS HIMSELF PERSONALLY. >> WELL, THE TANZANITE, AGAIN I DIDN'T
CATCH THAT. >> Greg: TANZANITE WAS ALSO AS DIAMONDS WERE USED TO FINANCE
AL QAEDA. THEY WERE BEING SMUGGLED OUT OF THE MINES AND MINED UNDER
EXTREMELY DIFFICULT CONDITIONS, AND THE PROCEEDS WERE BASICALLY BEING
USED TO GO INTO AL QAEDA SAVINGS ACCOUNTS. >> Paul: SOMEONE ELSE. RIGHT
HERE. OKAY. >> I UNDERSTAND NOT WANTING TO BUY CONFLICT DIAMONDS BECAUSE
YOU'RE KIND OF SUPPORTING LIKE, YOU KNOW, BARBARIC WARS IN STRANGE
PLACES. BUT IT SEEMS TO ME THE REAL PROBLEM IS DE BEERS. IF YOU GOT RID
OF THEM, THE DIAMONDS WOULDN'T BE WORTH ANYTHING AND PEOPLE WOULDN'T
FIGHT. SO WHAT HAVE PEOPLE DONE TO, LIKE, BUST THEM UP? IT SEEMS LIKE
THIS KIMBERLEY THING, WHILE IT KEEPS MONEY FROM GOING TO CONFLICT AREAS,
IT'S REALLY JUST PROTECTING DE BEERS FROM GETTING THEIR JUST DESSERTS. >>
Greg: THAT'S GREAT. FOR ONE THING THE MARKET HAS NOT BEEN TOO KIND TO DE
BEERS. CANADA IS NOW ON-LINE AS ONE OF THE PRIMARY SOURCES OF RAW
DIAMONDS, AND CANADA'S MAIN FIELDS, BIG ONES THAT ARE GOING TO BE MOST
VALUABLE, ARE LARGELY OUT OF DE BEERS' GRASPS. THEY DIDN'T GET THERE
FIRST. THEY DIDN'T GET THERE IN TIME. THAT'S ACTUALLY TIED TO ANOTHER
SITUATION THAT WAS JUST RECENTLY RESOLVED IN THE LAST 12 MONTHS IN THE
UNITED STATES. UP UNTIL LAST YEAR, DE BEERS COULDN'T DO BUSINESS IN THE
UNITED STATES AT ALL BECAUSE IT WAS FACING A SUBPOENA HERE FOR VIOLATION
OF ANTITRUST LAWS. IN FACT THE COMPANY WAS CHARGED WITH CON FIRING TO FIX
PRICES ON DIAMONDS. AND THEY FACED A SUBPOENA BASICALLY FROM THE
DEPARTMENT OF JUSTICE IF ANY OF THE EXECUTIVES HAD SHOWN UP HERE IN THE
UNITED STATES HAD ACTUALLY RESPONDED TO THE SUBPOENA. WHAT ACTUALLY
HAPPENED WAS THAT DE BEERS SIMPLY IGNORED THE CALL TO COME TO COURT, AND
THEY DID ALL OF THEIR BUSINESS IN EVERY OTHER MARKET, WHICH IS
INTERESTING. DE BEERS DIAMONDS STILL CAME HERE. THEY WERE STILL AVAILABLE
TO SELL THEIR DIAMONDS IN EUROPE TO AMERICAN WHOLESALERS, WHO THEN JUST
IMPORTED THEM INTO UNITED STATES. BUT THE IRONY OF IT ALL IS THAT DE
BEERS FINALLY PLED GUILTY LAST YEAR. IT SETTLED WITH THE GOVERNMENT, AND
THE MAXIMUM FINE THAT COULD BE LEVIED UNDER THE CHARGES WAS A MERE $10
MILLION. I MEAN WE'RE TALKING ABOUT, AS TIM POINTED OUT, $8.5 BILLION
INDUSTRY JUST IN ROUGH STONES, NOT EVEN IN THE POLISHED END OF IT. SO DE
BEERS BASICALLY PAID THE $10 MILLION SLAP ON THE HAND, AND NOW THEY'RE
PREPARING TO OPEN RETAIL STORES HERE IN THE UNITED STATES. BUT I ALSO
