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CONF IDENT IAL

SPEAKING NOTE FOR THE SECRETARY OF STATE'S USE WITH MR PATTEN

Prime Minister sympathises with Hong Kong's need for six months breathing space (Charles Powell's letter of 19 December). Believes that Hong Kong's problems are genuine and cannot be ignored.

Recognise that entering reservation likely to attract criticism here. But hope you will reconsider. Believe the arguments for

helping Hong Kong are compelling:

(a) What we are suggesting is not a major concession to Hong

Kong. Simply a reasonable compromise to enable Hong Kong to adapt

to the CITES ban.

(b) Key point is that Hong Kong is prepared to ban all trade in ivory despite the importance of the industry in the territory. This

is a significant and substantial step forward. Believe we should

present the position in this light, not as a concession to Hong

Kong.

(c) Hong Kong traders' ivory stocks (£80 million) were acquired legally and in good faith. Giving them a reasonable time to dispose

of these stocks in an orderly fashion is equitable.

(d) Prime Ministers attaches importance to stringent controls

and monitoring of ivory trade during six month reservation period.

As you acknowledge, Hong Kong Government have gone to considerable

lengths to ensure this.

(e) HMG in any case has duty to act on Hong Kong's behalf (Hong Kong is unable to enter a reservation in its own right). Our Legal

Advisers confident that would be perfectly possible for UK to enter reservation for Hong Kong without our being regarded as being not a

party to the Convention.

(f) Possible grave constitutional implications if LegCo were to

refuse to enact legislation implementing ban. UK would then be in

breach of its international obligations under CITES.

ARTABE

CONFIDENTIAL

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