He has assured the diamond trade, however, that De Beers will continue to support its clients through appropriate measures, including tailoring their allocations to match their needs".

As a truly independent company De Beers, he adds, is "now free to focus its full operating attention on its core role -- the mining and marketing of diamonds -- and acting as the custodian of the world diamond industry. This commitment will ensure that it continues to make good its claim to be the world's diamond experts -- a position it has held since 1888 and also to ensure that De Beersretains its leadership role in the diamond world".According to him 1998 was "one of the most difficult trading years in recent memory". On top of the SE Asian economic collapse of mid-1997, a year latter we face further severe buffeting of several economies. This certainly was not helpful to market sentiment. Reacting to this situation, the CSO started withholding sales, though this resulted in an increase in itsown stocks and borrowings. Major producers who are contracted to CSO played their part in underpinning market stability by responsibly agreeing to stockpile part of their production though it resulted in reduction of their revenues.

One positive aspect of this exercise has been that stocks of rough and polished diamonds in the market place have been reduced by an estimated $1 billion. Apart from restricting the supply to the market, De Beers continues to push forward its consumer marketing campaigns. It proposes to focus its marketing and advertising goals in 1999 on those retail markets whereadditional sales growth is considered achievable. It has, therefore, redirected appropriate funding accordingly. The advertising to sales ratio has remained high to take advantage of the marketing opportunitsin the millenium year.

De Beers experienced some relief in 1998 when the supply from Anglola and Congo diminished because of the continuance of civil unrest in those countries. Besides, Almazy Rossii-Sakha (Alrosa) agreed to extend for three years until December 31, 2001 its existing trade agreement with the CSO. This according to Opoenheimer, means that "the two important players in diamond business remain united within the single channel marketing syste,."Referring to survival of De Beers for so long, he attributes this to its "determination to think constantly about the future, to remain at the cutting edge of diamond exploration and technology, and to innovate new mining techniques and new ways of marketing".