WANT TO AMPLIFY A POINT THAT TIM MADE, THAT ALSO KIND OF GOES TO YOUR
POINT. I DON'T THINK DE BEERS IS NECESSARILY THE PROBLEM AS THE CAUSE OF
THE CONFLICTS. I THINK IT'S THE CONFLICT THAT IS THE PROBLEM. IF YOU
DON'T HAVE A CONFLICT, THEN YOU DON'T HAVE CONFLICT DIAMONDS. AND, YOU
KNOW, FRANKLY SIERRA LEONE IS IN FACT SEEING RECORD NUMBERS OF EXPORTED
DIAMONDS THAT ARE GOING TO BENEFIT THE GOVERNMENT AND EVENTUALLY GOING TO
BENEFIT THE PEOPLE WHO LIVE THERE WHO NEED IT THE MOST. BUT I WOULD
CREDIT THE END OF THE WAR, WHICH WAS BROKERED HEAVILY BY THE UNITED
NATIONS AND VERY BELEAGUERED MISSION THERE THAT FINALLY SUCCEEDED IN
GETTING A PEACE DEAL, THAT I WOULD GIVE CREDIT NECESSARILY TO THE
KIMBERLEY PROCESS. NOW THAT SAID THE KIMBERLEY PROCESS IS GOING TO BE
CRITICAL TO HAVING A STRONG SYSTEM IN PLACE TO OVERSEE EXPORTS FOR THE
FUTURE THAT WILL MAKE IT MORE DIFFICULT FOR THIS CONFLICT TO FLARE UP
AGAIN, WHICH COULD BE-- SO THEREFORE THE DIAMOND MINES CAN'T BE EXPLOITED
BY ANY FUTURE REBEL ORGANIZATIONS THAT MIGHT WANT TO SWEEP IN, DIG THEM
OUT, SMUGGLE THEM OFF ELSEWHERE, AND ONCE THEY'RE GONE AND ACROSS THE
BORDER THEY MIGHT BE THAT MUCH MORE DIFFICULT TO SELL. >> Paul: TIM? ARE
YOU THERE? DO YOU HAVE A RESPONSE TO THAT AT ALL? >> Tim: YEAH, I DO.
IT'S A VERY INTERESTING QUESTION, AND A COUPLE THINGS THAT I WOULD LIKE
TO ADD. I DON'T HAVE A BRIEF TO SPEAK TO COMPANY ISSUES, BUT I WOULD
OBSERVE THAT THERE ARE OTHER BIG COMPANIES PARTICULARLY IN THE PRODUCTION
AREA NOW, B.H.P. BILLITON, RIO TINTO AND THE BIG RUSSIAN COMPANY ALROSA;
AND DE BEERS IS RESPONDING, AS GREG SAID, TO COMPETITION LEGISLATION IN
UNITED STATES, AND IN THE E.U. ONE THING THAT I THINK, YOU KNOW, REQUIRES
US-- AND MARY MADE A VERY GOOD POINT ABOUT THE IMPORTANCE OF CONSUMERS
BEING AWARE OF WHAT THEY'RE BUYING AND WHAT THE IMPLICATIONS ARE.
PROBABLY THE EASIEST RESPONSE TO THE CONFLICT DIAMOND PROBLEM WOULD HAVE
BEEN FOR RETAILERS IN THE BIGGEST MARKET FOR POLISHED DIAMONDS, WHICH IS
UNITED STATES, TO SAY WE DON'T SELL ANY AFRICAN DIAMONDS. AND IN FACT
THAT WOULD BE EXTREMELY DAMAGING TO A LOT OF COUNTRIES WHO REQUIRE THIS
INCOME FOR THEIR DEVELOPMENT AND RECOVERY, AND THEN THERE'S OTHER
COUNTRIES LIKE THE LARGEST PRODUCER, BOTSWANA, WHICH DOESN'T HAVE A
CONFLICT DIAMOND PROBLEM. SO I THINK WE HAVE TO BE PRETTY CAREFUL, AS
MARY SAID, IN OUR ANALYSIS OF THESE QUESTIONS. THANKS. >> Paul: THANKS,
JIM. FURTHER QUESTIONS? UP TOP. >> HI. THIS QUESTION IS FOR MOSTLY TIM.
