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DATE=7/10/2000 TYPE=BACKGROUND REPORT TITLE=CONFLICT DIAMONDS NUMBER=5-46637 BYLINE=LARRY FREUND DATELINE=NEW YORK CONTENT= VOICED AT: INTRO: The United Nations Security Council recently (7/5) imposed an international ban on the purchase of diamonds originating in Sierra Leone. Most of the diamond mining areas of the country are controlled by rebels who use the money from sales to buy weapons. Correspondent Larry Freund reports from New York on the growing concern in the world about the sale of so- called "conflict diamonds," diamonds produced in areas of rebellion and fighting. TEXT: Diamonds, according to a recent report, are one of the most concentrated forms of wealth known to man. The United Nations ambassador from Sierra Leone - one of the world's 26-diamond producing countries - looks at the gems another way. The root of the conflict in his country, he told the U-N Security Council, is and remains diamonds, diamonds and diamonds. According to the experts, diamonds are the major source of financing for weapons used by Sierra Leone's rebels. The expensive stones are also recognized as a factor in the fighting in Angola and Congo. For that reason, there has been growing pressure in the world to stop the trade in illicit diamonds. And the United Nations Security Council took the first step by banning sales of diamonds from Sierra Leone until that country can establish a system that certifies the origin of the rough diamonds, as they are known. /// GREENSTOCK ACTUALITY /// This is the beginning, the beginning of a system Internationally which (people involved in the) diamond industry are now starting to discuss amongst themselves and with governments. /// END ACT /// Britain's ambassador to the United Nations Jeremy Greenstock sees the possibility of a broader, international system guaranteeing the place of origin of the stones. /// SECOND GREENSTOCK ACT /// . whereby in areas of conflict, only diamonds that are certified as being authorized for sale by the proper government will go into the industry and will be cut and sold by the cutting centers. /// END ACT/// Diamond certification would essentially be a paper trail, identifying the diamonds from the time they are mined to the time they leave the jewelry store. However, diplomats say the certification system would be considerably stronger if experts could identify the origin of an unpolished stone by simply examining it. The origin of polished diamonds, experts agree, is now impossible to determine. The Diamond Information Center in New York - representing South Africa's De Beers Company, the world's largest diamond producer - says the company's experts can be reasonably sure of the origin of diamonds from a primary source if they look at a parcel of diamonds. But the center adds it is difficult in general to tell the origin of rough diamonds when they are not all from the same mine. The source of a single rough diamond, the company says, cannot be identified with certainty. William Boyajian (boy-ah'-zhin) president of the non-profit Gemological Institute of America, agrees. /// Boyajian actuality /// We think it is much more practical - and frankly, I am impressed with the U-N Security Council's resolution here - to control diamonds through customs, through the government, through what I would call a more practical means of insuring the identification of rough (diamonds). Because I am just not convinced, at least at this point, that it is going to be an easy methodology developed to be able to identify rough. ( opt ) There are ways. If you are a diamond buyer and you are buying rough in the jungle or whatever and you look at a parcel of diamonds that came from the same source, there are characteristics that you would notice that might be indicative of a particular locality or mine. But taken individually it would be extraordinarily difficult. And scientifically, there is just no way to prove it today. (end opt) /// END ACT /// However, a London-based human rights group, Global Witness, argues that gem experts are currently able to identify diamonds with enough authority to be able to point to stones that originate in conflict areas. Alex Yearsley is the co-author of a recent report by the group on conflict diamonds. /// Yearsley actuality /// We're not saying it is possible to do it in a scientific manner. You can't put it in a machine at the moment, you can't do a scientific test on it at the moment and say, "yes, this rough diamond just came from this mine in Sierra Leone." It's done on expertise. That expertise is gained through 20 years in the field of buying and selling diamonds and evaluating diamonds. And there are people who can do that. It doesn't have to stand up in a court of law. ( opt ) What we're saying is, when the diamond inspection office in Antwerp or Tel Aviv comes across a suspect parcel - suspect because they think, "hold on, these diamonds don't actually come from that country" - that's when they need to make the check on the paperwork. If the paperwork is incorrect and they have identified diamonds that come from a different country, then you have got your diamond smugglers. (end opt) /// END ACT /// Mr. Yearsley says Global Witness is not advocating the use of technology to identify diamonds, although he says work is now underway that may lead to the scientific identification of diamonds in two or three years. In the meantime, Mr. Yearsley sees the U-N embargo on the sale of diamonds from Sierra Leone as a very positive step in the right direction and anticipates the early establishment of an international certification system for all rough diamond imports and exports. The issue is also expected to be discussed when international diamond dealers gather in Antwerp, Belgium, next week (7/16- 19) for the World Diamond Congress. (signed) NEB/NY/LSF/AMAHL/PW 1 4 10-Jul-2000 13:27 PM EDT (10-Jul-2000 1727 UTC) NNNN Source: Voice of America .





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