Iraq shares borders with six countries that met this weekend to discuss security issues and accusations they are interfering in Iraq. The Democratic Republic of Congo (DRC) shares borders with nine countries, whose interference in DRC is well documented. An update on plunder in DRC and the related issue of conflict diamonds is given in this week's Feature Article. Other border issues are seen in News Highlights on Eritrea/Ethiopia, Cameroon/Nigeria, and Czechoslovakia/Germany -- and also provide a summary of events of the past week elsewhere around the globe.

CONTENTS:

NEWS HIGHLIGHTS OF THE WEEK:

1. World
2. Africa
3. Americas
4. Asia Pacific
5. Europe
6. Middle East
7. South Asia
8. Cyberterrorism and Information Warfare
9. Finance
10 Human Rights
11. Law and Legal Issues
12. Transportation
13. Weapons of Mass Destruction
14. Recently Published

FEATURE ARTICLE:
Plunder in the Congo: An Update

NEWS HIGHLIGHTS OF THE WEEK

1. World

Chinese and North Korean officials met and have reported agreement in principal that North Korea will restart international talks.

Ramadan began this week and with it a series of bold strikes against US forces in Iraq as well as the Red Cross. Most casualties have been Iraqi civilians, but US post-war casualties now exceed those during "major combat". The US administration has delivered mixed messages about the source or solution of the attacks, but a special report in the Guardian by Peter Beaumont and Patrick Graham summarizes it as "Baathists, zealots, criminals, tribal leaders and al Qaeda unite in a deadly alliance of hatred".
http://www.guardian.co.uk/Iraq/Story/0,2763,1076100,00.html

Iraq's neighbors, (Iran, Jordan, Kuwait, Saudi Arabia, Syria and Turkey), met over the weekend to discuss the situation in Iraq, ending with a communique that condemned the ongoing attacks and called for the US to restore security. Iraq was invited only at the last moment and its representative did not attend the meeting.

World Bank president James Wolfensohn has urged UN members to close the gap between spending on arms and aid. Last year the world spent $800 billion on arms but only $56 billion on aid. http://www.un.org/apps/news/story.asp?NewsID=8736&Cr=financing&Cr1=development

The Consultative Group on International Agricultural Research (CGIAR) launched the Challenge Program on Water and Food, highlighting the link between food production and water that currently predict a bleak future for sub-Saharan Africa. Program Chair Rijsberman said, "If present trends continue the livelihoods of one third of the world's population will be affected by water scarcity by 2025. We could be facing annual losses equivalent to the entire grain crops of India and the US combined. The crisis has to be addressed comprehensively at all levels, from the way farmers use water to international policy decisions that affect reforms and investments in water management and infrastructure". http://www.waterforfood.org/nairobi/cpPressRelease.asp

2. Africa

Burundi's power-sharing agreement hasn't stopped violence, (last week, 20 people were killed), but military and rebel actions have been reduced. Talks have resumed to iron out the final peace agreement.

Cameroon and Nigeria are abiding by the International Court of Justice border ruling. Facilitated by he Nigeria-Cameroon Mixed commission, Nigeria will hand over 33 border villages by the end of the year. The UN appealed for donations to complete the border resolution, pointing out how much more a war and humanitarian relief would cost in the absence of a diplomatic solution.

Democratic Republic of Congo and neighboring countries continue to work toward improved diplomatic and economic ties. For analysis of some of the economic issues related to war financing, see this week's Feature Article, below.

The Eritrea/Ethiopian physical border demarcation has been indefinitely postponed following Ethiopia's refusal to accept the Border Commission's finding that the disputed town of Badme belonged in Eritrea.

Ivory Coast has prepared three pieces of legislation in exchange for rebels resuming participation in the peace process. This includes removing the ban on citizens with foreign connections from becoming president, to provide full citizenship to the African immigrants that make up nearly a third of the population, and to provide property rights to immigrants who had been displaced from their land since the civil war.

Six Kenyans accused in last year's Nairobi hotel car bombing appeared in court but the case was adjourned until two other suspects appear on November 14.

Liberia plans to begin disarmament, demobilization and reintegration of combatants in January. Rebels and fighters backing the former regime continue to operate in the countryside.

Sudan's peace talks have deadlocked after five days of negotiations when the government refused a rebel Sudan Liberation Movement/Army (SLM/A) request for international observers. The Sudan People's Liberation Movement/Army (SPLM/A) has rejoined the SLM/A under the SPLM/A name. They will work with the 35 or so other militia groups operating in the south to bring a united voice to the peace process. The US has extended sanctions against Sudan for another year.

