1. INTRODUCTION

　　In ist 1997 report, the Working Group on Biodiversity (BWG) presented a workplan for the five year period of the second phase of CCICED. We also reported on the shortage of funds felt by the working group and the need to identify additional funding to undertake some of the activities on the workplan. For the past three years the working group has been well financed from three main sources - the EU grant, support from CCICED support wel fanada, and grants from the WWF. Our EUg rant has now finished and although an application for extended funding was submi tted last September to the EU, BWG have had no official response from EU. The BW G has however heard that further support is unlikely due to new regulations conc erning the issuing of grants to non-government agencies. Support frim CCICED sup port office has also ended and there has been a reduction in the level of suppor t by WWF. While the BWG was successful in obtaining funds from DFID of the Briti sh Government for the holding of a special biodiversity workshop in Hainan, othe r funding during the current reporting year has been minimal and the prospects f or finding activities in 1999 look even worse.

　　2. MEMBERSHIP OF THE WORKING GROUP

　　Membership of the Working Group is considered to be satisfactory. No changes hav e been made except that Dan Viederman the WWF China Program Representative has l eft China. His position on the BWG will be filled by his successor at WWF when s uch an appointment is approved. Dr. Kikuchi from Japan has joined the working gr oup and his appointment is already approved by the CCICED Secretariat.

　　3. TERMS OF REFERENCE

　　Terms of Reference of the Working Group remain unchanged. These are:

　　1) Create a fertile forum for erchange of ideas and approaches whereby China has access to wider experience beyond her borders and where managers can network wi th scientists and technisians to solve issues of policy. strategy and action in the field of Biodiversity Conservation.

　　2) Provide a mechanism whereby priority needs identified by scientists and techn icians can be brought to the attention of relevant leaders and decision-makers t hrough a multisectoral forum.

　　3) Provide an independent view of China's biodiversity and advise the government on areas of concern or sectoral failure.

　　4) Provide advice and assistance as needed in China's participation in internati onal biodiversity conventions and programs to ensure that China gets maximal ben efit from these mechanisms, and also presents the most favorable international i mage of its considerable biodiversity achievements.

　　5) Initiate studies to demonstrate the contribution of biodiversity cnservation to regional economic deuelopment in selected ecosystems in China and identify bo th factors that threaten such systems and appropriate remedies to ensure the sus tainability of such benefits.

　　4.SUMMARY OF ACTVITIES OF BWG IN 1998

　　Following the order of activities presented in the BWG workplan, the following p rogress was made during the current reporting year.

　　4.1 Biodiversity Working Group Meetings

　　Only one official meeting of BWG was held durng the past year. This was combined with the sectoral meeting in Hainan in March. A second meeting will be held imm ediately after this council meeting in Beijing.

　　4.2 Targeted Sectoral Meetings

　　A sectoral workshop was held in Hainan entitled "Biodiversity Conservation in Ha inan".

　　The purposes of holdng a secnd BWG meeting in Hainan was as a case study on a ge ographical basis to revew the progress since the first meeting there in 1993, an d to pay more attention to mangroves and coral reefs. The meetng was heavily att ended by international, national and local participants and resulted in much liv ely presentation, debate and some field excursions. Full minutes of the meeting were prepared. The man conclusions of the meetng are presented here.

　　4.2.1 Principal Conclusions and Recommendations of the Workshop

　　We konw from biodiversity surveys done back in the 1950s that Hainan was a regio n very rich in bioliversity. However, protection has been neglected for many yea rs. 80 % of the coral reefs and 80-90 % of tropical rainforests have benn lost o ver a 30 year period. Te island is now seriously damaged and even the remaining biodiversity is being harvested at unsustainable rates. Not only has Hainan lost much of ist original biodiversity with many species such as hornbills such as h ornbills possibly extinct, but Hainan's fragile native and endemic flora and fau na facing new threats posed by the spread of introduced species. The excact curr ent situation is not known, since no recent detailed biodiversity surveys have b een done. Such surveys are urgently needed to identify priority sitesfor conserv ation and restoration.

　　It is recognized that there exists an enormous need for training or taxnonomists , reserve managers, trade control officers, marine patrols to undertake the majo r conservation work required. There is also great need for public education, but there is little sign of this now. Nature Reserves currently have almost no mate rials to help educate visitors about their biological interests, the threats fac ing them and their conservation needs. Awareness is needed to help local people to understand why they are being asked to refrain from certain activities, and t hisin turn will help government officials to justify implementing expensive prog rams needed to salvage and enhance the environment ofthe island.

　　In 1993, BWG recommended a total ban on logging of natural primary forests andma jor extension of the small area of protected areas. Both these measures have alr eady been approved and are now part of the plans oflocal government. BWG Also pr oposed that Hainan should establish a biodiversity region, something larger than a nature reserves, but zoned, with areas of total and partial protection linkin g areas of cultivation and forest plantation, to enhance the biodiversity values . The Hainan government has indeed decided to enlarge some of the reserves and t o join some of the reserves together. They have also closed production areas and closed forested slopes. This goes a long way towards meeting the goals of the o riginal propsal.

