the strictest in the world.

CONFIDENTIAL

6. Dr Richard Leakey of the Kenyan Wildlife Department has recently

claimed that our decision to enter a reservation has led directly to an increase in poaching in Africa. Sir Geoffrey Howe challenged

Dr Leakey's accusations in the House of Commons on 22 February and

made clear that we would investigate any evidence of complicity by

Hong Kong traders in illegal trading in ivory. So far no such

evidence has been produced.

Progress with retraining of ivory workers

7. When we entered our six month Reservation on 18 January, we

justified our decision on the grounds that it would give Hong Kong

a reasonable period in which to adjust to the ban by allowing

traders to dispose of their stocks in an orderly fashion and

enabling the 3000 carvers and workers to find alternative

employment.

8. Since then, the Hong Kong Government have taken a number of

steps to encourage retraining and alternative employment. But the

number who have taken advantage of these opportunities is so far

relatively small. Only 26 ivory workers have actually been placed

in new jobs and only 1 has started a full time retraining course,

although a further 36 have responded favourably to enquiries from

the Vocational Training Council. Nevertheless the Hong Kong

Government can claim to have done everything they reasonably can to

take advantage of the breathing space provided by our reservation.

Orderly disposal of stocks

9.

The position on orderly disposal of stocks is less satisfactory.

The quantity of ivory actually exported from Hong Kong since the

reservation was entered is less than one tonne. Only five tonnes have been exported since the CITES Conference in October.

This may

be partly because traders are having more difficulty than expected in finding export outlets and partly because ivory prices have

fallen dramatically, encouraging traders to hang on to their stocks

CONFIDENTIAL

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