I'M THE OWNER OF ORIANA CORP., AND I'M THE FIRST IMPORTER OF POLISHED
CANADIAN DIAMONDS IN THE U.S. AND THERE'S-- THE BIGGEST PROCESS TO
AVOIDING THIS AND... KIMBERLEY PROCESS IS TO CONTINUE BUYING THE CANADIAN
DIAMONDS. BUT THE CANADIAN GOVERNMENT IS NOT SUPPORTING MY CORPORATION AT
ALL AND TRIED TO ENCOURAGE ME TO PUT THIS AS A POINT. MY BIGGEST
MARKETING POINT WAS JUST THAT; THEY'RE FROM CANADA. THEY WENT THROUGH NO
PLACE ELSE. SO I DON'T HAVE TO GO AND LOOK FOR A DISTRIBUTOR THAT, YOU
KNOW, HAS GONE THROUGH THE KIMBERLEY PROCESS, WHICH TO DATE I THINK IS
STILL FLAWED. IF THERE WAS A WAY IN WHICH YOUR-- MAYBE SOMETHING I DON'T
KNOW. BUT IF THERE'S A WAY THAT THE CANADIAN GOVERNMENT CAN TAKE
ADVANTAGE OF THIS MARKET SPACE AND KNOW THERE IS A VOID AND SAY, YOU KNOW
WHAT? WE'RE GOING TO ENCOURAGE THE SMALL DISTRIBUTORS AND RETAILERS, LIKE
MYSELF, AND SAY, HEY, YOU DON'T HAVE TO WORRY ABOUT IT. THE CANADIAN
GOVERNMENT IS ALREADY GIVING THE APPRAISAL, PROOF OF ORIGINALITY AND ALL
OF THE DOCUMENTATION TO PROVE THAT IT'S A CANADIAN DIAMOND. >> Paul:
THAT'S FOR YOU, TIM. >> Tim: OKAY. I'M NOT SURE IF I CAUGHT THE GIST OF
YOUR QUESTION. I SHOULD SAY THAT AS CHAIR OF THE KIMBERLEY PROCESS, MY
RESPONSIBILITY WAS COORDINATING AN INTERNATIONAL EFFORT AND NOT ADVANCING
CANADA'S COMMERCIAL INTERESTS, AND IT'S VERY IMPORTANT TO HAVE THE
CONFIDENCE OF ALL THE PARTICIPANTS THAT I'M ACTING IN THE BEST INTEREST
OF THE PROCESS AND NOT TO BENEFIT MY COUNTRY COMMERCIALLY. BUT I DIDN'T
QUITE GET THE GIST OF THAT QUESTION. >> HOW DOES THE PEACEBUILDING OF
HUMAN SECURITY DIVISION, THE DEPARTMENT OF FOREIGN AFFAIRS IN CANADA, HOW
CAN THEY TAKE ADVANTAGE OF THIS MARKET SPACE AND ENCOURAGE RETAILERS,
EITHER THROUGH MARKETING SPITS, A MARKETING PROGRAM THAT CAN SAY, HEY,
YOU KNOW WHAT? IT'S-- NON-CONFLICT IS HERE. BUY CANADIAN ROUGH-- I MEAN
CANADIAN POLISHED STONES. THAT'S ONE. AND TWO, WE KNOW THAT ALL THE
STONES THAT THE U.S. EITHER GONE THROUGH THE KIMBERLEY PROCESS OR NOT, I
DON'T FIND THAT-- LET'S JUST STAY WITH QUESTION ONE. (Laughing) THAT'S
ENOUGH RIGHT THERE. >> Tim: OKAY. I HAVE A DISAPPOINTING ANSWER FOR YOU,
AND THAT'S NOT OUR JOB TO PROMOTE THOSE CANADIAN DIAMONDS. THAT'S THE
DEPARTMENT OF TRADE, AND I THINK WHEN WE'RE WORKING ON THESE
INTERNATIONAL PEACE AND SECURITY ISSUES, ESPECIALLY WHEN WE'RE WORKING
THROUGH A COLLECTIVE INTERNATIONAL SYSTEM, IT'S IMPORTANT THAT THOSE WHO
ARE DOING THAT ROLE ON BEHALF OF OTHERS ARE NOT SEEN TO BE TAKING
COMMERCIAL ADVANTAGE OF AN INTERNATIONAL SYSTEM. SO WE'VE TRIED TO BE
VERY CLEAR ABOUT THAT, AND ALSO GOING BACK TO THAT POINT I MADE EARLIER,
I DON'T THINK IT'S FAIR FOR US TO BE IN THIS POSITION OF PROMOTING THE
KIMBERLEY PROCESS TO BE PROMOTING ONE COUNTRY'S DIAMONDS OVER ANOTHER.
