Thailand will have to wait longer for larger rough, but the De Beers’ Central Selling Organization pledges to support the growth of the diamond industry here.

            The Thai diamond manufacturing industry is “coming of age,” but still has far to go before becoming a full-fledged diamond center, said Michael Grantham, director of the DeBeers’ Central Selling Organization (CSO).

            Mr. Grantham and Harry Garnett, CSO marketing manager, came to Bangkok recently to hold their first formal discussion with the Thai Diamond Manufacturers’ Association. “As the Thai industry comes of age, we want to develop a pattern of meeting [with the TDMA] on a regular basis,” Mr. Grantham said.

            The CSO controls the world supply of uncut diamonds through extensive mining interests. To buy the rough material directly from the CSO, a company must first become a CSO sight holder, of which there are only 150 worldwide and three in Thailand. These three are General Diamond Cutting Works Group, the Premier Group of companies and Orchid Diamond Polishing Works of Jayam BVBA.

            Thailand currently manufactures round brilliants of 15 per carat and smaller, but the TDMA is seeking larger and more varied shaped rough from the CSO to expand the industry here. Mr. Grantham is not very encouraging in this regard.

            “There isn’t, at this stage, much manufacturing of larger sixes in Thailand on a regular basis,” he said. “This may be because they are not finding enough rough on the world market. And it may also be because larger sizes do not rely on the same labor force. You don’t build Rolls Royce’s in a factory that’s been building Toyotas.”

            A downturn in the world demand for diamonds is also affecting the CSO decision to withhold larger rough from Thailand, Mr. Grantham said. “The diamond business—particularly in America—is going through a much quieter period than usual. Japan is also not as good as it has been. If Thailand wants larger diamonds from us we will have to take them away from somebody else. Why should we?”

            Mr. Grantham is more optimistic about supplying a variety of shapes to Thailand. “The Thais seem to be able to produce a very well-made round stone, so I can’t see why they shouldn’t be able to produce certain of the fancies,” he commented, “Certainly tapers, baguettes, stubbiest and squares.”

            Thailand’s diamond industry has undergone “colossal growth” during the past ten years, he added. “Thailand has developed an international reputation for well-made diamonds. More and more buyers are coming to Thailand. Bangkok has so many other things to offer, such as colored stones and jewelry manufacturing.”

            He described Thailand as “a fledgling diamond center. It hasn’t got a bourse or rough dealing operations, so it’s still in the early stages. One of the brokering companies, I Henning, has opened up in Bangkok. I think it’s one more step on the road to becoming a full-fledged center.”

            The CSO will continue close relations with the TDMA, Mr. Grantham said. “Nobody encourages the Thai diamond industry more than ourselves. We visit their factories, advise them on the type and supply of rough and spend money to enhance the local demand.”