TNAG-2131-FCO40-3046-Hong-Kong-and-the-ivory-trade-1990 — Page 49

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FM HONG KONG

TO IMMEDIATE FCO

TELNO 1011

OF 230955Z MARCH 90

INFO PRIORITY WASHINGTON

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Hkc sill

RECEIVED IN REGISTRY

30 MAR 1900

DESK OFFIC INDEX

115533

MDHIAN 2591

(84)

YOUR TELNO 629: IVORY EXPORTS

THE SIX MONTH RESERVATION ENTERED ON HONG KONG'S BEHALF GENERATED TWO OPPORTUNITIES. ONE, IDENTIFIED IN YOUR TUR, WAS THE OPPORTUNITY FOR HONG KONG TRADERS TO DISPOSE OF EXISTING STOCKS IN AN ORDERLY MANNER. THE SECOND WAS THE GENERATION OF A WINDOW IN WHICH ARRANGEMENTS FOR RETRAINING AND ALTERNATIVE EMPLOYMENT COULD BE PURSUED.

2. WE HAVE MADE, AND ARE CONTINUING TO MAKE, THE FULLEST USE OF THIS PERIOD FOR THE SECOND OF THESE.

3.

REGARDING THE FORMER, THERE ARE FOUR POINTS THAT CAN BE MADE:

(A) THE MARKET OPPORTUNITIES GENERATED FOR THIS SIX MONTH PERIOD ARE STRICTLY LIMITED TO NON-CITES PARTIES AND THOSE CITES PARTIES WHO HAVE THEMSELVES ENTERED RESERVATIONS ON THE BAN (THE NUMBERS OF THE LATTER CATEGORY WERE OF COURSE UNKNOWN AT THE TIME THE RESERVATION ON OUR BEHALF WAS ENTERED). SADLY FOR HONG KONG TRADERS, NONE OF THE RESULTING TARGET COUNTRIES HAVE A LARGE DEMAND FOR IVORY, WHICH HAS RESULTED IN THE LOW LEVEL OF EXPORTS REFERRED TO: CONVERSELY, OF COURSE, THE COUNTRIES WHERE SUCH DEMAND EXISTS NOW PROHIBIT TRADE. IN THE CIRCUMSTANCES, HONG KONG TRADERS ARE MAKING THE BEST OF VERY LIMITED OPPORTUNITIES OPEN TO THEM.

(B) IVORY PRICES HAVE UNDERSTANDABLY BECOME DEPRESSED, THOUGH THERE ARE SIGNS THAT THIS IS NOW BEING CORRECTED. THIS MAY WELL HAVE INFLUENCED WOULD-BE EXPORTING TRADERS.

(C)

THE RESULTING LOW LEVEL OF EXPORTS, WHILE NOT SECURING SUBSTANTIAL REDUCTION OF IVORY STOCKS IN HONG KONG, DOES REINFORCE THE POINT THAT OUR OVERALL CONTROLS ON DISPOSAL OF STOCKS ARE IN THEMSELVES VERY EFFECTIVE.

D

4 FOLLOWING ON FROM 3(C), WE ARE CONFIDENT THAT THE INSPECTION REGIME ALREADY OPERATED BY THE DIRECTOR OF AGRICULTURE AND

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