NOW I'M SURE I HAVE COLLEAGUES IN THE DEPARTMENT OF TRADE WHO-- I'LL PASS
THIS ON-- WILL THINK VERY CAREFULLY ABOUT HOW TO BENEFIT FROM THAT MARKET
SPACE. BUT IN MY ROLE AND OUR WORK IN THE DEPARTMENT OF FOREIGN AFFAIRS,
WE HAVE TO BE PRETTY CAREFUL ABOUT THAT. >> Paul: TIM, YOU COULD ALSO ASK
THEM TO ACCESS OUR WEB SITE ON WHICH THIS WHOLE PROGRAM WILL APPEAR. >>
Tim: I'LL DO THAT. >> Paul: FRIDAY AFTERNOON. >> Tim: OKAY. >> OKAY.
YEAH, MY QUESTION WAS I WONDER WHAT THEY WOULD SAY MORE ABOUT THE
CONNECTION WITH AL QAEDA. I WOULD IMAGINE MANY AMERICANS WOULD BE
INTERESTED IN THIS. I HAVE READ IN THE PAST SOME INTIMATION OF THE
CONNECTION, AND I THINK I-- KNOWING THAT THERE WAS A-- THERE ARE A LOT OF
LEBANESE IN WEST AFRICA, I SUSPECT THERE MIGHT BE SOME CONNECTION BUT
I'VE NEVER SEEN A VERY CLEAR DISCUSSION OF THIS, AND I AM-- I WONDER IF
YOU CAN ELABORATE ON THAT. >> Greg: SURE. I'M HAPPY TO. IN FACT I'M GLAD
SOMEBODY ASKED THE QUESTION BECAUSE WHEN I SIT ON THE SIDELINES, I KNEW
THAT 30 MINUTES WAS GOING TO CATCH UP TO ME AND I WASN'T GOING TO GET TO
EVEN THE END POINT ON THE TITLE OF THE PRESENTATION TONIGHT. AL QAEDA,
LIKE MANY OTHER ARMED GROUPS IN AFRICA, IN SIERRA LEONE, THE D.R.C. AND
IN ANGOLA, BASICALLY JUST TOOK ADVANTAGE OF THE FACT THAT THERE WAS
REALLY NO INTERNATIONAL OVERSIGHT OF HOW DIAMONDS MOVED AROUND THE WORLD.
THEY TOOK ADVANTAGE OF THEIR-- NOT ONLY THEIR MOBILITY BUT THEIR
LIQUIDITY, AND THEIR LIQUIDITY WAS A FACTOR OF THIS KIND OF ARTIFICIAL
PRICE THAT DE BEERS HAD PUT ON IT LONG AGO. AND IN 1998, WHEN AL QAEDA
EXPLODED TWO EMBASSIES IN AFRICA AND TANZANIA AND IN NAIROBI, THE CLINTON
ADMINISTRATION, THEIR VERY FIRST MOVE WAS TO WORK IN CONCERT WITH OUR
EUROPEAN ALLIES TO FREEZE AL QAEDA'S KNOWN ASSETS, THEIR PHYSICAL BANK
ACCOUNTS. AND THE INDICATIONS WERE THAT THEY WERE VERY SUCCESSFUL, THAT
THEY ACTUALLY IMPAIRED AL QAEDA'S ABILITY TO FINANCIALLY REGROUP, AT
LEAST ON A QUICK ENOUGH BASIS TO BE ABLE TO FUND ANY FURTHER ATTACKS. SO
THE THEORY IS THAT BIN LADEN AND HIS TOP COMMANDERS AND LIEUTENANTS
NEEDED TO COME UP WITH BASICALLY ANOTHER FORM OF CASH, AND THAT WAS
DIAMONDS. THERE ARE A NUMBER OF LEBANESE-- THERE ARE SEVERAL THOUSAND
LEBANESE WHO LIVE IN WEST AFRICA, AND THEY'RE PRIMARILY DESCENDANT FROM
FATHERS AND MOTHERS WHO MOVED THERE IN THE WAKE OF WORLD WAR II TO SELL
GENERAL MERCHANDISE, AND THEY BECAME VERY IMPORTANT MIDDLEMEN IN THE
DIAMOND TRADE BECAUSE THEY WERE-- HAD A LOT OF BUSINESS SAVVY AND THEY
USUALLY HAD ENOUGH WEALTH TO GET THE REQUIRED IMPORT/EXPORT LICENSE. AND
THEY ALSO KIND OF KNEW WHO TO BRIBE AND WHO TO-- YOU KNOW, HOW TO WEAVE
IN AND OUT OF-- KIND OF THE BUSINESS CORRUPTION THAT YOU NEEDED TO HAVE A
