The Ministry of Industry and Trade rejected approaches by heads of international diamond syndicate De Beers, to take measures against Israeli manufacturers, who do not purchase their raw materials from the syndicate. This was revealed to "Globes" today by Minister Nathan Sharansky.
"They wanted Israel to boycott people like Lev Levayev. They did not put real pressure on, but in meetings with them, indicated that they hoped we would not encourage those who wish to break their monopoly," said Sharansky.
He added that he refused to prevent giving assistance through, for example, the Foreign Marketing Fund, to a diamond merchant who does not work with the syndicate, such as Levayev. Sharansky further said that pressure from the syndicate forced the Diamond Industry Association to remove Levayev from its membership list.
Sharansky further revealed that the Association is contracted with the syndicate, which forbids its members to purchase raw materials other than via the syndicate, for example in Russia or Africa. The Diamond Industry Association, said Sharansky, asked him not to undermine in any way the contract with the De Beers monopoly, "and not to even cast a shadow of a doubt on it." He added that those in the diamond industry fear great damage may be caused to them by the syndicate, as a result of attempts to change the status quo, and this "only testifies to the monopoly’s powers."
Published by Israel's Business Arena June 25, 1998.