Proposed Policy on Giant Panda Permits

DEPARTMENT OF THE INTERIOR

Fish and Wildlife Service

Proposed Policy on Giant Panda Permits

AGENCY: Fish and Wildlife Service, Interior.

ACTION: Notice of proposed policy for issuance of permits for giant

panda imports; request for comments.

-----------------------------------------------------------------------

SUMMARY: The U.S. Fish and Wildlife Service (Service) announces a

proposed policy for issuance of permits for the import of giant pandas

under the Convention on International Trade in Endangered Species

(CITES) and the U.S. Endangered Species Act (Act). Current policy

regarding giant panda imports would be superseded by this policy, if

adopted. Specifically, no import permits would typically be issued for

animals intentionally removed from the wild. All imports would have to

be part of a coordinated international panda conservation effort, and

activities would need to benefit panda conservation by supplementing,

and not interfering with, China's breeding and research programs. Any

net profits raised as a result of a panda loan would need to primarily

fund conservation projects, educational programs, and/or breeding

efforts in China. The Service proposes two alternatives concerning

exhibition. One alternative would allow for import of pandas for short-

term exhibition loans only as an ancillary component of a captive-

breeding and/or scientific research program, when the display would not

interfere with the captive-breeding or research activities. In the

other alternative, the Service proposes to retain short-term exhibition

loans under certain limited circumstances. The basis for findings

required by the CITES on ``primarily commercial purposes'' and the Act

on ``enhancement of propagation or survival of the species'' are

outlined in this proposed policy. The suspension of the review and

processing of permit applications to import live giant pandas continues

until a decision is made on this proposed policy.

DATES: The Service will consider comments received by May 30, 1995.

ADDRESSES: Comments may be submitted to the Office of Management

Authority, U.S. Fish and Wildlife Service, 4401 N. Fairfax Drive, Room

420(c), Arlington, Virginia 22203. Materials received will be available

for public inspection by appointment from 7:45 a.m. to 4:15 p.m.,

Monday through Friday, at the Office of Management Authority, Room 434.

FOR FURTHER INFORMATION CONTACT: Management Authority: Kenneth B.

Stansell, Office of Management Authority, at the above address,

telephone (703) 358-2093; fax number (703) 358-2280.

Scientific Authority: Dr. Charles W. Dane, Office of Scientific

Authority, U.S. Fish and Wildlife Service, telephone (703) 358-1708;

fax number (703) 358-2276.

SUPPLEMENTARY INFORMATION:

Background

The survival and ultimately the increase in the population of the

giant panda (Ailuropoda melanoleuca) in its natural habitat is the

strong desire of the United States, the People's Republic of China

(China), and the international conservation community. As such, the

panda is subject to strict protection by its listing as an endangered

species under the Act and its inclusion in Appendix I of CITES.

The Service is responsible for regulating panda loans in the United

States by deciding whether to grant import, export, and re-export

permits required by the Act and CITES, and interstate and foreign

commerce permits under the Act. In making these decisions the Service,

under the Act, must determine whether the proposed activities are not

likely to jeopardize the continued existence of the giant panda and

would enhance its existence in the wild, and under CITES, would be for

purposes that are not detrimental to the survival of the species and

that are not primarily commercial.

[[Page 16488]]

In the late 1980's the proposals for short-term exhibition loans of

giant pandas became an increasingly controversial issue. During one

period in 1988, the Service received reports that as many as 30

institutions may have been negotiating, or planning to negotiate, with

various entities in China to arrange panda loans, potentially posing

additional threats to the wild and captive populations of pandas. As a

result the Service, through the public review process, published a

policy on March 14, 1991 (56 FR 10809), for the issuance of import

permits for short-term exhibition loans.

In 1992, after the Service had issued a permit to the Columbus Zoo

to import a pair of giant pandas for a short-term exhibition loan, the

CITES Secretariat requested the Service to reevaluate its policy on

panda imports. The Service published a notice in the Federal Register

on June 29, 1992 (57 FR 28825), requesting public comment on existing

policy. Three written comments were received. The International Union

of Directors of Zoological Gardens suggested that an international

management program be developed, especially for the captive population,

which should include: (1) The development of a comprehensive, accurate

inventory of captive pandas; and (2) a carefully designed breeding

program, engaging as many founders and contributors to the gene pool as

possible. Although accepting that there may be pandas incapable of

breeding that could be used for exhibition, they recommended a complete

ban on exhibit loans until a panda management plan is in place.

The World Conservation Union (IUCN) stated there should be a

moratorium on short-term non-breeding loans of pandas until there is

sufficient evidence that such loans would contribute to a long-term

conservation strategy in captivity and in the wild. They believed there

is need for a strategy defining priority conservation activities for

the species.

The New York Zoological Society viewed short-term exhibition loans

as money-making commercial ventures that should not be considered as

``not for commercial purposes'', stating that any policy should meet

the mandatory standards that the American Zoo and Aquarium Association

(AZA) has proposed. In their view, poaching continues as a major

problem, yet little is being done to stop it. They maintained there

should be a complete moratorium on loans until: (1) There is an

adequate and complete register and studbook of captive pandas; (2) a

complete series of priorities and projects are agreed to by

conservation organizations and China; and (3) agreements can be

developed with IUCN to meet international conservation concerns,

including increased efforts to stop poaching and preserve habitat.

Verbal comments were made by the World Wildlife Fund (WWF) within

the comment period, expressing concern about commercial aspects of

exhibition loans and the distinction that had been made by the Service

in this regard, and that income to the parent city of a zoo should also

be considered. They were concerned that exhibition loans could reduce

breeding and induce taking from the wild. They thought the Service

should provide a clear indication of how it will examine the

educational aspect of any exhibits.

Before evaluation of the existing policy on short-term exhibition

loans was completed, the Service received an application from the

Zoological Society of San Diego (ZSSD) to import a pair of giant pandas

for a long-term, captive-breeding loan. On April 20, 1993, the AZA

announced the development of a Giant Panda Conservation Action Plan,

which has since been formalized. The plan outlines a captive-breeding

program with support from 29 zoological institutions in North America.

In addition, in July 1993 China's Ministry of Construction (MOC)

published the second giant panda studbook, listing all pandas currently

in captivity.

With the possibility of receiving an increasing number of import

permit applications for giant pandas for public exhibition, scientific

research, and/or captive breeding purposes, the Service felt that a re-

examination of the long-range implications of panda imports was

necessary to ensure that such imports best serve the conservation needs

of the species. Thus, on December 20, 1993, the Service announced in a

news release the temporary suspension of the processing of any new

permit applications for the import of live giant pandas during a

reassessment of the current policy. On May 4, 1994, the Service

requested public comments and announced a working public meeting to

assist the Service in formulating the draft revised policy (59 FR

23077). The suspension of review and processing of any new live giant

panda import permits remains in effect.

Public meetings were held by the Service on May 26 and August 23,

1994. For its review, the Service sought information on: Giant panda

status and population trends; current information on habitat

availability and continuing loss; the status of current breeding

efforts; the need to augment breeding efforts outside of China; whether

there is adequate genetic diversity within the captive population to

maintain sufficient heterozygosity in future generations; whether there

is a need for additional genetic material from the wild; the status of

reintroduction; and the need for research priorities. The Service also

sought information on the status of all existing or proposed

conservation programs and management plans for the giant panda.

Comments were sought on the current panda loan policy and on specific

elements of the findings necessary for permit issuance, including

``primarily commercial purposes'' and ``enhancement''.

