.

1. 1
ASSISTANT SECRETARY FERNANDEZ OPENING REMARKS TO
KIMBERLEY PROCESS PLENARY
NOVEMBER 27, 2012, 10:00 AM
HONORABLE
MINISTERS,
HONORABLE
DEPUTY
MINISTERS,
AMBASSADOR
MILOVANOVIC,
COLLEAGUES
FROM
VICE-­‐CHAIR
SOUTH
AFRICA,
DELEGATIONS
FROM
PARTICIPANT
GOVERNMENTS,
ESTEEMED
OBSERVER
COLLEAGUES
FROM
THE
WORLD
DIAMOND
COUNCIL,
KP
CIVIL
SOCIETY
COALITION,
DIAMOND
DEVELOPMENT
INITIATIVE,
AND
AFRICAN
DIAMOND
PRODUCERS’ASSOCIATION,
DISTINGUISHED
GUESTS,
MEMBERS
OF
THE
MEDIA,
FRIENDS:
GREETINGS,
AND
THANK
YOU
FOR
COMING
TO
WASHINGTON.
IT
IS
TRULY
MY
HONOR
TO
HOST
YOU
AT
THE
STATE
DEPARTMENT
FOR
THE
2012
PLENARY
MEETING
OF
THE
KIMBERLEY
PROCESS.
FOR
THOSE
WHO
WERE
HERE
WITH
US
IN
JUNE,
WELCOME
BACK;
AND
TO
THOSE
WHO
COULD
NOT
JOIN
US
A
FEW
MONTHS
AGO,
WE
ARE
PLEASED
YOU
COULD
BE
HERE
FOR
PLENARY.
ALTHOUGH
IT
MAY
BE
A
BIT
COLDER
AND
DARKER
OUTSIDE
THAN
IT
WAS
FOR
INTERSESSIONAL,
I
CERTAINLY
EXPECT
YOU
WILL
MORE
THAN
MAKE
UP
FOR
THAT
WITH
YOUR
ACTIVE
–
BUT
I
TRUST
NOT
OVERHEATED
–
NEGOTIATIONS
INSIDE.

2. 2
1
IT
IS
A
PRIVILEGE
TO
SERVE
THE
UNITED
STATES
AS
ASSISTANT
SECRETARY
OF
STATE
FOR
ECONOMIC
AND
BUSINESS
AFFAIRS
FOR
THE
PAST
THREE
YEARS.
MY
BUREAU
FOCUSES
ON
FINDING
ECONOMIC
SOLUTIONS
TO
PROMOTE
THE
SECURITY
OF
THE
UNITED
STATES
AND
OUR
PARTNERS.
THIS
I
HAVE
HAD
UNIQUE
OPPORTUNITIES
TO
ENGAGE
LEADERS,
DOERS,
AND
THINKERS
ALL
AROUND
THE
WORLD
ON
A
WIDE
ARRAY
OF
ISSUES,
INITIATIVES,
AND
IDEAS,
FROM
FOOD
SECURITY
TO
ENTREPRENEURSHIP
TO
INFRASTRUCTURE
DEVELOPMENT,
IN
EVERY
ASPECT,
MY
MOTIVATION
HAS
ALWAYS
BEEN
SIMPLE:
WE
MUST
FOCUS
ON
DOING
WELL
BY
DOING
GOOD.
BY
THIS
I
MEAN
WE
CANNOT
THINK
ABOUT
BUSINESS
WITHOUT
UNDERSTANDING
THE
BROADER
SOCIAL,
POLITICAL
AND
ECONOMIC
IMPACTS
THAT
COMMERCE
HAS
ON
THE
WORLD;
NEITHER
CAN
WE
EXPECT
BUSINESS
TO
PROMOTE
POSITIVE
CHANGE
IF
IT
CANNOT
ALSO
ENSURE
THAT
IT
HAS
A
STABLE
OPERATING
ENVIRONMENT
IN
WHICH
TO
SECURE
A
PROFIT.
INDEED,
THE
TWO
ARE
MUTUALLY
DEPENDENT.

