Premier jewellery house Hazoorilal celebrated the launch of the Forevermark brand in their flagship store in New Delhi
{[WFDB includes India in the Executive Committee
][Consumer Confidence upheld
][WFDB to keep off CRJP
][WFDB Mark to be launched in seven months
][Diamond trade with Côte d'Ivoire (Ivory Coast) banned
][Concern over US Patriot Act which would hamper free flow of international trade
][WFDB bourses to conduct educational programs
][Next World Diamond Congress in Tel Aviv, June 26-29, 2006
][Next Presidents Meeting in Amsterdam in Netherlands, June 24-26, 2007]}
From a modest beginning to a world class player, Indian diamond progress is just a few decades old. When the leading diamond representatives from around the globe converged last month in Mumbai, the diamond city of India, they were nothing but awed with the tremendous progress that India has made in such a short span of time. India played host to the WFDB Presidents Meeting in mid-November this year which has been a success 'beyond expectation'. Many foreign delegates and representatives of world diamond bourses praised the {{Gem & Jewellery Export Promotion Council}} and the {{Bharat Diamond Bourse}} for conducting this global conclave smoothly. {{Mohana Ravindranath}} takes stock of the entire event talking to world leaders to get an overall view of the world diamond industry. A review…
The closely knit diamond industry has come clean in most aspects all through the years. Lately, a spate of events has left diamantaires shaken over the affects in the future. Money-laundering, synthetic diamonds, HPHT diamonds, faulty certification, conflict diamonds… are issues that need immediate attention in order to keep the sanctity and integrity of the diamond industry world over, was the unanimous view expressed by the world leaders at the Presidents Meeting held at Hotel Taj in Mumbai in November. This is the first time an official gathering of the WFDB has taken place on the Indian subcontinent.%%
Among the most closely watched actions by the forum was a decision to stay out of the {{Council for Responsible Jewellery Practices (CRJP)}} and the approval of a comprehensive plan that will officially launch the WFDB Mark at the {{World Diamond Congress}} in June next year. The Presidents also cautioned bourse members against handling rough diamonds originating from the Côte d'Ivoire (Ivory Coast).
The relationship between the WFDB and the CRJP was discussed during the first session of the two-day meeting. Acting on a recommendation by the WFDB's Executive Committee, the Presidents decided unanimously that the World Federation would not seek membership in the recently created CRJP. Stressing that their decision in no way represented any backtracking in the WFDB's absolute commitment to the principles of consumer confidence, the forum explained that the structure of the CRJP was problematic and did not account for the role played by representative organizations in the industry.
The WFDB Presidents gave the green signal to a program, which will enable the launch of the WFDB Mark in seven months time. The WFDB Mark is a trademarked logo, which approved members of WFDB-affiliated diamond exchanges will display to clients and suppliers, to confirm that they abide by the World Federation's better business principles. %% In his introduction of the program, WFDB President {{Shmuel Schnitzer}} stressed that the World Federation's commitment to maintaining consumer confidence lies at the very heart of the WFDB Mark. He also underlined the unique position of the WFDB. "Whilst a number of organizations have introduced sets of Best Business Principles, they are currently tackling the considerably more difficult, and may I state more expensive task, of creating systems for auditing, monitoring and enforcement," he noted.
"To the best of my knowledge, among the major representative organizations, no such system is yet in place - with one notable exception. We in the WFDB have had such a system in operation since our inception (in 1947). Every one of our affiliated bourses has an effective judicial system in place, and, under the auspices of the WFDB, decisions taken at one bourse are enforced in all its sister bourses." %%
"The WFDB Mark Program will send a strong signal to the jewellery industry and emphasize the benefits of doing business with members of WFDB-affiliated diamond exchanges," WFDB President Shmuel Schnitzer said in a statement.
The Presidents Meeting agreed that a stand-alone document, called the {{World Federation Code of Principles}}, or {{WFCOP}}, will be drawn up, clearly listing the conclusions drawn from the various relevant resolutions passed by this organization over the past several years relating to the issues concerning consumer confidence. Bourse members who are permitted to display the WFDB Mark will be required to sign the document, by which they formally commit to uphold these principles. A media campaign will be undertaken as part of the program, in order to instill in the public's consciousness the symbol and the significance of the WFDB Mark.
