Business Notes TRADE

How strapped for cash is the Soviet Union? So strapped that Moscow bent its long-standing opposition to apartheid last week by agreeing to sell $5 billion of diamonds over the next five years through an international cartel controlled by South Africa's De Beers Consolidated Mines. A Swiss subsidiary of De Beers will handle the sales and thus permit Moscow to deny that it is dealing directly with South Africa.

The agreement boosted De Beers' efforts to strengthen its domination of the worldwide market for uncut diamonds. De Beers already controls 80% of the global trade, and the deal could pressure any restive members to remain within the cartel. The pact with the Soviet Union, which competes with Botswana for the title of No. 1 diamond producer, will raise De Beers' market share to at least 90%.