LITTLE BIT OF KNOW-HOW ABOUT TO DO ANYTHING IN WEST AFRICA. SO THE
LEBANESE HAVE LONG BEEN SUSPECTED OF RAISING FUNDS FOR SUCH ORGANIZATIONS
AS HEZBOLLAH AND HAMAS, ANY OTHER TYPE OF TERRORIST ORGANIZATIONS THAT
WOULD MAKE LIFE HARD FOR ISRAELIS FOR THE MOST PART. AND THAT'S WHERE
MOST OF THE INTERNATIONAL INTELLIGENCE EFFORTS HAVE BEEN FOCUSED IS
LOOKING AT THE FUND-RAISING EFFORTS FOR SUCH THINGS AS HEZBOLLAH. AND IT
JUST SO HAPPENED THAT IN THE WAKE OF 9/11, A "WASHINGTON POST" REPORTER
HAD A COPY OF "NEWSWEEK" WHICH HAD ALL OF THE SUSPECTS, THE TOP 10 MOST
WANTED TERRORISTS THAT WAS PUBLISHED BY THE F.B.I., AND HE WAS LOOKING
INTO THIS HEZBOLLAH CONNECTION, SO HE SHOWED ONE OF HIS R.U.F. CONTACTS A
COPY OF THE MAGAZINE AND SAID, "DO YOU KNOW ANY OF THESE GUYS?" AND IT
JUST SO HAPPENED THAT THEY WERE AL QAEDA AND THE GUY LOOKED AND SAID,
"OH, I KNOW TWO OF THESE GUYS." IN FACT THESE GUYS WERE IMPLICATED IN-MY FRIEND DOUG KNEW THAT THESE GUYS WERE IMPLICATED IN THE BOMBINGS OF
THE EMBASSIES AS A MATTER OF FACT. ONE GUY RENTED THE TRUCK AND THE OTHER
GUY SUPPOSEDLY SCOUTED OUT ONE OF THE OTHER EMBASSIES AND SUPPORTED
TACTICAL SUPPORT FOR BLOWING UP THOSE BUILDINGS IN '98. SO OF COURSE HE'S
ON THE STORY OF THE CENTURY, AL QAEDAS IN SIERRA LEONE. I DON'T BELIEVE
IT. IT TURNS OUT THAT, IMMEDIATELY AFTER THOSE BOMBINGS, INTELLIGENCE
EXPERTS BELIEVED THAT AL QAEDA HAD GONE INTO BUSINESS WITH THE R.U.F. AND
HAD BEEN ITS PRIMARY PURCHASER OF DIAMONDS FOR YEARS, LEADING UP TO THE
9/11 ATTACKS. IN FACT PRESS REPORTS, IF YOU GO BACK AND KIND OF JUST
GOOGLE SIERRA LEONE AT THE PROPER DATE AND TIME IN THE MONTH BEFORE 9/11,
LO AND BEHOLD ALL THESE KIND OF PERPLEXED ARTICLES ABOUT, OH, I WONDER
WHY THE R.U.F. DIAMOND MINING SEEMS TO BE RAMPING UP. THEY SEEM TO BE
UPPING THEIR PRODUCTION. THERE'S MORE DIAMONDS COMING OUT AND YET THERE'S
THIS PEACE AGREEMENT AND PEACE SHOULD BE COMING ON THE HORIZON ANY
MOMENT. I DON'T UNDERSTAND WHY THE U.N.'s NOT DOING ANYTHING. DON'T
UNDERSTAND WHY THE R.U.F. IS COMPLETELY IGNORING ITS OBLIGATIONS TO QUIT
THE DIAMONDS MINES. AND IT TURNS OUT THAT THE AL QAEDA AGENTS WHO WERE
REPRESENTATIVE IN THE REGION HAD ASKED FOR DOUBLE PRODUCTION FOR DOUBLE
THE PRICE. THEY JUST WANTED TO LIQUIDATE AS MUCH CASH AS THEY POSSIBLY
COULD AND GET THIS HIGHLY MOBILE FORM OF CURRENCY THAT THEY COULD MOVE
ANYWHERE AROUND THE GLOBE PRACTICALLY UNDETECTED AND KNOWING THAT THEY
COULD CONVERT IT VERY EASILY THEN TO ANY OTHER FORM OF CURRENCY. SO
ESTIMATES ARE THAT AL QAEDA GOT AWAY WITH HUNDREDS OF MILLIONS OF DOLLARS
WORTH OF ROUGH GOODS FROM SIERRA LEONE. >> Paul: WOW. ONE LAST QUESTION.