India & China Create Confidence:
With the world economy under significant pressure, Schnitzer also noted that the 2005 Presidents Meeting is being held at a significant time for the diamond and jewellery industry. "But the fact that we are holding it in India, one of the hotbeds of growth in Asia, is particularly noteworthy," he said. "India and China together represent the two regions of massive growth for diamond jewellery, and provide us with confidence that the long-term health of the business is assured."
Ivory Coast Rough Banned:
Following a discussion on the progress of the Kimberley Process, the WFDB presidents echoed a call from the chairman of the {{Kimberley Process}} to ensure that no rough diamonds originating from the northern region of the Côte d'Ivoire (Ivory Coast) be traded.
Patriot Act May Disturb Trade:
In a joint statement with IDMA, the WFDB recognized the provisions of the US Patriot Act, and noted that similar Anti-Money Laundering (AML) legislation in other countries exists or is being prepared with the same goals. The two organizations expressed their concern that the implementation of the US Patriot Act in the diamond, gem and jewellery industry will disturb the free flow of international trade with the United States and may create a trade barrier. The WFDB and IDMA encouraged the US regulators to accept that non-US dealers who fully comply with their countries AML legislation in the same way as they accept US dealers who comply with the US Patriot Act regulations. WFDB and IDMA stated they will work with government authorities to encourage international compliance with AML laws.
Certification of Treated Diamonds:
In its discussion on the certification of diamonds that have been color-treated through a High Pressure-High Temperature (HPHT) process, the WFDB reiterated its earlier call that laboratories issuing grading reports for such diamonds do so on certificates that are visibly different from those issued for non-treated natural diamonds. Noting that the HRD Certificates Department has already adopted such a policy, the WFDB called on the GIA to follow suit. {{Thomas Moses}}, the head of the GIA Gem Trade Laboratory, who attended the meeting in Mumbai, promised that his organization will consider the matter further.
During a joint session of the WFDB and IDMA, Moses referred to the current difficulties being experienced by the GIA Gem Trade Laboratory, and noted that for the next six months the lab will re-examine free of charge any diamond whose grading report may be suspect. The WFDB presidents requested that the period be extended, and Moses agreed that this request would be considered.
Payment Ethos to be Improved:
Noting the increased level of debt among bourse members, the Presidents Meeting called on the WFDB bourses to conduct educational programs aimed at improving the payment ethos in the industry. It was also agreed that a study be conducted to examine the legal ramifications of publishing names of bourse members who are delinquent in their payments.
The Presidents Meeting affirmed the dates of the next {{World Diamond Congress}} that will take place in Tel Aviv from June 26 to 29, 2006, and the next {{Presidents Meeting}}, which will take place in Amsterdam, Netherlands from June 24 to 26, 2007.
Moses Clarifies GIA Imbroglios:
Tom Moses clarified the imbroglios, "I both realize and can fully appreciate that there have been rampant rumors and speculation swirling in the industry around GIA. I want to briefly address this issue. As I do, please understand, that I am constrained in what I can tell. First neither I nor any of GIA's senior leadership were involved in the investigation that was led by outside counsel, and I am not not privy to the discussions between the investigators and our Board of Governors.%%
Secondly, since we are in the midst of litigation, our lawyers have instructed me not to discuss any specifics of the litigation or related issues."
Law Suit Filed Against GIA:
As you know, a lawsuit was filed against GIA and three other defendants last May which allege, among a number of things, that certain members of the GIA grading staff accepted bribes to upgrade two diamonds in 2001. As to this issue, we have told you that we intend to vigorously defend ourselves in this lawsuit and feel confident in our position.%%
Following completion of the investigation, we issued a press release on October 18th announcing:
%% {[The Board engaged outside counsel to undertake a comprehensive four month review of GIA policies and practices.
][Based on the findings, we terminated four employees for violations in varying degrees of our Ethics Policy.