3. 3
1
FOR
ME,
THE
KIMBERLEY
PROCESS
IS
–
AND
SHOULD
CONTINUE
TO
BE
–
AN
EXEMPLAR
OF
THIS
RELATIONSHIP.
WITHIN
THE
KP,
WE
SEE
INDUSTRY
AND
GOVERNMENTS
SEEKING
TO
MAINTAIN
THE
INTEGRITY
OF
THIS
MOST
PRECIOUS
OF
PRODUCTS.
AND
STAKEHOLDERS
AROUND
THE
WORLD
–
FROM
WORKERS
TO
LOCAL
COMMUNITIES
IN
PRODUCING
COUNTRIES
TO
CIVIL
SOCIETY
TO
CONSUMERS
–
ARE
STRIVING
TO
ENSURE
THAT
THE
TRADE
IN
THIS
PRODUCT
DOES
NOT
FUEL
CONFLICT
IN
THE
WAY
THAT,
SADLY,
WE
HAVE
SEEN
IN
THE
PAST.
INDUSTRY
IS
AWARE
OF
THE
DANGER
THAT
CONFLICT
DIAMONDS
PRESENT
AND
IS
TAKING
ACTION
OF
ITS
OWN
IN
A
WAY
THAT
COMPLEMENTS
THE
KIMBERLEY
PROCESS.
THE
RESPONSIBLE
JEWELRY
COUNCIL,
FOR
EXAMPLE,
HAS
SET
UP
A
VOLUNTARY
CHAIN
OF
CUSTODY
CERTIFICATION
TO
ADHERE
TO
ETHICAL
AND
ENVIRONMENTAL
PRACTICES
IN
GOLD
AND
PLATINUM.
THIS
CHAIN
OF
CUSTODY
EXTENDS
FROM
THE
MINE
SITE
TO
THE
FAMILY-­‐OWNED
RETAIL
BOUTIQUE
OR
THE
FORTUNE
500
MEGASTORE;
THE
COUNCIL
IS
NOW
SEEKING
TO
REPLICATE
ITS
MODEL
FOR
THE
DIAMOND
SECTOR.
WE
WELCOME
THESE
EFFORTS.

4. 4
1
THE
RECENT
LAUNCH
OF
A
DIAMOND
SOURCE
WARRANTY
PROTOCOL
BY
A
COALITION
MADE
UP
OF
THE
JEWELERS
OF
AMERICA,
THE
DIAMOND
MANUFACTURERS
&
IMPORTERS
ASSOCIATION
OF
AMERICA,
AND
THE
JEWELERS
VIGILANCE
COMMITTEE
IS
ANOTHER
POSITIVE
EXAMPLE.
THE
PROTOCOL
IS
AN
ENTIRELY
VOLUNTARY
SYSTEM
THAT
WILL
STRENGTHEN
BOTTOM
LINES
AND
BOOST
CONSUMER
CONFIDENCE.
IN
ORDER
TO
CONTINUE
TO
DO
WELL
BY
DOING
GOOD
IN
THE
DIAMOND
SECTOR,
WE
MUST
BE
LEADERS.
DOING
GOOD
IS
NOT
AN
END
THAT
CAN
BE
ACHIEVED
BY
RELYING
ON
THE
RESULTS
OF
CUSTOMER
SURVEYS
OR
POLITICAL
RHETORIC.
IT
REQUIRES
TAKING
THE
TIME
TO
HARVEST
THE
LESSONS
OF
THE
PAST,
AND
THE
FORESIGHT
TO
APPLY
THESE
LESSONS
TO
THE
FUTURE.
DOING
WELL
BY
DOING
GOOD
COMES
FROM
HONEST,
COLLABORATIVE,
AND
FORWARD-­‐LOOKING
ENGAGEMENT
TO
IDENTIFY
THE
RIGHT
WAY
AHEAD.

