It says "I never hated a man enough to give him diamonds back." It says "[..] give him [..]", suggesting new/other diamonds, as opposed to "[..] give *his* [..]" suggests returning the ones he gave.
So made me think: diamonds as sign of hate/hating.
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Well, but that just says that one received diamonds first, so you return the favor, i.e. give him diamonds back.
That's why I would assume your explanation is the right one, because it makes the most sense.