Opening Statement of the Hon. Philip M. Crane, a Representative in Congress from the State of Illinois,
 and Chairman, Subcommittee on Trade

Testimony Before the Subcommittee on Trade
of the House Committee on Ways and Means

Hearing on Conflict Diamonds

October 10, 2001

Welcome to this important hearing on conflict diamonds. I especially want to thank the witnesses, many of whom had to reschedule their plans so that they could testify.

Last year we had a hearing to take testimony from many of these same witnesses about the state of affairs in Africa. I think no one disputes the tragic facts of the illicit diamond trade and how it continues to fund rebel wars and poverty in Africa. This hearing takes all of that as a point of departure. Our focus is to look at where international negotiations are, what progress has been made in stopping the conflict diamond trade, and what legislation may be appropriate this year. I am mindful that international negotiations are supposed to conclude this year, and in this delicate time of international diplomacy, we must be especially careful not to disrupt the Administration's efforts, however, well-intentioned we may be.

Eighty-five percent of the world's rough diamonds pass through Antwerp, Belgium, and then to central selling offices in London and other places for sale to diamond cutters. Experts everywhere agree that once a diamond is cut and polished, it is almost impossible to tell the country where the diamond was mined. To effectively end trade in conflict diamonds, the countries exporting and importing rough stones, in particular, must work together to make sure that these diamonds do not have a market so that conflict diamond peddlers cannot stay in business. I am pleased that the diamond industry based in Antwerp recognizes this, and I applaud the industry for taking steps towards achieving this goal.

We will hear first from our esteemed colleagues from Congress about their concerns on the progress of solving the problem of trade in conflict diamonds, and then we will hear from the Administration for a response and comment on legislation. Finally, representatives from the diamond industry and non-government organizations will testify.

I ask everyone to address the legislative criteria that this Committee is bound to follow. How will legislative proposals be administrable and consistent with our international trade obligations? Will legislation undermine the Administration's efforts to reach an international consensus, and if so, how? Will the proposals be effective in curtailing trade in conflict diamonds? Lastly, how will these proposals adversely affect the legitimate diamond trade and the countries in Africa that reply upon such trade? Any legislation must help, not hinder, the solution to this illegal trade.

I now recognize our distinguished Ranking Member, Mr. Levin, for any statement he would like to make.