As a result of the public comment period in 1994, written

information and comments were received from the AZA, Busch Gardens, the

Humane Society of the United States (HSUS), WWF, and the ZSSD. The AZA

commented that: (1) All importers of giant pandas must be required to

participate in the giant panda studbook; (2) most of the funds

contributed to China must be used for giant panda field conservation

projects; (3) there must be a project selection and monitoring system

established in China and overseen in North America for the use of funds

generated by panda loans; (4) the permittee must show that the

importation will not detract from the current panda captive-breeding

program in China; (5) genetic and demographic criteria should be used

to determine selection of pandas to be imported; (6) there should be no

lower age limit for animals to be imported, and pre-reproductive

animals should be allowed if the permittee can demonstrate their value

within a holistic panda conservation program; (7) loans should be

longer than 3 years; (8) animals to be imported must be individually

identified; (9) importing facilities must follow recommended minimum

housing guidelines, and facilities should be approved by the Chinese;

(10) the permittee must show that the importation is part of the AZA

Giant Panda Conservation Action Plan, or a similar plan; (11) all

permittees must support research aimed at resolving husbandry and

management problems of giant pandas and at increasing reproductive

success; (12) import must be for a scientific purpose or survival of

the species and not likely to jeopardize the continued existence of the

species; (13) no animals are to be used in animal acts while in the

United States; (14) there must be an education component; and (15) part

of the program must be to assist the Chinese in technology transfer and

training and collaborative efforts in [[Page 16489]] panda husbandry,

management, and health care.

Busch Gardens commented that: (1) The Service should lift its

moratorium on the importation of giant pandas and establish a new

policy promptly; (2) since the current policy establishes guidelines

for only short-term exhibition loans, the new policy should set

specific guidelines for long-term captive-breeding loans; (3) the new

policy should recognize that long-term breeding loans sponsored by the

AZA under its conservation plan are inherently non-commercial and,

therefore, meet the CITES requirement of being ``not for primarily

commercial purposes'', and ``for-profit'' institutions that participate

in the AZA program should be treated in the same way as ``not-for-

profits''; (4) accounting or reporting obligations should not be

imposed on the importer as a result of a long-term breeding loan as

they are unnecessary, impracticable, and unprecedented; and (5) neither

CITES nor the Act requires an ``in fact'' finding by the Service that a

proposed activity will enhance propagation or survival of the panda,

and participants in the AZA plan should automatically meet the

enhancement standard of the Act.

The HSUS indicated that: (1) The previous exhibition of pandas in

zoos in the United States has not resulted in the improvement of the

status of pandas in captivity or in the wild, and experience has shown

that large populations of animals in captivity are not an effective

conservation tool; (2) they oppose the removal of an endangered animal

from the wild for confinement and breeding in zoos unless preservation

of the species' ecosystem is assured; (3) it would be desirable to

duplicate the experience in Chinese breeding centers of maintaining a

number of pandas clustered at one location for breeding; (4) the import

of pandas to zoos will always serve a commercial purpose, and there has

been little control or guarantee of what happens to funds going to

China for panda conservation; and (5) funds, technical assistance, and

other efforts should be directed toward protecting habitat and

reintroductions. The WWF commented that: (1) Long-term breeding and

research loans must be part of an integrated, international program

designed to complement conservation efforts for the wild panda

population; (2) research loans must be for research that is of high

priority, is best conducted outside China, and will produce results

that will contribute to the pool of knowledge about giant pandas; (3)

standards for commercial vs. not-for-profit institutions need to be

clarified--if import of a panda by a city-owned institution can result

in the benefit to the local economy in the same manner that for-profit

institutions operate to generate a profit, all institutions should be

held to the same stringent standards; (4) the standards for ``primarily

commercial'' need to be defined to consider the motivation for a giant

panda loan; (5) the requirements on accounting and allowable expenses

need to be strengthened--the Service should consider setting a ceiling

on the associated expense that an exhibitor can deduct from revenues

generated by the loan; (6) it should be clarified that education of the

American public is not a criterion in making permit decisions, and

education in China related to in-situ panda conservation should be

considered as a component of an integrated conservation program; (7)

better documentation should be required on the specific conservation

projects in China that are to receive funding from an exhibitor, and

China's approved and complete National Conservation Project Plan for

the Giant Panda and its Habitat (National Plan) for pandas should be

used as a guide; and (8) the Service must monitor performance of

exhibitors on an annual basis to ensure they are complying with the

provisions of the permit.

The ZSSD commented that: (1) There is a need to clarify existing

regulations and guidelines; (2) there needs to be a framework that

includes agreement on the role for captive breeding, coordinated and

effective research with agreed-upon, but flexible, research objectives,

effective habitat preservation and restoration with emphasis on

management of human conflicts, sufficient funding to accomplish these

tasks, with agreed-upon monitoring and sufficient accountability for

revenues and expenditures, and agreement on the role of display; and

(3) they feel strongly that captive breeding is central. They suggested

an approach to the policy that includes a framework agreement between

AZA and the Chinese government that would identify priority

conservation projects and research priorities with integrated

participation by U.S. institutions. Permits could be issued to

institutions based on this agreement, and a monitoring and

implementation process could be established involving key parties, such

as the AZA, the permittee, the Service, and the WWF.

The Service considered these comments and comments given at the two

public meetings, plus the experience it has gained since 1991 in

applying the current policy, to draft a new proposed policy. The

following summarizes information the Service received and gives a brief

description of elements in this proposed policy.

Population Status

Precise data on the size of the wild population of giant pandas are

not available. The most recent survey, performed from 1985 to 1988,

concluded there were between 872 and 1,352 pandas in the wild. The most

common current estimate is that there are fewer than 1,000 giant pandas

left in the wild and that the population is continuing to decline. In

less than 15 years, from 1975 to 1989, the total area of panda habitat

declined by 53 percent. This decline was primarily due to logging,

grazing, and conversion of forest habitat to agriculture and other

uses, resulting in the fragmentation of habitat into small islands. The

1985-88 survey found the wild panda population to be fragmented into 24

isolated groups separated by mountain ranges, rivers, roads, forest

clearings, and human settlements. Some of these groups contain fewer

than 10 pandas, making them vulnerable demographically and genetically.

Without genetic exchange among these populations, the persistence of

such small islands of pandas over time is questionable. In addition,

poaching continues to take its toll, despite the imposition of harsh

penalties, including execution.

Status of Captive Breeding in China and the Need for Breeding Efforts

Outside of China

The continued decline of the wild population of giant pandas and

the increasing fragmentation of its habitat make it increasingly

important to establish a self-sustaining captive population. The

existence of a robust captive population could provide insurance

against increasing threats to the wild population. The current captive

population represents about 10 percent of the total panda population,

captive and wild. As of June 1993, there were 113 giant pandas in

captivity in 35 institutions--98 animals were in institutions in China

and 15 pandas were in 8 institutions located outside of China. Three

institutions had 14 to 21 pandas and 4 had 4 to 6 animals. The

remaining 28 institutions had 1 or 2 animals. The Chinese recognize

that these captive pandas need to be moved for better breeding

opportunities and to ensure that all mature individuals participate in

breeding. Of the 15 pandas currently held in 8 institutions outside

China, 5 institutions hold only 1 panda. These data demonstrate the

great need to coordinate the movement of captive-held pandas

internationally.

[[Page 16490]]

The captive-breeding program in China is not currently self-

sustaining. Between 1936 and 1988, 345 pandas held in captivity

produced 67 litters of 106 cubs, with only 32 surviving more than a

year. In recent years, improvement in management and joint efforts

within China have enhanced breeding and survival rates and reduced the

infant mortality rate of the captive population. However, a review of

the International Studbook of the Giant Panda suggests that the current

number of founders that have contributed to the captive population is

inadequate. According to the studbook, the current captive population

is descended from 30 founders. However, recent research suggests that

fewer than 30 founders may exist because the paternity of some of the

captive-born pandas is uncertain. The current captive population

includes 57 wild-caught pandas that have not reproduced, but only 31 of

these are currently of reproductive age. If these pandas could be

encouraged to breed before their deaths, the captive population might

not need additional genetic material from the wild population for

several generations. If immediate action is not taken to enhance

captive propagation efforts, additional genetic material might have to

be taken from the wild to ensure sufficient genetic diversity in the

captive population.