　　Could BWG now propose that, in fact, the whole of Hainan should be considered fo r ist biodiversity value, and that certain incompatible activities (such as hunt ing) should be totally banned.

　　The participants have been very impressed by policies and plans adopted by the H ainan government. But the short field trip revealed that there is a gap between policy and practice. We saw mangrove destruction, sale of protected species,burn ing, and a very low number of wildlife in the countryside, probably because of h unting and pesticides.

　　The main concern of the participants is in clocing the remaining implementation gap. For instance, the banning of logging must be followed by measures to make t his practical. The problem is finance. You cannot tell people not to do somethin g without providing them an acceptable alterative. This requires planning and fi nance.

　　It is stressed that mangroves should be given the same level of protection as in land forests, with a total ban on clearing of mangroves. Coral should alsobe tot ally protected, with all bombing, harvesting, etc. banned. This raises a law enf orcement problem. Hainan only has seven patrol boats,but its waters extend almos t all the way almost to the coast of Borneo,including several globally important archipelagos.

　　The job of environmental enhancement sounds very expensive: recruiting guards, b uying patrol boats, providing training, undertaking surveys and planning an expa nded system of protected areas, finding alternative livelihoods for thousands of pepole who are currently destroying the environment. Forestry andfisheries offi cials have already complained that they do not have the resources necessary to u ndertake all these tasks properly. Where is this money to come from? Internation alxperts will be sympathetic, will provide advice, but cannot provide much money . China is not that poor and can easily find the funds locally if she realizs ho w imporant the matter is and how well the return on such investment will be.

　　USD 50 billion is invested annually by foreign investors in China, much of this in Hainan and much of it in tourist development. But investment in infrastructur e is not enough. A small portion of these large funds need to be allocated to ma intaining a beautiful natural environment. The Hainan government could levy a ta x on all new develpoments, or insist that all new developments have an environme ntally beneficial activities. An environment tax could be levied on all tourists visiting the island, with such a tax being built into the price of the air tick et, for example. Local government must recognize the need and value of doing thi s and the need to raise new financing toundertake urgent environment restoration and protection measures.

　　There are sound economic reasons why it will pay Hainan to preserve its rich and valuable biodiversity. Biodiversity conervation pays and it pays well.

　　Rain forests protect the watersheds, regulate climate and safeguard streamflow, enhancing eco-touristic values and increasing forest plantation and agricultural yields downstream.

　　Mangroves trap soil to create new fertile agricultural lands, limit sea erosion and create rich spawing grounds around the coast. Replacing mangroves with fish ponds will temporarily replace coastal fisheries with artificial fisheries, whic h may then collapse because of the acid sulphate soil conditions.

　　Coral will protect the coastline from erosion, enhances tourist values of the is land and increases inshore fisherise. One area in Wenchang county of Hainan has already lost thousands of hectares to sea erosion following blasting of the cora l for lime kilns.

　　Tourism is the biggest winner of all. Hainan is a beautiful and interesting dest ination, and tourists will want a beautiful environment. A degrading environment will kill the goose that lays the golden eggs.

　　4.2.2 Specific Recommendations

　　a) Coastal Resources:

　　Discussion during the meeting highlighted the central role played by Hainan's co astal resources in the Province's current and future economic development. Conce rn was expressed at the need to allocate funds and institutional priority to the conservation of these natural systems if their benefits are to be retained and enhanced. The BWG therefore recommended that:

　　A detailed analysis be carried out of the full economic value of Hainan's coasta l ecosystems, including in particular mangroves, seagrass beds, estuaries, sand beaches and coral reefs.

　　This analysis be drawn upon to establish several economic development alternativ es, one in which these ecosystems are conserved and managed effectively, and one in which these ecosystems continue to be degraded and destroyed.

　　In the basis of these analyses, a series of economic incentive measures be ident ified that will foster investment in conservation of critical ecosystems and pre vent investment in activities or practices that destroy or degrade these resourc es.

　　b) Fisheries:

　　The importance of coastal ecosystems to Hainan's and China'S fisheries was emph asised. This raised questions concerning the sustainaility of China's current fi shing industry and growing concern at ist national and international impacts. Th e BWG therefore recommended that:

　　A detailed inventory be made of China's critical coastal and marine ecosystems,i n particular of those that play a central role in sustaining the fishery resourc e.

　　Threats and necessary conservationmeasures for these ecosystemsbe identified.

　　Current trends, status and projected future development of China's fishing capac ity be analysed with a view to assessing at what level this is sustainable.

　　Current fishing pressures upon China's archipelagos be examined, notably in Dong sha, Xisha and Nansha, with a view to establishing an internationally accepted c ode of practice for fishing in these areas.