In northern Uganda, Lord's Resistance Army rebels attacked a village, killing at least 18 and abducting more, mostly women and children.

3. Americas

The latest Latinobarometro poll is out; finding a commitment to democracy coupled with dissatisfaction of public institutions and the inability of free markets to improve conditions.
http://www.economist.com/world/la/displayStory.cfm?story_id=2174639

In Quebec, Canada, seven men were arrested for defacing a town hall with separatist and anti-Canadian slogans. During the investigation, explosives were also found. The old Front de liberation du Quebec (FLW) was cited in the graffiti and a new group called Patriotic Militia is also alleged to be recruiting militia members. http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1067563207716_64//

Colombian President Uribe suffered electoral setbacks following extremely low voter turnouts, (possibly less then the required 25 percent, though counting continues). Votes indicate defeat of a referendum on economic and political changes and the selection of an ex-communist former trade union leader as the first left-wing mayor of the capital, Bogota.

Colombian rebels of the National Liberation Army (ELN) had agreed to release seven foreign tourists kidnapped on September 12 but negotiations deadlocked over ELN insistence on freeing the captives one at a time. The Colombian army has reported that Revolutionary Armed Forces of Colombia (FARC) second-in-command of the eastern region, Marco Aurelio Buendia, has been killed.

Grenada marked the 20th anniversary of the US invasion to oust the revolutionary government. Amnesty International, citing violations of international law, has called for a judicial review of the convictions of the "Grenada 17" who were convicted for the murders during the coup. http://web.amnesty.org/library/Index/ENGAMR320012003

Guatemalan paramilitaries of the Civilian Self-Defense Patrols have freed four journalists they held for several days in exchange for assurance they would be paid for their services to the government during the civil war.

The US Center for Public Integrity (CPI) investigation, "Windfalls of War: U.S. Contractors in Iraq and Afghanistan" finds that the companies awarded major contracts were also major donors to President Bush's political campaigns and have close ties to the administration. http://www.publicintegrity.org/wow/

The US General Accounting Office has issued "September 11: Overview of Federal Disaster Assistance to the New York City Area" that reviews the use of federal assistance funds and how this disaster was different from others.
http://www.gao.gov/cgi-bin/getrpt?GAO-04-72 (PDF download)

New York authorities have removed 40 names from the list of people killed in the World Trade Center on September 11. This brings the death toll to 2,752. The change follows review by the medical examiner, police, mayor's office and others to confirm the deaths or the existence of individuals reported missing. There have been around 40 arrests for fraudulent claims connected with the disaster.

In Washington DC, a major security alert was triggered when an employee was allowed through a security checkpoint and only thereafter did security notice an X-ray image of a gun. It turned out to be part of a Halloween costume, but before establishing this, an alert was sounded and the building, part of the House of Representatives, evacuated.

4. Asia Pacific

Australian federal police have been investigating the activities of Willie Virgile Brigette, a French national with alleged links to al Qaeda. Brigette was deported to France on October 17 and arrested there in connection with possible terrorism related activities. Brigette spent five months in Australia. Investigations began with raids on six homes.

Indonesian police arrested raided a house, arresting Ismail and Tohir and finding four bombs, but Azahari bin Husin and Noordin Mohammed Top, the remaining two suspects connected with the Bali bombings, escaped.

Malaysia's 22-year leader, Prime Minister Mahatir Mohamad, has stepped down, leaving a legacy of economic advance mixed with authoritarianism. His deputy, Abdullah Badawi has taken his place, with opposition parties looking to him to reform institutions that have been undermined by Mahatir's limited acceptance of democracy.

In a Malaysian resort near Bornea, five captives seized by alleged either Abu Sayyaf militants or local bandits, were shot dead. No random was paid, but it is unclear whether they were killed for this reason or as human shields in a gun battle.

The Solomon Islands has been restored to order and Australian peacekeepers are leaving the island. Some 4,000 weapons have been handed in.

5. Europe

Georgians are voting in parliamentary elections in which widespread poverty, rising crime and unemployment, and rampant corruption have made the current government increasingly unpopular. Opposition candidates and election observers are watching to see if there is any vote rigging.

German police have raided the state of Schleswig-Holstein, finding weapons and arresting a number of suspected neo-nazis associated with Combat 18, suspected of planning a bomb attack.