Reintroduction

In view of the information on the status of the panda in the wild

and in captivity, the Service recognizes that reintroductions cannot

occur until a self-sustaining population of captive-born animals is

achieved and sufficient areas of panda habitat are available and

secure. The reintroduction of giant pandas is a long-term goal that

needs to be incorporated into coordinated international conservation

efforts. Protocols for reintroduction must be developed so that they

are available when opportunities for reintroduction arise. As used in

this notice, a coordinated international panda conservation effort

means an organized plan through which all panda imports support high

priority projects in China's National Plan and are coordinated with

China's captive-breeding plan and the AZA Species Survival Plan (SSP)

for the panda or other applicable multi-national breeding plans.

Research Priorities

There needs to be a coordinated global effort to set priorities for

panda research. China's National Plan (see following section) provides

the following research priorities: (1) habitat improvement; (2)

captive- breeding; (3) ecology, population status, and monitoring; (4)

rearing and nutrition; (5) prevention of illness; and (6)

reintroduction of captive pandas to the wild. The ``Giant Panda

Breeding Plan'' developed in China (see following section) lists the

following areas that need basic research: (1) artificial insemination

biology and techniques; (2) breeding behavior; (3) disease prevention;

(4) reproductive physiology; (5) diet; (6) mating ability; (7)

reproductive longevity; and (8) fertility. Because of the precarious

level of the panda population, it is important that research findings

are shared quickly and that information and methodologies are

transferred to China for use in the field and in the captive-breeding

program.

Giant Panda Conservation Plans

In the past decade, there appear to have been advances in panda

conservation as a result of international cooperation with the Chinese

ministries. The WWF worked closely with the Ministry of Forestry (MOF)

to develop a panda conservation plan, which was submitted to the

Chinese government in 1989. China's National Plan evolved from this

plan, and in 1993 it was approved by China's State Council, with the

subsequent development of a priority list of the projects included in

the plan. The National Plan proposes establishing 14 new panda

reserves, improving 13 existing giant panda nature reserves,

constructing 18 panda migration corridors, and setting up 32 habitat

management stations. It would cover most of the currently occupied

panda habitat, protecting 95 percent of pandas in the wild. With the

adoption of the plan, the Chinese government made a major commitment to

the conservation of pandas and the plan by appropriating $13 million

for its implementation. However, the total required for completion is

estimated at $77 million, leaving more than $64 million that must come

from outside sources over the next 10 years.

To carry out the fund-raising activities effectively and to ensure

that the funds raised would be used entirely for the conservation

projects, China issued guidelines, ``Utilization and Management of

Funds Generated for China's National Conservation Project for the Giant

Panda and Its Habitat,'' which have also been approved by China's State

Council. The guidelines indicate that the MOF is responsible for

coordinating and organizing the raising of funds under the National

Plan and any funds generated must be submitted to the China Protecting

Giant Panda Project Office (Project Office), which will be responsible

for assuring that specific funds will be used in specific areas. After

deductions for some overhead costs, funds will be used entirely for

projects in the National Plan, allocated on a priority basis and the

Project Office is responsible for announcing the allocation and

expenditure of funds generated for the National Plan.

Advances have been made in the captive-breeding efforts as well. In

1993, the second international studbook of giant pandas was published,

listing all births, deaths, capture locations, and other valuable data.

In September 1993 at the International Giant Panda Conference in

Chengdu a document entitled, ``Giant Panda Captive Breeding Plan'' was

presented. It references the Giant Panda Breeding Technical Committee,

which coordinates captive-breeding. Although the Service does not know

whether this document will become official, it is a clear indication of

the increased cooperation between Chinese zoos and MOF panda-breeding

facilities.

Recent events suggest that China is interested in working with

entities outside of China in an integrated conservation effort that

includes conservation in the wild and captive propagation. On January

14, 1994, an agreement was signed between AZA and Chinese officials, in

which the Chinese support the long-term giant panda captive-breeding

cooperative plan in North America as presented by AZA. The Chinese also

indicated that giant pandas removed from the wild before March 1993 and

captive-born specimens that do not detract from the breeding efforts in

China would be made available for the North American captive

population. As part of this agreement, AZA is developing procedures for

verifying expenditures within China and for monitoring the progress of

conservation projects. Furthermore, China has already agreed to allow

AZA personnel to visit China to monitor projects.

The Giant Panda Conservation Action Plan developed by AZA is

intended to supplement and support China's National Plan. It calls for

14 priority actions to be implemented by signatories in full

collaboration with Chinese colleagues and other conservation

organizations. One of the priority actions is to establish a giant

panda SSP. The goals of the SSP would include preservation of the

species' genetic diversity; research contributing to the survival of

both wild and captive populations; public education and professional

training, including technology transfer; and direct support

[[Page 16491]] of habitat conservation, including financial support.

Purposes

The primary function of any import of giant pandas must be to

enhance the ultimate conservation of the species in the wild. This will

require a variety of activities and actions in China, including habitat

protection, habitat restoration, creation of corridors linking isolated

populations, elimination of poaching, development of compatible

resource uses in giant panda habitat, educational programs in China

that stress the importance of preserving giant pandas and their

habitat, development of a self-sustaining captive population, and,

eventually, reintroduction of captive-bred animals. This proposed

policy would allow for the issuance of permits to import pandas for

captive-breeding, scientific research, and/or exhibition purposes, when

the activity is part of a coordinated international panda conservation

effort. It proposes two alternatives for exhibition. In alternative 1,

exhibition would only be allowed as an ancillary component to captive-

breeding or scientific research, and such exhibition would be

contingent on the absence of conflict between public display and the

primary research or captive-breeding activities. Alternative 2 would

allow the import of pre-breeding age male pandas for short-term

exhibition under certain circumstances. The proposed policy emphasizes

that, in addition to the specific purpose(s) of a loan, the permittee

must typically fund conservation projects and/or captive-breeding in

China, as well as the transfer of scientific and captive-breeding

methodologies or conservation education programs to China. Since there

are a number of pandas owned by entities outside of China, this

proposed policy includes references not only to China but also to

lending institutions in other countries. The proposed policy would

continue to prohibit the use of pandas in animal acts or shows.

Wild-Taken Pandas

In the past it has been suggested that giant pandas have been

recovered (i.e., ``rescued'') from the wild without sufficient

justification, and that such removals were necessary for survival of

the species in the wild. The increased international demand for captive

giant pandas may have provided incentives that were misdirected in some

instances. The bamboo die-offs of the early 1980's perhaps stimulated

misguided and unnecessary removals of pandas from the wild.

In recent years, the Chinese government has taken a firm position

on captures from the wild and the number of animals brought into

captivity has declined. The August 1989 joint report of the MOF and WWF

titled, The National Conservation Management Plan for the Giant Panda

and its Habitat (WWF Plan), includes Guidelines for Rescue Operations

in Section 3.8. These recommendations were apparently developed with

the bamboo die-off of the early 1980's in mind, and they recommend,

among other things, that: (1) No further panda emergency operations

should be mounted until another major wave of bamboo flowering affects

the panda range; (2) villagers should not receive any financial

incentive to rescue pandas; (3) villagers who encounter starving pandas

should report immediately to the local forestry officials or designated

rangers, who must visit the site to decide whether rescue is necessary;

and (4) rescue should only be attempted in terminal cases. It further

states that ``some of these regulations are already accepted,'' we

assume, by the MOF. The National Plan evolved from this 1989 plan.

