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China Allows First Diamond Shipments
China issued its first Kimberley Process Certificates in Shanghai Thursday to two shipments of diamonds from South Africa under an international pact to end the trade in so-called "blood" diamonds.

Only eight days after the pact took effect on January 1, the certificates issued by the Shanghai Administration of Quality Supervision and Quarantine indicated China's full compliance with the new international rules stipulating uncut diamonds must be accompanied by detailed records of provenance, to help stamp out illicit trading, the administration officials said.

The diamonds, 2650 carats in total, were imported by the Shanghai Diamond Trading House, founded in June 2000 and China's exclusive diamond trader for imports, exports and trading in the country. The diamonds will be cut into rough parts and sold to Hong Kong.

"Blood diamonds", or "conflict diamonds" as they are sometimes referred to, are defined as rough diamonds used by rebel movements to finance their activities, or those obtained by using, or threatening to use, coercion or military force.

To curb the trade in blood diamonds, the international policing system -- the Kimberley Process -- was launched more than two years ago, and finalized in November 2002 in Botswana. Most of the gems came from Botswana, South Africa, Canada and Russia.

The pact calls on countries in a position to issue Kimberley Process Certificates to "do so immediately" while others should been encouraged to issue certificates by June 1, 2003. Kimberly is a city in South Africa, and a famous diamond producer.

According to the pact, all diamond shipments must carry a certificate citing their origin, weight and value in dollars, the identities of the importer and the exporter, and the date the gems were shipped, as well as carry an official stamp.

China on January 1, 2003 classified rough diamonds in its imports and exports catalog subject to official scrutiny across the country, and a special website has been launched to help the effort, according to the State Administration of Quality Supervision and Quarantine.

The United Nations revealed that the trade in blood diamonds has fueled deadly conflicts in Africa, where various rebel groups, armies and their foreign partners have been accused of dealing in them.

The worldwide production of rough diamonds was worth 7.8 billion dollars in 2001. Blood diamonds are believed to make up between 2 and 4 percent of the annual global diamond trade.

(Xinhua News Agency January 14, 2003)

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