5. 5
1
OR,
TO
REFER
BACK
TO
MINISTER
SUSAN
SHABANGU’S
OPENING
REMARKS
FROM
INTERSESSIONAL,
IT
REQUIRES
THAT
WE
RELY
ON
THE
AFRICAN
PRINCIPLE
OF
UBUNTU.
AS
I
HAVE
COME
TO
LEARN,
UBUNTU
MEANS
AFFIRMING
OUR
OWN
HUMANITY
BY
AFFIRMING
THE
HUMANITY
OF
OTHERS
AND
THEREBY
BUILDING
PEACEFUL
AND
PROSPEROUS
RELATIONS
WITH
ONE
ANOTHER.
IN
JUNE,
YOU
CAME
TO
WASHINGTON
TO
DISCUSS
HOW
WE
COULD
CONTINUE
THE
WORK
TO
IMPROVE
AND
MODERNIZE
THE
KP.
NOW
IT
IS
TIME
TO
COME
BACK
TOGETHER,
TO
FINISH
THE
FIRST
SET
OF
THESE
CRITICAL
DISCUSSIONS,
AND
TO
TAKE
CONCRETE
NEXT
STEPS.
OF
COURSE,
WE
EXPECT
EVEN
BIGGER
THINGS
TO
COME
NEXT
YEAR
WHEN
OUR
COLLEAGUES
IN
SOUTH
AFRICA
GUIDE
THE
KIMBERLEY
PROCESS
THROUGH
ITS
TENTH
ANNIVERSARY
AND
LAUNCH
THIS
INITIATIVE
INTO
THE
SECOND
DECADE,
JUST
AS
THEY
DID
FOR
ITS
FIRST.
BUT
SOUTH
AFRICA
CAN
ONLY
BUILD
ON
WHAT
WE
ACHIEVE
HERE
TOGETHER
THIS
WEEK.
WE
HAVE
SEEN
ALL
TOO
RECENTLY
WHAT
HAPPENS
WHEN
WE
LET
THE
DIVISIONS
BETWEEN
US
OVERCOME
OUR
UNITY.
LET
US
INSTEAD
START
FROM
THE
PRINCIPLE
OF
UBUNTU
THAT
MINISTER
SHABANGU
SPOKE
OF,
LET
US
BE
DRIVEN
BY
WHAT
IS
RIGHT

6. 6
1
AND
WHAT
IS
GOOD
FOR
THE
LONG-­‐TERM,
NOT
WHAT
IS
EASY
IN
THE
SHORT-­‐TERM.

7. 7
1
SO
NOW
THAT
WE
ARE
ALL
HERE,
IT
IS
TIME
TO
GET
TO
WORK.
THERE
IS
AN
AMBITIOUS
AGENDA
FOR
THIS
WEEK:
YOU
WILL
ENGAGE
IN
CONVERSATIONS
ABOUT
DIFFICULT
ISSUES,
PARTICIPATE
IN
WORKING
SESSIONS
THAT
BREAK
WITH
TRADITION,
AND
FIND
OPPORTUNITIES
FOR
LEADERSHIP.
I
ENCOURAGE
YOU
TO
LOOK
TO
THOSE
COLLEAGUES
WHO
HAVE
ALREADY
DEMONSTRATED
THEIR
LEADERSHIP
TO
BRING
YOU
CONCRETE
ACTIONS
YOU
CAN
SUPPORT
THIS
WEEK:
! ANGOLA
HAS
LED
THE
WORKING
GROUP
ON
ALLUVIAL
AND
ARTISANAL
PRODUCTION
TO
PRESENT
THE
PLENARY
WITH
A
STRONG
DOCUMENT
THAT
FOCUSES
ON
ACHIEVING
THE
POLICY
STEPS
NEEDED
TO
IMPROVE
THE
ECONOMIC
DEVELOPMENT
OUTCOMES
IN
ARTISANAL
MINING
COMMUNITIES.
BY
ENHANCING
DEVELOPMENT
GAINS,
WE
REDUCE
THE
POTENTIAL
FOR
CONFLICT
AND
LAY
THE
GROUNDWORK
FOR
A
BETTER
LIFE
FOR
THOSE
WHO
START
THE
PROCESS
OF
BRINGING
A
DIAMOND

