Africa's Illicit Diamond Trade
"When someone goes in to buy a diamond on the finger
of a loved one, they should feel confident a child in Sierra
Leone, Angola or the Congo has not lost an arm or hand for it
to be there." -British Foreign Office Minister for
Africa Peter Hain
In Sierra Leone, a rebel movement has routinely chopped off
the hands and feet of children. In Angola, the failed UNITA
movement continues to wreak havoc upon a nation and people who
have not experienced peace for decades. And we are still learning
of the tragic human cost of the regional war in the Congo.
How do we in the United States respond? Yes, we can call on
our government to be a strong voice for fair settlements of
conflicts around the world, and we can urge the Bush Administration
to cooperate with multinational partners in finding solutions
to intractable wars.
But sometimes it is tough, linking our vision of peaceful and
just societies with actions that might actually move toward
that vision. Sometimes we have to be satisfied by the need to
do something, though doubtful of any meaningful impact.
The issue of conflict diamonds is different. Some years ago,
in another context entirely, the slogan was: "Follow the
money." That is what some of us, concerned especially about
Sierra Leone, have done. How does the brutal Revolutionary United
Front (RUF) get money to buy arms and to sustain itself? Are
there possibilities for cutting off that source of money?
The answers-in Sierra Leone and in Angola (and to some extent
in the Congo)-are diamonds, and yes, we can stop that source
of money. The RUF and UNITA control major sources of diamonds,
and they have found ways to get those diamonds out of their
countries and into the international market. The effort to stop
this financing of brutal rebel move- ments is called the conflict
diamond initiative.
These rebel groups have managed to launder their diamonds through
such countries as Liberia, Togo, Congo (DRC), Cote d'Ivoire,
and Burkina Faso. The diamonds then reach the major cutting
and export centers (Antwerp, Tel Aviv, Bombay, London and New
York) with few questions asked.
Smuggled and illicit conflict diamonds may amount to as much
as 10 to 15 percent of the $50 billion worth of diamond jewelry
sold internationally every year. Moreover, the U.S. consumes
65 percent of the diamond market.
For some time the diamond industry simply said there was nothing
they could do, arguing that once the diamonds reached a cutting
center, they vanished into the market. But as the debate continued,
the industry reconsidered, and De Beers, the Diamond High Council,
the Israeli Diamond Exchange, and India threatened to ban any
member from the World Diamond Congress that knowingly traded
in diamonds obtained from Africa's rebel groups.
Internationally, the United Nations has intervened by imposing
an embargo on trade in rebel-controlled diamonds in Angola and
Sierra Leone. In Europe, the British and Belgian governments
seek to make trade in conflict diamonds a criminal offence throughout
the European Union.
In mid-2000 a number of U.S. organizations, under the leadership
of Physicians for Human Rights, and including the ecumenical
Washington Office on Africa (which the Presbyterian Church (USA)
supports) appealed to the World Diamond Congress to cease dealing
in conflict diamonds. The coalition urged immediate action by
the diamond industry to identify diamonds or packets of diamonds
and provide certificates of origin and legitimacy, without which
no stone (or packet of stones) could be cut, exported, or sold.
There was an encouraging response. A South African-led and
industry-supported Working Group on African Diamonds-known as
the Kimberley process-announced that they were establishing
a comprehensive international system of "rough controls"
last year, setting up a forgery-proof delivery system and computer
database for the tracking of shipments of uncut stones. Once
inside cutting centers the stones would all be certified as
legitimate, and traded and sold.
Regrettably, the diamond industry now seems more preoccupied
with statements of concern and piecemeal action rather than
with a comprehensive scheme to address the issue.
Those advocating an end to the sale of conflict diamonds believe
that until a major importer of diamonds (such as the United
States) prohibits the direct or indirect importation of all
diamonds and diamond jewelry from any country that does not
have the rough controls in place, progress in establishing the
international system will proceed slowly.
The diamond industry's bill before Congress, called the Conflict
Diamonds Act, exempts jewelry from the requirement of what is
called a clean stream of diamonds. This loophole would allow
any country to attach an earring back to a rough stone, call
it jewelry and avoid the international rough diamond controls.
Further, to be truly effective, the international controls need
the weight of U.S. law behind them, but the bill fails to require
the rough controls regimen as a condition of exporting diamonds
to the U.S. Instead, it merely links the regimen to negotiations
of an international treaty. It also sets weak penalties for
smuggling illegal diamonds into the United States.
