CODE 18-77

CONFIDENTIAL

-2-

Reference

balose

para 9

a)

The conservationist argument is that the 600 tonne stockpile must not be let onto the market. Therefore although the argument about trade going underground in Hong Kong is a valid one, there is no way that the stockpile can be moved to Taiwan if Hong Kong's enforcement procedures are as effective as claimed by the HK Government before and during the CITES Conference. And Taiwan can only replace Hong Kong if it has ivory to trade and can find consumers to take it.

b) At end of first sentence add 'beyond the 90-day period'

c) It is equally difficult for the UK to enter a reservation after we have voted for Appendix I listing and abstained on the vote on trade in existing stocks.

We, and not Hong Kong, are party to CITES and must abide by the commitments that this places on us. The UK, and not Hong Kong, will have to take the flak if we enter a reservation.

d) But our Legal Advisers have said that we are not committed to paying any compensation and have never promised to do so.

e)

We have no files on this, and DOE cannot confirm. But not only is there a significant difference between entering a reservation on the tightening of trade controls (Appendix II) and a complete ban (Appendix I) but we have to realise that the environment world of 1989 is completely different from the environment world of 1977, the early days of CITES. Not only has the position of the African elephant worsened dramatically in the last 13 years (in Kenya only 10% of the number in 1979), but the public's perception of environmental issues has

too.

f) Not in practice, since we could presumably make a statement explaining that we only considered a reservation to apply to Hong Kong, but the effect of

doing so on the UK's own standing in CITES would be serious.

para 10

Generally not enough weight is given to the disadvantages;

a) As previously mentioned it would also turn on its head our voting record at the last CITES conference. If we had wanted to support Hong Kong all the way it would have been more logical to vote at the Conference for trade in existing stocks and then place a reservation for Hong Kong. But Ministers agreed that we should go no further than abstain.

b) It will also be fiercely criticised by the press. After the savaging we received in the UK press for simply abstaining on behalf of Hong Kong we would have a rough time if we

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