][Additionally, we announced that those few dealers who may have violated our code of ethics would be dealt with swiftly and decisively.]} %%
We can appreciate that many in our industry want to know if the violations of our code of ethics by former employees or dealers is systemic. Fortunately, the answer is no. I have been at GIA for over 20 years, and I have worked closely with the graders and other staff members. The graders at GIA today in opinion are diligent, honest, and talented people deeply committed to the mission of the institute.%%
Many in our industry are also speculating that there are thousands of stones with grades that are suspect. The credible evidence presented by the independent investigative team indicates that a small fraction of the diamonds graded by GIA over the ten-year period covered by the investigation could have been affected. As you all know, the grading of diamonds is not and never has been as exact science. Although I am proud to say that GIA has over the years developed grading standards that factor in human tolerances to establish consistency in the process, at the end of the day, it is part science, part art, with the acumen, expertise and perspective of the grader all playing a vital role.
Free Re-examination offer:
Most importantly, I want you to know that we stand by our reports. If you feel that any diamond graded by GIA for any reason requires a second examination, we will do so free of charge for the next six months. You can find out more details about this on our website.
%%
The third point I want to make is that the few dealers we believe have violated our code of ethics have been notified and told that we will not do business with them going forward.
%%
That said, I want you to know that we are working actively to instill a strong culture at GIA which encompasses the highest standards of ethics and integrity.
%%
The initial steps we are taking include:%%
{[The appointment of a Chief Compliance Officer who will report to GIA's general counsel;
][Annual mandatory ethics and professional conduct training for all employees; and
][The retention of an outside, independent company to provide services, a hotline essentially, that will allow confidential communications between clients and employees with GIA's board and senior management.]} %%
And, I will be stressing in my first end of year letter to all clients that we will not tolerate any dealer attempting to give money or favors to any grader for any reason or otherwise seek to influence the grading process.
I know that after an issue like this is brought to light, the only real remedy is in the actions we take and in the reputation we earn going forward. And that is how I ask you to judge us.%%
Next year we will celebrate 75 years of excellence in education, research and laboratory services. We built our reputation on integrity, and it is my intention to adhere to, and to propagate, the very highest ethical standards and practices as head of our laboratory.%%
At this time, there is very little more I can say while the litigation is ongoing. Therefore, I am going to close, and I will be unable to take questions on this matter at this time."
WFDB will settle Consumer Confidence Issues: Shmuel Schnitzer
{{The erratic supply and shortage of rough has left the Secondary Market limping, what steps would the WFDB take to rectify this state?}}
The WFDB is doing everything in its capacity to strengthen ties with the main rough suppliers, including the {{Diamond Trading Company}} (DTC), {{Alrosa, Rio Tinto, BHP}} and others. We are not a commercial body to follow in the footsteps of our members but we can ensure that the big rough producers will make an effort to contribute also to the secondary market. That is what we are trying to negotiate with them. To tell you that it is a huge success would not be correct because each producer is doing what is good for itself or what is good for their company. We cannot force them to do things which they think are not right for their company. But take for example Alrosa. After meeting us they distributed rough in Antwerp last year through their office worth $350 million. As their delegate here (at the Presidents Meeting) said and rightly so, it is not much lower than what Diamdel supplies to the secondary market about $500-$550 million. In other words, Alrosa is doing its share for the secondary market and so is Diamdel (DTC)... Every year there are discussions to enlarge supplies through Diamdel. We are doing utmost but surely it is not enough.
{{What Difference will the WFDB Mark bring about once it is introduced in the market?}} %%
The most important and crucial issue today is consumer confidence. The WFDB Mark should answer all the questions the consumer would ask. All questions related to conflict diamonds, child labour, money laundering, about HTHP, synthetics… All these issues would be settled by the WFDB Mark.