　　Greatly strengthen the patently inadequate fisheries protection fleet.

　　These analyses be drawn upon to prepare a series of policy recommendations to th e CCICED, ad through the Council, to the State Council.

　　c) Mangroves:

　　Many of the best and richest stands of mangrove in Hainan are in Qin Lang Gang w hich is an older mangrove forest than Dongzai Gang. It is urged that the managem ent of the two areas be combined into a single RAMSAR site.

　　The introduction of exotic mangroves from Bangladesh is not necessary and should be prohibited. The reintroduction of native Hainan species from other counties i s acceptable.

　　The cutting for new fish ponds in mangrove areas should be halted and all remain ing mangroves afforded high levels of protection, which will involve significant increases in reserve management budgets.

　　d) Tourism:

　　Tourism may well be one of the major justifications for protecting and enhancing biodiversity in Hainan; but poorly planned or uncontrolled eco-tourism can be v ery destructive to the natural environment. It is recommended that the Hainan go vernment prepare strategic guidelines for the development of tourism in Hainan i ncluding guidelines for the appraisal of protected areas for eco-trourism develo pment, guidelines for protected area managers and guidelines for investors.

　　e) Exotic Species:

　　Hainan's unique flora is quite fragile and under serious threat from a number of invasive exotic plant species such as Lantana, Eupatorium etc. It is important to implement a programme for the control of such plants and to uselocal species, wherever possible in new reforestation projects and urban re-greening.

　　The provincial forestry bureau should develop large nurseries to propagate the n ative tree seedlings that will be needed fr this programme and labour now availa ble from the closure of timber units and closing of forests can be reallocated t o these tasks.

　　f) Research and surveys:

　　Hainan lacks expertiss in some biological areas and should recruit experts from Guangdong and accept assistance offered from Hong Kong in undertaking surveys, m aking plans ans training staff in biodiversity conservation.

　　(Note:Following these recommendations by the BWG, the Asian Development Bank is mow ready to expand the biodiversity conservation project currently focused only on Jianfengling to the whole of Hainan.)

　　4.3 Illustrated Guidelines for Biodiversity Conservation in Economic Developmmt

　　Compilation of the Illustrated Book -- Guidelines for the Conservation of Biodiv ersity The value of biodiversity, especially the indirect value from the ecologi cal services, has been increasingly attracting the attention of the public and g overnment. The heavy flooding last summer in China impressed upon people a numbe r of lessouns. Conservation of biodiversity is not only for the utilisation of i ts direct value, but also for making full use of its indirect value, in terms of sustainable development of society and economy. In order to ensure the public, especially the decision-makers, realise the significance of biodiversity conserv ation and push the movement forward, we invited some related scientists to compi le the illustrated book Guidelines for the Conservation of Biodiversity. Up to n ow, most of the draft including cartoons has been completed, some of which are s hown below. It is hoped that the book will be ready for publishing by the end of 1998.

　　Examples:

　　a) CATCHMENT MANAGEMENT

　　Appropriate catchment management is important for proper drainage, maintenance o f groundwater and flood control. Careless development upstream, resulting in cle aring of catchment areas, causes erosion and creates flooding and siltation prob lems downstream as well as redcing dry season water flows. Cleared and scaled ar eas such as roofs, roads and paving, deliver considerable runoff during periods of heavy rain.

　　Maintenance of undisturbed forest in water catchment is very important for maint aining the quality of the water and dry season water flows.

　　b) USE OF BUFFER AREAS

　　Residential areas should be separted from major highways, commercial areas, or f actories by buffer areas. Existing or planted vegetation (especially evergreens) and bulldozed earthen banks can effectively increase privacy and reduce noise r eaching the development.

　　4.4 Biodiversity Conservation Database

　　Entering of date and information of vertebrate taxa has continued. These now inc lude a total number of over 500 species of mammals, 1,200 species of birds, 390 of reptiles, 260 of amphibians and 3,720 species of fish. A review of the checkl ist for mammals has been started by Dr. Robert Hoffmann and Prof. Wang Sung; bir ds by Dr. John MacKinnon; Prof. Zhao Ermi for reptiles; and Prof. Fei Liang for amphibians. An ichthyologist to check the list of Chinese fishes is being sough t.

　　The interface for data entering has been re-programmed inorder to improve speed and accurcy. Distribution information at county level has been entered primarily based on the Mammal and Bird Collections of the Institute of Zoology, CAS, as w ell as on those faunistic works at both state and regional levels. In addition, data from major journals in the fields of Zoology, Taxonomy, Mammalogy, Biodiver sity, etc., as well as from results of those scientific surveys concerning speci es and distribution at regional level or reserves are also quoted and entered. A ll distribution information has been transferred into GIS points and can be show n on GIS maps with background of China or individual province. At the same time, a total number of about 1,000 photos of mammals, birds and reptiles have been s canned into the units database.