Irish Prime Minister Bertie Ahern is reviewing Justice Henry Barron's report on the Dublin and Monaghan bombings of 1974. The two car bombs killed 33 and injured more than 250 and accounted for the greatest number of deaths in a single day during the troubles. http://news.bbc.co.uk/2/hi/uk_news/northern_ireland/3222301.stm

Italian police arrested seven people associated with the militant New Red Brigades - Communist Combatant party in connection with the murders of two government officials. During the investigations, Italian intelligence officials have discovered one of the accused had high-level security clearance.

Russia's richest man, oil baron Mikhail Khodorkovsky, was arrested for tax evasion. The charges and subsequent government intervention in the Yukos oil company stock, threw the economy into uncertainty and raised fears of increasing authoritarianism.

Serbia refused to arrest four people wanted on war crimes charges by the international tribunal in The Hague. This decision followed protests against the arrests and the government's subsequent insistence that the arrests would turn the police and army against it.

Spanish authorities have rejected a proposal by the Basque regional government for a referendum to covert the region into a free associate of Spain, calling it treason and associating the proposal with support for separatist militant group ETA.

Turkey has celebrated its 80th anniversary as a republic.

The British High Court has found that anti-terrorism laws were acceptable when used against demonstrators against last month's arms fair, accepting police assurances that stop and search powers were being used with appropriate protections. The Special Immigration Appeals Commission found that ten terrorist suspects detained since December 2001 could continue to be held without trial indefinitely.

British police in Sheffield raided three properties, seizing several items and arresting four people under the Terrorism Act.

Elections in Northern Ireland will proceed without a further agreement to move the peace process forward.

6. Middle East

The destruction by the Israeli army of 200 buildings in the Gaza Strip, including three 13-story buildings, leaving 2,000 people homeless drew condemnation from a wide range of sources, ranging from the UN to Israeli's military chief. Lieutenant General Moshe Yaalon, warned that Israel's hard-line policies towards the Palestinians are backfiring by causing a humanitarian crisis that increases support for militants and thereby harms Israel's security. For press highlights see http://news.bbc.co.uk/2/hi/middle_east/3230703.stm

Iran has given the UN Security Council the names of 225 suspected al Qaeda operatives detained and in some cases deported and has provided details of their efforts to block al Qaeda and Taliban activities, but refuses US demands to hand over the suspects, preferring they stand trial in Iran. http://www0.un.org/apps/news/story.asp?NewsID=8686&Cr=iran&Cr1=

Iran is cooperating with the International Atomic Energy Agency (IAEA), meeting the deadline for providing full documentation about its nuclear programs. The record goes back 20 years and appears to be comprehensive at first review, but IAEA is continuing their review of the dossier as well as verification of its accuracy and completeness.

Lebanese Hizbollah guerillas and Israeli forces again exchanged fire over the disputed Shebaa Farms border area.

Saudi Arabia reviewed security measures, including foreign embassy protection, following warnings of terrorist strikes during Ramadan. Britain and the US have renewed their warnings against travel to the kingdom, a measure Saudi Arabia criticized, emphasizing the progress it has made in curbing terrorism since the May bombings in Riyadh. Following opposition protest rallies last week, Saudi Arabia's weekly consultative council meetings will be televised for the first time.

Palestinian Prime Minister Ahmed Qurei has agreed to stay on after the 1-month term of his emergency cabinet expires and to form a new cabinet to replace it. He plans new talks with Hamas and with Israeli officials.

7. South Asia

In Afghanistan, a UN Security Council mission has arrived to underscore international backing for the government and to hold talks with security and peacekeeping missions. They will also tour key northern and western cities to try to gain support from local warlords. The visit comes at a time when insecurity on the rise from factional fighting as well as resurgent Taliban and al Qaeda forces, and the national government is able to control little outside of the capital Kabul.

The gravity of the situation is underlined in the Afghanistan Opium Survey 2003. In this report, the UN Office on Drugs and Crime with Afghanistan's Counter Narcotics Directorate find that poppies are being planted in 28 of 32 provinces, increasing cultivation by eight percent. Although prices of opium have declined, the industry represents around half of Afghanistan's GDP. http://www.unodc.org/afg/en/reports_surveys.html

Indian Prime Minister Vajpayee has suggested peace talk with Naga separatist rebels but says there is no political consensus for all Naga-inhabited territories to be merged with the present state of Nagaland.

