We should put our minds on certain other areas of the developing the economy of Sierra Leone economy rather than relying on diamonds

Peter Kuyembeh Sierra Leone's finance minister

"I sometimes find myself defeated when I want to find an answer to the diamond problem."

The admission came as an international conference in Canada to establish controls over the diamonds trade again failed to reach an agreement.

The three-day meeting was part of the Kimberley Process set up two years ago to end the trade in diamonds in war-torn countries like Angola and Sierra Leone, where rebel forces use the proceeds to buy weapons.

Rough cut industry

"Whereas four stones appear on the market, 25 stones have already escaped and there are hundreds of ways of doing this," said Mr Kuyembeh.

Kuyembeh wants to develop other parts of the economy

"Now that rebels have left some areas, the government is reforming the areas and putting a stop to some of the mining until we know what to do."

Mr Kuyembeh has just secured promises from the International Monetary Fund and the World Bank to forgive almost $1bn, or 80%, of its debt in exchange for free-market restructuring of the economy.

"We should put our minds on certain other areas of the developing the economy of Sierra Leone economy rather than relying on diamonds," he said.

Diamond deal

Under the Kimberley Process, diamonds that are not certified as originating from designated mines will be barred from being traded internationally.

Abbey Chikane, chairman of the Kimberley Process and South Africa's powerful Diamond Board, said the Canadian talks had produced "a breakthrough" in many areas, despite having failed to reach an overall agreement.

He added he was confident agreement could be reached this November at a ministerial meeting in Switzerland.

It is estimated that conflict diamonds make up about 3% of the $7bn annual global diamond trade.

Some countries are unhappy with the controls, which would allow regular outside monitoring of their diamond industries.

But activists say is the only way of ensuring the trade in conflict diamonds is ended.

The US, Canada and other countries have proposed legislation that will halt the import of illicit diamonds from countries that have not taken effective measures to stop the trade.