Government, through the federal-territorial task force on diamonds, is studying ways to "maximize" long-term national and regional benefits, James Moore, assistant deputy minister of northern affairs, said.

"That would include a review of public policy measures and take into consideration a long-term view of Northern development," he said.

Moore, with other members of the federal government who focus on diamonds, spoke to News/North Tuesday.

They wanted to reassure the North that the federal government is acting co-operatively and in partnership with the GNWT.

It is anticipated the federal-territorial diamond task force, which includes senior federal and GNWT officials, will have recommendations by March 31.

The task force, which completed its terms of reference two months ago, is looking at opportunities for secondary diamond industry including the availability of rough diamonds to the North.

It is not known what the recommendations will be but it is clear there will be no federal subsidizing of the diamond sector to assist in the creation of value-added industry.

Federal diamond director Joseph Lazarovich said time has elapsed and much has been learned since a controversial questionnaire, originating from the federal government, to European diamond insiders.

That questionnaire, by asking diamond insiders how they felt about the "myth" of Northern benefits, cast doubt on the possibility of jobs and value-added secondary industry in the NWT.

Canadians buy big Canadians could buy a billion dollars worth of diamond jewelry this year. Lou Clements, group director of diamond marketing for Toronto-based advertising agency J. Walter Thompson, estimates Canadians bought diamond jewelry worth $830 million in 1996. Clements said 1997 figures should be compiled by the end of the month and they look to easily eclipse 1996 levels, he said. About 80 per cent of all jewelry bought by Canadians is diamond jewelry. In 1996, Canada's jewelry stores sold $1.13 billion in jewelry -- that's all types, with or without diamonds, the Canadian Jewellers Association said. Through October of last year, Canadians had bought jewelry of all types worth $1.02 billion. Add the last two months of 1997 and it could hit about $1.25 billion. Based on Clements 1996 estimates and jewelry association numbers, diamond jewelry sales for 1997 could come in around $915 million.