Police in Indian-administered Kashmir claim that the operations chief of Hizbul Mujahideen, Saifur Rehman Bajwa, was killed in a gun battle.

Nepalese human rights group Informal Sector Service Centre (INSEC) says that since the end of the Maoist rebel ceasefire two months ago more than a thousand people have died. They also cite increases in abductions and arrests. The UN has offered mediation if agreed to by both the government and the rebels and the US has frozen assets of the Maoist Communist Party of Nepal.

In Sri Lanka, Tamil Tiger rebels have submitted a detailed power-sharing plan, proposing an interim autonomous administration in the north-east with elections within five years. They have offered to resume peace talks, but the Sri Lankan government has reacted cautiously pointing out continued differences. An official inquiry by the Sri Lanka Human Rights Commission found institutional racism in Sri Lankan security forces directed against Tamils. A Norwegian inquiry is currently underway regarding allegations that their peace monitors were assisting the Tigers.

8. Cyberterrorism and Information Warfare

Phishing schemes have now hit at least 18 banks. Last week NatWest, Halifax and Nationwide were among the targets.
http://www.ftc.gov/bcp/conline/pubs/alerts/phishingalrt.htm

The EU Cyber Tools On-Line Search for Evidence project has developed standards for forensic investigations of cyber crime. http://www.ctose.org/

EU digital privacy rules directed against spam have come into force.

The latest Windows worm is Sober that poses as a security fix.

9. Finance

The UN Sanctions Committee against al-Qaeda and the Taleban returned from a fact-finding mission finding that terrorist groups are using more creative methods to move money, including using informal financial systems and couriers, often associated with drug trafficking.

The US General Accounting Office releases a report analyzing the National Money Laundering Strategy. This will be covered in next week's Feature Article. The complete report is available at http://www.gao.gov/cgi-bin/getrpt?GAO-03-813

The US Department of the Treasury's Office of Foreign Assets Control (OFAC) added four new Algerian entries to its list of Specially Designated Nationals and Blocked Persons (SDNs):
* Al-Bakoun Ala Al-Ahd Organization (aka Faithful To The Oath)
* Mokhtar Belmokhtar
* Dhamat Houmet Daawa Salafia (aka Djamaat Houmat Ed Daawa Es Salafiya; Djamaat Houmat Eddawa Essalafia;. Djamaatt Houmat Ed Daawa Es Salafiya; El-Ahoual Battalion; Group Of Supporters Of The Salafist Trend; Group Of Supporters Of The Salafiste Trend; Group Protectors Of Salafist Preaching; Houmat Ed Daawa Es Salifiya; Houmat Ed-Daaoua Es-Salafia; Houmate Ed-Daawa Es-Salafia; Houmate El Da'awaa Es-Salafiyya; Katibat El Ahoual; Katibat El Ahouel; Protectors Of The Salafist Call; Protectors Of The Salafist Predication; Salafist Call) Protectors; The Horror Squadron),
* Mustapha Nasri Ait El Hadi

The US Treasury and IRS have confirmed that payments from the September 11 Victim Compensation Fund will be tax free

10. Human Rights

Czechoslovakian exports of children to Germany for commercial sexual exploitation are detailed in a new report by UNICEF and ECPAT. The report says children are brought from central and eastern Europe and sold at border areas, with about 100,000 Germans crossing the border to abuse children as young as eight years of age. http://www.unicef.de/akt/akt_141.php?news_id=1661 (in German)

Dr. William Schulz, Executive Director of Amnesty International USA, has published a new book, "Tainted Legacy: 9/11 And the Ruin of Human Rights" (Thunder's Mouth) in which he argues that the "war on terror" has sacrificed human rights in the name of security. Sample chapter at http://www.amnestyusa.org/amnestynow/dancing.html

A similar theme is sounded by Harold Hongju Koh in the 2003 John Galway Foster lecture http://www.law.yale.edu/outside/html/Public_Affairs/415/yls_article.htm

The UN has launched an internet portal "Women, Peace and Security" to provide "background information and timely updates on the impact of armed conflict on women and women's role in peace-building" http://www.womenwarpeace.org

11. Law and Legal Issues

Predrag Banovic, a former Bosnian Serb guard, was sentenced by The Hague's international war crimes tribunal to eight years in prison for murdering and torturing prisoners at the Keraterm detention camp during the Bosnian war.