A Sichuan Forestry Department document, with a February 20, 1993,

date, titled, ``Procedure for the Conservation and Rescue of the Giant

Panda'' (Rescue Procedures), outlines procedures for reporting the

occurrence of ill or injured pandas, authorities responsible for rescue

decisions, and options to be considered in a rescue. It also refers to

a national protocol on panda rescue, and indicates that Sichuan had

taken actions regarding possible panda rescues following the lead of

the State Council and the MOF. Therefore, it would appear that national

panda rescue regulations or policy similar to those used in Sichuan

were in effect at least by February 20, 1993.

This policy proposes that pandas removed from the wild prior to

December 31, 1986, would be considered for an import loan. This date

approximately follows the peak of bamboo die-off in about 1983 by 3

years, allowing a period during which pandas might still have been

affected by that event. It appears the Chinese have established even

greater restrictions on the rescue of pandas since then. Therefore, the

Service generally would not consider any import of pandas removed from

the wild after December 31, 1986, unless the circumstances of the

removal clearly indicate that the removal conformed to Chinese

regulations and was in the best interest of the individual animal and

the species.

Age and Other Parameters of Animals Available for Loans

No post-breeding age pandas would be considered for import. Since

data now indicate that the reproductive age is higher than originally

thought, the Service proposes that post-breeding pandas would be over

20 years of age. The Service feels that the risks from transport to

animals over this age would not be acceptable.

For Alternative 1 in the ``Exhibition'' section, the Service

proposes that pre-breeding age pandas will not be considered for an

import permit, except for female pandas within an estimated 6 months of

their first estrus. For Alternative 2, for short-term exhibition, only

the import of pre-breeding male pandas would be considered.

Length of Loans

The Service believes that the length of giant panda loans should be

determined by the purpose(s) of the loan and the length of time

necessary to accomplish the goals of the import. The Service feels that

internationally coordinated giant panda conservation efforts could

incorporate various types of loan arrangements requiring varying

lengths of time.

Conservation Benefits of Specific Projects

The Service continues to emphasize the need to relate giant panda

imports to the enhancement of the species in the wild, especially

through funding of in situ projects. It is expected that most imports

would be for multiple purposes and funds would be generated.

The Service proposes that the allocation of net profits derived by

the applicant during a loan period that can be attributed to the loan

should be based on ownership of the panda, and should be used for

specific areas of conservation. If the panda is owned by China, at

least 80 percent of net profits must be used to fund in-situ

conservation projects in China's National Plan. Remaining funds would

be used for panda conservation, including additional in-situ

conservation projects, education, and/or captive-breeding efforts in

China. If the panda is owned by an entity other than China, at least 50

percent of the funds must be used to fund in-situ conservation projects

in China's National Plan. Remaining funds would be used for panda

conservation, including additional in-situ conservation projects,

education, and/or captive-breeding efforts inside China, and/or

captive-breeding efforts outside of China. Specific conservation

projects [[Page 16492]] and/or activities to be funded must be high-

priority projects included in China's National Plan or otherwise

specifically and thoroughly justified. The applicant would be required

to provide a complete monitoring plan to track disbursement of funds

and progress of projects. Instead of outlining exact requirements, the

Service proposes that monitoring plans contain components that would

clearly show that the projects to be funded will be completed. This

should include identification of specific projects with timeframes

given for tasks to be completed, and a plan outlining how progress

would be documented and how some site inspection would occur. China has

recently agreed to these components when working with several groups in

the United States. The Service would monitor the progress by requiring

the permittee to submit at least an annual report of funds transferred

and status of projects funded and implemented.

The Service also proposes that a summary of projects to be funded

would be published in the Federal Register as part of the public review

process when an application is received for a permit to import a giant

panda.

Scientific Research

The Service proposes that import applications for scientific

research outline how the research would contribute to the conservation

of the panda in the wild and in captivity. The proposed policy requires

that the applicant provide a research proposal that demonstrates that

the research is properly designed and can be accomplished with the

available expertise and resources. The Service will not categorize or

identify acceptable kinds of research but will retain the option of

judging the validity and/or current need of the proposal based on

priorities given in a coordinated international panda conservation

effort and in China's National Plan.

If the panda would also be on exhibition, the applicant must have a

monitoring plan to ensure that the display does not interfere with the

research or bias the data.

To the extent possible, the Service would expedite permit

applications for biological samples under certain conditions. The

researcher needs to keep in mind that under CITES export permits are

only valid for 6 months and import permits for 1 year. Authorization

under the Act may be granted for 4 years, but then would need to be

published in the Federal Register for public comment before renewal.

Captive Breeding

The proposed policy would require permittees who import pandas for

captive-breeding purposes to participate actively in a coordinated

international panda conservation effort. Breeding loans need to benefit

panda conservation by supplementing the breeding program in China to

achieve a self-sustaining captive population. Since many of the pandas

to be imported into the United States for breeding would have a history

of not reproducing, it is anticipated that there will be a research

component to the captive-breeding activities.

If the panda would also be on public display, the applicant must

have a monitoring plan to ensure that the display does not interfere

with the breeding program.

Exhibition

To date, almost all of the loans of giant pandas to the United

States have been solely for short-term exhibition purposes and the

generation of funds for conservation and captive-breeding activities in

China. Funds from the loan of one captive panda from the United Kingdom

were used to improve facilities for that animal while at Chapultepec

Park Zoo in Mexico City.

The Service anticipates import applications that include public

display would contain a component to educate the public in the United

States about the ecological roles and conservation needs of the giant

panda, but this in and of itself would not be considered to meet the

requirement under the Act of enhancing the survival of the giant panda

in the wild. If the applicant proposes to develop panda conservation

education programs that would be transferred to China, the Service

would consider this component as possibly meeting part of the

enhancement requirement. The Service emphasizes support for education

in China because there appears to be a need for educational programs in

areas near giant panda habitat and reserves to enhance panda

conservation.

The Service proposes two alternatives on exhibition and invites

public comment.

Alternative 1--Exhibition Solely as an Ancillary Component. Under

this alternative, which would be consistent with the AZA moratorium on

short-term panda loans, import of pandas solely for exhibition loans

would not be allowed. Educational display would only be allowed as an

ancillary component of a captive-breeding and/or scientific research

program, when the display would not interfere with the captive-breeding

or research activities. Even temporary loans of pandas to another

institution during the non-breeding season would not be allowed, as

this could be disruptive to behavioral interactions, endocrine

monitoring, and research designed to maximize breeding success.

With advances in coordinated international conservation efforts for

the giant panda, the Service proposes that institutions in the United

States focus their energies on activities with captive pandas that best

ensure their recovery. The Service recognizes that the use of any of

these animals for short-term exhibition could detract from the overall

captive conservation efforts by stimulating institutions to use

resources for short-term exhibition, rather than committing resources

to needed captive breeding or research. Furthermore, the use of

breeding age pandas for short-term exhibition loans could increase the

stress and reduce acclimation of pandas to breeding surroundings while

minimizing the opportunities for important research and captive-

breeding activities. Thus, in this alternative the Service proposes to

discontinue the issuance of permits for the import of pandas for solely

exhibition purposes (even though such exhibits might raise substantial

funds to go back to China); every panda loan would be required to have

intrinsic conservation benefits in its own right, in addition to

financial contributions to China.

Alternative 2--Short-term Exhibition. In this alternative, the

Service would issue permits for the import of giant pandas not only for

activities as described in alternative 1, but also solely for short-

term exhibitions under specific conditions designed to raise funds to

be returned to China. Exhibition loans could provide significant

funding in support of conservation projects for pandas in the wild, but

the Service is still considering whether such loans would in any way

have a detrimental affect on pandas in the wild, or would detract from

captive-breeding or research efforts.