>> WHERE DO YOU SEE MAN-MADE DIAMONDS IN THE FUTURE AS FAR AS, LIKE,
MAKING INROADS TO LIKE DE BEERS' MONOPOLY? >> Greg: I'M SORRY. YOU SAID
MAN-MADE DIAMONDS? >> MAN-MADE DIAMONDS. >> Greg: UM, PROBABLY NOT VERY
FAR. (Chuckling) I HAVEN'T LOOKED VERY MUCH INTO THE MAN-MADE DIAMOND
PHENOMENON, OTHER THAN TO-- OTHER THAN TO KNOW THAT IT'S A FLEDGLING
INDUSTRY THAT IS GOING TO BE GOING UP AGAINST A CENTURY-OLD BEHEMOTH THAT
HAS ITS, YOU KNOW, TRAP DOORS AND ITS SECRET HANDSHAKES THAT HAS BEEN
LITERALLY 125 YEARS IN THE MAKING OR SO, AND AS TIM WAS JUST POINTING
OUT, DE BEERS IS-- I MEAN IT'S DOWN FROM 95% OF GLOBAL CONTROL OVER WORLD
PRODUCTION TO ESTIMATES ARE BETWEEN 55 AND 65% TODAY, AND THAT'S MAINLY
BECAUSE OF NEW MARKETS THAT ARE OPENING UP AND DE BEERS BASICALLY
QUITTING ITS ROLE AS CUSTODIAN OF THIS MARKET SUPPLY AND NOT BUYING ANY
DIAMONDS ON THE OPEN MARKET. BUT IT'S STILL UP TO ITS OLD TRICKS. IN FACT
THERE IS A PROPOSAL THAT WAS ON THE TABLE IN THE E.U. FOR DE BEERS TO
BASICALLY MERGE WITH THE NUMBER ONE DIAMOND PRODUCER IN RUSSIA, WHICH IS
THE NUMBER TWO DIAMOND PRODUCING COUNTRY IN THE WORLD, WHICH WOULD PUT IT
RIGHT BACK UP ON TOP INTO THE 75 TO 80% RANGE OF GLOBAL DOMINANCE IN THE
RAW MARKET. SO DE BEERS IS WELL ENTRENCHED. THE DEMAND FOR DIAMONDS IS
STILL HIGH. IT'S AT AN ALL-TIME HIGH UNBELIEVABLY, GIVEN THE STATE OF THE
ECONOMY IN RECENT YEARS. AND IT'S JUST NOT GOING TO CHANGE ANYTIME SOON.
SO I DON'T SEE IT MAKING A BIG, BIG INROADS. I DON'T KNOW MUCH ABOUT THE
TECHNOLOGY, BUT IT WOULD HAVE TO PRODUCE HUNDREDS OF THOUSANDS OF CARATS
WORTH OF DIAMONDS EVERY MONTH TO BE ABLE TO EVEN BE ON PAR WITH WHAT IS
CURRENTLY THE NATURAL DIAMOND PRODUCTION. MARY'S GOING TO ANSWER THAT. >>
Mary: ACTUALLY THIS IS SOMETHING THAT WE WISH WOULD ACTUALLY CATCH FIRE.