The treason trial of 22 accused Boeremag white extremists began in South Africa.

Iyman Faris has been sentenced in US court to 20 years prison for supporting al Qaeda and planning to sabotage the Brooklyn Bridge in New York. The truck driver unsuccessfully attempted to alter his guilty plea.

The trial of Abdelghani Mzoudi in Germany on charges related to al Qaeda and the September 11 attacks faces a new challenge over the question of where planning for the attacks took place. If instructions were given in Afghanistan rather than Germany prior to 2001, the activities would not be legal.

Tomomasa Nakagawa, former senior member of the Aum Shrinrikyo cult in Japan, has been sentenced to death for participating in the 1995 sarin gas attack and other crimes.

Abu Rusden is on trial in Indonesia for allegedly helping two of the suspects wanted in connection with the Bali bombings.

Abu Salem has gone on trial in Portugal on charges of carrying false travel documents. He is one of India's most wanted, connected with a 1993 series of bombings that killed 257 people as well as other murder and extortion cases. Portugal is reviewing an Indian request for his deportation.

The Saville Inquiry into the events of "Bloody Sunday" of January 30, 1972, has returned to Londonderry after sitting in Westminster for over a year. The final witnesses are testifying and are expected to complete testimony by the end of the year.

Paul Smith, a 17-year-old student, was sentenced to three years detention for sending letters allegedly containing anthrax or ricin to a number of organizations from August 2001 - February 2002. The letters actually contained aromatherapy oils or caustic soda. His actions were prompted by connections with an unnamed militant Scottish nationalist organization.

Former Liberian President Charles Taylor is appealing against his war crimes indictment. The Special Court for Sierra Leone has begun hearing this appeal as well as twelve others.

Edwin P Wilson will be freed from prison after US federal court found that his conviction for illegal sales of explosives to Libya was founded on false testimony and suppression of evidence.

12. Transportation

Joe Sharkey writes that "Security Is Looser on Corporate Aircraft" in the New York Times of October 28. http://www.iht.com/articles/115381.htm

In a security scare in Chile, a man with an artificial hand was not allowed to board the flight because the pilot thought the hand could be used as a dangerous weapon. He was able to board the next plane. The plight of disabled travelers has been recognized by the US Transportation Security Administration (TSA). http://www.tsa.gov/public/display?theme=83&content=495
TSA has begun to penalize airlines for violating passenger rights.

U.S. Customs and Border Protection Commissioner Robert C. Bonner spoke at the second Customs-Trade Partnership Against Terrorism conference. He discussed " a C-TPAT validation program that will verify steps have been taken to secure facilities and supply chains; roll-out of C-TPAT to foreign-based manufacturers beginning with Mexico; and steps to develop a smarter, more secure container for use throughout the supply chain in land and sea environments". http://www.customs.gov/xp/cgov/newsroom/highlights/ctpat_conf.xml

13. Weapons of Mass Destruction

A deadly version of mousepox was developed at the University of St Louis as part of a bioterrorism investigation. The virus was genetically engineered to evade vaccines.
http://www.newscientist.com/news/news.jsp?id=ns99994318

The US General Accounting Office has investigated the Chemical Demilitarization Program that is charged with destroying large chemical weapons stockpiles. The report finds schedule delays that will mean the deadline of destroying 45 percent by April 2004 will not be met, and complete destruction by 2007 is at risk. Costs have increased and will continue to rise and there have been a number of management and organizational issues. However they have improved emergency preparedness near the sites. http://www.gao.gov/cgi-bin/getrpt?GAO-04-221T

For Stamp Out Landmines Day marking the start of Landmine Action Week, Handicap International is constructing a shoe pyramid in Trafalgar Square to symbolize victims of landmines. Pairs of shoes are being donated by the public and will then be sent to southern countries.
http://www.handicap-international.org/english/
http://www.landmineaction.org/

14. Recently Published

Leo Braudy "From Chivalry to Terrorism" Knopf

Susan Braudy "Family Circle: The Boudins and the Aristocracy of the Left" Knopf

Wesley Clark "Winning Modern Wars: Iraq, Terrorism and the American Empire" Public Affairs

John Keay "Sowing the Wind: the Seeds of Conflict in the Middle East" Norton

Michael O'Hanlon and Mike Mochizuki "Crisis on the Korean Peninsula: How to Deal With Nuclear North Korea" McGraw-Hill

William Schulz, "Tainted Legacy: 9/11 And the Ruin of Human Rights" Thunder's Mouth

FEATURE ARTICLE: Plunder in the Congo: An Update

Last week saw two related events: the fourth and final report of the UN Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo and the Kimberley Process meeting in Sun City, South Africa.