De Beers Very Good Friend:
{{Regarding DTC Giving Up Custodianship, as Voiced at the Presidents Meeting, your comments please on the Post-Custodianship Scenario.}}
They formally gave up the custodianship but they are still very close to the industry. We need something from the producers. The first address is the DTC and they never say no. They always cooperate with us. True they are not custodians anymore. True, we may have many things to say against them for many other reasons but still the effect of the story is that they are very good friends of the industry and the industry is not just sightholders, it's everybody. They are not custodians. It's their own decision; we did not push them to take this decision. They do not want to act as custodians anymore. They are right. They are not alone today. There are so many other companies today which are active in rough. I don't know but may be they have 50% of the market share today. DTC is not so sure, then why act as custodian.%%{{Rising Prices and Receding Margin: how do you perceive the situation?}}
I think we should let the market talk. When the market is ready to pay very high premiums with the rough, it did. Recently people are more relaxed and are talking quite well of buying, and premiums are no more in the sky. I think the prices of rough are more realistic than they used to be two months ago. Today it is a better price line of the rough. The polished again is the matter of the market. When the American markets face something unpredictable like the floods, soaring prices of oil, and then the interest rate. You can't expect this to be a tremendous year. It wouldn't be. We know it shall not be. This should be a normal season. Polished prices will not go up in the coming months. But next year is a different story. I don't know what next year will bring, but I hope polished would get strengthened in the next year. %% {{CRJP is much talked about today, but WFDB has refused to be part of It. Your comments, please?
}}
At the beginning we were not accepted as members by the CRJP and we were quite frustrated by that. Afterwards our members came to the conclusion that through WFDB Mark which was taken up for discussion at the Presidents Meeting, we are going to answer all the questions raised by the CRJP about the consumer confidence and so and so. Why do you need 100 bodies to do the same job? We are committing full 100% to all the elements of consumer confidence. Our fight against conflict diamonds, the HPHT etc. is in our interest to do it. We are doing it as part of our job. The board and the session after the Executive Meeting decided we don't need to be a member of the CRJP as we are doing our job. Perhaps better than what they would have done. That's a decision.
DTC's SoC under discussion:
{{There have been Talks about Some of the Members Raising the Issue of the DTC's Supplier of Choice Policy. Would You Throw Some Light on it?}} %%
Some of the members were against our on-going dialogue with DTC. But at the end of the day I personally think, that it's much more important that we continue the dialogue and most of us agreed that the dialogue should continue. We are not going to file any official complaint for that's not the way to handle this problem. We have to handle it through on-going dialogue with DTC and so far we have done quite well.%%
{{GIA's revealations and the on-going investigations, how is WFDB receiving It?}} %%
(GIA delegates were at the Presidents Meeting to submit their papers on the continuing controversy and the action taken by them). The suspicion of the industry is disturbing us but we hope that soon they will make things clear and GIA will be able to resume its activities because GIA is very important for the industry. Most of the people in the world identify GIA with diamonds globally. It's going to be very bad for the entire diamond industry if GIA does not clear the whole issue. They should clear it, legally or in any possible way. But they should clear it and continue their job.
During my four years' presidency I could accept {{Bharat Diamond Bourse}} as part of the diamond exchanges worldwide and now we shall accept them as the permanent member of the {{Executive Committee}} which is the highest body in our organization. I think they deserve it. India is so important today in the diamond industry that they have a natural place and I am very happy to see the advancement and achievement. Not the last word has been said by the Indians yet, we are all happy to see it. It's good for all of us.
SoC - 'Not a good Revolution, nor a bad one either'
In a joint interview, {{Avi Paz}}, President of the Israel Diamond Exchange, and, {{David Marcus}}, President of Diamond Club West Coast, Inc., Los Angeles, raised important issues before the industry today.
Burning Issues before the industry:
"The major issue before the industry today is mainly to keep it going. The diamond industry is not confined to boundaries, it is a global industry today," said Avi Paz. "There is a lot of growth in this industry. We have to keep growing. There is a lot of challenge that we have to face. We have to stick together and work together. The three world bodies {{CIBJO, IDMA}} and {{WFDB}} mean growing up together," he added.
{{What are the challenges?}} %%
"To keep the integrity of the industry and the consumer is the main challenge before the industry," said Avi Paz. From the commercial point of view, "it is the marketing front," said David Marcus. "It's a big challenge, even though we are a luxury item we are a unique one. It's not just luxury that we present, it is a value item. The value has to be retained at all times to maintain the integrity of the product. We are the only industry that police ourselves. No other industry I know of does so. It makes sure that ethics are kept and a word is a word in this industry. No other industry does that."