　　It is hoped that data entry and updating will be continued during the next worki ng year and that other institutes in China can be persuaded to share data with u s. Meanwhile, taxonomic review will be done in the first half of next year, and data of distribution and population status will begin next year.

　　4.5 Catchment Forest Benefits Aalysis, Hubei

　　A Final Report of the Xingshan Catchment Study has been prepared in English, ent itled Evaluation of Economical Value for Forest Resources in Xingshan County, "H ubei Province". The report is being edited by Dr. John MacKinnon for publication in an international journal.

　　The project 'Economical Value Evaluation on Forest Resources in Xingshan County, Hubei Province' was conducted by the BWG during 1996-1997. The research is focu sed on the water conservation function of forest. Comparison on water conservati ve capacities of different types of vegetation, soil and slope has been made bas ed on Rain Simulation Experiments system in Xingshan County was interpreted from Satellite remote sensed pictures and entered into a GIS model. A mathematical mo del was created to evaluate the effect of forest on electric generation during d ry and raining seasons. At the same time, in order to provide to provide a relat ively complete value evaluation of forest resource, environmental economics meth od was used to evaluate soil conservation and carbon fixation. In addition, the direct economic value of the forest, including forestry production, tourism and wildlife, was estimated through analysing questionnaire results and statistical materials. Results can be summarised as follows:

　　·The contribution to the globe benefit of the forest in Xingshan County is abou t Rmb 1.1 billion yuan, with the proportion of 52.3% of its total value.

　　·The indirect economic value, including catching water (electricity contributio n and water conservation) and soil conservation (loss of land, silt detained, or ganic materialand N, P, K fertility), is nearly Rmb 0.85 billion yuan, with 38.6 % of total value, compared with

　　·The direct economic value, including plantation, husbandry, forestry and touri sm, which is about Rmb 0.2 billion yuan, contributing only 9.1% of the total val ue.

　　The results obviously indicate that the total value of the forest is much higher than the direct economic value pursued by many people nwadays. After the Three Gorges Dam is completed, the land under 175 metres altitude within Xingshan Coun ty will be covered by water, so it would be even more important to conserve the forest resources, which will be highly beneficial to improve electricity generat ion, to reduce silt detained in dams and to provide a better environment over a large area.

　　In addition. the research directly showed us the funtction and value of forest r esources, which might help to determine forestry strategy, reduce logging, preve nt silt detaining in dams and reduce flooding and drought. The disaster of flood s in the Yangtze River and the Heilogjiang River in the summer of this year brou ght great attention from the public. Broadcasts and media carried heated discuss ions on the reasons for the flooding. Abnormal climate and forest logging were l isted at the top of all reasons and the function of forest became a hot topic. A ccording to the project, the contribution of upstream forest of Yangtze River is more then 42% of the total integrated capacity of adjusting water flow in the r iver. Obviously, quality of forest is very important to reduce inundation. How t o deal with the relation between forest conservation and local economic developm ent is a key to protect upstream forest in Yangtze River. One good solution is t o establish the Economic Supplement System for Forest Conservation. It is sugges ted that taxes should be collected in the sectors that derive the most benefits from forest and watercatchment protection and be used to support the development of the local economy, so that the local people will develop other business and thereby eliminate the need to rely on forests for their survival.

　　(Note: The BWG applaud the decision of the government to halt all logging in cri tical watersheds of the Yangtze River in Sichuan,in line with earlier recommenda tions of the working group.)

　　4.6 Ecosystem Emergy Analysis, Pingwu, Sichuan

　　Progress Report on the Evaluation of Biodiversity in Pingwu County, Sichuan Prov ince

　　a) Background and Significance of Biodiversity Evaluation

　　Conservation and sustainable utilisation of biodiversity has become a hot issue in the protection of the global environment. However, how to evaluate biodiversi ty remains a basic theoretical problem which needs urgent solution, and this pro blem has now attracted attention fromall over the world. UNEP calls for all the parties of the Convention on Biological Diversity to conduct Country Studis with emphasis on the evaluation of the biodiversity.

　　Due to the fact that there are so many uncertain factors concerning natural reso urces, especially biological resources, little research has been done on biodive rsity evaluation. There are not as yet any mature methodoglogical systems for th is.Therefore, how to value biodiversity has become a hard problem for researcher s in the field of ecological economics.

　　Today, most planning and development decisions are made on economic grounds only and, more and more, on the basis of the forces at play in free-market systems. While this paradigm has its own limitations and dangers, it would be unrealistic to ignore it and to base our quest for the conservation and wise use of biodive rsity on a completely different set of values. Hence, biodiversity goods and ser vices must be given quantitative values.

