But it is a vital first step. Just as important is making the legitimate trade in diamonds more profitable than smuggling, which in turn means insisting that diamond diggers are paid in US dollars rather than weak local currencies. Therefore, smuggling must be prevented by creating competitive business conditions for legal traders, making it easier and more profitable, or at least as profitable to do business legally. Yet only last year, Laurent Kabila, president of the Democratic Republic of Congo, decreed that all diamonds must be traded in local currency rather than dollars. The British government believes President Kabila s action gave a significant boost to smuggling.
Some experts therefore believe a more radical approach is needed.
Herman Cohen, a former US assistant secretary of state for Africa, said diamonds from Liberia or Guinea should be boycotted for a year. The two countries have been transit points for diamonds smuggled out of Sierra Leone. Beyond the diamond producing countries, the importing countries are watching nervously. Each fears a loss of trade if it moves ahead of the others to tighten regulation. The Diamond High Council, co-regulator of the Antwerp diamond industry, has taken steps to try to halt the trade in conflict diamonds.