In contrast, the Clean Diamond Act, introduced by Reps. Tony
Hall (D-Ohio), Cynthia McKinney (D-Ga.), and Frank Wolf (R-Va.),
includes:
- Diamond jewelry,
- Requires that all diamonds exported to the U.S. be subject
to the international rough diamond standards, and
- Sets strong penalties for smuggling illegal diamonds into
the U.S.
It also sets aside money, from criminal penalties and contraband
diamonds, for child amputee rehabilitation programs and for
civil society and development projects. It requires legislation
to be effective by September 2001.
Note carefully that there are legitimate producers of diamonds.
We are not talking about a boycott of diamonds, which would
threaten the legitimate diamond industry that is crucial to
the economies of South Africa, Botswana, and Namibia.
The Clean Diamond Act would assure American diamond retailers
and consumers of a clean stream of diamonds and put serious
pressure on countries that fail to support the Kimberley process
of rough controls agreement. Moreover, it would hasten the day
that the functioning rough controls would be adopted; if not
universally, then by the principal exporters of diamonds and
diamond jewelry.
Suggested actions:
Visit local diamond jewelers or retailers; ask if they know
about conflict diamonds and provide them with information. Ask
them to appeal to the U.S. diamond industry for a "clean
stream" of diamonds. Let them know that you consider the
industry's Conflict Diamonds Act to be inadequate. Be very clear
that no jeweler can guarantee that the diamonds they are selling
you has not come from a conflict zone.
Write to your Members of Congress asking that they support
the Clean Diamond Act (and oppose the industry's Conflict Diamonds
Act).
Send a letter or postcard to one or more of the following major
diamond dealers in the United States, urging these key retailers
to publicly signal their support for the international system
of controls and for the Clean Diamond Act.
Matthew Runci, President and CEO, Jewelers of America, Inc.,
1185 Avenue of the America's, 30th Floor, NY, NY 10036; Tel:
(212)768-8777 ext. 8012; fax: (212)768-8087.
Beryl B. Raff, Chairman and CEO Zale Corporation 901 W.; Walnut
Hill Ln., Irving, TX 75038-1003; fax: (972)580-5523 (www.zalecorp.com).
Michael J. Kowalski, President and CEO, Tiffany & Co.,
727 Fifth Avenue, New York, NY 10022; fax: (212)605-4465 (www.tiffany.com).
Lee Scott CEO, Walmart Stores, Inc.; 702 Southwest 8th Street,
Bentonville, AK 72716 (www.walmart.com).
Send information to your local newspapers urging them to cover
the issue of conflict diamonds and the legislation.
Get your Mayor or City Council to pass a resolution or declare
a Day Without Diamonds in solidarity with the people of Sierra
Leone who have lost their lives or limbs.
General Assembly Guidance
Civil wars currently rage in numerous African nations, including
Angola, the Congo/Zaire, Ethiopia, Eritrea, Uganda, Sierra Leone,
and Sudan, and have escalated to a point of destabilizing entire
regions and uprooting entire populations, with children and
adults being taken into slavery.
These conditions in Africa receive inadequate attention in
the media, as well as inadequate attention and response by our
elected officials and members of [our denomination].
These wars and resulting human rights abuses rage on a continent
where the Presbyterian Church (U.S.A.) has given the lifeblood
of mission workers and invested resources over generations,
even as our members' commitment to love and care for sisters
and brothers on the continent of Africa has diminished.
The 211th General Assembly (1999) of the Presbyterian Church
(U.S.A.) focuses heightened attention, advocacy, and compassionate
response appropriate to the gravity and magnitude of the situation
in Africa. These efforts will include resources of intercessory
prayer, study and education, publicity, public policy advocacy,
pastoral care, and generous dedicated giving. (from Church
& Society, July/August 1999)
Military forces inflicted shocking atrocities on civilians
as Sierra Leone's civil war moved into its eighth year. In January,
the rebel Revolutionary United Front (RUF) launched a major
offensive to gain control of the capital, Freetown. The RUF
forces unleashed a wave of terror against civilians, systemically
killing and mutilating hundreds.
Hope for an end to the violence flourished when the government
and rebels signed a July 7 peace accord. Incidents of abuse
declined briefly, but a pattern of terror and intimidation soon
reemerged. During November, rebels looted at least twenty northern
villages, raping, torturing, and murdering civilians and forcing
some 12,000 people to flee their homes. A large number of noncombatants-including
more than 2,000 children abducted during the January offensive-remain
captive. (from Human Rights Update, 1999-2000)
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