Issues raised at the Presidents Meeting:
Two issues raised by David Marcus include, "One, the effects that we saw once the DTC's Supplier of Choice was implemented and second, the laboratories that are servicing the industry. There is a big problem which we are trying to resolve. We will have to face, debate and see how we can solve the issues."
Adding on to Marcus, Avi Paz said: "We are the only industry which sells produce as a produce. We are marketing diamonds as diamonds compared to other divisional products. Take perfumes. Everyone is advertising different perfumes. But we as an industry are marketing diamonds as diamonds for the benefit of everybody. This is a unique business." %% "This is what the World Federation is representing like 15,000 members. We all market one item. Each one tries to do best, we are all proprietors or single people doing business," added Marcus.
DTC's Supplier of Choice:
Avi Paz was all praise about the Supplier of Choice policy, he said: "It has changed the industry totally. I believe the industry didn't change so much as it changed in the last five years. It is indeed a revolution. It is not a bad revolution."%%
"It's not a good revolution," added Marcus.%%
"It is not a bad revolution either but there are some changes to be made. You can't swim against it. It's done. You have to go with it. The problem is with small and medium people. You can't leave those people behind you. You have to help them. The diamond industry, like any other industry, can't stay by itself with 10 or 20 big companies. "Those companies need small and medium companies as much as the small and medium companies need big companies. It's a big challenge to keep the small and medium companies alive. It is a big challenge to make these companies make money because it is for the benefit for everybody," said Avi Paz.
Problems of the Secondary Market:
Marcus agreed that the secondary market is facing hardships on rough. "They do not get certain part of rough. The DTC is limiting one kind or the other which the secondary market is not getting. It is manipulating the market. The trouble is that it took up all the infrastructure of marketing. They are trying to change it radically. This is difficult. That is what Avi was saying, we also need the small guys in the chain of supply. It was working efficiently. But, in my opinion, the DTC probably wants a bigger bite of the apple which doesn't make sense. It doesn't work. You have to share it. If you want to be a success you have to share it with many more."
%% {{So, what can be done?}}
%% There is a lot that can be done, says Avi Paz. "This is the goal of the WFDB, IDMA and CIBJO together."
%%
"We are a very powerful and the marketing arm of the mines what they produce. They are acting as if we don't count," added Marcus. "Those are very powerful organizations and they have to think about the membership and represent the members. I hope the leadership will do what they are expected to do."
%%
"I believe we will stick together. We have to take the leadership and take it above. We can do it as we have the power," said Avi Paz.
%%
"Basically we are competitors and highly fragmented. But we come together to achieve a common goal. All of us will benefit. Let's hope for the best," added Marcus.
%% {{GIA Scandal:}}
%%
"This is a very delicate situation. We have to be very careful because everyone would be affected," said Avi Paz. "This is not just about the GIA. This is about the labs. We will have to place all the labs together and find what they are doing. This is nothing to do with GIA alone. We are talking about the principle of what the labs are doing," said Marcus.%%
"May be he is right," said Avi Paz. "We have to understand the certificates issued by, say thousands of labs in the world. We have to understand that the certificates do not go only to the diamond dealers but also to the consumers' and consumers confidence is a very important matter. We have to see that the certificates that they get are something they can rely upon. This way we have a long way to go."
%% {{There is no need for an expensive body as CRJP: Dr. Gaetano Cavlieri}}
%% {{Dr. Gaetano Cavlieri the President of CIBJO expressed himself thus:}}
Burning issues before the industry:
Consumer confidence is the main issue of the industry but not the only one at this moment, although it is a never-ending issue. To understand the consumers and supply them what they require is not so easy. We have to imagine exactly what they want and imagine how to supply them not only the best, not only in terms of quality, in terms of production, in terms of items but also in terms of services before, during and after the sales.
