If you have someone in the party sufficiently intimidating, send him/her to talk to the head guy (whose name escapes me for the moment). You can threaten to rip the place apart, and he'll let you pass to the glacier without a fight.
The alternative is to (ahem) cheat and jump the party to the glacier exit.
As for diamonds, there is a "vault" of sorts with treasure in it, one of which is a diamond. You have to hold down the alt key to see the "holes" in the snow. Going in there will turn everyone hostile.
Nightowl2
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