6. You asked to be kept informed of any decisions by the TEAP on the sources, quantity and timing of halon production for essential uses beyond 1994. The source for halon production is not a matter with which the TEAP is concerned. If in any future years the TEAP should recommend to the Parties that production is needed by any Party, it is for that Party to find its source of production. Nominations for essential use production will be reviewed annually; if exemptions are granted production will have to take place in the year for which the exemption is granted. An estimate of quantities needed is part of the information Parties have to supply when making their nominations. We understand that nominations for production in 1995 should be with the Ozone Secretariat by 31 January 1994.

7.

The action plan enclosed with your letter shows that Hong Kong is in the process of collecting information for nominations for essential uses of CFCs, HCFCs and 1,1,1 trichloroethane with a target date of 30 September this year. If the intention is to submit this to the Ozone Secretariat for consideration by the Parties, you should be aware of the following points:

i) unless UK's ratification of the London Amendment is extended to Hong Kong by 30 September Hong Kong will not be treated as a Party to that agreement and cannot be granted exemption from it. Therefore Hong Kong could only ask for continued production of CFCS 11, 12, 113, 114, and 115. The exemption Hong Kong gained by submitting data was for trade purposes only;

ii) there is no requirement, or provision, under the Protocol for nomination of essential uses of HCFCs;

iii) when submitting the nominations, if any, for continued production of CFCs etc Parties should provide the data set out in the essential use decision. The onus is on Parties to assess nominations themselves before submitting them to the Ozone Secretariat for consideration by the TEAP.

8. The enclosed copy of DOE's consultation paper (issued earlier this year) on essential uses for CFCs etc sets out the system and the information required in some detail. It is likely that the UK will decide the nominations it intends to make in conjunction with other EC Member States. Hong Kong may prefer to submit any nominations they might have to the Ozone Secretariat direct (copied to DOE), rather than through the UK.

9. Ms Godfrey has suggested that you contact her direct if you have any doubts on the essential use question.

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10. You also sought advice on the implications for Hong Kong of Decision IV/18 on the Montreal Protocol Financial Mechanism. Unfortunately there is no simple answer to the question of whether Hong Kong will need to contribute to the Fund. clear that Hong Kong (like the other Dependent Territories) cannot receive support from the Fund because only developing country Parties, as defined by the First Meeting of the Parties in Helsinki (May 1989), are eligible.

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