Greater revenues for panda conservation might be likely from

exhibition loans because of higher visitation rates for shorter periods

of time, and because viewing opportunities might occur at facilities

that might otherwise not be able to qualify for scientific research or

captive-breeding purposes. Some concerns expressed in the past about

exhibition loans, such as the lack of a studbook and the lack of

project priorities, have been addressed, and other concerns about

accountability and the lack of a master breeding plan are being

addressed. Nevertheless, there [[Page 16493]] remain concerns that

short-term loans could in some way affect breeding, stimulate take of

additional pandas from the wild, and/or detract from efforts to support

overall captive-breeding efforts. Such loans emphasize the purely

financial benefits that may be gained from exhibition, rather than any

intrinsic benefit from the loan itself.

While there is no available evidence that the import of pandas of

pre-breeding ages, as allowed by the previous policy, had subsequently

had a detrimental effect on their breeding, AZA has suggested that the

loan of only male pandas would further minimize the effects of loans on

breeding. The Service agrees with the AZA suggestion and proposes that

if the final policy allows any short-term exhibition loans, they would

be limited to young, pre-reproductive age male pandas.

With regard to the possible removal of pandas from the wild,

projections have changed in that: (1) China in recent years has taken a

firm position on capture of pandas from the wild, (2) the Service's

proposed policy continues not to allow the import of any pandas that

were removed from the wild after 1986, except in unusual yet

justifiable circumstances, and (3) the studbook allows for a check on

parentage of any captive-bred pandas.

Finally, with regard to possible disruption of efforts to maximize

the breeding potential of the captive population, the Service notes:

(1) That the Chinese have been developing a captive-breeding plan, (2)

the Chinese are supportive of AZA's efforts to augment captive-breeding

efforts through research and emphasis on non-reproductive pandas, and

(3) the zoo community has shown increasing interest in supporting long-

term captive-breeding efforts, although the expense of constructing

suitable facilities might exclude some zoos from participating in such

long-term loans.

If after reviewing the comments and information received from this

notice, the Service concludes that short-term exhibition loans would

not be allowed, the Service would likely review this aspect of the

panda policy again after accumulating or four or five years' experience

and data under the new policy.

Primarily Commercial Purposes

Giant panda loans must be for purposes that are not primarily

commercial. This proposed policy does not reflect a significant change

from the previous policy since the requirements of CITES have not

changed, but there are a few additions. One of the proposed changes is

a description of reasonable expenses that could be deducted to

calculate net profit, and items that would not be considered reasonable

expenses. Another is that the applicant would need to submit a

certified statement from a reputable, independent accounting firm that

the internal accounting system meets the requirements of Service policy

for tracking funds.

Suitability of Facilities

CITES and the regulations under the Act require that the evaluation

of an application for an import permit includes consideration of

whether the applicant is suitably equipped to house and care for the

animals to be imported. The proposed policy continues to require the

applicant to demonstrate it has acquired available information on giant

panda care and facilities, and training for involved keepers, as well

as approval by the Chinese of the quality of the facilities. Although

these requirements would enable an evaluation of the applicant's

initial abilities to house and care for giant pandas, the Service now

feels that additional assurances are needed regarding the long-term

care and health of the animals. Therefore, under this proposed policy

applicants would be required to develop a protocol for monitoring the

continued health and behavior of giant pandas throughout the loan

period, or to describe an existing protocol that will be used for this

purpose.

Transfer of Pandas to Other Entities within the United States

Before a giant panda is transferred between facilities within the

United States, the recipient must obtain an interstate commerce permit

under the Act. The Service would, to the extent possible, facilitate

the transfer of animals when it is part of a coordinated breeding

program. The transfer of animals must also have the prior approval of

China or the entity that owns the panda. The number of times an

individual panda is transferred within the United States would be

closely monitored to protect the overall health of the animal.

Response to the CITES Secretariat's Views on Giant Panda Loans

The text of the 1991 policy is not significantly changed in the

proposed revised policy. The requirement of permits under the Act is

clarified as the pre-Act exemption (Section 9(b) of the Act) does not

apply to animals to be transferred under a lease-hold agreement.

Public Comments Solicited

The Service requests comments on this proposed policy. The final

decision on this proposal will take into consideration the comments and

any additional information received, and such consideration might lead

to a final policy that differs from this proposal.

Required Determination

This document was not subject to Office of Management and Budget

review under Executive Order 12866. The information collection

requirements identified in this policy as part of the permit

application have been approved by the Office of Management and Budget

under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and assigned

clearance number 1018-0022.

The Service has determined that this proposed policy is

categorically excluded under Departmental procedures from complying

with the National Environmental Policy Act (NEPA) (516 Departmental

Manual, Ch. 2, Appx. 1, paragraph 1.10). An Environmental Action

Memorandum is on file at the Service's Office of Management Authority

in Arlington, Virginia.

Proposed Revised Policy on Giant Panda Loans

Before any import permit will be issued, the application must be

reviewed in terms of the applicable requirements of CITES and the Act

by the Service's Offices of Management and Scientific Authority.

Issuance of an import permit under CITES requires prior findings that:

(1) The proposed import would not be for purposes detrimental to the

survival of the species; (2) the import would not be for primarily

commercial purposes; and (3) the permit applicant is suitably equipped

to house and care for the animals. Issuance of a permit under the Act

requires prior determinations that, among other things: (1) The import

would be for scientific purposes or to enhance the propagation or

survival of the species, in a manner consistent with the purposes and

policies of the Act; and (2) issuance of the import permit would not be

likely to jeopardize the continued existence of the species. These

requirements are further implemented by application requirements and

issuance criteria found in 50 CFR 13.12, 17.22, 23.14, and 23.15. In

addition, Section 9(d) of the Lacey Act, with regulations at 50 CFR 14,

Subpart J, requires that shipments of live wild mammals being shipped

to the United States are done under humane and healthful conditions

[[Page 16494]] such that the animals arrive alive, healthy, and

uninjured. The policy requires the applicant to demonstrate that the

animals will be shipped so as to satisfy this requirement.

Purposes

The primary goal of the policy is to ensure that all imports of

giant pandas contribute toward the survival, and ultimately the

increase to a self-sustaining level, of panda populations in the wild.

All imports must be part of a coordinated international panda

conservation effort, a term used in this policy to mean an organized

plan through which all giant panda imports support high priority

projects in China's National Plan and are coordinated with China's

captive-breeding plan and AZA's SSP or other applicable multi-national

breeding plans. The Service anticipates that most import permit

applications will be for multiple purposes. Applicants must identify

the primary purpose for the proposed import and all other intended

purposes. No activities for additional purposes may be undertaken

during the course of the loan without approval from the Service.

The ultimate objective of managing captive pandas should be for

breeding and research purposes, and any training or use of pandas in

animal acts would be considered as detracting from this objective.

Therefore, use of pandas in animal acts or shows during the loan period

would be prohibited by condition of the permit.

Wild-Taken Pandas

The following guidelines will be used to evaluate import

applications involving pandas removed from the wild. These time

constraints are based on information available to the Service

suggesting that the removal of pandas from the wild has increasingly

come under control by the Chinese, starting prior to the WWF Plan of

August 1989.

In all cases, the Service will continue its policy of approving

import permit applications only when it is sure that the loan did not,

or will not, contribute to the removal of pandas from the wild.

1. Pandas removed from the wild prior to December 31, 1986, will be

considered for an import permit.

2. The importation of pandas removed from the wild after December

31, 1986, will not be considered, unless information describing the

circumstances of their removal clearly indicates that the Rescue

Procedures were followed, that the animal(s) was malnourished, ill, or

injured to a degree that justified its removal, and that circumstances

of the animal's recovery, of habitat conditions, of population density,

or other reasons provided clearly precluded reintroduction of the

animal(s).

