Global Policy Forum

By Alan Cowell

Stung by accusations that the diamond trade has supported war against governments in Africa, De Beers,the giant of the industry, said today that it would give written guarantees that its stones do not come from rebel groups in the continent.

The announcement was the clearest statement so far of De Beers's resolve to keep illicit stones out of its arcane selling process. That system allows 125 approved dealers, mostly jewelry manufacturers, to buy shoe-box size consignments of uncut diamonds 10 times a year from the company's stockpile in London.

De Beers's announcement coincided with wider efforts by the world's diamond industry as a United Nations panel prepares a report for next month chronicling the use of diamonds to finance wars in Angola, Sierra Leone, Congo and elsewhere. Illicit gems account for only a small part of the global diamond market.

De Beers, which had record sales of $5.24 billion last year, is trying to strengthen the image of diamonds as a symbol of riches and romance rather than a currency for the trade in arms, fuel and other supplies that sustain conflicts in Africa. De Beers controls 70 percent of the world's trade in uncut stones -- a position that enables it to dictate prices by regulating the flow of diamonds from its Central Selling Organization in London.

The announcement said that as of its next formal sale on March 27, the De Beers selling arm, the Diamond Trading Company, would include on its invoices a formal guarantee that its stones did "not include any diamonds which come from any area in Africa controlled by forces rebelling against the legitimate and internationally recognized government of the relevant country."

The certificate will mean that the boxes sold by the Central Selling Organization contain only gems bought from De Beers mines in Botswana, South Africa and Namibia or bought from places like Russia, Canada and government-controlled mines in Angola, said Andrew Lamont, a company spokesman.

The announcement had little impact on De Beers stock in Johannesburg, which fell 6.6 percent, to 139 rand, or about $22.06, because of what analysts called a more general shift by investors away from mineral industry shares. But the announcement was welcomed by some of the company's critics.

"De Beers has taken a lead that the rest of the diamond industry must now follow," said Charmian Gooch, director of Global Witness, a group that had previously accused De Beers of failing to use its influence to curb illicit trading.

Some analysts, however, questioned De Beers's motives, saying the new plan reflected a long-term strategic shift toward selling only De Beers-branded stones.

"They have to create a clean brand image," said Christine Gordon, a journalist and independent diamond industry analyst. "De Beers stands to lose nothing by this financially and has a great deal to gain in public perceptions."

Ms. Gordon also said the move came when diamond sales by rebels from Angola were substantially lower. Last year, she said, sales by Angola's Unita rebels probably totaled some $160 million to $200 million, compared with $800 million in 1997 -- the year before the United Nations imposed sanctions on Unita.

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