IT WOULD BE NICE, BECAUSE THEN YOU WOULD HAVE AN ALTERNATIVE. IN FACT
THERE IS AN ALTERNATIVE. THE CUBIC ZIRCONIA, WHICH LOOKS EXACTLY LIKE A
DIAMOND. IN FACT YOU CAN GET A GORGEOUS CUBIC ZIRCONIA THAT WILL LOOK
LIKE THE MOST PERFECT DIAMOND IMAGINABLE FOR A FRACTION OF THE PRICE. MY
OWN MOTHER LOST HER DIE MONTH ENGAGEMENT RING-- THE DIAMOND ACTUALLY-PRONGS HAVE A NASTY HABIT OF SNAPPING AND FALLING OFF, AND THERE GOES THE
DIAMOND. AND MY FATHER, BEING THE MAN THAT HE IS, WAS NOT GOING TO SPRING
FOR ANOTHER STONE. SO EVENTUALLY WE REPLACED HER DIAMOND WITH A C.Z.,
WHICH IS AS THEY'RE KNOWN, AND IT WAS A BIG SUCCESS. SHE'S HAPPY. SHE
CAN, YOU KNOW, WEAR HER RING AGAIN AND NO ONE IS THE WISER. THE THING IS
THESE CHEMICALLY PRODUCED STONES ARE PERFECT. THEY'RE PERFECT. THEY LOOK
GORGEOUS. BUT PEOPLE DON'T WANT THEM BECAUSE THEY WANT THE REAL THING.
AND I GUESS PERHAPS FROM MY OWN CYNICAL PERSPECTIVE, IF YOU TRY TO
PERSUADE SOMEONE-- AND I GUESS WE KNOW WHAT GENDER WE'RE TALKING ABOUT
HERE-- IF YOU'RE TRYING TO CONVINCE THE PERSON WHO WANTS A DIAMOND THAT
THIS PERSON SHOULD NOT WANT A DIAMOND, GOOD LUCK. I MEAN YOU'RE VERY
UNLIKELY TO BE SUCCESSFUL. BUT IF YOU REALLY THINK ABOUT IT, YOU KNOW,
PERHAPS MAYBE YOU SHOULD RETHINK YOUR FIANC‚E IN LIGHT OF WHAT YOU'VE
HEARD THIS EVENING. (Laughter) BECAUSE, SERIOUSLY, THIS IS A MORAL
QUESTION, AND IT'S NOT SOMETHING YOU SHOULD THINK ABOUT-- YOU KNOW, YOU
SHOULD THINK ABOUT IT. BUT BEYOND THAT, TOO, THERE ARE GOOD ALTERNATIVES.
THERE REALLY ARE. TODAY I HAD A CONVERSATION WITH A NUMBER OF MY FRIENDS
ABOUT THIS, AND THEY MADE SOME WONDERFUL POINTS, ONE OF WHICH WAS GET
YOURSELF AN ANTIQUE RING, AS MY FRIEND JESSICA DID. YOU'RE GOING TO BE
VIRTUALLY ASSURED THAT THERE'S NO NASTINESS-- AT LEAST PRESENT DAY
NASTINESS, ASSOCIATED WITH IT. AND YOU'LL HAVE A BEAUTIFUL RING BECAUSE
FRANKLY THE CRAFTSMANSHIP WAS EXQUISITE IN THE PAST. I MEAN THINGS ARE
MUCH MORE MECHANIZED NOW, UNFORTUNATELY. GO TO A DESIGN JEWELER. A DESIGN
JEWELER CAN MAKE YOU A SET OF WEDDING RINGS, AS MY BROTHER AND HIS WIFE
HAVE, WHICH WERE A WEDDING GIFT FROM ME, WITH NO STONE IN THEM. THEY
INTERLOCK. THEY WERE BEAUTIFUL. THEY ARE BEAUTIFUL. THEY'RE HAPPY. AND
LAURIE HAS NO, YOU KNOW, MORAL CONCERNS ABOUT HER WEDDING BAND SET. SO
YOU CAN PRESERVE THE RITUAL WITHOUT, YOU KNOW, CONTINUING THE SUFFERING.