Age and Other Parameters of Animals Available for Loans

1. Pandas over 20 years of age will not be considered for an import

permit because they are probably beyond breeding age, and the risks

from the stresses of travel are not biologically acceptable.

2. For alternative 1 in the ``Exhibition'' Section, pre-breeding

age pandas will not be considered for an import loan. This would

include females under 4 years of age, and males under 5 years. Even

though it is expected that captive-breeding loans will concentrate on

the use of pandas that have not been successfully bred in China (or

elsewhere), there may be situations in which females within 6 months of

their first estrus would be considered to allow a pre-breeding period

of acclimation of a pair.

3. In alternative 2, only pre-breeding age male pandas from the age

of 2 to 5 will be allowed for short-term exhibition loans.

Only male pandas that are independent of maternal care but

are not yet of breeding age or approaching breeding age will be allowed

to be imported. Specifically, this include males at least 2 years of

age at the beginning of a loan period and under 5 years at the end of a

loan period.

No pre-reproductive female pandas or breeding age giant

pandas of either sex will be considered for short-term loans, even

during the non-breeding season.

Length of Loans

The Service will evaluate the length of time requested for the

proposed loan to ensure it is appropriate to the proposed activity. For

example, if the primary purpose of the import would be for captive

breeding and/or research, the length of the loan should be of

sufficient duration to accomplish the stated goals. Generally it is

anticipated that such activities may require 3 to 5 years, or perhaps a

longer time for the maximum benefit to captive-breeding activities in

the United States.

Conservation Benefits of Specific Projects

All of the net profits resulting from the import are to be used for

conservation of the giant panda and its habitat. Emphasis is on in-situ

conservation projects as listed in China's National Plan.

1. Whenever funding is associated with the import of giant pandas,

the following must be satisfied:

(a) Net profits are to be allocated as follows:

If the animals are owned by China, at least 80 percent of

the funds are to be used for in-situ conservation projects for the

giant panda and its habitat in China as listed in China's National

Plan. The remaining funds must be used to support conservation,

including additional in-situ projects, education and/or breeding

efforts for the giant panda in China. In the event that profits

generated exceed the ability of the Chinese to apply the monies to

priority projects or captive-breeding in China at any one point in

time, then funds may be used to support breeding efforts for the giant

panda outside China with approval from the Service.

If the animals are owned by an entity other than China, at

least 50 percent of the funds are to be used for in-situ conservation

projects for the giant panda and its habitat in China as listed in

China's National Plan. The remaining funds must be used for panda

conservation, including additional in-situ conservation projects,

education, or captive-breeding efforts in China, and/or captive-

breeding efforts outside of China as part of a coordinated

international panda conservation effort.

(b) Conservation projects to be funded must meet the following

conditions:

They must be included in a coordinated international panda

conservation effort, or compelling reasons must be given for funding

other projects. Preferably, any conservation or breeding plan cited as

including projects to be funded should be formally approved by China's

Project Office of MOF or the appropriate entity in another country, but

plans or programs that have not been officially approved will be

considered.

They must be considered to be of high priority in the most

recent coordinated international panda conservation effort.

They must be described as specifically as possible, with

funding allocations to specific tasks given in foreign currency (e.g.,

yuan) and in U.S. dollars, and projected timeframes given for use of

the funds to initiate and complete specific projects or activities.

(c) The applicant must provide a plan to monitor the disbursement

of funds for selected conservation projects or activities. The plan

needs to be sufficiently complete so that the Service is satisfied of

its effectiveness and that the projects to be funded will be completed.

Such a monitoring plan [[Page 16495]] should include provisions

equivalent to the following:

Before funds are transferred to the appropriate office in

China or the lending entity, the permittee and the appropriate foreign

entity should agree on a detailed budget, work plan, and timetable for

project completion. Specific, measurable objectives and a schedule for

progress reporting should be identified for each project.

Payments should be made in installments. Each payment

needs to be linked to actions taken toward completion of the

project(s).

Subsequent payments should be contingent on approval of

progress reports by the permittee.

An independent audit should be conducted annually to

verify disbursement of funds.

The permittee, its authorized representative, and the

Service must have permission from the implementing agency to examine

records and to make site visits to funded projects at least annually.

2. Annual reports to the Service will be required, which should

give an accounting and report of funds transferred and portions of the

project completed (see section under ``Primarily Commercial Purposes''

for further reporting requirements). Copies of reports received by the

applicant from the recipient of funding should be included, with

English translations if reports are not in English.

3. As part of the notice of receipt of a permit application

published in the Federal Register for public comment, the Service will

describe the specific projects the applicant is proposing to fund.

Scientific Research

There is a great need for scientific research on the giant panda,

both in the wild and in captivity. The research must contribute to the

conservation of the panda and typically, when part of an import loan,

must provide a source of funds for panda conservation in the wild, as

described below.

(1) The applicant must provide information to show that the

research is bona fide, meaning research that is properly designed and

can be accomplished with the expertise and resources available:

Objectives and goals must be clearly defined. Hypotheses

and experimental designs, when applicable, intended to test them must

be described.

Investigative procedures and research protocols must be

described in detail or referenced as published in a recognized journal.

Estimated timeframes need to be given.

Research must not be duplicative unless it is a

collaborative effort, or if repetition can be justified.

The results of the research would be expected to identify,

evaluate, or resolve panda conservation problems or contribute to the

basic knowledge of panda biology and ecology deemed important to the

survival of the panda.

The results would likely be published in a scientific

journal.

(2) For research with live pandas, the applicant must have the

expertise and resources to accomplish the stated objectives.

Enhancement may be satisfied solely through scientific

research if it can be convincingly shown that results will be used to

study and/or manage giant pandas in a way that would contribute to

their conservation in the wild. It is expected that requests to import

live pandas for scientific research will also include other, additional

enhancement activities, such as the generation of funds for panda

conservation in the wild.

Research must be recognized as a high priority activity by

a coordinated international panda conservation effort.

Proposals must describe how the study may contribute to

the conservation of the giant panda in the wild. If in situ, the

research must be a collaborative effort with Chinese scientists. If the

research is ex situ, the applicant must describe why it is best

conducted outside China, and how any information gained or

methodologies developed will be transferred for use in China, including

estimated timeframes of transfers, training, or collaborative efforts.

Any physically invasive procedures to be used or any

behavioral modifications anticipated as part of research activities

must be described, together with a detailed plan describing how the

applicant would respond to and minimize complications that might arise.

Any subsequent procedural changes and/or additions must be pre-approved

by the Service.

The permittee must provide an annual report summarizing

research activities associated with the purposes of the permit,

including a brief description of each project, a copy of protocols

developed and methodologies used, a summary of data collected with a

discussion of results and copies of published papers resulting from the

research. The report should also indicate any transfer of research

protocols or methodologies to the Chinese and their use in China, in

the wild or in captivity.

(3) If live pandas are going to be on exhibition at any time during

the term of the research loan, the following must be satisfied:

The applicant must provide protocols outlining how the

research and exhibition will be monitored to ensure that having the

pandas on exhibit is not interfering with the research or biasing data.

The applicant must also provide the name, position, and qualifications

of the individual who will be responsible for making the decision to

take the pandas off of exhibit if the display is interfering with the

research.

The applicant must have adequate facilities to conduct the

research and house the pandas separate and apart from the public

exhibition areas in case it is found that exhibition interferes with

the research.

The funds generated by the exhibition must be used for

conservation projects.

(4) For research involving biological samples, the applicant must

have the expertise and resources to accomplish the stated objectives.

Salvaged specimens (i.e., those obtained from animals that

have died of natural causes; naturally shed hair) must be obtained

without harassing any live animals, and collection must be authorized

by the MOF, MOC, or the Project Office.