　　In the past decades, the people in many areas of China failed to realise the val ue of biodiversity in forests, lakesetc. , and have destroyed the habitat and ec osystems of biodiversity conservation for short-term economic benefits. While so me people are enjoying the economic benefits, great economic loss follows, and m any people are suffering from biodiversity loss, such as floods and other natura l hazards. For example, it is estimated that the direct economic loss in Yangtze basin reached about Rmb 300 billoin yuan in 1998. Now it is timefor us to evalu ate the real value of biodiversity and establish suitable mechanisms and policie s for sustainalbe development.

　　b) The underlying causes of biodiversity loss

　　The simplification of managed ecosystems in agriculture, forestry and aquacultur e has provided human beings with important biological resources: foods and fibre s. It has also had major effects on biodiversity. These effects are largely exte rnal to the market (i. e. they are not reflected in market prices) and so are ig nored by resources users. The existence of mounting external costs is said to be evidence of market failure.

　　The importance of the gap between the market price of natural resources and thei r value to individuals and society is only gradually coming to be understood. On e of these is the ignorance or uncertainty about social consequence of private a ctions. A second is a structure of rights that encourages people to ignore the k nown social consequences of their actions. A third is government policy which no t only fails to coorect externalities, but makes the problem worse. This is evid ence of policy failure.

　　As mentioned above, markeit and policy failure are the main underlying causes of biodiversity loss.

　　To resolve the problems of market and policy failure we need first to evaluate t heir consequences.

　　c) Type ofvalues

　　In order to solve the problems of market and policy failure, we need first to ev aluate their consequences, and classify the values of biodiversity. The concept of total economic value (TEV) provides such a framework and there is an increasi ng consensus that it is the most appropriate one to use.

　　The value of biological resources in use may be direct (they are used in consumi ption orproduction) or indirect (they support resources which have direct value) . Many biological resources are traded on the markt. These direct use values are reflected in their market prices, but usually it is lower than their true value . Other resources derive value from their role in supporting marketed resources. These roles include ecolgical functions, conservation functions, waste assimila tion functions and other wider functions such as soil productivity (through nutr ient cycling), soil conservation, watershed protection with derivative services of water supply and storage, flood control etc. These functions all indirectly s upport economic activity and human welfare. The mix of species in an ecosystem e nables that system both to provide the flow of ecosystem services and to maintai n that flow over a range of environmental conditions.

　　The current use of biological resources on the basis of market signals is both i nefficient and inequitable. It leads to losses in social welfare. In order to br acket a range of values within which the true values lie, it is necessary to emp loy both willingness-to-pay and emergy analysis based methodologies.

　　d) Main indices, conclusions and findings for further biodiversity evaluation

　　In the first stages, we evaluate the main indices for further evaluation. In Pin gwu county, the annual contribution of emergy-based value of 1 hectare of forest is calculated as follows:

　　Notes: 1 E2 is equal to 102, J is joules. Raw data needs to be further checked a ccording to the investigation in Wanglang reserve.

　　Notes: sej is the unit of emergy value, means solar emergy joules. EM $ is the u nit of macrovalue. Raw data needs to be further checked according to the investi gation in Pingwu county.

　　e) Approaches and applications of theories and suggestions for biodiversity mang ement.

　　In order to find suitable methodology for biodiversity evaluation and management in the first stage of project implementation, we have studied the following top ics concerning resource accounting:

　　·Economic basis and indices for ecosystems evaluation and management;

　　·Perspectives and evaluation on the resources consumption of USA economy;

　　·Case studies of resources accounting in the regional scale of China; and

　　·Methodology of resource accounting in ecological economics.

　　Meanwhile, we have combined methods of environmental economics with methods of e cological economics, and are trying to establish a new framework for the managem ent and evaluation of biodiversity. Some case studies including Pingwu's case st udy will be collected in this report. The final draft for the project needs furt her field investigation, improvement and support. According to our research, we think it is very important to evaluate biological resources for establishing an effective conservation and management of biodiversity. The appropriate policy re sponse is to develop institutions and incentives that will:

　　·Confront resource users with the full social cost of their behaviour;

　　·Enable those who invest in conservation to appropriate the benefits; and

　　·Establish a scientific stimulating mechanism, such as ecological taxes etc. , for ecological compensation and envirnment conservation.

　　4.7 Grassland Regional Development Plan

　　BIODIVERSITY AND SUSTAINABLE USE OF BIOLOGICAL RESOURCES ON THE ALPINE GRASSLAND S OF CHINA PROJECT

　　The BWG has initiated a project to assess elements of biodiversity and its prese rvation and conservation in concert with concomitant development of sustainable uses of the alpine grasslands of China. The primary area of focus is in the alpi ne grasslands of Qinghai Province. During the past year the grasslands projects have focused on two mainissues, as outlined below.

　　a) THE PLATEAU PIKA (OCHOTONA CURZONIAE) IS A KEYSTONE SPECIES FOR BIODIVERSITY ON THE TIBETAN PLATEAU

　　China was one of the first countries to ratify theConvention on Biological Diver sity, and has adoptend an aggressive agenda to identify and preserve biodiversit y within China. Although the Qinghai-Xizang (Tibetan) Plateau is not as biologic ally rich as some other areas in China, it does contain a distinctive and import ant flora and fauna. Appropriately, much attention has been drawn to the massive loss of ungulate species that once flourished on the Plateau. Most of the ungul ate species on the Plateau are listed as Category I or Category II Nationally Pr otected Fauna in China. However. many other components of biodiversity on the Ti betan are at risk, and many of these are directly connected to the biology of th e Plateau Pika (Ochotona curzoniae). The Plateau Pika plays an important roleas a Keystone Species for preservation of biodiversity, and widerspread poisoning o f the pikas is detrimental to the normal functioning of the Tibetan Plateau ecos ystem.

