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Statements and Speeches by Ministry Representatives 2005

CANZ Statement to the General Assembly of the United Nations on the role of Diamonds in fuelling Armed Conflict

Statement by Heidi Hulan, Counsellor, Canada, 20 December 2005

Thank you Mr. President. It is my honour to address the General Assembly today on behalf of Canada, Australia and New Zealand.

Allow me to begin by congratulating the Russian Federation on a successful term as Chair of the Kimberley Process in 2005 The report and the resolution that we are adopting today are testament to the strong leadership provided by the Russian Federation and the progress made under the Russian Chairmanship in this critical process.

Let me also take this opportunity to welcome Botswana as the incoming Kimberley Process Chair for 2006, and also the European Community as Vice Chair. We look forward to working with your delegations as we continue to advance the implementation and the strengthening of the Kimberley Process certification scheme.

Mr. President,

CANZ remains fully supportive of the Kimberley Process, which advances human security by preventing conflict diamonds from penetrating the legitimate diamond market.

The certification scheme is working. Indeed, in its short lifetime, it has already had a major impact on the global diamond trade. This is thanks in large measure to the comprehensive scope of the scheme, which includes all significant rough diamond producing countries and corporations and captures 99.8 per cent of the total global production. As the report before us notes, approximately 160 million carats of rough diamonds were produced in 2004, and more than 56,000 Kimberley Process Certificates were issued. The total value of rough diamond imports by Kimberley Process Participants reached almost US$ 32 billion in 2004, up from US$ 22 billion in 2003.

The certification scheme not only deprives criminals and non-state armed groups from easy access to capital, but has also improved the revenue generating capacity of governments formerly affected by conflict-diamonds such as Angola, Sierra Leone and the Democratic Republic of Congo (DRC), as large volumes of rough diamond are now exported through government mechanisms. Rough diamond exports from the DRC, for instance, increased from US$ 395 million in 2002 to US$720 million in 2004, to name but one example.

The impact of this shift in resource flows on the international community’s conflict prevention and conflict resolution efforts has been significant. With the signing of peace agreements, states such as Angola and Sierra Leone are now in the process of recovering from the armed conflicts fuelled by the illicit trade in conflict diamonds as a result of direct contributions by the scheme. The certification scheme also contributes to the efforts to construct sustainable peace in these countries, and therefore serves as an important standing tool for conflict prevention and peace building.

CANZ is particularly pleased to note the important political developments in Liberia, which saw the election of a democratic government in November. While Liberia continues to be under United Nations sanctions as a result of its involvement in fostering the conflict diamond trade in the 1990s, which fuelled conflicts across West Africa, we note that Liberia is currently in the process of establishing the requirements necessary for the implementation of the certification scheme. We are committed to working with Liberia in these efforts.

Mr. President

We are pleased to note the constructive spirit in which Kimberley Process governments, industry and civil society partners continue to ensure effective implementation and enforcement of key Kimberley commitments. CANZ is particularly grateful for the commendable efforts of the European Community in leading the Kimberley Process peer review mechanism, which has made Kimberley the gold standard in cross-sectoral cooperation.

The Kimberley Process is now entering a critical phase, as members embark on their first comprehensive 3-year review of the scheme envisaged in the founding documents. At the Plenary meeting in Moscow last month, participants adopted a Terms of Reference for the review which foresee the participation of governments, industry and civil society observers, the United Nations and other interested parties. We encourage all member states, relevant United Nations institutions and bodies, to cooperate with the Kimberley Process representatives as this review progresses.

Mr. President

While the Kimberley Process has made commendable progress, we continue to face the challenge of illicit diamond production in rebel-controlled areas such as northern Côte d’Ivoire. According to the recent experts-report submitted to the UN Security Council, the rebel group Forces Nouvelles is benefiting from the illicit production, which generates millions of dollars of revenue. We are very concerned about this illegal activity and the potentially destablilizing effect these ill-gotten resources could have not only on Cote d’Ivoire but the entire region.

In order to staunch the illicit flow of resources to insurgents, there is an urgent need for a detailed assessment of the volume of diamond production to be undertaken by Kimberley Process participants in cooperation with the United Nations. Equally important is the need to assess the volume of exports from Cote d‘Ivoire, and to identify where the illicit diamonds could be entering the market. We encourage the United Nations Operation in Côte d’Ivoire to assist the Kimberley Process in conducting this assessment, and encourage regional partners to cooperate with the Kimberley Process to combat the flow of illicit diamonds originating from that country.

Mr. President,

The Kimberley Process is making a major contribution in breaking the link between natural resources and armed conflict, and stands as a living testament to what can be achieved through the honest partnership of governments, the United Nations, the private sector and civil society. It is – and will remain – an essential tool for our ongoing efforts to prevent conflict, and we look forward to strengthening and deepening its implementation and enforcement in the months ahead.

Thank you


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