The collection of samples from live captive giant pandas

must be done by qualified personnel, preferably veterinarians, with

appropriate training and experience in capture, restraint, and sample

collection, so as not to result in death or injury of animals. Sampling

must also be done in a manner that would not be disruptive to breeding

activities. The collection and subsequent export of such samples to the

United States must be done in cooperation with the authority

responsible for managing the animals (e.g., MOC).

Any collection of biological samples from live giant

pandas in the wild must be authorized by the MOF. Generally, only

samples that were collected incidental to the capture of animals for

other purposes by MOF biologists will be considered for import.

However, the import of samples taken from animals captured for the sole

purpose of collecting samples for import will be considered if the

samples are to be used in research that is expected to have a

substantial benefit to giant panda conservation. In this case, import

permits must be obtained prior to the collection of the samples.

Samples from live wild giant pandas may only be collected by qualified

personnel, [[Page 16496]] preferably veterinarians, who have

appropriate training and experience in capture, restraint, and sampling

methodologies appropriate to giant pandas, so that sampling is unlikely

to expose live giant pandas to risk of death or injury, or to disrupt

mating or parental care of young.

The results of research conducted with imported specimens

must be reported to the Service at least annually; a report should

include copies of any scientific publications produced. The report must

contain information on the number and type (e.g., blood, hair, skin

biopsy) of samples imported, specific source/location from which each

sample was collected (if more than one was authorized), and

observations on the effects of sampling on the animals. The report must

also state whether the research resulted in the development and

transfer of research protocols or other methodologies to the Chinese

and how these products have been/will be used in China for the

conservation of giant pandas.

The Service will consider the issuance of general permits

for the import and export of biological samples when the applicant

provides sufficient information to show the conditions outlined in this

policy are met and as long as complete annual reports are submitted in

a timely manner.

The import or export of urine, feces, and synthetic DNA,

when collected in a manner that does not involve the capture,

detention, or killing of protected wildlife, does not require a permit

from the Service. The CITES Management Authority of any exporting or

importing country should be contacted to meet any requirements it may

have.

Captive Breeding

Breeding loans need to benefit panda conservation by supplementing

the breeding program in China to achieve a self-sustaining captive

population, and typically also to provide a source of funds for panda

conservation in the wild. There is a need to maximize the use of pandas

currently held in captivity that are not essential to China's breeding

program. It is anticipated many of the animals that may be requested to

be imported into the United States will be ones that have not

successfully bred in China, and the policy emphasizes the need to have

a research component to identify how these individuals may best

contribute to the breeding component in China.

(1) The applicant must provide sufficient information to

demonstrate the importance and necessity of importing pandas for

captive-breeding:

Enhancement may be satisfied through captive-breeding if

it can be convincingly shown that results will be used to study and/or

manage giant pandas in a way that has promise of contributing to panda

conservation. It will be expected to include a research component aimed

at increasing reproductive success if the animals involved have a

history of being non-breeding animals. It is expected that requests to

import live giant pandas for captive breeding will also include other,

additional enhancement activities, such as the generation of funds for

panda conservation in the wild.

If research is a component, the applicant must provide

information to show that the research satisfies the requirements of

this policy concerning scientific research. The research must be

recognized as a high priority activity by a coordinated international

panda conservation effort.

The proposed captive-breeding must be part of a

coordinated international panda conservation effort designed to

complement conservation efforts for the wild panda population, with the

applicant actively participating in the plan.

The breeding loan must demonstrate how it will contribute

to the preservation of the panda's gene pool (i.e., retention of

maximum genetic diversity). The choice of individuals to be imported

should be based on scientific management of the captive populations

with genetic and demographic criteria used to determine mating pairs.

Proposals must describe how the study would contribute to

the conservation of the giant panda in the wild or in captivity, and

how any information gained or methodologies developed will be

transferred for use in China, including estimated timeframes of

transfers, training, or collaborative efforts.

(2) The applicant must provide information to show that he/she has

the expertise and resources to accomplish the stated objectives:

The applicant must submit a detailed breeding protocol

that outlines when male and females will be paired for breeding, how

females and males will be visually and physically separated and/or

managed together, with layout of facilities and protocols for rearing

potential young.

Imports of frozen sperm for use in captive breeding must

be done in accordance with a coordinated international panda

conservation effort.

Artificial insemination or any other physically invasive

procedures must be described, and any subsequent procedural changes

and/or additions must be pre-approved by the Service.

The permittee must provide at least an annual report

summarizing breeding activities, and research activities, if pertinent,

including a copy of protocols developed and methodologies used, a

summary of data collected with a discussion of results, and copies of

any published papers. The report should also indicate any transfer of

protocols or methodologies to the Chinese and their use in China in the

wild or in captivity.

(3) If pandas are going to be on exhibition at any time during the

captive-breeding loan:

The applicant must provide protocols outlining how the

captive breeding, its research component, when applicable, and

exhibition will be monitored to ensure that having the pandas on

exhibit does not interfere with captive breeding and/or its research

component. The applicant must also provide the name, position, and

qualifications of the individual who will be responsible for making the

decision to take the pandas off of exhibit if the display is

interfering with the captive-breeding or its research.

The applicant must have adequate facilities to conduct the

captive breeding and its research component, when applicable, and to

house the pandas separate and apart from public exhibition areas, in

case it is found that the exhibition interferes with the captive

breeding or its research.

The funds generated by the exhibition must be used for

conservation projects as previously described.

The applicant must consent to the movement, substitution,

or transfer of any panda to another approved institution if, in the

judgment and at the request of China, such action is needed to maximize

successful captive-breeding opportunities.

Exhibition

1. The import of giant pandas for the purpose of educational

exhibition alone would not be sufficient to satisfy enhancement

requirements. The Service encourages institutions importing giant

pandas to educate the U.S. public about the ecological role and

conservation needs of the giant panda, but will not consider this in

reviewing applications. However, if an applicant is developing a panda

conservation education program that would be transferable to China, or

is developing a program specifically for use in China, particularly in

localities near giant panda habitat and reserves, the Service will

consider this project as part of a coordinated international

conservation [[Page 16497]] effort in making its enhancement finding.

Educational programs in China should be aimed at local

people, school children, panda researchers (field and captive), reserve

biologists, and managers.

Educational activities or projects must be described in

detail, including samples of the kinds of educational materials to be

used, and a description of evaluation methods.

The messages conveyed through the educational program

should stress historical and contemporary impacts on the status of the

giant panda in the wild, and conservation efforts that might be

required to halt the species' decline and degradation of its habitat.

2. Alternative 1--Exhibition Solely as an Ancillary Component.

Educational displays would only be allowed as an ancillary component of

a captive-breeding and/or research program. Specifically, the import of

pandas solely for exhibition loans of any length would not be allowed.

3. Alternative 2--Short-term Exhibition. For purposes of this

policy, the import of pandas for short-term exhibition loans would be

allowed under certain conditions:

A panda can only be on loan for short-term exhibition for

a maximum of 1 year.

During a single 1-year loan period in the United States,

up to 3 different institutions may receive and display the pandas for

periods of at least 3 months, unless health considerations dictate

otherwise.

Each institution following the first in the sequence of

exhibitions must have submitted complete application materials as well

as written authorization from the exporting country's Management

Authority and, if from China, from the Protecting Giant Panda Project

Office.

Primarily Commercial Purposes

With regard to the determination of whether a loan of giant pandas

is not to be used for primarily commercial purposes, the Service will

utilize the following policy.

1. Resolution Conf. 5.10 of CITES provides that:

The nature of the transfer of specimens between the owner

in the country of export and the recipient in the country of import may

be commercial. It is the intended use of the specimens in the country

of import that must not be for primarily commercial purposes, and it is

the responsibility of the recipient country's Management Authority to

make this determination.