　　A Keystone Species is one that, if lost, will lead to a cascading effect of redu ced biodiversity and proper functioning of an ecosystem. The Plateau Pika is a K eystone Species because it: (1) makes burrows that are the primary homes to a wi de variety of small birds (snowfinches, ground jays) and lizards; (2) creates mi crohabitat disturbance that results in an increase in plant species diversity; ( 3) serves as the main prey for most of the small to medium to large predators on the Plateau (weasels, Pallas' cat, red fox, wolves, brown bears, and nearly all raptorial birds such as black kites, upland buzzards, goshawks, littel owls, et c.); (4) contributes positively to ecosystem-level dynamics by recycling soil; a nd (5) enhances above-ground and below-ground (root) biomass.

　　Plateau Pikas are poisoned because their poupulations may reach high densities - reducing forage for domestic livestock (yak, sheep, horses), and because they pu tatively are responsible for habitat degradation. Research has shown, however, t hat pikas reach high densities in areas that have been overgrazed. High density of pikas is, therefore, likely to be a symptom of poor range management rather t han the cause of rangeland degradation. Control measures are also not cost effective. It is also possible that climate change has contributed significantly to t he formation of black sand areas.

　　In summary, it is necessary to lookat the big picture when managing biologicalre sources on the Tibetan Plateau. The Plateau Pika plays a significant role in the maintenance of the ecosystem, and it should be managed only in concert with oth er uses of the land to ensure sustainability of China's native biodiversity as w ell as the pastureland by domestic livestock.

　　b) RANGELAND UTILIZATION AND BIODIVERSITY ON THE ALPINE GRASSLANDS OF QINGHAI PR OVINCE: THE USE OF REGIONAL AND COUNTY-LEVEL DATABASES

　　Regioal (provincial) level analyses of natural resources may serve as an important starting point to objectively inform and influence management policy decision s. We focus the present analyses on the alpine grasslands of Qinghai Province (n =27 counties) for several reasons:

　　·the large extent and economic importance of the Tibetan Plateau grassland regi on;

　　·the long history of sustainable resource utilization in the region;

　　·recent changes and the current state of ecosystem degradation; and

　　·the presence of distinctive, relatively well-known mammal fauna to serve as a measure of regional biodiversity.

　　The primary dataset on rangeland utilization consists of a pastoral populationde nsity, grassland quality, and season-of-use (summer vs. winter pastures) of rang elands (compiled from government statistics). A measure of biodiversity was derived from a dataset that consists of presence/absence data for 21 characteristic mammal species of the alpine grassland ecosystem.

　　A first-level analysis shows that rangeland quality is lower in counties where m ore winer (vs. summer) grazing occurs. The present trend in development assistance - which targest almost exclusively winter rangeland areas (e.g., for fencing, warm houses, etc.) - should be reconsidered inlght of this finding and developme nt assistance redistributed appropriately between winter and summer rangelands. There is also a high level of interaction between population density and rangelands. There is also a high level of interaction between population density and rangeland season-of-ues. Furthermore, biodiversity on the grasslands of Qinghai Province decreases as human

　　popublation density increases. However, causality of t he latter relationship is not found in the 'population density - season-of-use' relationship nor in the 'population density - grassland quality' relationship.

　　A second-level analysis statistically removed the effect of distance from Xining (a possible surrogate variable for hunting pressure / poaching) from measures o f county biodversity since there is a significant positive relationship between biodiversity and distance from Xining. In this analysis, however, only season-of -use has a significant relationship with biodversity, but in a direction opposit e than expected: greater biodiversity is found where more winter grazing occurs. Data are not available to explore this phenomenon further, but it may relate to the fach that winter grazing areas are larger in poorer quality habitats, and, concomitantly, that wildlife are already 'marginalized' to such habitats for oth er reasons.

　　A final descriptive, spatially-exlicit analysis shows that three regions in Qing hai Province have especially low levels of biodiversity - both when distance fro m Xining alone and when the distance factor and season-of-use are statistically removed. Unique historic events therefore may play an important role in explaini ng the present state of mammal biodiversity in Qinghai Province.

