3. I have now discussed this with the Department of the

Environment, who are the UK's CITES Management Authority,

and it is their conclusion and ours that Hong Kong would

indeed be in breach of CITES if it allowed tourists to

export ivory, since Article VII of the Convention only exempts personal effects if they belong to a resident of

that country.

4. HKD faxed to Hong Kong on 6 July the correspondence

from Melville seeking an explanation, and have this morning

faxed copies of the newspaper articles and sent a telegram

reporting our and DOE's firm views on Article VII. We are

awaiting a response. In the meantime News Department are taking the line that we are discussing this with Hong Kong

but there is no question of Hong Kong not complying with

CITES Appendix I regulations after 18 July.

5. I shall minute again when we receive a reply from Hong

Kong.

JE3ACR

Julian Evans

Environment, Science & Energy Dept

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