There may be some commercial aspects of that use, but the

non-commercial uses must predominate in order to be deemed primarily

non-commercial.

2. Public, non-profit institutions, organizations and agencies will

receive consideration for panda loans. The Service's general

regulations at 50 CFR 10.12 define ``public'' institutions as those

that ``* * * are open to the general public and are either established,

maintained, and operated as a government service, or are privately

endowed and organized but not operated for profit.'' Although

commercial (profit-making) organizations may also choose to apply for

such loans, the profit-making characteristics of such organizations

will make it more difficult for the Service to find that the

specimen(s) proposed for import is not to be used primarily for

commercial purposes. As in all cases, the burden rests with the

applicant to show that this CITES requirement is satisfied. Of

necessity, the burden of proof will be higher for commercial

enterprises than for non-profit entities.

3. It is the Service's policy that all funds or other valuable

considerations raised directly or indirectly by a public institution or

other organization that are obtained by the organization(s) or

institution(s) involved (or any for-profit parent organization of the

applicant, but not including unrelated private entities, such as

hotels, not associated with the applicant) as a result of the panda

loan are, to the extent that such funds or other valuable

considerations exceed the reasonable expenses that are properly

attributable to the exhibitions, to be used entirely for the non-

commercial purposes outlined in the prior section, ``Conservation

Benefits of Specific Projects''.

Reasonable expenses include the following: Facility

construction if amortized for the entire proposed length of the loan

(but not for short-term exhibition loans), facility maintenance, direct

labor and operating supplies needed for the care of the pandas

(includes keeper and veterinary support), administrative support

directly associated with the maintenance of the animals, security

needed for the pandas, development of educational materials for use in

China, development of educational signs for exhibits in the United

States, and supplies or materials necessary to conduct research or

captive-breeding activities that have been identified in the

application.

It is the intent of the policy to maximize funds going

back to conservation projects in China and, as such, costs associated

with ordinary operations, such as advertising, general personnel costs,

general legal expenses (not directly related to the panda loan), will

not be considered reasonable expenses.

Collection of revenues generated by the panda loan by the

importing institution (e.g., gate receipts, food and drink sales,

tourist souvenirs), either for its own use or for the use of other

organizations, for purposes other than those previously described,

would be judged to be a primarily commercial activity, as would the use

of revenues for profit-making purposes.

4. Each applicant for a panda loan, in satisfying the applicable

requirements of 50 CFR subchapter B, should submit a detailed plan for

the allocation of all funds raised in excess of expenses, as a result

of the panda loan. The application must also include a certification

statement from a reputable, independent accounting firm stating that

the applicant's internal accounting system is sufficient to account for

and track funds generated directly or indirectly by the panda loan, and

for the subsequent disbursement of funds.

5. Each recipient of a permit to obtain a panda loan shall be

required, in accordance with 50 CFR 13.45, to submit an annual report

to the Service as a condition of the permit. The annual report must

contain a full accounting of all funds raised directly or indirectly by

the institution or organization, the portion of those funds that is in

excess of expenses, and what portion of these funds are to be disbursed

for giant panda conservation projects or activities as outlined in the

prior section, ``Conservation Benefits of Specific Projects''.

The report must include names of people involved, location

of the activities, a brief description of each project, and the amount

and use of money being provided the project. The report must also

identify specific costs that were deducted as reasonable expenses.

Conservation projects other than those projects presented

in the application must receive approval from the Service's Office of

Management Authority prior to allocating funds.

These policy considerations will be used by the Service only for

determining whether panda imports are primarily commercial in nature.

They are not intended to apply to Appendix I import permit applications

for other species. All such applications must continue to demonstrate

that the proposed import meets the general requirements of resolution

Conf. 5.10 to [[Page 16498]] satisfy the ``not to be used for primarily

commercial purposes'' test.

Suitability of Facilities and Care

Under CITES, the Service must be ``satisfied that the proposed

recipient of a living specimen (to be imported) is suitably equipped to

house and care for it''. Under the regulations implementing the Act,

the Service must determine that the applicant has ``* * *the expertise,

facilities, or other resources* * *to successfully accomplish the

objectives* * *'' To aid in satisfying these requirements, applicants

must provide the following information in addition to the information

required in 50 CFR 17.22:

Copies of protocols for monitoring general health and

behavior. In lieu of new protocols, an applicant may submit copies of

protocols recommended by a coordinated international panda conservation

effort.

Diagrams and photographs clearly depicting all enclosures

where the panda may be housed, including any off-exhibit areas and

panda holding area(s) in relation to other facilities, including roads

adjacent to such areas.

Information to demonstrate the applicant has consulted

with at least two other facilities that have successfully held pandas

in recent years, that the applicant has facility features that address

the National Zoological Park's recommended measures for giant panda

care and facilities, and that zoo staff, especially keepers and

veterinarians, have had proper training and experience to care for

pandas.

Approval of facilities by the Chinese or appropriate

authority in the lending country, if such a stipulation has been made

in a contractual agreement. If approval has not been given prior to

applying for the permit, there must be a statement from the applicant

certifying that the agreement stipulation will be satisfied before

animals are imported.

Transfer of Pandas to Other Entities Within the United States

Applicants proposing to import giant pandas and subsequently

transfer them to another entity within the United States should

indicate this in the initial import application. The proposed recipient

of the panda will need to apply for and receive an interstate commerce

permit under the Act prior to the transfer since the pandas are being

held under a loan (e.g., lease-hold agreement) from China or other

lending entity. The proposed recipient of the panda needs to provide

all the information required by the Act, its regulations, and this

policy. The Service will facilitate, to the extent possible, the

transfer of animals within the United States when part of a coordinated

breeding program. If the receiving institution has a panda permit on

file with the Service, it can reference the permit number and

information in this file, and provide any new information for the

Service to review in consideration of an interstate commerce permit.

These applications will be published in the Federal Register, and so

the applicant will need to allow at least 90 days for processing. Such

transfers must also have the prior approval of China or the entity that

owns the animals. The number of times an individual panda is

transferred within the United States will be closely monitored to

protect the overall health and well-being of the animal.

Response to the CITES Secretariat's Views on Giant Panda Loans

The Service notes with approval the recommendation of the

Secretariat that no exemptions be granted to the requirements of

Article III of the Convention for the shipment of giant pandas, even

for animals that might otherwise qualify for an exemption as ``pre-

Convention'' animals under Article VII. However, the Service does not

have authority under U.S. law to refuse to accept a valid pre-

Convention certificate. If the Management Authority of the country of

origin or of the country of re-export does not issue a pre-Convention

certification, the Service will require a U.S. import permit and export

permit or re-export certificate, as appropriate, from the exporting or

re-exporting country in accordance with Article III of the Convention.

In addition, even if a valid pre-Convention certificate is issued by

the exporting country, an import permit would be required under the Act

for all panda loans (and an export permit, if the pandas are to leave

the United States), even for pandas acquired prior to January 23, 1984

(the date of the final Federal Register notice listing the giant panda

under the Act), as the pre-Act exemption (Section 9(b)(1) of the Act)

does not apply to animals that are subsequently held in the course of a

commercial activity (e.g., lease-hold agreement).

The Service will also continue its policy of approving applications

only if it is sure that the proposed loan did not, or will not,

contribute to removal of pandas from the wild, and that the non-

commercial purposes for the proposed loan predominate.

This notice was prepared under the authority of the Endangered

Species Act of 1973, as amended (16 U.S.C. 1531 et seq.).

Dated: February 21, 1995.

George T. Frampton, Jr.,

Assistant Secretary for Fish and Wildlife and Parks.

[FR Doc. 95-7851 Filed 3-29-95; 8:45 am]

BILLING CODE 4310-55-P