Issues that need immediate attention in these Conferences:
We have been a transparent industry. The method of doing business in this industry is to trust each other by knowing each other. So reputation plays an important role. If we bring our reputation under discussion that means we have to make every single effort to exercise our business in terms of integrity and transparency. Why ? Because we have to deliver not only items to our consumer but also confidence to our industry and we have to bring whatever we can to deliver the right message which is in this industry 'Trust Each Other' is the base of our future.
%% {{CRJP, Agreed and Denied: }} %%
I agree in the sense, we put under discussion this issue through our constituency. Once we agreed even if it was our idea in terms of consumer confidence commission but when we saw the implementation model and distraction and the fact that we were requested to go in a certain direction we don't share we simply withdrew. We do not agree or disagree or deny it. We went in, we saw distraction we don't share this type of structure we withdrew. It's not to be considered that we were in and out like a sliding door. We went in because we believed, we saw, we did not like it, we came out.
%%
{{What made you reconsider it?}}
%%
We did not reconsider it at all. We said very clearly this is something with the organization, the legitimate bi-election organization like CIBJO, World Federation, IDMA have the right because they are entitled to do it by statute. There is no need to create such an expensive new body. There is no need to do this kind of things as we do it every day. There is no need to have an extra body of few companies. We deal with the interest of the whole industry. We don't deal with balance sheet or with shares. We deal with the integrity and the prosperity of the industry.
%%
{{What are the burning issues before the industry?}}
%%
Two burning issues are there before the industry - US Patriot Act and the SA Diamond Bill.
%%
About the US Patriot Act, we have to consider their point of view also. So, it's not the question that it is an issue to the diamond and jewellery industry as much as the laws in South Africa. There are things we can only accept in the US. Those are two examples that we cannot change and because we cannot change we have to consider it. How it will affect the industry is what we have to see in the future. Only then we can make our comments.
%% {{New Plans?}} %%
There are many new plans which we will present in the next Congress to be held between July 24 and 27 in Vancouver. We are going to celebrate our 80th anniversary; we are not so young. We are going to raise our voice again for the benefit of the industry for reaching better relations around the world. We are completely open and have no problem of religion, color of skin because we are part of one family and we work for the benefit of the family.
SoC is hurting most of the Small Diamond Dealers: Albert Beller
{{Albert Beller}}, President of the {{Beurs Voor Diamanthandel}}, Antwerp, and also the President of the {{Belgium Federation of the Four Bourses}}.
{{What is your bourse doing?}}
The Antwerp Diamond Bourse is the biggest in the world. We have the most members and what we try to do is to give possibility to all the members in the whole world, also the members in Antwerp to come to Antwerp, sit in the bourse and do dealings of buying diamonds. You are not allowed to sell diamonds in our table room because this is also something that no place in the world does. We have in Antwerp, the biggest Indian diamond dealers who are having their offices in Antwerp, some of them in the bourse and some outside, but all of them are members of the bourse. And we give a chance to all to come there and buy polished and rough.
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{{What are the challenges?}}
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One of the challenges that we see is that a lot of members are facing difficulty in making a living because more and more the downstream trends that were to go from the manufacturer down to the jeweller and all the middlemen are away.
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Second biggest problem for the moment and I hope this will be resolved is the problem of cash flow generally in the whole world. The bourse as such cannot do anything about the cash flow because we do not deal in the bourse of diamonds we are only there to protect our members, to protect the integrity of the diamond world and unfortunately we have the help of the banks but according to the cash flow it is very difficult for us to do anything.
%%
We try to defend our members and try to protect them from the base. We call on DTC that they should not continue with their SoC program. The four bourses in Antwerp have approached the World Federation but we don't know if it would succeed as it would depend upon the Union's decisions which will decide whether or not the SoC should continue.
%% {{What about SoC issue?}} %%
The issue of SoC has been raised about two years ago. A committee has been formed in which Schnitzer and others are members who have discussed it with the DTC. The four bourses in Antwerp have tried to discuss with the European Union the fact that the SoC is hurting most of the small diamond dealers. %%
{{
US Patriot Law:}} %%
It is a problem for most of the diamond firms not only in Belgium, in Israel, in India…it's going to be all over. It needs to be discussed.
