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6. The Hong Kong members of the UK delegation were given the

opportunity to present their case at the Conference but the general

mood of the Conference was strongly opposed to any continued trade.

Department of Environment and FCO Ministers agreed before the

Conference that the UK would abstain in the vote on the Resolution

which would have allowed continued trade in existing stocks.

the then Foreign Secretary and the Prime Minister confirmed during

the Conference that we should stick to that line despite active

lobbying from the Department of the Environment to change our

position and vote against the Resolution.

Both

7. Following the defeat of this Resolution, the Hong Kong

Government have been considering urgently what can be done to

alleviate the difficulties of those employed in the ivory trade.

There is no legal liability on the Hong Kong Government to pay

compensation to those affected. But the Hong Kong Government is under considerable political pressure from the ivory trade to pursue the idea of international compensation or at least, to secure a

realistic breathing space which would enable dealers to dispose of

their existing stocks. The Hong Kong Government's position is

complicated by the fact that it depends on the approval of the

Legislative Council to pass the necessary legislation to implement

the ban. On 7 November the Executive Council decided formally to

request HMG:

a)

to pursue the establishment of an international buy-out fund,

sponsored by the major CITES parties before the 90 day CITES grace

period expires on 18 January 1990 or,

b) failing that, to enter a short term reservation on Hong Kong's

behalf to remain in force for a period of six months after the

expiry of the 90 day grace period in order to allow sufficient time

for the traders to dispose of their existing businesses and for a

re-training scheme for ivory craftsmen to be established.

CONFIDENTIAL

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