TNAG-1957-FCO40-2786-Hong-Kong-Animals-and-Plants-(Protection-of-Endangered-Speci-1989 — Page 41

CONFIDENTIAL

(a) to press for the establishment of a special fund,

sponsored by the main CITES parties, to purchase the ivory that is legally held by traders in Hong Kong;

or

(b) to enter a reservation on Hong Kong's behalf, to

remain in force for a period of six months after the expiry of the 90 day grace period, so that the traders have time to dispose of their existing stocks, and to enable a retraining scheme for ivory craftsmen to be implemented.

3. The idea of establishing an international buy out fund is not a practicable proposition. There is no provision for this in the CITES Convention. Few countries would be willing to contribute to such a fund. We should therefore quickly scotch this idea, before unrealistic expectations are raised in Hong Kong.

4. The alternative proposal, that of entering a reservation on Hong Kong's behalf, is feasible. a provision in the Convention for states to enter reservations (Article XV (1) (C)). There is also a precedent for this procedure: the UK entered a reservation for Hong Kong in 1977.

5.

There is

I am very reluctant to countenance any delay in implementing the ban but there are strong arguments for Hong Kong in this case.

CONFIDENTIAL

/6.