8. 8
1
! THE
DRC
HAS
OVERSEEN
AN
UNPRECEDENTED
AMOUNT
OF
WORK
IN
THE
PARTICIPATION
COMMITTEE,
USHERING
IN
ONE
NEW
PARTICIPANT
AND
PAVING
THE
WAY
FOR
PLENARY
DECISIONS
ON
OTHERS
THIS
WEEK.
ADDITIONALLY,
THE
PARTICIPATION
COMMITTEE
WILL
PRESENT
YOU
WITH
IMPORTANT
UPDATES
TO
THE
EXISTING
GUIDELINES
ON
NON-­‐
COMPLIANCE,
AS
THE
KP
MUST
BE
ABLE
TO
ADDRESS
DIFFICULTIES
IN
A
FAIR
AND
CONSISTENT
MANNER.
! MY
COLLEAGUES
AT
THE
U.S.
CENSUS
BUREAU
HAVE
LED
THE
WORKING
GROUP
ON
STATISTICS
THROUGH
A
RIGOROUS,
MULTI-­‐
YEAR
STUDY
AND
TRIAL
PHASE
OF
THE
DATA
ANOMALY
QUESTIONNAIRE.
THIS
METHODOLOGY
AND
DATA
IS
POISED
TO
BE
A
CRITICAL
TOOL
IN
THE
KP’S
EFFORT
TO
IDENTIFY
AND
ELIMINATE
LOOPHOLES
IN
THE
SYSTEM.

9. 9
1
! THE
EUROPEAN
UNION
AND
THE
MEMBERS
OF
THE
WORKING
GROUP
ON
MONITORING
CONTINUE
TO
EXPLORE
HOW
TO
IMPROVE
PEER
REVIEW
AND
IMPLEMENTING
INTERNAL
CONTROLS.
! FINALLY,
THE
WORLD
DIAMOND
COUNCIL
AND
ITS
MEMBERS
IN
BELGIUM,
INDIA,
ISRAEL,
AND
GHANA
HAVE
PROPOSED
AN
INNOVATIVE
APPROACH
TO
MEETING
THE
KP’S
NEEDS
FOR
ADMINISTRATIVE
SUPPORT.
CERTAINLY
THERE
ARE
OTHERS
WHO
HAVE
SHOWN
THEIR
WILLINGNESS
AND
THEIR
ABILITY
TO
LEAD,
AND
I
THANK
YOU
AS
WELL.
MAY
WE
SHOW
THIS
WEEK
THAT
THE
KP
IS
AS
A
WHOLE
AT
LEAST
AS
STRONG
AS
–
IF
NOT
STRONGER
–
THAN
THE
SUM
OF
ITS
PARTS.

10. 10
1
FINALLY,
LET
ME
THANK
AND
CONGRATULATE
AMBASSADOR
GILLIAN
MILOVANOVIC
ON
HER
EXEMPLARY
WORK
THIS
YEAR
AS
KP
CHAIR.
IT
WAS
GOOD
LUCK
AND
OPPORTUNE
TIMING
THAT
BROUGHT
HER
FORWARD
AS
THE
BEST
CANDIDATE
FOR
CHAIR,
AND
SHE
HAS
TRULY
SHOWN
HERSELF
TO
BE
A
BRILLIANT
GEM
IN
HER
OWN
RIGHT.
SHE
HAS
INSTILLED
A
SPIRIT
OF
COLLEGIALITY,
OF
PRODUCTIVITY,
AND
OF
SENSITIVITY
THAT
THE
KP
DESPERATELY
NEEDED.
WHERE
OPINIONS
WERE
UNKNOWN,
SHE
SOUGHT
TO
GATHER
THEM;
WHERE
THEY
HAVE
DIFFERED,
SHE
ENDEAVORED
TO
UNITE
THEM.
PERHAPS
THE
CLEAREST
EXAMPLE
OF
THIS
APPROACH
WAS
HER
“VISION
STATEMENT”
IN
AUGUST
CONCERNING
THE
DEFINITION
OF
“CONFLICT
DIAMOND.”
AMBASSADOR
MILOVANOVIC
VISITED
AND
MET
WITH
MANY
PARTICIPANTS
AND
OBSERVERS,
LISTENED
TO
THE
WIDE
RANGE
OF
OPINIONS
VOICED
IN
JUNE,
AND
REVIEWED
THE
MANY
IDEAS
BROUGHT
FORWARD
ON
WHAT
THE
KP
NEEDED
TO
REMAIN
RELEVANT.
RATHER
THAN
RELY
ON
THOSE
WITH
WHOM
SHE
MAY
HAVE
AGREED,
SHE
TOOK
THE
STEP
TO
ENSURE
ALL
WERE
HEARD.
THEN
SHE
CHOSE
TO
PUBLISH
A
VISION
AND
SEEK
COMMENT
ON
IT,
RATHER
THAN
SIMPLY
SAY,
“THIS
IS
HOW
IT
WILL
BE.”

