UNITED
STATES SENATE
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COMMITTEE ON GOVERNMENTAL AFFAIRS
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HEARING ON
ILLICIT DIAMONDS, CONFLICT and TERRORISM:
THE ROLE OF U.S. AGENCIES IN FIGHTING THE CONFLICT DIAMONDS
TRADE
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342 DIRKSON SENATE OFFICE BUILDING
February 13, 2002
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TESTIMONY OF JOHN E. LEIGH
AMBASSADOR OF SIERRA LEONE TO THE UNITED STATES
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Mr. Chairman,
Members of the Senate Committee on Governmental Affairs,
Ladies and Gentlemen,
The People and Government of Sierra Leone welcome the
continued attention and resources which the Senate of the
United States is directing towards resolution of the
devastation arising from the trade in illicit diamonds,
including the illicit trade in Conflict Diamonds.
I am certain also that the people and governments of a number
of other African countries, especially those of Angola, the
Democratic Republic of Congo and the Republic of Guinea join
the people and Government of Sierra Leone in saluting this
Committee for its continued efforts to devise suitable
legislation to bring to an end a trade that enriches a few in
the rich industrial countries; empowers criminals and
terrorists worldwide but violently destroys the lives and
livelihoods of millions of poor people in impoverished
societies in Africa.
The international diamond trade is big business. The
worldwide retail trade in diamond jewelry was estimated at
approximately $60 billion in 1999. Conflict Diamonds account
for anywhere from 4% to 15% of this volume. The total portion
of the trade that is accounted for by illicit or contraband
diamonds from all sources, including Conflict Diamonds, is an
estimated 20% or $24 billion annually.
It is my view that the large role which contraband diamonds
occupy in the diamond trade is behind the stiff resistance to
the effective reform of the international diamond trade.
Contraband diamonds have been a prominent feature of the
diamond trade for many, many decades and is the real precursor
of Conflict Diamonds. When the nations of the
world did nothing to contain
the highly profitable contraband diamond trade, it should have
been foreseeable that violent criminals will seek to partake of
its rich profits.
It is my view that the trade in illicit diamonds was behind the
collapse of state power in Sierra Leone. Over a period of
twenty years or so, official exports of rough diamonds from
Sierra Leone declined from 1.3 million carats annually of
gemstones to only 20,000 carats of industrial diamonds in 1997
even though there was no reduction in mining activities in
Sierra Leone. The collapse of official exports deprived our
then very corrupt Government of significant revenues to pay for
public services. Soon, international crooks and criminals saw
an opportunity to make more money by seizing the mines under
false pretenses of seeking to reform a declining and broken down
society.
If there is one country in the world, therefore, that can be
accurately described as the ground zero for the victims of the
crimes associated with the trade in Conflict Diamonds then that
country is Sierra Leone. Sierra Leone was selected because it
was a weak, corrupt country with large amounts of easily
accessible diamonds - gemstones that are among the world’s
largest and finest.
For nearly a decade beginning in March 1991, a ragtag rebel
group calling itself the Revolutionary United Front (“RUF”),
purported to wage a civil war for the purpose of bringing
democracy, economic and social development in my homeland.
There may or may not have been any truth to the said declaration
at any time. What we do know is that at some point the rebels
gained control of an area in Eastern Sierra Leone where alluvial
diamonds were present. My country and her people have not been
the same since.
With their easy access to diamonds, it did not take too long for
the RUF to became a well-equipped army of several thousand
trained troops unleashing a reign of terror against the people
and Government of Sierra Leone. Their objective was to gain
access to even more diamond deposits and eventually to overthrow
the elected government and establish an outlaw state.
Had the RUF succeeded, Sierra Leone would today be another
sanctuary for terrorists and the international Mafioso in West
Africa, and populated by violated people.
The calling card of the RUF was the kidnapping of women and
girls for sex and domestic servitude and the capture of young
boys to serve as child soldiers forced to lead charges against
government and ECOMOG troops while the ring leaders enjoyed
themselves in the rear. Today, my country lies in ruins with
the survivors bleeding and hundreds of thousands displaced both
as refugees abroad and internally displaced persons.
Nevertheless, I am delighted to report that the RUF war has
ended in victory for the forces of democracy, law and order and
legitimate trade - thanks to the help generously given by United
States, the United Kingdom, Canada and the nations of West
Africa led by Nigeria and ably supported by the Republics of
Guinea and Ghana.
