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Bob Dylan – Black Diamond Bay Lyrics 19 years ago
The specific reference of Black Diamond Bay is to the Conrad novel
called "Victory". In the novel, Black Diamond Bay is a disused coal
port/depot on an island in the far east (Indonesia/Borneo area). There
are elements in the novel that reappear in the song (a hotel, a
volcano, gambling, a somewhat enigmatic woman, BDB itself of course)
but the song is not a 'song of the book' by any means. In some ways its
a bit like a dream version of the book with everything mixed up and in
the wrong places. There may be elements from other Conrad novels in
there as well - some themes doubtless reappear in many of the novels.

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Bob Dylan – Black Diamond Bay Lyrics 19 years ago
wow, what a great paraphrasing of the song, but what does it mean?

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