Practically nothing has been heard of the Far East as one of the most important world markets for diamonds, but through a series of important circumstances it has be-ome so during the past few years. Moreover, at the present moment the situation in regard to diamonds in China is exceedingly interesting. As we shall explain later, diamonds are offering here at something like 50 per cent. below market value, and while it is without question merely a temporary phase resulting from economic conditions in neighbouring countries, it is of sufficient importance to demand attention.
There are so many facts connected with the business in diamonds that to make the position in the Far East the easier of comprehension it will be worth while to look for a moment at the whole world trade. With the exception of Brazil, South Africa produces the world's supply. The South African mines have formed what is known as the Diamond Syndicate whose purpose is to buy the whole output of the mines, and by agreement between the mines and the Union Government, which receives a 60 per cent. share of all the stones produced, the whole output goes to the Syndicate, which limits production so as to accord with demand.
Text read from the printed page and cleaned; old type leaves the occasional error.