11. 11
1
AMBASSADOR
MILOVANOVIC’S
VISION
FOR
AN
UPDATED
DEFINITION
SUPPORTS
THE
PRINCIPLE
I
HAVE
DISCUSSED
TODAY:
THE
KP
IS
AN
INITIATIVE
THAT
CAN
HELP
US
ALL
DO
WELL
BY
DOING
GOOD.
AND
THE
BOTTOM
LINE
IS
THAT,
DESPITE
ALL
OF
THE
WORK
AND
ACHIEVEMENTS
IN
WHICH
THE
KP
CAN
TAKE
PRIDE,
IT
REMAINS
A
FRAGILE
SYSTEM
IN
2012.
WE
ARE
OF
COURSE
CONVINCED
THAT
THERE
CONTINUES
TO
BE
A
CRITICAL
NEED
FOR
THE
KP.
BUT
A
SYSTEM
THAT
GUARANTEES
“REBEL-­‐MOVEMENT
FREE”
DIAMONDS
IS
SIMPLY
NOT
GOOD
ENOUGH.
THE
EXPECTATIONS
OF
THE
WORLD
HAVE
MOVED
BEYOND,
AND
WE
CAN
NO
LONGER
REST
ON
THE
CONCEPTS
IDENTIFIED
TEN
YEARS
AGO
TO
SEE
US
THROUGH
THE
NEXT
TEN.
WE
MUST
SUPPORT
THE
STEPS
I
HIGHLIGHTED
ABOVE
TO
IMPROVE
THE
WORKING
OF
THE
SYSTEM
WE
HAVE;
AND
WE
MUST
ALSO
LAY
THE
CORNER
STONES
OF
THE
FUTURE
OF
THE
SYSTEM.
WHEN
WE
DECIDED
TO
BID
FOR
THE
CHAIRMANSHIP
AND
RECEIVED
YOUR
SUPPORT,
WE
WERE
DETERMINED
TO
AVOID
DOING
“BUSINESS
AS
USUAL.”
WE
BELIEVED
THAT
THE
KP,
AS
SUCCESFUL
AS
IT
HAS
BEEN
FOR
THE
LAST
TEN
YEARS,
NEEDED
TO
REFORM
IN
ORDER
TO
REMAIN
RELEVANT.
ORGANIZATIONS
SUCH
AS
OURS
MUST
CONTINUALLY
PROVE
THEIR
WORTH
IF
THEY
ARE
TO
CONTINUE
TO
DESERVE
OUR
EFFORT.
WE
HAVE
ARRIVED
AT
SUCH
A
CRITICAL
JUNCTION.

12. 12
1
SO
AS
I
SAID
IN
JUNE,
WE
MUST
NOT
USE
THIS
WEEK
TO
IDENTIFY
WHERE
THE
CHALLENGES
ARE
AND
SAY
WE
CANNOT
MEET
THEM.
INSTEAD,
LET
US
USE
THIS
WEEK
TO
SEEK
AND
ADOPT
WAYS
TO
AGREE
AND
ACHIEVE.
IN
SO
DOING,
WE
WILL
TURN
OVER
THE
REINS
OF
A
STRONG
AND
HEALTHY
SYSTEM
TO
SOUTH
AFRICA,
TO
ALLOW
OUR
COLLEAGUES
IN
PRETORIA
TO
GUIDE
THE
KP
INTO
A
HEALTHY
AND
UNITED
SECOND
GENERATION.

13. 13
1
I
TRUST
YOU
WILL
RELY
ON
YOUR
SPIRIT
OF
“UBUNTU.”
AND
ABOVE
ALL,
DO
GOOD!

14. 14
1
APPROVED:
DRAFTED:
CLEARED:
EB/FO
EB/TFS
EB/FO
J FERNANDEZ
B BROOKS-RUBIN (7-2856)
G MILOVANOVIC
(OK)
(OK)
EB/TFS P HARRELL (OK)
EB/TFC A WEINSCHENK (OK)
EB/TFC J HARDER (OK)
EB/KP P BARLERIN (OK)
EB/EPPD K HUMPHREY (OK)
AF/EPS C PICARD (OK)
AF/S S NOLAN/K MAY (OK)
L/EB C PETERS (OK)
DRL/MLGA A KRILL (OK)
E K BRUCKER (OK)
S/P M WALSH (INFO)