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[International, Ministerial Diamond Conference Index]

1. I have possibly one of the easier tasks at this technical session in conveying to you the Botswana perspective on the current debate concerning the control of conflict diamonds.

2. The only objective of the Botswana Government, since diamonds were first discovered in our country, has been to ensure the optimal use of the diamond resource for the benefit of all our citizens. That remains our only objective. We have no hidden agendas. Our Government consists of a cohesive group of representatives of the people. We regard our diamond resources as a national resource to be used for the national benefit – and any analysis of the mechanisms, which we use towards this end, will I believe, demonstrate both the sincerity of the objective and a large measure of success in achieving it.

3. In reviewing our existing regulations I believe it is necessary to start with the broadest view of our political and social philosophy. These days, every Government says it believes in democracy – but not all of them behave as if they do. Since Independence, Botswana has consistently and sincerely pursued the ides of an inclusive, genuinely representative democratic Parliamentary system of Government. In a sense, one might say that in itself mush of the divergence between Botswana’s relative success in economic development and the relative failure of some others. In a truly representative democracy, dissident groups are more likely to become parliamentary oppositions and less likely to become rebel armies.

4. What stems from the democratic background is a broad consensus in favour of maintaining law and order and protecting the private property rights of the majority against any predatory behaviour of minorities. The unspoken principle that citizens are entitled to work as hard as they wish, within the bounds of the law, and to retain most of the fruits of their labour – subject only to those two old unavoidales, death and taxes. A widespread respect for the rule of law is an obvious feature of most economically advanced societies. No society is without criminals, but it is necessary that they be only a small minority and that the majority will share a determination to protect their freedoms by putting adequate law enforcement mechanisms into place.

5. The relevance of all this philosophy to the practical matter in hand is, first and foremost, that in Botswana all mineral rights are vested in the State. When set against the background of social stability, rule of law and protection of private property rights, this means that mining can only be carried out by those companies or individuals who are in possession of a valid Mining Lease issued by the Government in terms of the Mines and Minerals Act. Likewise, prospecting activities require a valid Prospecting Licences. Licences are issued by the appropriate national authorities in terms of comprehensive and transparent legislation. The terms of those licenses, together with the provisions of the Act, ensure that the disposal of mining products – whether they be salt or gemstones – takes place through appropriate legal channels.

6. Diamonds, of course, are a special case and they pose special problems. They have an exceptionally high value-to-weight ratio and their origin is difficult to determine, so they are prime targets for theft, smuggling and the financing of illicit activities. Even in a country like Botswana, where there is widespread respect for the law, we have recognised the need for special arrangements to protect our foremost national resources.

7. So, in addition to our Mines and Minerals Act, which, together with associated pieces of legislation, governs the activities of prospecting and mining, we also have legislation entitled the "Precious and Semi-Precious Stones (Protection) Act". This Act provides that no person may buy, deal in, offer for sale or barter or even be in possession of any rough or uncut diamond unless he or she is duly authorized through the holding of an appropriate license or can prove legal ownership and has declared the stone, or stones, to the appropriate customs authorities. Our factories engaged in diamond processing are also subject to the Diamond Cutting Act, which places strict constraints on the movements of uncut diamonds through the processing operation and imposes severe penalties on any person departing form the legally authorized processes.

8. In practice, what this means is that only authorized mining companies and cutting factories may possess uncut diamonds in Botswana, and that any person seeking to import a stone which is his or her lawful property, must declare it to customs authorities at the point of entry. The law governs all aspects of the movement, possession, working and disposal of uncut diamonds. Policing of these regulations involves all of the normal national security forces including certain specialized branches dealing exclusively with diamond-related matters.

9. If this appears excessively authoritarian for some tastes, it must be understood that diamonds are economic life or death to Botswana. In several other producing countries, diamond mining is recognized as an important economic activity; but only in Botswana does it account directly for three quarters of all export earnings and over half of all direct revenues to Government. A serious disruption in the diamond market will cause economic disturbance for any significant producing country, but only for Botswana would it spell fundamental economic disaster. Therefore, for us, diamond theft is regarded not in the same way as petty larceny, but as a crime against society, which is almost akin to treason.

10. Of course, for as long as the sun rises in the mornings, there will be thieves trying to devise ways to beat the security systems. Wherever there are human beings, there are human weaknesses. We cannot say that we have eliminated theft of Botswana diamonds – but we can say that it is rare and we can also say that diamond thieves in Botswana have a pretty good chance of being apprehended and convicted, the penalties are extremely severe.

11. Up to now, Botswana has only one significant operating company in the diamond mining sector, which is the Debswana Diamond Company. As most of you will be aware, this is a joint venture between the Botswana Government and De Beers Centenary. With only three significant sources of mined diamonds, all physically secured, and all operated by the same company, which has a 50% Government shareholding, as well as access, through de Beers, to state-of-the-art security technology, we have a situation that is as favourable as it could be from the point of view of monitoring and control.

12. In terms of process and documentation, Debswana sell all its diamonds, in Botswana, to a subsidiary of the Diamond Trading Company. All shipments are securely sealed, uniquely identified and specified as to weight, value and specific details of certain individual stones of high value. There is a system of communication between the point of exit and the point of destination such that the receiving party can confirm receipt of the consignment in all relevant details.

13. You will recognize from this outline description of how rough diamonds from Botswana enter the world market, many of the features of the new global certification system proposed by this group. This is not by coincidence. Those representative of the Botswana Government and of De Beers, who have attended previous meetings of the Kimberley Working Group, know from experience that this is a system that can be made to work – at least on a national scale. Obviously it cannot necessarily be simply transplanted from the Botswana environment to any other environment because, as I have explained, Botswana has a fortunate combination of circumstances which render diamond security more effective than it can be in may other places. But it is a workable model which, with some ingenuity, might be adopted to other environments even where the general climate may not be as favourable.

14. Ladies and Gentlemen, let me conclude by saying that I do not anticipate that Botswana would have any significant difficulty in complying with the kind of global regulatory system which is under consideration – and indeed, the fact that such a scheme contains elements which match the system which we ourselves have been using quite successfully, give us some optimism that it can be made to work more widely. That must be our objective – indeed, it must be made to work not just "more widely", it must be made to work globally.

15. Finally, let me say that Botswana not only supports the proposals of the Kimberley Group, it is actively pressing for their implementation at the earliest possible moment. We do not share the view of some of our colleagues that the problem of conflict diamonds is a passing danger that is already receding. We believe that the danger remains real and urgent. We follow closely the debate-taking place in the United States, and the various statements made by Congressman Tony Hall and others to Committees and Sub- Committees of the House of Representative – including statements made in Washington within the last few days. And we take note of the continuing concern of Non – Governmental Organisation, whose constructive participation in the Kimberley Process must not be mistaken for satisfaction with the status quo.

16. Illicit diamond trading does contribute to the daily ruination of young lives, which is occurring on our continent. The eyes of the world – not least the eye of the American diamond-buying public – are firmly on us to see if we are going top tackle this problem or stick our collective heads in the sand. We must by all means act with care and wisdom, but we must not delay any longer that necessary. For as long as we procrastinate, innocent lives are being lost which might be saved; and the danger to our industry on which so much depends, will not go away until the world at large is satisfied that effective measures are being implemented.

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