Contraband diamonds come from many countries but Conflict
Diamonds come from only a few countries supposedly blessed with
easily accessible diamonds in alluvial plains. Alluvial
diamonds are deposits of diamonds occurring in lowlands areas,
in old river beds, in the beds of streams and shallow rivers in
wide swaths of forested lands.
Most alluvial diamonds are usually found between 10-and-20 feet
below the surface. Hence relatively little capital and only
low-grade technology are required to mine alluvial diamonds.
Alluvial diamonds are ideal for violent takings. Conflict
Diamonds are always diamonds violently obtained by
rebel-criminal groups from alluvial deposits and traded in
exchange for the instruments of war.
In contrast to alluvial diamonds, there are kimberlite diamond
deposits. Kimberlite deposits are deeply embedded thousands of
feet inside the earth in narrow pipes. Mining kimberlites is,
therefore, a capital intensive business. The pay off is that
kimberlite mines can be secured relatively inexpensively. On
the other hand, securing alluvial deposits presents major
challenges and in some cases, it is a virtually impossible
task.
It is thus instructive to note that the only countries
undergoing wars for the control of the riches of the land are
the three African countries with abundant alluvial diamond
deposits: Angola, Congo and Sierra Leone.
Sierra Leone further supports legislative efforts to terminate
the trade in Conflict Diamonds because effective legislation
against the continuation of the illicit trade in Conflict
Diamonds will also help to protect the legitimate trade in
diamonds from a consumer boycott that will surely come to pass
if the wars for illicit diamonds continue to harm innocent
people and destroy their fragile societies.
Sierra Leone wishes the prosperity in the diamond trade to
continue but also desires that all illicit trading in diamonds -
whether conflict diamonds or not - must come to an end.
Additionally, we in Sierra Leone believe that ending the illicit
diamond trade as soon as possible in the immediate future is
definitely in the foreign policy and national security interests
of the United States for several reasons.
First, rebels in seeking deposits of alluvial diamonds to mine
employ gratuitous violence against the local population and
their property. It has been estimated that for each million
dollars of looted diamonds obtained by violence, thousands of
people are killed and nearly $10 million worth of property is
destroyed. Additional consequences include the massive
involuntary movements of poor people from their homes, farms and
places of employment and their institutions, as well as the
destruction of infrastructure and the spread of terrible
diseases.
This a situation then requires massive humanitarian, security
and nation-building assistance, mostly through the United
Nations and some regional organizations such as ECOMOG. The end
result is invariably additional financial burden on American
taxpayers and unspeakable suffering in Africa - situations that
are preventable.
Ending the trade in Conflict Diamonds by legislation would thus
help Americans conserve their assets while bringing peace to
Africa.
Second, world class criminals, including members of the
international Mafioso, are known to launder narco-dollars from
the United States and Western Europe by financing rebel
movements and otherwise investing in the illicit diamonds
business in Africa and by trading illicit diamonds
internationally. Once narco-dollars are cleansed, these
criminals become economically and socially quite powerful and
thus capable of causing more and bigger problems for law-abiding
peoples and governments. It is clearly in the interest of the
United States to prevent the cleansing of narco-dollars by
criminals. Every effort should be made to dispossess criminals
of their ill-gotten wealth.
Third, criminals tend to do business with other criminals,
including terrorists as long as they are financially qualified.
Hence it is not surprising that Al Qaeda and Hezbolla
operatives are busy in West Africa buying under-priced, looted
Sierra Leone diamonds and fencing them in Europe and elsewhere.
Because terrorists could use profits from contraband diamonds,
including Conflict Diamonds, to finance their violent activities
against democratic societies, the United States has a strong
interest in outlawing the trade in illicit diamonds and other
plundered resources from Africa.
The United States has a responsibility to bring to an end the
trade in illicit diamonds, including Conflict Diamonds because
an estimated 70% of the international trade in diamonds is
conducted in the United States. Thus, the United States has the
market power to end the trade in Illicit Diamonds and I urge
this Committee to devise legislation that would be effective.
Finally, the plunder of natural resources in Africa is
widespread and has gone on for centuries. The Atlantic Slave
Trade was the first major plunder of Africa. Today, a number of
natural resources are forcibly taken away from Africa and
brought into the West where they are fenced as legitimate trade
goods. Diamonds are only one such product.
The greatest assistance which the United States can today render
to the nations of Africa is to start a legislative process that
will bring to a conclusive end the long-running plunder of
Africa by making it impossible to fence in the United States
goods plundered in abroad.
Thank you, Senators, for the opportunity to appear before you
today on a matter that is of great importance to the people of
Africa. |