SECURITY CLASSIFICATION
follows:
CONFIDENTIAL
DSR 11C (Revised 5/87)
Top Secret
Secret
Confidential
Restricted
Unclassified
PRIVACY MARKING
In Confidence
(a) The decisions taken at the CITES Conference have
left Hong Kong ivory traders with very little time to
dispose of their existing stocks in an orderly manner.
These stocks, which were legally acquired in
conformity with CITES regulations, amount to some 600
tonnes and were estimated to be worth some £83 million
before the ban. Some potential markets are already
closed to Hong Kong as the result of the UK sponsored
Resolution to recommend the immediate implementation of
the ban without the normal 90 day grace period. There is
therefore a real risk that if Hong Kong has to comply
with the CITES ban from 18 January 1990 the ivory trade
would simply be driven under ground to the longer-term
detriment of CITES controls. A six month reservation
would allow disposal of existing stocks to non-CITES
parties (eg Taiwan and South Korea).
(b)
There is considerable public sympathy in Hong Kong
for the plight of the ivory workers. Failure to enter a
reservation on Hong Kong's behalf could therefore
generate hostility towards the Hong Kong Government and
HMG. This could in turn lead to the Legislative Council
blocking the Administration's draft legislation to
implement the ban since they would be seen to be
legislating against Hong Kong interests and in favour of
a "unreasonable" UK decision. This would have very
serious constitutional and political consequences. It
would also mean that the Hong Kong Government would not