　　With regard to possible future management decisions, the most important relation ships that stem from these analyses is the link between grassland quality and se ason-of-use and the link between the distance from Xining (poaching?) and biodiv ersity. In particular, more research needs to be direchted to summer pasture man agement practices (vs. investing in winter pastures only).

　　These analyses were presented at two international meetings in China during summ er 1998 (International Symposium on the Qinghai-Tibet Plateau, Xining: Pika Keys tone Species analysis; WWF Tibet Workshop: Pika Keystone Species analyses and Wi nter-Summer Grazing analysis). Full manuscripts of each analysis are being submi tted for publication in international peer-reviewed conservation journals.

　　4.8 Wetland Biodiversity Workshops

　　No activity in 1998.

　　4.9 Marine Biodiversity Workshops

　　Marine topics were prime issues included in the Hainan workshop reported in 4.1 above.

　　4.10 Sustainable Use of Biodiversity

　　No specific activity during 1998.

　　4.11 Traditional Chinese Medicine Survey

　　No specific activity in 1998.4.12 Monitoring of International Wildlife Trade

　　Wildlife Cross-border Trade in Yunnan

　　Yunnan Province lies in the southwestern China, which borders with Myammer, Viet nam, and Laos. One main threat to wildlife protection in Yunnan at present is th e serious wildlife trade of both the live animals and their products across the borders. Surverys haven been carried out in Ruili, Wanding, Longchuan, Daluo, Mo han and Kekou. The result shows that the wildlife exchange and trade are very on the borders of Yunnan and neighboring countries. Even though there are laws to p rotect the wildlife, live wildlife and their products are still traded across th e borders. Local people brought wildlife to China simply by passing a river or a hill. They were not checked or quarantined by customs inspection posts. Besides, wildlife has long been utilized by the people for food, medicine, as pets and a s raw materials. We surveyed the markets, the wildlife collecting stations of th e Yunnan Forestry Agency, restaurants, drugstores andpets markets in the each su rvey site. We observed live wildlife and their products, which were imported to Yunnan from neighboring countries. So far, 134 species of wildlife have been ide ntified for sale on the borders, including 54 species of birds which belong to 1 1 orders, 17 families and 2 subfamilies; 33 species of mammals which belong to 6 orders, 16 families; and 47 species of reptiles belonging to 3 orders, 16 famil ies. Besides local consumption, the wildlife taken from Myanmar, Vietnam, and La os are traded to other provinces within China through different channels.

　　The control of cross-border wildlife trade in Yunnan through an international co operation is urgently needed. The customs and port management institutions, espe cially Yunnan Forestry Agency should put great efforts on effective control of i llegal wildlife trade. It is very important to train officers, managers at the p osts and pay great atteintion to public education. In addition, there are many p roblems with the wildlife collecting stations of the Yunnan Forestry Agency whic h should be assessed and improved in an ecologically sensitive way.

　　4.13 China Species Survival Action Plan

　　No progress to date.

　　4.14 East Asia Biodiversity Forum, Hainan

　　This important meeting, organized by IUCN and SEPA, immediately preceded the BWG sectoral workshop in Hainan. Sveral past and present BWG members participated i n the meetings, helping to network the group's activities with wider activities in the Asia region.

　　4.15 Fieldguide to the Mammals of China

　　One of the basic tasks of Biodiversity Conservation is to identity taxa/species and their occurrence (Bio-inventory). Until now, taxonomy, distribution and stat us of many taxa, especially at the species level, still remain very unclear due to the limitation of progress in taxonomic study in China. The quality of databa ses on endangered species status and conservation relies on the updated and corr ect accuracy of taxonomy. One of the reasons why Chinese taxonomy is in a poor s tate is that for many years Chinses scientists had to work in isolation and coul d not compare materials with museum materials in neighboring countries or even w ith other institutions in China. A high level of synonym and outdated nomenclatu re has resulted. This has been the main reason that BWG planned the work on a ne w checklist to revised based on latest taxonomy works and specimens of China's n mammals deposited in China and abroad and also with specimens from other countie s. In summary, according to Dr. Robert Hoffmann and Prof. Wang Sung, there are 5 10 mammal species of mammals in China, comprising 953 subspecies, with 13 taxa r emaining (mainly shrews) in need of further taxonomic study.

　　The BWG has started to compile a Field Guide to China's Mammals (English and Chi nese Versions) based on the latest date and information together with the newest research on taxonomy and distribution (including new techniques such as DNA and carotype studies. Some samples have been drafted and discussed based on the che cked list and samples. It is hoped that the book will be an important reference to research, management and conservation of Chinese mammalian fauna as well as t o eco-tourism to China's mammals. While the Guide is in preparation, the BWG wil l also revise the species inventory names listed in China's Endangered Species I nformation System to improve te quality of the system more scientifically.

　　Dr. John MacKinnon has meanwhile revised the Chinese bird checklist and has almo st finished the draft text of a new Fieldguide to the Birds of China. Over one h undred new plates have been painted and publication is expected in about one yea r by Oxford University Press UK.

