CONFIDENTIAL
members of the UK delegation. The British Press also know and have published the fact that we intend to abstain. Any decision to
change HMG's vote would undoubtedly be picked up by the press in
Hong Kong as well as in the UK. We therefore recommend that we
hold to our decision to abstain.
5.
The effect of an Appendix I listing without exemptions (which might help Hong Kong) prevents traders holding ivory in Hong Kong from exporting it. There is nothing to prevent them from selling the ivory in Hong Kong. Also representatives of the Hong Kong Government told the DOE some time ago that it might be that some
Hong Kong traders would change their residence from Hong Kong to
Taiwan and would thereby move their stocks if ivory from Hong Kong
to Taiwan since they would not be contravening the Appendix I
listing.
6. We have been in discussion with representatives of the Hong
Kong Government over the question of ivory for many months. During
that time they have not raised the issue of compensation with us or
with the DOE. We believe that traders in Hong Kong will seek
compensation for the stocks they hold (valued at £83m) and we know that the Hong Kong Government is seeking legal advice confirming
that they have no legal liability to pay compensation to those affected. Our delegation at the CITES Conference have told us that the Hong Kong delegates within the UK delegation have already taken
a robust line with the Hong Kong traders. Also according to the
Hong Kong press some traders there are considering sueing EEC countries which have refused to re-import worked and raw ivory which
they earlier exported to Hong Kong with the intention of re-importing it to the EC.
ROLAKC/SLK
CONFIDENTIAL
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