The only thing that is of concern to the four bourses and needs to be discussed is the issue of synthetic diamonds. We have to decide if we will cut and grade synthetic diamonds. Also, the issue of HPHT has to be decided. At the moment we do not have the help of the GIA because they continue grading HPHT goods. May be with the problems today there may be changes.%%
Finally our thanks to the BDB and the GJEPC for the warm welcome they extended to us. I have been to India for over 40 to 50 times and have always enjoyed being here.
Vasant Mehta reviews the Conclave
{{Vasant Mehta Vice-president of the International Diamond Manufacturers Association (IDMA) summed up the proceedings:}}
The issues raised at IDMA:
More or less IDMA discussed the same issues as WFDB. {{Whether to join CRJP or not}}? Terry James of BHP Billiton gave a presentation on why we should join but upon questioning there were some issues which were not very clear. Only when things are cleared we could consider joining. These included the voting rights. There are two sets of members - one is individual members and the other is associations like IDMA and WFDB, which are association of associations. If individuals are given equal rights or a say in everything then it does not give a balanced structure. So we said we would talk to them and then come to a conclusion. For the moment we are not going to be members.
%%
The {{GIA issue}} was discussed. It was felt that GIA is a very mature and credible organization. After their investigation they will come up with the results. We have to wait and watch. However, we were all concerned about this.
Anti-Money Laundering laws of the US:
We respect the law and realize the importance of the US treasury concern regarding terrorists finance. While the house appreciated it, we were concerned if such laws would harm the free and fair trade in diamonds. Under some recommendations, the compliance system which a dealer in the US has to keep is different for a dealer from outside. If you are dealing with US dealers it is lighter but if you are dealing with non-US dealers or anybody from across the border then the Compliance System is stricter and expensive too. Our concern, I mean the non-US dealers, was that they would shy away. We have issued a joint statement appreciating the law but to see that it does not create a trade barrier.%%
This is a very sensitive issue. IDMA and WFDB would not go into criticism. The countries that are likely to be affected by this may try to contact the US Treasury directly with the assurance that the money laundering in the gems and jewellery and the diamond trade is nil or does not exist. As far as India is concerned, it would affect it the same way as it would affect Israel or Belgium. If some dealer in the US is getting 90% goods from within the US and 10% from abroad, such people will shy away saying that for 10% why should he get into such problems. Similarly a buyer from India would opt for buying it from say De Beers rather than the US.
Rough supply to Secondary Market:
How to get more rough for the secondary market was discussed. We took note of the increase in supply by De Beers after the Congress in New York last year. The rough supply to the secondary market too has increased.
Challenges discussed at the Meet:
The profit margins which are going down were discussed but then that is a matter which is an economic issue and the whole thing goes around demand and supply.
The SoC of DTC was raised in the past but in this meeting not much was discussed. Everything revolves around supply to the secondary market and free and fair trade in rough diamonds. We have written to the European Union about the uneven supply of rough to the secondary market.
Issues of synthetic diamonds, HPHT, etc., were taken note of but not discussed as they have been taken up in the earlier meetings. A bit of certification was discussed because IDMA and WFDB had asked the labs to issue a separate kind of certificate for synthetic diamonds. Some of the labs are already considering it or have already started doing it.
India Observed & Appreciated:
Figuratively India stands first. But after attending these meetings I have found that many of the presidents had not come to India. Three years back I had proposed India for the venue of the meeting. Anoop Mehta had done it in WFDB and I had done it at IDMA. We wanted them to come to the country and have a look at the industry. It was a success especially with all those who came first time. They were very excited as they visited the BDB and the {{SEEPZ}}. This had made India a little known to these people who will now act as ambassadors as they pass on the message about India. They were all very important people who came in from 25 different countries. When they visited the jewellery factories with ultra-modern equipment and state-of-the-art machinery and the product itself, it impressed most of them and they would now go around and spread the word. That is what we aimed at.
India's wish for Congress:
Yes, we are looking forward for a Congress which is a much bigger event where close to 300 delegates come in and which is more open. These are closed door meetings but the Congress is much open. As soon as the BDB is complete the Congress could be held there probably in 2008 or 2010.
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