　　5. FIVE YEAR WORKPLAN OF BWG

　　The proposed workplan remains unchanged but completion of the activities listed will be dependent upon finding some way to continue funding the operation of the working groip.

　　In view of the disastrous floods that affected China during 1998, one new priori ty activity is proposed - namely to pull together the findings of previous work, experience, and international example, and prepare a special report for the Coun cil entitled "The Use of Natural Vegetation in the Control of Floods".

　　Working plan for 1998-1999

　　The following activities are therefore proposed for the coming year.

　　·Special Report - Concerning the '98 flood - follow up study and recommended ac tions

　　·Database continung & further development

　　·Red List and Application of New Criteria to Chinese Animals/Species Survival A ction Plan

　　·Wildlife survey and monitoring

　　·Assessment of invasive species and impact on biodiversity conservation (extic species released to the wild happened very often ever reportend by TV as a good action; confiscated animals; introduced trees, more and more introduced animals primarily for "Safari Parks", etc.)

　　·Mammal Guide

　　·Grassland Studies

　　6. PUBLICATIONS OF BWG

　　Reports of ongoing projects are to be published.

　　7. FUNDING OF BWG ACTIVITIES

　　All the above-mentioned activities have received assistance from CCICED, MOR NEP A and SOA, and also financial assistance from CIDA, EU and WWF. The Hainan meeti ng was funded by DFID of the British Government. We hereby sincerely acknowledge their help. As shadow ministers of BWG, Council members of CCICED, Claude Marti n and David MacDowell, have always provided assistance to the work of BWG. We al so acknowledge their help. The working group now faces a severe funding shortage with no major sponsors yet found to support our activities in 1998-9. A solutio n must be found to resolve this problem if the group is to complete its mission.

　　8.MAJOR RECOMMENDATIONS OF BWG

　　Specific recommendations for biodiversity conservation in Hainan and on specific issues of BWG activities are givenin the summary activities in section 4. At th is point, the working group wish to make particular and major recommendations th at stem from their work over the past six years, and with particular reference t o the problems experienced in the terrible floods in China during thecurrent yea r.

　　8.1 Flood control can be achieved by taking better protection of natural vegetat ion in critical regions of China, particularly the catchments of the Yellow Rive r and Yangtze River. Measures to be taken should include

　　·banning the logging of remaining natural forests,

　　·reducing pressure on existing forests by subsidising electricity and alternati vefuel costs to local households,

　　·redirecting moneys from the beneficiaries of good control to the individuals a nd agencies living and working in critical catchments responsible for ensuring g ood vegetation cover,

　　·reducing overgrazing on critical grassland areas, and

　　·continuing reforestation projects, but with specific design for good "water sp onge" rather than timber production (i.e. broadleaf or mixed forests rather than monocultures and too many conifers).

　　8.2 Preserve China's irreplaceable biodiversity by continuing to expand the coun try's nature reserve system but with emphasis on quality not quantity. Major rev isions need to be made to the way nature reserves are managed and funded if thes e are to aucceed in protecting their natural values.

　　8.3 Pay more attentionto controlling the harvesting and utilisation of wild plan ts and animals and eradicating illegal domestic and international trades. If mea sures arenot taken in time we will find it is too late and valuable speices and genetic resources will be lost forever.

　　8.4 In the case of Hainan, a biological hotspot hat has lost so much of its biod iversity in the last 30 years, BWG recommends treating the whole province as a s pecial biodiversity area and planning all development inharmony with this status by zoning, with aras of total and partial protection linking areas of cultivati on and forest plantation, alsoincluding green parks and spaces in urban areas, t oenhance the biodiversity values. Certain activities which are incompatible with tis idea should be totally banned for example, hunting. Mangroves should be giv en the same level of protection as inland forests, with a total ban on clearing of mangroves. Coral should also be totally protected, with all bombing, harvesti ng, etc. banned.

　　8.5 A major drive must be made to fill the growing gap in taxonomists in China b y raising the credits for Biology at all levels of education and providing a pro percareer in this subject. Without people who can identify China's native specie s in plants and animals, it is not possible to manage and monitor the country's biodiversity or meet international obligations under international conventions.

　　8.6 The importance of biodiversity conservation and the relevance of this to peo ple's daily lives and development is poorly understood at all levels in China. M ajor awarenessprogrammes should be generated to improve understanding both by th e general public and by government officials, leaders and law-enforcement agensi es.

　　8.7 The environmental conditions of China's seas and freshwater systems are in a serious condition of degradation due to pollution, sedimentation, loss of veget ation and impoundments, China is already feeling the effects of great loss of wi ld fisheries. Aquaculture stocks cannot be relied upon in the long-termas waves of diseae will periodically threaten fish stocks as is already seen in other cou ntries. A mjor research programme followed by development and implementation to clean up the waters of China is required.