IT'S ENTIRELY POSSIBLE. YOU KNOW, CONSIDER YOUR ALTERNATIVES. ASK
QUESTIONS. THAT'S MY MAIN POINT. ASK YOUR JEWELER QUESTIONS. HOLD THEM
ACCOUNTABLE. >> Paul: LISTEN, HE HAS BEGGED ME TO HAVE A VERY LAST
QUESTION. HE PROMISED A SHORT ONE, SO LET'S HAVE HIM DO THIS QUESTION AND
THEN WE'RE FINISHED. >> MY QUESTION IS VERY GENERAL. FOR SO MANY YEARS,
DE BEERS HAVE CONTROLLED THE AFRICAN DIAMONDS UNDER THE APARTHEID SYSTEM
IN SOUTH AFRICA AND BOTSWANA AND ALL OTHER COUNTRIES. AND IT HAS TAKEN
OPPORTUNITIES, ESPECIALLY WHENEVER THERE IS CONFLICT, CAN IT-- AND IT
STILL HAS PILES AND PILES OF DIAMONDS IN ITS STORES IN LONDON, BELGIUM,
WHEREVER, CAN IT BE HELD RESPONSIBLE IN SOME WAYS? CAN IT BE MADE TO PAY
FOR ALL THAT BUSINESS? >> Greg: LEGALLY, YOU'RE SAYING? >> YES. >> Greg:
UM, NO, I CAN'T-- I MEAN I CAN'T IMAGINE NECESSARILY A SCENARIO WHEREBY
YOU COULD HOLD A CORPORATION ACCOUNTABLE FOR BASICALLY-- BECAUSE WHAT YOU
WOULD BE TRYING TO DO IS YOU WOULD BE TRYING TO INDICT THEM ON THEIR
BUSINESS POLICIES THAT THEY HAD LAID OUT FOR AN INDUSTRY THAT HAS
BASICALLY BEEN ADOPTED AND AGREED TO BY VARIOUS AND SUNDRY GOVERNMENTS
AND EXPLOITED BY PEOPLE WITH NEFARIOUS PURPOSES. THAT'S BASICALLY THE
BEST I CAN SAY. YOU KNOW, WHEN PEOPLE SMUGGLE DIAMONDS OUT OF SIERRA
LEONE, THEY'VE BROKEN THE LAW IN SIERRA LEONE. THEY'VE ALSO BROKEN THE
LAW IN WHATEVER COUNTRY THEY'RE IMPORTING INTO, QUOTE-UNQUOTE, ILLEGALLY
IMPORTING, BECAUSE THEY'RE JUST AVOIDING TAXES, AND THAT'S-- SO IT'S THE
INDIVIDUAL WHO'S ACTUALLY DOING THE SMUGGLING. I THINK WHERE THE FOCUS
NEEDS TO BE IS ON THE PERPETRATORS OF THE CRIMES ITSELF, AND RIGHTLY SO,
THEY HAVE BEEN, IN THE CASE OF SIERRA LEONE, THERE IS A VERY EFFICIENT
AND SPEEDY WAR CRIMES TRIBUNAL THAT WAS CONVENED THAT BROUGHT ALL THE BIG
FISH, ALL THE TOP LEADERSHIP OF THE R.U.F. TO BE HELD ACCOUNTABLE FOR THE
CRIMES THAT THEY COMMITTED IN SIERRA LEONE. IT'S-- YOU KNOW, IT'S AN
INTERESTING QUESTION THAT I THINK WOULD INSPIRE A LOT OF DEBATE, BUT IT'S
SORT OF LIKE I THINK TRYING TO SUE GUN MANUFACTURERS FOR PEOPLE WHO
COMMIT MURDER WITH A RIFLE, FOR INSTANCE. >> Tim: IF I COULD JUST MAKE A
COMMENT ON THAT, PAUL. >> Paul: PLEASE. >> Tim: I THINK THAT'S A VERY
INTERESTING QUESTION, AND WE ARE MOVING INTO SOME AREAS OF NEW LEGAL
NORMS WITH THE INTERNATIONAL CRIMINAL COURTS AND AS WELL AS THE WAR
CRIMES TRIBUNAL AND THE WAR CRIMES COURT IN SIERRA LEONE. FOR EXAMPLE THE
SITUATION IN THE EASTERN CONGO WAS RIFE WITH CRIMES AGAINST HUMANITY, AND
THE PROSECUTOR'S OFFICE OF THE INTERNATIONAL CRIMINAL COURT, IF I RECALL
CORRECTLY, DID NOT EXCLUDE THE QUESTIONS OF LOOKING AT CORPORATIONS
BECAUSE THERE WAS SOME MATERIAL DIAMOND (Unclear) WHICH IS USED IN CELL
PHONES AND GOLD THAT WERE ASSOCIATED WITH THE WARLORDS IN THAT REGION. SO
THAT MIGHT BE AN ISSUE THAT SHOULD OVER THE HORIZON. >> Paul: TIM, THANK
YOU VERY MUCH, AND THANK YOU TO ALL THE PRESENTERS THIS EVENING. WE'VE
COULD HAVE HAD GLOBALIZATION, HUMAN RIGHT AND CITIZENSHIP ALL IN ONE
GANNETT EVENT. THANK YOU. (Applause)