TNAG-1957-FCO40-2786-Hong-Kong-Animals-and-Plants-(Protection-of-Endangered-Speci-1989 — Page 53

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336,

056216

MDHIAN 7109

CONFIDENTIAL

FM HONG KONG

TO DESKBY 30140OZ FCO TELNO 3952

OF 30114OZ NOVEMBER 89

HKCISI ||

ན་ཚོད་

PERSONAL FOR PAUL HKD FROM GOVERNOR

(334)

TOP CUPY n DIST ?

YOUR TELNO 2396: HONG KONG AND THE IVORY TRADE

1. THE QUESTION OF POSSIBLE LEGAL OUTLETS FOR HONG KONG'S STOCKS AFTER THE UPLISTING OF THE AFRICAN ELEPHANT TO APPENDIX I IN JANUARY IS CLEARLY DIFFICULT. IN PRACTICE, THE RESERVATION WE SEEK WOULD MEAN THAT, AS FAR AS HONG KONG IS CONCERNED, THE ELEPHANT REMAINS IN APPENDIX II FOR SIX ADDITIONAL MONTHS. TRADE IN APPENDIX II SPECIMENS IS COVERED BY ARTICLE IV OF THE CITES CONVENTION AND

TRADE WITH NON-PARTIES BY ARTICLE X. WE INTERPRET THESE ARTICLES AS ENTITLING HONG KONG TO EXPORT IVORY BOTH TO PARTIES AND NON PARTIES (SUBJECT TO THE ISSUE BY NON-PARTIES OF COMPARABLE DOCUMENTATION TO THAT ISSUED BY PARTIES).

2. LEGAL EXPORT MARKETS UNTIL JANUARY 1990 WILL THUS INCLUDE ANY PARTY TO CITES AND ANY NON PARTY WHICH ISSUES COMPARABLE DOCUMENTATION. AFTER JANUARY THE ONLY LEGAL MARKETS WILL BE NON- PARTY COUNTRIES AND PARTY COUNTRIES WHICH HAVE ALSO ENTERED A RESERVATION. IN BOTH CASES EXPORTS TO COUNTRIES WHICH HAVE IMPOSED

AN IMPORT BAN (E.G. JAPAN) ARE RULED OUT.

3. PROBABLE LEGAL MARKETS AFTER JANUARY WILL INCLUDE KOREA, BRUNEI, CERTAIN MIDDLE EASTERN COUNTRIES AND POSSIBLY TAIWAN. CHINA IS A PARTY TO CITES, BUT LIKE HONG KONG, IS A SMALL END-USER OF IVORY. IT IS THUS UNLIKELY TO BE A SIGNIFICANT EXPORT MARKET.

4. AS TO WHETHER SIX MONTHS IS SUFFICIENT FOR STOCKS TO BE DISPOSED OF, THIS WILL BE LARGELY UP TO OUR TRADERS. THEY WILL CERTAINLY SAY IT IS INSUFFICIENT. OUR VIEW IS THAT NEITHER ADHERING TO APPENDIX I FOR THE ELEPHANT, NOR ENTERING A RESERVATION, ARE IDEAL SOLUTIONS FOR HONG KONG IN VIEW OF OUR VERY SIZEABLE LEGALLY ACQUIRED STOCK. THIS IS A MATTER FORCED UPON US BY THE INTERNATIONAL COMMUNITY. A

SIX MONTH RESERVATION HAS ALWAYS BEEN A COMPROMISE. WE HAVE NO INTENTION, HOWEVER, OF SEEKING TO EXTEND IT. THE IMPORTANT THING IS TO LET THE TRADE KNOW EXACTLY WHERE THEY STAND SO THAT THEY CAN PUT

IN HAND THE NECESSARY ARRANGEMENTS TO DISPOSE OF THEIR STOCK AND

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