The Democratic Republic of the Congo (DRC) has reserves of gems, cobalt, copper, gold, timber, uranium and coltan and is attempting to recover from a long-running civil war that killed more than three million people and was largely fueled by the illegal sale of these resources.

The UN Committee found that "Illegal exploitation remains one of the main sources of funding for groups involved in perpetuating conflict, especially in the eastern and northeastern regions of the Democratic Republic of the Congo. Over the last year, such exploitation has been characterized by intense competition among the various political and military actors as they have sought to maintain, and in some instances expand, their control over territory".

At the time of this report, the committee found that exploitation was concentrated on gold and diamonds. "These minerals have a high revenue yield per unit weight, are easily transported and can be used in lieu of hard currency in transactions. Sites for artisanal mining of those precious minerals remain active in many regions.... Combined with moneys raised at customs border posts, political and military actors have been able to fund their military activities, including the supply of arms...."

Continued conflict, exploitation and arms trafficking are inextricably linked.

To break this cycle, the report makes a number of recommendations including effective control of national borders, strengthening government auditing systems, breaking up state-owned mineral resources, integrating new armed forces, and creating a natural resources fund to benefit the people.

The panel calls for full transparency and details the role of 157 companies and individuals that have been investigated for their activities in DRC. Of these, 117 responded to Panel inquiries. Review of the companies is detailed in annexes that sort the companies into five categories based on the level of cooperation. (Unfortunately, details of exploitation tied to governments have been withheld to avoid potential danger to the transitional government.)

Category I includes investigations that have been resolved with no outstanding issues to ensure that "they run their businesses in a responsible manner and have not directly funded activities contributing to conflict". Category II includes eight companies under "provisional resolution" that need to complete commitments on corporate governance. Category III involves companies that require updates or further investigation. 13 dossiers covering 18 companies have been referred to the governments of Belgium, Germany and the UK. This includes the international giants De Beers and Das Air Category IV have been referred for further investigation. There are 29 dossiers in this category. Category V includes 33 dossiers of parties that did not react to the Panel's report.

Of the 85 companies that were reported to have breached international norms in October 2002, none of the participating OECD governments has yet investigated the companies. This has led to calls for the Security Council to implement monitoring and enforcement to ensure that the issues raised are resolved.

While this report was being reviewed a meeting of major diamond producing countries took place in South Africa at the Kimberley Process plenary meeting. Sixty countries attended the 3-day meeting.

The illegal diamond trade continues to fund conflict in DRC and has also been implicated in the wars in Sierra Leone, Angola and Liberia where millions have been killed, maimed and displaced.

The Kimberley Process is a system to manage diamond exports and imports. Under this scheme, producers control production and transportation from rough diamonds and the point of origin to their point of export. The shipments are sealed in tamper-resistant containers and a certificate issued for each shipment. This mechanism came into effect in February, but has been criticized for lacking independent verification.

William Wallis reports in the Financial Times that "Nowhere are the flaws in the existing scheme more obvious than in the trafficking between the two Congos. The Democratic Republic of Congo, a former Belgian colony, possesses the world's largest reserves of industrial diamonds. The Republic of Congo (Brazzaville), the former French colony across the river, has no diamonds of its own to speak of. Since July, when Congo (Brazzaville) was admitted to the Kimberley Process, both countries have been authorised to trade diamonds". This suggests that the Kimberley Process "is encouraging -- rather than eliminating -- incentives for smuggling. It offers non-producing countries the opportunity to launder and legitimise illicit gems".

Efforts to bring system-wide review and monitoring were stopped in their tracks by a handful of countries, including Australian, China, India and Japan, that insisted this went beyond the purview of the Kimberley Process. Instead, a watered-down voluntary peer review system was agreed. DRC and Congo-Brazzaville had already agreed to host review missions this year.

Without mandatory monitoring, it is unlikely that the process will be able to stop illegal trade.

Non-governmental organizations concerned about this issue have now turned their attention to consumers. ActionAid, Amnesty International and Global Witness are working with the Co-operative Bank. Together, they have developed a diamond pledge to help consumers apply pressure on industry to back independent monitoring.

Further Reading: