At his regular post-Cabinet news briefing, Head of the Presidential Secretariat, Dr. Roger Luncheon said there has been evidence that money acquired from the illegal international trade of diamonds has been used to overthrow democratically elected governments, noting the links between money laundering activities and terrorism.

He noted that the Guyana Geology and Mines Commission (GGMC) reported that for last year Guyana exported US$20M in diamonds, mainly to Europe.

He said Cabinet approved Guyana's participation in the ratification of the Kimberley process and other arrangements.

Diamonds would now have to be certified and those involved in the trade would need to be properly registered, and become a part of the worldwide international system of monitoring the export and trade in diamonds, he said.

Guyana's accession to the process calls for some amendments to the regulations and this would be done so Guyana's participation would become effective early next month, Luncheon said.

He added that Guyana's main trading partner in diamonds is Europe with a significant proportion being done with the UK.

"Our main trading partner is Europe and this is where most of the initiatives originated and much more progress has been made by the accession to the process by the European states. Considerable amounts of exports go to the UK and USA and America has indicated that it would not be meeting the February deadline for accession," he said.

Prime Minister Sam Hinds, who has responsibility for the mining sector, pointed out at a news conference last week that additional costs for accession will involve additional recording and checking steps, which could entail more time in processing.

He noted that the Kimberley Protocol was established as a way of limiting trading in rough diamonds from some African countries, which provides funds for the illegal purchase of arms and the prolonging of conflicts.

However, Mr. Mark Von Bockstael of the World Diamond Council, said at the briefing that such a situation is not likely to transpose to South American countries.

He explained that the protocol was intended to maintain consumer confidence in the symbolism of diamonds as love rather than conflict that has been promulgated through its illegal trade.

Bockstael further stated that conflict diamonds have caused a negative downturn for exporters, a trend the protocol is seeking to reverse.

Mr. Robeson Benn, Commissioner of the GGMC, said the main focus now is to have certain legislation amended, which would record the required administrative features to facilitate the Kimberley Accord.

He explained that the Kimberley Process Certificate, which is tamper-proof, has certified features and approved signatures.

Benn said Guyana is at the stage of drafting the features of the certification under the new protocol, for which a deadline of tomorrow has been set.

He added that the amendments governing the diamond exportation were in the draft stages and should be printed within two weeks at an overseas location.

Benn estimated that all the particulars with regard to Guyana's accession to the protocol, through the posting of relevant signatures to the member countries, will be completed by early February.

Once Guyana becomes an official signatory to the Kimberley Protocol, exports will be subject to periodic international audits to ensure that export records sent abroad correspond with the exportation.

Fundamentally, the process from the mining of diamonds to the point of sale requires the recording of production, where there could be 'traceability'.

Benn said that there is already a system in place from the level of the miners, which includes the carat weight, the claim from which the diamond was mined, and the time.

He also explained that if the diamonds were traded in the fields to the registered dealers, records will also have to be kept both by the seller and the producer.

With regard to the administration and exportation of diamonds at the time of paying royalties, the number of diamonds and carat weight are recorded.

Benn explained that at the time of exportation, the application for export licence forms and all the records are signed and the diamonds are sealed in the presence of the GGMC and the Customs Administration, and the records are retained for 'traceability'.

He said that in terms of the Kimberley Accord, a special certificate would be issued, which would state that the diamonds have been mined and are being administered and exported in accordance with the Kimberley Process Certification Scheme for Rough Diamonds.

"These will be exported in such a manner that it would not depart from the avenues from which they are being legally exported," Benn explained.